Did you know, right now so many people are buying and using Bitcoin that the network is actually experiencing unexpected delays? That’s right – bitcoin is so popular with people flocking from all areas of life, because digital currency brings an enormously wide spectrum of advantages compared to all other payment solutions.
With mass adoption comes a surge in demand for a comprehensive wiki on how to buy Bitcoin and store it safely.
You are in luck – the following guide does exactly that: it explains the A to Z of all you need to know before getting those first Bitcoins. Be it with a credit card, bank transfer, PayPal, or cash – I have the best tricks and tips to get you purchasing like a pro. Read on…
Here are the steps to buy bitcoin:
click & read each stage
- Know the pros and cons of each payment method. Credit cards allow for speedy purchases, while bank transfers offer the cheapest rates.
- Choose from the best sites to buy bitcoin. I’ve selected the top 10 most popular & secure exchanges – reviewed and sorted by payment method.
- Understand the identity verification process. Exchanges are legally obliged to check your ID and location. Having the required documents ready will speed up the time needed to validate your account.
- Investigate whether your exchange meets standards. I’ll show you how to diligently assess any crytpocurrency trading site. Carrying-out background research is essential & beneficial.
- Select a wallet to safely store your cryptocurrency. Online and offline wallets offer their respective conveniences but differ vastly in terms of safety.
Final words…
As you have seen, it is relatively easy to learn by testing a couple of different places and then deciding the most appropriate service for your needs. Once you have tried and tested your favorite site, then the process becomes more straightforward. The learning curve is not that steep anymore.
Should you have some extra time, I highly advise taking a moment to read the history of bitcoin which is actually quite interesting indeed. You may also like to take a look at the price history charts to have an idea of the important exchange rate evolution since Satoshi Nakamoto created it in late 2008. As a final note, I really recommend taking an active interest in the technology behind cryptocurrency, being the single most important innovation since the internet was invented. There is some great discussion on the /r/bitcoin subreddit and on the EpiCenter Podcast for enthusiasts.
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40 Comments on "How to Buy Bitcoins: a Complete Guide for Beginners"
I really appreciated the article. I’m having trouble finding an exchange that accepts American Express. Any suggestions?
Thanks for writing this. It was really helpful for filling in some gaps. I bought a very small amount of bitcoin and ether after the crash to dip my toe in the water. What do you think about altcoins like Ripple, Dash, etc? Should a noob like me stay away from them until I’m more experienced? What’s a good secure exchange to introduce someone to trading these?
Thanks for the nice explaination. I set up an account with Coinbase but they cancelled my purchase twice. No reason was given, except that there’s a reason. Any idea what the problem may be? They tested my card and it worked fine and I was verified. I did see something on their site saying that I can further verify by uploading a drivers license, but I really don’t want to do that.
Thanks for sharing your experience. Unfortunately your issue happens to many people out there. Verification is one of Coinbase’s centerpiece regulatory practices. As far as I know Coinbase do not ask for excessive verification documents – relative to other large competitors such as Bitstamp.
This has to be the best explanation of how to buy bitcoin that I’ve read so far. I’ve been searching all day and no where else give such detailed and easy to understand information. I really like how you have ordered the process into steps: choosing a payment method, choosing an exchange, choosing a wallet (I nearly overlooked how important this is). 🙂 🙂
Your paragraph on the identity verification makes some good sense. I was really curious why so many bitcoin exchanges ask for all this personal info. Nice to know.
thanks for making this. I’m trying to sell my bitcoins after the price has started to crash. I wanted to use a different exchange as I initially bought my coins on Coinbase but it’s mostly down at the moment so not usable. The alternatives you suggested like CEX and Kraken both have been great for selling – although CEX has really higher fees compared to Kraken it’s easier to use
Yes, as of recently Coinbase has had some issues staying online when either the bitcoin or ethereum price makes big moves. You’re correct that Cex is a good beginner friendly alternative to Coinbase for buying with a credit card or bank transfer. Kraken has the cheapest fees of all the bitcoin exchanges, yet it’s slightly harder to use for first-time bitcoiners.
Check out Gemini! It’s awesome 🙂
Any specific factors that makes Gemini stand out?
Excellent work. This cheat sheet for buying bitcoin should be bookmarked by ever beginner out there! I especially like that you wrote up tips for choosing a wallet. Wallet storage is super important and most beginners overlook this.
Have you thought about adding bitquick? They do cash deposits, company doesn’t hold coins once they’re purchased they go directly to a users wallet plus they do escrow.
