Cryptocurrency Trading & Investing For Beginners (Part 3) – Buying Bitcoin

>Part 1 of the Cryptocurrency Trading & Investing For Beginners Series: Cryptocurrency Basics & The Blockchain 

>Part 2 of the Cryptocurrency Trading & Investing For Beginners Series: Bitcoin Wallets

In part 2 of the “Cryptocurrency Trading & Investing For Beginners” series, we looked at the various types of wallets available to store your Bitcoin and how to install a Bitcoin wallet on your desktop.

In the final post of the series and is an EPIC list of where to buy Bitcoin regardless of where you are in the world.


chapter 2.5: Buying Bitcoin Anywhere In The World

Whether you decide to trade actively or invest in cryptocurrencies, you will need to buy Bitcoin in fiat currency (cash) first to fund your trading account as most alt coins are paired against Bitcoin (BTC).

For example, you can’t buy smaller alt coins like Civic (CVC) directly on an exchange with cash. The exchange will quote the buying price as BTC-CVC which means you can only buy Civic coins using Bitcoins.

There are many ways to buy Bitcoin in fiat:

  • Through exchange platforms
  • Offline in your local area
  • Through brokers
  • At Bitcoin ATMs
  • With Gift Cards / Vouchers etc

How you buy Bitcoin will depend on the country you’re located in and your personal preference. I prefer to buy Bitcoin on the spot market through an exchange. Spot markets are pair cryptocurrencies against fiat.

The most liquid cryptocurrencies in the spot market is Bitcoin (BTC) paired against the US Dollar (USD), Chinese Yuan (CNY) or Euro Dollar (EUR) expressed as:

  • BTC/USD
  • BTC/CNY
  • BTC/EUR

Liquidity in this case simply means there are more people buying and selling Bitcoins in US Dollars, Chinese Yuan and Euro Dollars.

So if you want to buy large quantities of Bitcoin, your order will be filled quickly when you buy Bitcoins in USD, CNY or EUR.

For example, I’m based in Australia and there are only a handful of exchanges in which I can buy Bitcoin using Australian dollars. Which means factoring in the USD exchange rate in addition to transaction fees to buy Bitcoin.

Since country and currency is a major deciding factor on how you can buy Bitcoins, I’m going to provide you with a list of places to buy Bitcoin based on your region:

* Click the above links to skip ahead to the region relevant to you.

NOTE: Each of the recommended places to buy Bitcoin will have their own process of buying Bitcoin using fiat currency. I recommend you visit their website and follow the instructions on how to buy Bitcoin.

 

Buying Bitcoin In North America

Buying Bitcoin in the US and Canada is easy, with transaction fees varying between 0.1% to 7% and a variety of payment options.

1. Coinbase:

  • Pros: Quickest and fastest way to buy Bitcoins in the USA and Canada and obtain a hot wallet in the process. You can purchase Bitcoins by depositing funds into your Coinbase account or via credit/debit. Purchases of Bitcoin using credit card will appear in your account immediately.
  • Cons: There are weekly buying limits on how much Bitcoin you can purchase i.e. $1000 per week. Buying Limits are increased based on verifications and successful purchases made on your account. When using the bank transfer method, it takes up to 5 days to receive your Bitcoins.
  • Bitcoin purchase fees: 1.49% for linked bank account and 3.99% for credit card purchases.
  • Website: http://bit.ly/coinbase-vo (sign up through this link to receive $10 towards your Bitcoin purchase)

2. CEX.io:

  • Pros: Supports USA and a number of countries worldwide. You can buy Bitcoin with a credit card, ACH bank transfer, SEPA transfer, cash or AstroPay. Verified accounts can buy up to $10,000 worth of Bitcoins per day and $100,000 worth of Bitcoins a month. Purchases made with a credit card give you access to your Bitcoin immediately.
  • Cons: 7% fees charged from the amount of fiat currency. i.e. If you buy $100 worth of Bitcoins you’ll get only $93 worth.
  • Bitcoin purchase fees: up to 7% fee and 0.2% on trades.
  • Website: https://cex.io/

