Buying Bitcoin from Exchanges VS. Peer to Peer Transactions
There are two main ways to purchase bitcoins. You can either purchase bitcoins from an exchange which usually requires some form of identity verification, or you can buy directly from another person which is called a peer-to-peer transaction. There are many exchange platform services, but I personally use and love Coinbase. They allow you to buy Bitcoin, Litecoin, and Ethereum with a credit/debit card, bank account, or paypal. I will give a link and detailed instructions on how to sign up below. Exchange services usually provide the option to link your bank account and to buy bitcoins directly from it. Coinbase charges a standard 1.5% fee on bank transfers in order to provide their service. Coinbase also has a Bitcoin debit card called the SHIFT card that allows you to spend your bitcoins anywhere that VISA cards are accepted. This is the simplest way to purchase bitcoins once you have done the verification process, but it is not anonymous.
Some users prefer to have more anonymity and less verification procedures, so they choose the peer-to-peer (P2P) transaction option. If you know someone who has bitcoin, for example me, you can simply offer them a form of payment in return for bitcoin, and the price can be negotiated amongst each other. Many people do not know anyone to buy bitcoin off of and may not feel comfortable finding a random person to do the transaction. For this reason, services such as LocalBitcoins.com provide a craigslist type adservice to link buyers and sellers. Localbitcoins provides an escrow service which means the bitcoins are held by them until the transaction is confirmed. This provides some protections against scams, but it is still good to be careful. There are various types of payments accepted including bank deposit, wire transfer, moneygram, western union, etc. The flexibility of payment methods is truly helpful, as it allows you to pay in whatever way is most convenient for you that also meets your anonymity requirements. The buyer will charge you a certain percent over the current market price of bitcoin as a fee for their time.
Signing Up with Coinbase
Here is a step-by-step sign up guide for joining Coinbase. If you use the referral link below, you will get a free $10 when you buy or sell your first $100 worth of bitcoin.
1. Click the link HERE.
2. Enter your name, email, and password.
Click I agree to the User Agreement.
Click the Sign Up button.
3. Verify Email:
Go to your email client and click the link to verify your email.
4. Verify phone number:Enter your phone number and click next.
You will receive a text or call with a verification code.
Enter this verification code on coinbase and click verify.
5. Enter profile details including birthday and address. Click next.
6. Verify Identity:
Click start verification.
Follow the instructions to upload photos of your documents (ID or passport)
Click finish and start verification process.
7. Enter your payment details: You can choose to skip this and do it later if desired.
Enter your card or bank details and click next.
8. Buy Bitcoin! Enter the amount you would like to purchase.
You may have noticed that there are daily buying limits. These can be raised by linking your bank account and verifying it. I plan to add a step-by-step guide on how to do this as well.
Happy bitcoining!
Some users prefer to have more anonymity and less verification procedures, so they choose the peer-to-peer (P2P) transaction option. If you know someone who has bitcoin, for example me, you can simply offer them a form of payment in return for bitcoin, and the price can be negotiated amongst each other. Many people do not know anyone to buy bitcoin off of and may not feel comfortable finding a random person to do the transaction. For this reason, services such as LocalBitcoins.com provide a craigslist type adservice to link buyers and sellers. Localbitcoins provides an escrow service which means the bitcoins are held by them until the transaction is confirmed. This provides some protections against scams, but it is still good to be careful. There are various types of payments accepted including bank deposit, wire transfer, moneygram, western union, etc. The flexibility of payment methods is truly helpful, as it allows you to pay in whatever way is most convenient for you that also meets your anonymity requirements. The buyer will charge you a certain percent over the current market price of bitcoin as a fee for their time.
Signing Up with Coinbase
Here is a step-by-step sign up guide for joining Coinbase. If you use the referral link below, you will get a free $10 when you buy or sell your first $100 worth of bitcoin.
1. Click the link HERE.
2. Enter your name, email, and password.
Click I agree to the User Agreement.
Click the Sign Up button.
3. Verify Email:
Go to your email client and click the link to verify your email.
4. Verify phone number:Enter your phone number and click next.
You will receive a text or call with a verification code.
Enter this verification code on coinbase and click verify.
5. Enter profile details including birthday and address. Click next.
6. Verify Identity:
Click start verification.
Follow the instructions to upload photos of your documents (ID or passport)
Click finish and start verification process.
7. Enter your payment details: You can choose to skip this and do it later if desired.
Enter your card or bank details and click next.
8. Buy Bitcoin! Enter the amount you would like to purchase.
You may have noticed that there are daily buying limits. These can be raised by linking your bank account and verifying it. I plan to add a step-by-step guide on how to do this as well.
Happy bitcoining!