How to buy Bitcoins
Hey guys Dave here, I know you guys have heard me talking alot about cryptocurrency and bitcoin lately. For new readers, I am an investor, I’m all about travel, making money espeically when its passive income. I own several rental properties that I have turned in to airbnb’s you can read about those here and here. But recently I have been doing some cool things with Bitcoins you can read about my bitcoin experiment here, or how I started making passive income with bitcoins here. Then it hit me, I should probably explain where to get bitcoins. So here is my tutorial to getting your hands on some of that sweet, sweet crypto.
There is no doubt that if you stumbled onto this page you have heard about bitcoin. That’s because you’re super tech-savvy and smart enough to do your research. Now you need to know how to buy bitcoins. I mean, where do you get Bitcoins anyway? Today I am going to show you what I wish I knew about how to purchase bitcoins. Welcome to the world of cryptocurrency.
Buying Bitcoins with Coinbase
Once your email is verified you will have to verify your phone number.
I know that all these verifications can be annoying but they are in place to protect our money. The next step is to verify your payment source. There are two options you can use a card such as debit or credit, or bank account.
How to buy Bitcoins with a credit card
If you want to buy bitcoins with credit card, Coinbase is by far the best option. To buy bitcoins with a credit card you will first have to verify your card on Coinbase. This is a simple process but you will need access to your online banking. Before you can get your debit or credit card registered, Coinbase sends out 2 or 3 pending charges that are all $1 and some change. When Coinbase does this, they will prompt you to enter the amount of change like in the picture below.
To verify you just have to enter the change. If you get a charge that is $1 even DO NOT USE THAT ONE, only the charges with change after it. Don’t worry these charges fall off once you verify your card. With credit cards there is a 2.5% charge which is not bad in the world of Bitcoin. The bonus to using your credit or debit card is this is the best way to buy bitcoins instantly. There is no wait time for your bitcoin to arrive which is good because bitcoin price fluctuates. I did notice that my weekly buying limit was lower than the limit given with the bank account.
Pros of buying bitcoins with credit card
- Instant transaction, bitcoin is in your account right away
- Low Fees
- Good for short term trading
Cons of buying bitcoin with credit card
- Lower buying limits with new accounts.
Buy Bitcoins with bank account
You can also buy bitcoins with your bank account. This way is good because there are no additional fees. Adding your bank account is simple as choosing bank account as your payment method and logging in via your bank online login info. The downside to buying bitcoins with your bank account is that there is a wait time. This wait time can be anywhere between 4-10 days. This is not ideal if you want to make sure that you are buying in at a specific price. Buying with bank accounts usually gets your a higher weekly buying limit.
Pros of buying bitcoins with your bank account on Coinbase
- No Fees
- OK for long-term holding
Cons of buying bitcoins with your bank account on Coinbase
- Slow transaction 4-10 days
- Don’t know what price will be when you receive bitcoin
- Bad for short term trades
Buying your Bitcoin
Once your payment method is set up you simply need to click bitcoin and click buy bitcoin
The final step is to enter the amount of bitcoin you wish to buy in USD and click buy bitcoin instantly. You will get to a confirm screen and then your bitcoin should appear in your account. You are now a proud bitcoin owner.
If you want to sign up for Coinbase to buy some bitcoins you will get an additional $10 in bitcoin when you spend $100 with this Coinbase promo.
Bitcoin ATM’s are my least favorite way to buy bitcoin. If you are in a hurry and you don’t have a bank account you can buy bitcoin from one of these specialized ATMs. I used a bitcoin atm a few times when I was trying to get bitcoin for the BitConnect experiment. A few things I learned from the experience is that you can find your local Bitcoin ATM using CoinRadar.com I was able to locate a few of these ATM’s within reasonable driving distance to my home. The process was straight forward. It had a touch screen interface that was small but easy to use. After beginning the process, I was required to register with my phone number, for which I was sent a text with a code that I had to verify, and then I had to scan my ID. Once my ID was scanned I was that the machine had a 15% fee meaning for every $100 I needed to add an extra $15 in fees. This was quite expensive and I would later find out that this pricing is average and some ATM’s were even charging 20%. Next I was asked to scan the barcode to my destination address. Now it was time to add the money, it was cash only and no way to use credit or debit. I deposited my money and watched the fragments of bitcoin add up on the screen. Once I was done I was given a reciept and within moments the transaction showed up as pending on my wallet.
The Pros of Using Bitcoin ATM
- Good for quick bitcoin transactions
- Buy Bitcoin INSTANTLY!
- Great way to get bitcoin if you don’t have a bank account
The Cons of using a Bitcoin ATM
- Requires you to have a bitcoin wallet already
- EXPENSIVE FEES 15%-20% is common
- ATMs were mostly located in shady areas of town in my area
- Have to travel with cash on you
- Bitcoin ATMS are CASH ONLY!