3. LocalBitcoins:

  • Pros: A anonymous way to purchase Bitcoins locally via peer-to-peer exchange. You select which location, currency, payment method and price you want to buy Bitcoin at. The seller deposits their Bitcoin(s) to the LocalBitcoins website which is held in escrow. Once the seller receives your funds, LocalBitcoins releases Bitcoin to your wallet. Purchases of Bitcoin can be made in person and is extremely quick when cash deposits are made.
  • Cons: Higher prices than buying on cryptocurrency exchanges, you pay a premium for privacy and make sure you follow the rules to avoid scammers.
    Bitcoin purchase fees: free for buyers whilst sellers pay a 1% fee for every completed trade.
  • Website: https://localBitcoins.com/

4. Gemini:

  • Pros: The first US exchange licensed for Bitcoin and Ethereum trading. You can buy, sell, and store Bitcoin on their developed trading platform. Some of the lowest fees in USA & Canada.
  • Cons: A bit confusing for beginners and not available in all US states.
    Bitcoin purchase fees: Up to 0.25% and dependent on purchase volume.
  • Website: https://gemini.com/

5. Bitstamp:

  • Pros: One of the world’s largest and most well-known Bitcoin exchanges. Deposits can be made through bank transfer, SEPA transfer, international bank wire and credit cards. A popular exchange to buy and sell large amounts of Bitcoin.
  • Cons: High 8% fee on small credit card purchases, falling to 5% with sufficient trading volume.
    Bitcoin purchase fees: 0.25% fee, falling to 0.1% with sufficient trading volume.
  • Website: https://www.bitstamp.net

6. Kraken:

  • Pros: Offers high liquidity and is one of the largest Euro-denominated Bitcoin exchanges based on daily trading volume. It supports US and Canadian, European, British and Japanese customers. Deposits can be made via bank wire, SEPA and SWIFT.
  • Cons: First-time buyers may be intimidated by trading interface and their terminology i.e. taker and maker fees.
  • Bitcoin purchase fees: up 0.26% fee, falling to 0.1% with sufficient trading volume.
  • Website: https://www.kraken.com

7. Bitfinex:

  • Pros: One of the largest USD Bitcoin exchanges in the world and provides deep liquidity. Very low transaction fees for small and large purchases of Bitcoin.
  • Cons: In August 2016, the exchange was hacked and lost around 36% of its users funds. Given its low transaction fees, you could purchase Bitcoins on the exchange and transfer them immediately to your Bitcoin wallet.
    Bitcoin purchase fees: up 0.2% fee, falling to 0.1% with sufficient trading volume.
  • Website: https://www.bitfinex.com

 

Buying Bitcoin In Asia

Asia has now become the largest and fasting growing market in Bitcoin trading. With Japan leading the pack, followed by China and Korea.

However, that may change given China’s three largest Bitcoin exchange have announced they will stop trading. Below are a list of exchanges/ brokers that you can buy Bitcoin with fiat.

Buying Bitcoin In Japan (JPY):

Buying Bitcoin In China (CNY):

Update: BTC China, Huobi and OKCion have ceased trading BTC at the end of October 2017.

If you’re based China and the above exchanges are not available at the time of writing, an alternative option is to purchase Bitcoins through https://localBitcoins.com/.

Buying Bitcoin In Korea (KRW):

Buying Bitcoin In India (INR):

Buying Bitcoin In Philippines (PHP):

Buying Bitcoin In Thailand (THB):

Other Asian Countries:

 

Buying Bitcoin In Oceana

Buying Bitcoin In Australia (AUD):

