Beginners guide to enter the revolution of money
There is tons of news and information about cryptocurrency, many people still don’t know how to buy Bitcoins and cryptocurrency. Well, due to that there are many ways to do it and some have more fractions than others. With cryptocurrency back in the news again, now’s a better time than ever to delve into the weeds and learn more about how to invest. Here’s a breakdown of everything you need to know in order to buy bitcoin.
There is more than one way to buy crypto. You can onboard on an online exchange like Binance or Kraken or start a wallet on a platform like Blockchain.info. In general, all exchanges will do KYC. This stands for “Know Your Client’ and requires the upload of your ID and proof of address. Banks do this also as regulation requires it.
Remember that the bitcoin exchange and the bitcoin wallet are not the same things. Exchange offer wallet capabilities to users, it is not their primary business. Since wallets must be secure, exchanges do not encourage storing large amounts of bitcoin or for long periods. Therefore, it is advisable to transfer your bitcoins to a secure wallet. Because security must be your top priority when choosing a bitcoin wallet, opt for one with a multi-signature facility.
Buy Bitcoin using credit card
Exchanges nowadays accept credit cards, at least the major ones. There was a ban during 2018 from banks but the commission was too good so banks lifted the bans. Commissions might be high to compare exchanges before you go this route.
Bitcoin Exchange: After you’ve set up your wallet with a payment method, you’ll need a place to actually buy bitcoin. Users can buy bitcoin and other cryptocurrencies from online marketplaces called “exchanges,” similar to the platforms that traders use to buy stock. Bitcoin exchanges are similar to foreign exchange markets. The exchanges are digital platforms where Bitcoin is exchanged for fiat currency—for example, bitcoin (BTC) for U.S. dollars (USD). You can also wire money to your exchange from your current bank. If you live in Europe you can use SEPA transactions or bank transfer (ACH). SEPA uses the Euro currency. Most of the bigger cryptocurrency allows you to buy with Euro, like Bitcoin, Etherium, Ripple.
Peer to Peer exchange
You meet somebody in your town that wants to trade bitcoins. Localbitcoins or Paxful is a Peer to Peer Bitcoin marketplace connecting buyers with sellers. This alternative is great on keeping things simple and lower the barrier for people to get in.
Bitcoin ATMs: Bitcoin ATMs act a bit like in-person bitcoin exchanges. Individuals can insert cash into the machine and use it to purchase bitcoin which is then transferred to a secure digital wallet. Bitcoin ATMs have become increasingly popular in recent years; Coin ATM Radar can help to track down the closest machines.
In Sweden, you can since many years back buy Bitcoin with Swish which is the VENMO version of Sweden. Companies like Safello and bt.cx claim to be able to buy you bitcoins under 60 seconds. This requires you however to have a Swish account. This alternative takes the highest commission but if speed and ease of buying are important this might be for you.