Interesting, thanks. Has anyone here used Bitquick? Looks good for cash purchasing. USA only tho
LibertyX should be under the cash section for sure. Been using it almost 4 years now.
Ah yes, good point. Tho i think LibertyX is only for buying BTC with cash in the USA right?
Bitcoin de now holding coins 14 days after purchase
CEX has around 15% higher market prices compared to other exchange, fastest way to test crypto experience for most in EU tho
Yes I have noticed that prices on cex are significantly higher than elsewhere. As you said, CEX is really easy to use tho.
Any sources regarding Bitcoin de holding coins for 2 weeks?
Cex charge you storage fees if they de-list coins, and their export functions are totally broken. this means you can not make a proper tax filing. it’s good that it is recommended!
Hello 🙂 In which country do you have to file tax for purchasing bitcoin? I do agree that CEX have unlisted many coins as of recently. Litecoin was nice and worked well on CEX, I don’t agree with their removing of this cryptocurrency. CEX is still a great site for beginners and a really good Coinbase alternative
First of all, a great article and thanks for sharing all the knowledge. Can you also throw some light on how to transfer bitcoins between two different exchanges? Like coinbase to kraken or vice versa?
Thanks again
Good point, I’m sure many users do try to send their bitcoin to other exchanges – so an explanation would be useful especially for Kraken and Coinbase. Let me see if I can fit a paragraph in there to explain further. Great to hear your feedback, thanks.
Buysomebitcoins deserve to be on the top.
I’ve actually taken a good liking to this exchange. It’s simple, functional, no-frills, and offers no ID verification purchases of bitcoins. So many people have been searching for such a site as all the other exchanges erect long and slow vetting barriers.
this is the most detailed guide that I have read for buying bitcoin. i agree with you that including a part on how to select a wallet is very important for beginners. most just overlook this step and leave their cryptocurrency on the exchange. we all know what happens next…
I appreciate the positive feedback. That is precisely the reason why I insisted on making the section about choosing a wallet and withdrawing coins away from the exchange after purchase
With all the block-size debate I don’t understand how the price is still rising and how newbies are still wanting to learn about buying bitcoin. Wouldn’t all the in-fighting in the community just scare off new users? It looks like bitcoin is ultra-resilient and even a full fracture within the miners and developers won’t affect the long term stability. We’ve truly found a globally robust and universal store of value! I’m in 🙂
Yes, I’ve always been for “bitcoin the technology” rather than “bitcoin the currency”. It’s the underling innovation that makes it so valuable and resilient to crises. Good point raised here – thank you.
bitcoin.de is limited for EU and US citizens only, even if you are permanent resident in EU or USA they do not let you trade.
Wow I’ve just looked into this, it’s a strange move on their behalf. I wonder why, when other popular alternatives like Coinbase, Kraken, Bitstamp, and Localbitcoins all work fine in the EU and US with all residents? Thanks for letting us know anyhow 🙂
Do these sites work to buy bitcoin in india? we need to swap our currency to something more stable and I’m thinking gold or BTC might be a good idea with the current demonitization situation
For those seeking ways to purchase btc in India I would recommend Unocoin or BTCxInida. Both have good reputation and accept bank transfer deposits. If possible let me know which you choose and how you liked it.
Good tips on how to get bitcoin thanks. I was wondering which is cheapest between paypal and credit card ? Not too sure but I’d like to buy instantly too so these two are interesting for me
this page and the bitcoin site comparisons were helpful to me so thank you.
saw this page recommended on reddit. came here expecting to see nothing but damn was i wrong. great tips to invest in bitcoin
Not bad at all. Great to see that you’re posting information to the bitcoin forums to help guide new users on the best ways to purchase digital currency. It’s not easy starting off at first and if I was in that case this sort of page would have helped greatly. Only a few years ago we barely even had a wikipedia page for bitcoin.
Hey good job mentioning Coinbase for how to buy bitcoin with a card. Though would you not think that Circle as its place here too? After all it is a beginner-friendly service with a growing user base all over the world.
Great to hear the feedback. There are all sorts of means to purchase btc – card included. I’m actually researching Circle as we speak. They have tonnes of positive reviews from new users… looks good and very newbie-friendly.
Update(May 2017): Circle no longer sells bitcoins. The company has decided to go its own way and leave the thriving cryptocurrency community behind.
Good reviews about Circle are not real. Circle does not sell bitcoin anymore.
thanks for your update, and yes there was some shady activities going on with Circles review in Google Play. I’ve updated my comment.
It actually has an app where you can get bitcoins with a card directly on android phone or apple too I think. Prices are slightly better too.