  • Coinbase: You can purchase Bitcoins using a debit or credit card. There are weekly buying limits of $500, 1.49% transaction fee for linked bank account and 3.99% transaction fee for credit card purchases. Website: https://coinbase.com.
  • Bitcoin.com.au: Buy Bitcoin from the largest retail network in Australia. The transaction fee will vary depending on the volume of transaction in the network at that time. At the time of writing, a fee between 1-10 cents AUD is sufficient for priority processing. Website: https://bitcoin.com.au/
  • Btradeaustralia.com: supports Poli-Payments, 4.9% transaction fee, website: https://btradeaustralia.com.
  • BuyaBitcoin.com : accepts cash deposits in banks, 4.9% transaction fee, website: https://buyaBitcoin.com.au.
  • BTCMarkets.net: Australian based exchange, ID verification required, up to 0.85% transaction fee falling to 0.1% with sufficient trading volume, website: https://www.btcmarkets.net.
  • Coinjar: Australian based exchange, ID verification required, buy, sell, spend Bitcoin and get a Bitcoin wallet, 1% transaction fee, website: http://coinjar.com.au/.
  • Cointree: Australian based exchange, ID verification required, 2% transaction fee, website: https://www.cointree.com.au/.
  • LocalBitcoins: Anonymous way to purchase Bitcoins locally. You select which location, currency, payment method and price you want to buy Bitcoin at, often pay a premium but quick, website: https://localBitcoins.com/
  • CEX.io: ID Verified accounts can buy up to $10,000 worth of Bitcoins per day and $100,000 worth of Bitcoins a month, up to 7% transaction fee and 0.2% on trades. Website: https://cex.io/

Buying Bitcoin In New Zealand (NZD):

 

Buying Bitcoin In Europe

Europe offers a variety of ways to buy Bitcoin through brokers and exchanges with transaction fees varying from 0.5 – 5%.

  • Coinbase: You can purchase Bitcoins using a credit card or debit card in most European countries. 1% transaction for buying Bitcoin. Website: www.coinbase.com
  • LocalBitcoins: available for every country of the Eurozone except Germany. You select which location, currency, payment method and price you want to buy Bitcoin at, often pay a premium but quick, website: https://localBitcoins.com/
  • Bitcoin.de: is peer-to-peer marketplace for the whole Euro-Zone where people can buy and sell Bitcoins with SEPA transfers. 0.5% transaction fee, website: http://Bitcoin.de/
  • Kraken: one of the largest Euro-denominated Bitcoin exchange, up to 0.26% transaction fee, falling to 0.1% with sufficient trading volume. Website: https://www.kraken.com.
  • Bitstamp: One of the world’s largest and most well-known Bitcoin exchanges. Deposits can be made through bank transfer, SEPA transfer, international bank wire and credit cards. Bitcoin purchase fees: 0.25% fee, falling to 0.1% with sufficient trading volume. Website: https://www.bitstamp.net

Buying Bitcoin In United Kingdom (GBP):

  • Coinbase: is available to British citizens using a credit card or debit card in most European countries. 1% transaction for buying Bitcoin. Website: www.coinbase.com
  • Bittylicious: offers bank transfers, credit cards and UK-specific payment options like Paym or Barclays Pingit. Fees can be high, website: https://bittylicious.com.
  • Coinfloor: operates as a Bitcoin exchange (Coinfloor Exchange) and broker referral service (Coinfloor Market), the price of Bitcoin is inclusive of fees. Website https://www.coinfloor.co.uk/.
  • Kraken: one of the largest Euro-denominated Bitcoin exchange, up to 0.26% transaction fee, falling to 0.1% with sufficient trading volume. Website: https://www.kraken.com.
  • GDAX: Coinbase’s exchange is GDAX and one of the largest Bitcoin exchanges in the USA. UK citizens can purchase Bitcoin in Great British Pounds and possibly at 0% fees. Website: https://www.gdax.com/.

Buying Bitcoin In Switzerland (CHF):

Buying Bitcoin In Poland (PLN):

Buying Bitcoin In Norway (NOK):

Buying Bitcoin In Sweden (SEK):

Buying Bitcoin In Russia (RUB):

Buying Bitcoin In Germany (EUR):

  • Fidor Bank: buy Bitcoins at Fidor Bank https://www.fidorbank.uk/
  • Bitcoin.de: is peer-to-peer marketplace for the whole Euro-Zone where you can buy and sell Bitcoins with SEPA transfers. 0.5% transaction fee, website: http://Bitcoin.de/
  • Kraken: one of the largest Euro-denominated Bitcoin exchange, up to 0.26% transaction fee, falling to 0.1% with sufficient trading volume. Website: https://www.kraken.com.

