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.

Here are the steps to buy bitcoin:

1. Know the pros and cons of each payment method.

Credit cards allow for speedy purchases, while bank transfers offer the cheapest rates.
You may have heard that getting bitcoin is difficult because a PC must mine them first. Such statements are no longer true.
In 2017 it is now possible to purchase bitcoin directly. From credit cards to bank transfers, from cash to PayPal – there is no shortage of payment methods for buying. Each method will have its associated inconveniences and strengths.

Speed to deposit, commissions, ease-of-use, degree of anonymity, fungibility, proximity, and security – are all important factors when choosing a deposit method. Here is a summary table of the advantages/disadvantages for each payment method:

Bank Transfer vs Credit Card

For buying large amounts of bitcoin, you should choose to buy with a bank transfer on a reputable exchange. Fees are always lowest when you choose to transfer funds directly via SEPA (Europe) or Wire (US). Alternatively credit card purchases will provide you with bitcoins in a much faster time span. This is because deposits are verified instantly so the exchange can immediately release the cryptocurrency to you. The downside is that credit card transactions entail larger fees, which make it inconvenient for getting many bitcoins.

PayPal vs Credit Card

What makes people want to transfer PayPal to bitcoin and vice versa? The simple fact that PayPal is instant, ubiquitous, and quite convenient (Many people use it as their favorite payment processor). Using PayPal is great for small amounts, but it’s far cheaper to use other payment methods (credit card, bank transfer) for larger transactions. Credit card purchases are the simplest way. Fees are high, but generally not as high as when buying with PayPal. Be aware that not many PayPal to bitcoin exchanges exist and therefore some places may take advantage of this. Be sure to read the differences between a good and a bad crypto trading site before commiting your funds.

Use the following diagram to compare PayPal vs Credit Card for buying BTC:
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Cash (in-person) vs Buying Online

There are two accepted ways to buy bitcoin with cash:

-Using a Bitcoin ATM – you put cash in, it sends bitcoins to your specified address
-Meeting a person and swapping your cash for their bitcoins
-Generally speaking, buying bitcoins with cash will guarantee the highest levels of anonymity. Fees are higher than buying by bank transfer, but at least you will keep your ID secret and no one has to know who you are. Some people choose cash because they want to buy bitcoin with no ID, but for large transactions this become quite inconvenient, risky, and even physically dangerous. Another downside is that you usually have to go to physical location to meet someone, rather than just being able to do it all online. Please note that not all bitcoin ATMs are anonymous. Some do require ID submission.

Working for Bitcoin vs Buying it

Did you know that it is actually possible to work for bitcoin? It’s really starting to kick-off within the freelancing community. If you’re a graphic designer, web developer, artist, producer, or anything else that can be done remotely – then I highly recommend looking into working for bitcoin. There are no exchange fees, since your employer simply sends you his bitcoins directly to your address. Granted, this is not the fastest method, but you sure would be riding the first wave of trend-setting digital freelancers. I like to look for freelancing gigs on the xbtfreelancer site or the /r/Jobs4Bitcoins sub-Reddit.


2. Choose from the best sites to buy bitcoin. I’ve selected the top 10 most popular & secure exchanges – reviewed and sorted by payment method.

Which are the best places to get Bitcoin ?

If you came to this page because there are just too many places to buy bitcoin – then you are at the right place. The overwhelming number of bitcoin exchanges makes it hard to narrow down to only the best options out there. From there being only six major trading sites in 2014 to more than two hundred in 2017 – it’s no surprise that new bitcoiners get lost when researching where to get their first bitcoins.

The purpose of this page is to get you using the most secure and trustworthy bitcoin exchange. I will show you how easy it is to get your first coins on a popular trading site with excellent reviews. Most importantly, I’ll demonstrate which sites work best with your desired deposit method – be it credit card, bank transfer, cash, or paypal.

Comparison of the best sites to buy bitcoin

Below is a table that summarizes the best places to buy bitcoin. You’ll find sites ranked by: available payment methods, fees, ease-of-use, and reputation. The “reputation” column represents the overall user feedback received in forums. Some sites have multiple methods to deposit money, while others focus on one. The fee column represents commission levels on each exchange.

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Top sites to buy bitcoin with a credit card

The first thing to consider before asking where to get btc with a credit card, is that this service has only existed very recently. People find it quite incredible – why did no one offer card deposits before? Simply because credit card transactions were partially reversible by the bank. So these exchanges had to first gain lots of trust and goodwill before banks would allow them to operate over the SWIFT network. Using a card to buy btc means confirmation waiting time has been significantly reduced.

