Unless you just returned to the earth from another planet, you’ve heard of Bitcoin, a crypto currency currently trading at more than $10k USD per Bitcoin. More and more people are investing in bitcoins as the uncertainty of a recession intensifies.
However, if you’re a newbie who wants to invest in Bitcoin, you’ll find buying bitcoins isn’t as easy as buying stocks. The stock market is mature and regulated, but the cryptocurrency market isn’t. Therefore, as an investor, you need to take extra precautions when you buy or sell bitcoins.
In fact, the question investors most often ask is,
Where is the best place to buy bitcoins? The answer to that question is, you should only buy bitcoins from trusted and reputable sources. Here are our best 3 places to buy bitcoins.
Coinbase – the best place to buy bitcoins with bank account
Coinbase is one of the earliest and most established websites where you can buy bitcoins. To begin, you first open a Coinbase account. Then, you need to link a bank account or a PayPal account to transfer funds to/from Coinbase. To deposit funds into your coinbase account, you need to use a Debit/Credit card or a bank account. However, you can use PayPal only for withdrawals.
You pay between 1.5% – 4% digital currency transaction fees for buying and selling bitcoins. The actual fee you pay varies depending on your location and your payment method. Check out Coinbase Pricing & Fees Disclosures page to learn what transaction fees apply in your case.
Coinbase takes security seriously, and so far as we know hasn’t been hacked. Users need to use 2-Factor Authentication to login to their accounts. Also, Coinbase requires users to upload photo ID to verify their account.
You can buy bitcoins (and other crytpo currencies) on Binance, the world’s leading crypto exchange. Currently, you can buy bitcoins from Binance only with a credit card, but Binance promised it would add other forms of payment in the future. The transaction fees for buying bitcoins with a credit card is 3.5%, which is one of the lowest. As with Coinbase, you will need to verify your Binance account by uploading photo ID.
LocalBitcoins.com is a person-to-person (P2P) bitcoin trading site. Unlike with centralized, stock-exchange-like bitcoin trading sites Binance and Coinbase, with LocalBitcoins.com you make a trade directly with another person. LocalBitcoins supports many payment methods; you can buy bitcoin with PayPal, e-transfer, Money-gram, etc., and uses escrow to protect online trades.
When the trade is started, the Bitcoin amount for the trade is taken from the seller’s wallet and held in escrow by LocalBitcoins.com for the entire time of the trade, thereby ensuring buyers will always receive their bitcoins. Registering, buying, and selling Bitcoin on LocalBitcoins is completely free. LocalBitcoins users who create advertisements are charged a 1% fee for every completed trade.
Overall, because they have the lowest fees, consider Coinbase if you live in the U.S., UK, or Europe and want to buy bitcoins using a bank account. To purchase bitcoins with a credit card, consider Binance as it charges the lowest transaction fees. If you want to buy bitcoins using PayPal or any payment method, check out Localbitcoins.com, a marketplace where users can securely buy and sell Bitcoins (anonymously) using any payment method the seller accepts.
Please do recommend other websites you consider a good place to buy bitcoins. Tell us in the comments area below.
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