Buying Bitcoin In Spain (EUR):

Buying Bitcoin In Denmark (DKK):

 

Buying Bitcoin In Middle East

Buying Bitcoin In Israel (ILS):

  • Bits of Gold: is an Israeli Bitcoin platform where you can buy an sell Bitcoin, transaction fee included in price, website: https://www.bitsofgold.co.il/
  • Bit2C: is the largest Bitcoin exchange in Israel. You can fund your account via Israeli bank transfer or credit card, known for it’s low fees, website: https://www.bit2c.co.il/

Buying Bitcoin In Turkey (TRY):

Buying Bitcoin In United Arab Emirates (AED):

  • Bitoasis.net: a leading Middle East & North Africa Bitcoin exchange and wallet. Purchase Bitcoin using bank transfers and credit cards, website: https://bitoasis.net/en/.

Buying Bitcoin In Saudi Arabia (SAR):

  • Bitoasis.net: a leading Middle East & North Africa Bitcoin exchange and wallet. Purchase Bitcoin using bank transfers and credit cards, website: https://bitoasis.net/en/.

 

Buying Bitcoin In SOUTH AMERICA

In Middle and South America, Bitcoin became more popular around 2015. Most exchanges are relatively new with lower trade volume and liquidity. You will find Bitcoins in the peer-to-peer market and exchanges.

Buying Bitcoin In Mexico (MXN):

  • Chip-Chap: Using an app called Chip-Chap, you can buy Bitcoin gift cards at more than 5000 shops, website: https://chip-chap.com/
  • Volabit: Buy Bitcoin by depositing cash at 7-Eleven, OXXO, Banamex branches and ATM, website: http://volabit.com/
  • Bitso.com: An Mexico exchange with transaction fees as allow as 0.1% with small spreads, website: https://bitso.com/

Buying Bitcoin In Brazil (BRL):

Buying Bitcoin In Argentina (ARS):

Buying Bitcoin In Venezuela (VEF):

  • SurBitcoin: Venezuela’s first Bitcoin exchange, it secures private trades between Bitcoin buyers and sellers, website: https://surbitcoin.com/
  • CryptoBuyer: is a Bitcoin exchange in Venezuela that allows you to to buy Bitcoins via national bank transfer and credit card. There’s a buying limit of 50,000 VEF for credit and debit cards, website: https://cryptobuyer.io/

Buying Bitcoin In Chile (CLP):

  • SurBTC: Chile’s own Bitcoin exchange where you can buy and sell Bitcoins. Deposits in Chilean peso can be made with local bank transfers, website: https://www.surbtc.com/chile

 

Buying Bitcoin In Africa

Africa doesn’t have a high Bitcoin adoption rate and has only a few exchanges. If no exchange exists for your country, search on LocalBitcoins to find a local vendor.

Buying Bitcoin In South Africa (ZAR):

  • Coinsbank: a simple way to buy and sell Bitcoin, website: https://coinsbank.com/.
  • Ice3x: is a Bitcoin and Litecoin Exchange in South Africa, website: https://ice3x.com/.

Buying Bitcoin In Nigeria (NGN):

Buying Bitcoin In Tanzania (TZS):

Buying Bitcoin In Uganda (UGX):

Buying Bitcoin In Zimbabwe :

  • Bitcoinfundi: Bitcoin prices are shown in dollars and Zimbabwe citizen can purchase Bitcoin via the website: https://Bitcoinfundi.com/.

That’s a wrap, this has got to be the longest post with the largest amount of outbound links ever!

If you know of any other great exchanges, let me know in the comments section.

I hope you enjoyed this 3 part series in “Cryptocurrency Trading & Investing For Beginners”. If you like to read the entire book, grab it here. 

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