The following list of sites accept credit cards:


Coinbase.com

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Based out of San Francisco, Coinbase allow users to buy with USD, Euros & GBP. Be sure to read up their information page which will help you get started. Coinbase really is a great site for multiple reasons, but most importantly because it’s intuitive. The user interface is so appealing and simple to use. Coinbase is also one of the most secure exchanges site and has over 18 million happy users per month. Card purchases are real simple and fees remain very competitive. The best part is that all user wallets are insured. Expert users can even activate a super-advanced & secure mutli-signature wallet. This guarantees that in the event Coinbase were to go offline then these users could still move their coins.

Like all major exchanges, Coinbase do require ID submission before you can finalize an order. Current verification times are reportedly slower than usual. Should you want to trade like a professional: use GDAX for larger volume transactions and cheaper fees.

While Coinbase really does offer some very cool features for both beginners and experts, it is hard to believe that the best-funded bitcoin exchange out there persistently goes offline during large sell-offs. I urge caution if you are wanting to buy or sell your Bitcoin you may have to wait several hours just to sign in.

Cex.io
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CEX is an integral part of my guide, because they offer a diverse range of services. This tutorial would feel empty without including them here. I also really appreciate the fact that customers can learn easily on CEX thanks to a fully beginner-optimized process. This UK based bitcoin exchange (ETH BTC) originally was a cloud mining operator. Due to increasing demand, it was decided to start offering bitcoins for sale. They now have over 700 000 users and accept Euro, US Dollar, and Russian Ruble. Wire transfer and SEPA payments are also accepted. CEX have a Level 2 PCI DSS data security clearance meaning that this site is extremely trustworthy with users data and money.

Bitstamp.net

Bitstamp is rapidly gaining popularity in Europe as the best place to buy btc online. With its recent new HQ in London, along with its well-acclaimed acceptance of Mastercard & VISA, Bitstamp has attracted quite a large user base among those asking how to get bitcoins with a debit card. As an added benefit, this is the cheapest place to trade BTC USD or EUR for high-volumes. The sign-up process is easy and once validated you will be able to purchase immediately. Withdrawing is just as fast. The ease of use here makes it an excellent choice. I would definitely recommend this to my mother.

3. 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.

You may have heard that to buy bitcoin one needs to submit a series of identification documents to the trading site. Such documents may range from copies of passports & utility bills, to selfies of yourself holding a custom message. When I first stated using bitcoin in 2013 none of the exchange sites asked for passport or utility bill photocopies. Now in 2017 virtually every bitcoin exchange is obliged by law to do full KYC (know your customer). This is to prevent cyber-crime and money laundering. Some anarchists say the government worries that you might be gaining too much economic freedom.

All things said, it is very important to be aware when seeking recommended places to buy bitcoin without ID. Even if you choose a full-KYC exchange you should still be realistic and take precautions to protect against identity theft or abusive practices by exchange operators.

Note that most people are 100% fine getting their cryptocurrency through normal verification procedures. Ask yourself do you really need to obfuscate your existence or not.

How to stay anonymous when buying bitcoin

Should you need to stay anonymous when buying bitcoin, this is possible but expect to pay a higher cost per bitcoin. Most sites are charging premiums of 20% to 40% for customers without identification. Another thing to remember is that not each method will be the same. There are means for buying cryptocurrency with no ID that may require you to meet up in person. Others may require wait periods of up to 3 weeks before the digital assets are released from escrow to your wallet.

4. 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.

How is it that some people always use the most trustworthy & sound bitcoin exchanges – while others get trapped with poor-quality insecure platforms? From the slow collapse of Cryptsy altcoin exchange to the never-ending MtGox fiasco – there are some important lessons that everyone can learn. Indeed, knowing the factors that qualify a good cryptocurrency exchange v.s. a bad one is like knowing which banks can be trusted and which cannot.

5. Select a wallet to safely store your cryptocurrency. Online and offline wallets offer their respective conveniences but differ vastly in terms of safety.

We have all heard those sad stories of unfortunate people loosing their bitcoins. From online wallet hacks to desktop trojans watching for passphrases – the world of cryptocurrency storage is only in its early stages. A realistic strategy is always needed when securing your digital assets – both for long term storage and for everyday use.

I strongly believe that choosing a good wallet is the most important part of learning how to use bitcoin. Using a safe storage solution is still not an easy task. In fact, the most convenient wallet systems (web-wallets) are usually the most unsafe. Thankfully there are many extremely safe options for holding your bitcoins. Throughout this page I’ll help you choose the best wallet for keeping your digital currency safe.

