How to Buy Bitcoin in 2020?
In the past few weeks, we have received countless numbers of questions from our friends, all asking the same: “How can I buy Bitcoin?” What could have prompted the people very new to cryptocurrency to have a sudden idea of investing in Bitcoin? Apparently, the recent price drop of the first cryptocurrency encouraged many to learn more about Bitcoin and the ways to profit from it.
Recently, Google Trends highlighted that “Buy Bitcoin” searches reached a 3-month high, outperforming “buy gold” searches for the first time since 2017. The reason for this could be attributed to the fact that people are in search of a safe haven asset amidst the current economic crisis caused by the corona pandemic and the other factors. In the wake of the current economic meltdown and the subsequent fear of uncertainty, Bitcoin is considered by many as a new means of saving money.
So, if you are a newbie to cryptocurrency and you are looking for ways to buy some BTC, please find in the following paragraphs:
- Most common ways to buy Bitcoin
- Where to buy Bitcoin
- How to store your Bitcoin
How to buy Bitcoin?
As you know, Bitcoin is a digital currency, hence it is not something you can just pick up over the counter – however, there are Bitcoin ATMs in some parts of the world that let you buy Bitcoin with cash. This would have been your fastest route to buying Bitcoin but since this does not cut across universally, we would be looking at other most common ways of buying Bitcoin.
Buying BTC with a credit card – Crypto exchanges
Crypto exchanges are the platforms where you can buy, sell, or trade cryptocurrencies for other assets, such as conventional fiat money or other digital currencies.
This approach would be the fastest and the most secure way of buying BTC as the units of BTC bought gets added to your wallet immediately as your deposit is confirmed. Buying BTC with a credit or debit card also offers convenience since it is a method of payment used by many already especially on e-commerce platforms. Exchanges that accept credit/debit cards as means of payment include Coinbase, Bitpanda, Binance, etc.
The shortage of this method is ‘border’ restriction as some of these exchanges are limited to some regions or countries. For instance, Coinbase is exclusive to the USA, Europe, Canada, and Singapore, similar to Bitpanda which is only open to Europeans. Binance has a wider coverage, however, there is a need for KYC* procedure, which is good but limits the participation of those without an international passport or other government regulated ID specific to the region.
Buying BTC with a credit card – Crypto exchange services
Unlike crypto exchanges, cryptocurrency exchange services are focused primarily on the exchange itself, making it more simple and user-friendly.
When considering choosing an exchange service that accepts credit/debit cards as means of payment, the best choice is ChangeNOW – a non-custodial service created for simple, fast and efficient cryptocurrency exchanges. The platform does not require any form of account creation or paperwork and always picks the best rate available at the market. Here, it’s easy to buy Bitcoin and over 170 other cryptocurrencies with Visa or Mastercard. Try now and you’ll see how strikingly simple it is.
An alternative to the aforementioned could be buying Bitcoin with PayPal. It has allowed its merchants to accept BTC, however, buying cryptocurrency via this app directly is yet not possible due to several issues. To buy Bitcoin with PayPal, you have to use third-party financial services such as eToro or LocalBitcoins which have quite a number of cons. As this whole system is not too simple and convenient, PayPal is yet not the best way of buying Bitcoin.
Where do I store Bitcoin after buying it?
Whichever payment method you choose, the most important aspect of holding Bitcoin which is also the first rule of thumb in cryptocurrency engagement is security. In the crypto space, you are entirely responsible for keeping your wallet and assets safe.
One of the most secure ways to store your Bitcoin is a hardware wallet like Ledger Nano S. This wallet saves your private keys offline on a device thereby making your wallet immune to hacking
Alternatively, you can store your Bitcoin online by opening a mobile wallet like Jaxx. It’s a multiplatform wallet, available for any operational systems. It will serve you well if you need a Bitcoin wallet for iPhone, and also it’s definitely the best Bitcoin wallet for Android.
To learn more about the best Bitcoin wallets, check out this article in our blog.
So, which way is the best?
We hope that this article helped you get into the ways of buying Bitcoin, and you can now choose the best option suitable for you. To learn more about Bitcoin and the perspectives of its price movement, check out this article about Halving – the event that might very soon significantly affect Bitcoin price.
If you feel like buying Bitcoin now with your regular (fiat) money, we have great news for you – 30% discount is available for all fiat-crypto exchanges at ChangeNOW as an outcome from our partnership with Simplex platform. Want to buy BTC safely and easily – hit ChangeNOW up here!
*Know Your Customer – the process that some of the customers have to undergo in order to provide their identity and other information. This is used for anti-money laundering purposes.
Disclaimer: this article reflects its author’s opinion only and is not financial advice. We take no responsibility for the results of any trader’s decision or action.