Bitcoin is gradually becoming a globally accepted means of transaction. Some key personalities strongly believed bitcoin was just another fad that would slowly fizzle out. Many of them have changed their minds, and some have even gone ahead to support bitcoin and other cryptocurrencies. With all the hype surrounding bitcoin’s future, you might want to get in on some of the action.
We will make some assumptions here: that this is your first time attempting to buy bitcoin; that you have limited knowledge of bitcoin and the cryptocurrency world; and that you want to understand everything about how to buy BTC. We are going to explain how to buy bitcoin as simply as possible. Let’s get into it!
Why Can You Not Buy Bitcoin at the Bank?
The short answer is this: it has not been fully adopted by existing financial institutions. The actual nuances of it are not quite as simple. Banks have several plausible reasons for not adopting cryptocurrency. The major reason is that bitcoin is illegal in some regions of the world. Even though some enterprising countries accept bitcoin as legal tender and some have bitcoin ATMs, others are still sceptical about fully adopting this cryptocurrency.
Another reason why banks shy away from bitcoin is because of its extreme instability and volatility. This does not make bitcoin a promising asset for most banks due to the high risk involved.
Bitcoin has an extremely volatile behaviour and its value is based on what people are willing to pay. This makes it currently unsuitable as a means of payment. These are some of the reasons why bitcoin is not sold or accepted in banks. But that doesn’t matter; the next section tells you the best ways to buy bitcoin.
How Can You Buy Bitcoin?
We have highlighted some safe and convenient ways to buy bitcoin.
- Cryptocurrency Exchanges
Crypto exchanges are the most popular option for buying bitcoin, and many cryptocurrency traders use this option. This is not surprising because they are easy to use, safe, and, most importantly, have lower transaction fees.
To get started with a crypto exchange, you need to sign up and submit the required identification info. Then you fund your exchange wallet and make the purchase.
- Crypto ATMs
This is particularly good for those who want a more traditional method of buying bitcoin. However, the transaction fees can be very expensive, so you might want to consider other methods before you choose crypto ATMs.
Crypto ATMs typically work like traditional ones; you insert a credit card or debit card, enter your orders, and get bitcoin in your wallet.
- Peer-to-Peer (P2P) Exchanges
These exchanges are slightly different from the aforementioned. You’re not buying from a certain organisation here; the exchange platform links you to other users who are selling bitcoin. You may also have to trade at the platform’s exchange rate.
- Financial Apps
Some investing and financial Apps (such as PayPal) now support bitcoin purchases. Through these platforms, you can buy bitcoin, sell it, and use it for purchases.
These apps usually charge no fee for their services, but there’s a catch; you cannot keep or transfer your bitcoin to other platforms except the platform you bought it from. For example, you can buy and sell bitcoin for fiat on PayPal. But you can’t send your bitcoin out to another wallet or an exchange.
However, this is fast changing, as some apps, like Robinhood, are making plans to remove this restriction.
- Buy Bitcoin in Person
If all else fails, you can always get bitcoin in person. This is like P2P. You agree on a certain price with the seller you’re getting bitcoin from, and you pay them using cash or other payment methods. After your transaction, simply provide your seller with your bitcoin wallet address. They should send you an equivalent amount of bitcoin.
Buying bitcoin should not be a difficult task given the various options available and the ease they offer. Hopefully, this article has shed some light on the best ways to get bitcoin in your wallet.
However, it is worth noting that the crypto world has many other cryptocurrencies apart from bitcoin, and you should consider some other good ones if you want to increase your chances of success. While none of them indeed holds a candle to bitcoin in terms of value and market share, you should not put all your eggs in one basket.