To keep things simple: remember that the private keys of your wallet are what enables sending the coins elsewhere. The safest wallets are those where the private keys are kept hidden away from the outside world to see.

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Best sites to get bitcoins via PayPal

Localbitcoins.com

Localbitcoins have recently added the option for buyers and sellers to exchange bitcoins for PayPal. Due to the fear of reversible transactions and charge-backs, not many sites offer the use of this payment processor. Be aware that higher commissions are taken by sellers to cover the charge-back risk (where the buyer reverses the transaction).

Most Localbitcoin sellers will allow PayPal purchases ranging between 10 usd to 1500 usd. The big downside is that they require you to have community reputation (previous purchase history). Sellers do this in-order to minimize the risk that bad-actors reverse the PayPal transaction while keeping the bitcoins.

Paxful.com

Paxful is located in Delaware, USA. This site is obligatory in any tutorial on how to invest bitcoin, simply because they offer a really wide range of features. Not only can you go from paypal to bitcoin on Paxful, but you can also use Amazon gift cards too (and others such as OneVanilla, Walmart, Bestbuy, and Gamestop). Google Wallet is also accepted by vendors here.

You will find that it is all about finding a vendor that is ready to trade with you. Yes, it is true that other sites offer an easier process, but where else can you exchange virtually anything for the most popular cryptocurrency in existence? Check out Paxful’s instructions and read up the FAQ. I do prefer LocalBitcoins to Paxful – especially so now that the former accepts PayPal.

Wesellcrypto.com

Since August 2017 Wesellcrypto is having issues with PayPal and therefore was forced to cease all trading. Once a popular platform for buying Dogecoin through PayPal. The operators realized that this payment method was so demanded that maybe they should also try it for bitcoin. The site has 100 thousand unique visits per month and growing by 10% each quarter. PayPal to bitcoin purchases can be done without ID verification for small amounts under 15 usd. Larger amounts require various stages of vetting depending on the weekly quantity. Fees are approximately on par with the competition. While the site owner remains discrete, users review are mostly positive, and I would still recommend this site a great alternative.

Xcoins.io

Xcoins are a really trustworthy option. They have just moved into new offices (former Google building) in downtown Santa Monica, USA. The platform uses an innovative feature of lending bitcoins on peer to peer basis. This enables instant transactions and makes Xcoins the fastest of all sites to get BTC with PayPal. I have had a few opportunities to interact with support and they are very swift to respond and fix issues. In terms of popularity, Xcoins are definitely easier to use than WeSellCrypto and have twice the amount of traffic.


Leading sites to buy bitcoin with a bank transfer

Kraken.com

Kraken operates a professional exchange which has passed all of the highest security audits in this space. Operating out of San Francisco, USA since 2011 – this site is optimised for serious buyers wanting to actively trade BTC (Kraken uses the official “XBT” currency code). More and more Cryptocoin markets are up and running too (for example Ethereum & Zcash trading have been added recently).

Kraken offers the best service for a bank transfer (wire SEPA) deposits. For the time being this is the only deposit method available. Deposit currencies include euros, US dollars, and KRW (Korean Won). It is super cheap to deposit, withdraw, and trade on Kraken. Daily volumes are always high, and an excellent fee transparency guarantees low commissions and that you get the cheapest coins. Rumor has it that Kraken could add leveraged trading (yes – short selling) sometime soon.

Cryptopay.com

While cryptopay’s centerpiece product is indeed its bitcoin credit card, there is a hugely underrated exchange platform available to its customers. Bank transfer deposits are quick to confirm and accepted in GBP, EUR, and USD. Fees are about 20 percent higher than Kraken, but this is well worth it because Cryptopay is so much easier to use. Thanks to a great user interface the site has managed to build up over 750 000 unique visits and plenty of good reviews online. As with all online wallets, I do recommend testing their wallet service & storing a small portion of your bitcoin here. It is best practice to always withdraw most of your coins to your own offline wallet.

Bitcoin.de

Bitcoin.de have built themselves quite a solid following and reputation in the European market. Based in Germany, this site is really easy to use and a great choice for people looking for an alternative p2p platform to Localbitcoins. Bitcoin.de also have an escrow service. Liquidity is not as large as on Bitfinex for example, but safety and a user-friendly experience make it fine for beginners & newcomers. Fees are currently at 1 percent of selling price. Deposit currency is in EUR, by SEPA bank transfer.



As a Personal opinion , Coinbase seems to be a preference of many. as they say:
‘Any user storing Bitcoin on Coinbase at the time of the fork will be credited with an equal amount of the new Bitcoin2x asset on the Bitcoin2x blockchain. No action is required – we will automatically credit your account.’