How To Buy Bitcoin
In this guide we will show you how to buy Bitcoin, and a big thing on new potential investors minds, how to sell Bitcoin the same day.
It’s very easy to buy Bitcoin. It can be bought through almost any financial medium available from bank transfer, PayPal, cash or even directly purchased using your card. Recently, various banks around the world have banned the stopped their customers from buying Bitcoin on their credit cards. This does not apply to debit card purchases.
Which Banks prohibiting buying Bitcoin on credit card:
- Lloyds in the UK
- Virgin Money in the UK
- JP Chase & Morgan in the USA
- Bank of America
- Capital One
This guide will not cover buying and selling Bitcoin using credit card, but if your bank still allows you to do so, we’d recommend buying using Coinbase. Coinbase is very easy to use and perfect for beginners. They do however sometimes put a block on transactions and have suffered prolonged periods of downtime in recent months.
If you do decide to use Coinbase to buy and sell Bitcoin, bear in mind they charge a 3.99% fee on purchases. Check out our guide ‘How To Avoid Coinbase Fees‘ to buy Bitcoin, Ethereum and Litecoin for free!
Another issue with Coinbase is that when you come to sell, you have to wait up to a few days to get your money back in your bank. If you want to sell your Bitcoin the same day then read on.
This guide will cover the following:
- Various Options for buying Bitcoin
- Various Options for selling Bitcoin
- How to Buy Bitcoin
- How to Sell Bitcoin the same day
Available options for buying Bitcoin
There are hundreds if not thousands of options available that allow you to buy Bitcoin. We’ve selected a few of the ones we’re most familiar with
As mentioned previously, Coinbase is very good for beginner’s, however it does have it’s drawbacks.
- Excellent user interface. Based online you can use either the website or the mobile app. Both function really well and everything is laid out to make it easy for newcomers.
- Built in price charts
- Allows the purchase of Bitcoin, Ethereum and Litecoin (Soon Bitcoin Cash)
- Easy to Buy using your bank account, debit or credit card (if permitted)
- Easy to send and receive cryptocurrency
- The most popular in the USA. Over 100,000 sign ups per day during December 2017!
- Block transaction at peak times, usually at all time highs and dips. Being a centralised exchange means they can stop trading whenever they want.
- High fees of 3.99% (That’s $399 in fees on a $10k purchase) Learn how to avoid Coinbase Fees!
- Selling is not instant and sometimes takes a number of days.
- Makes liquidating difficult due to the possibility of downtime and the need to wait to sell.
We will be using Local Bitcoins in this guide to show you how to buy Bitcoin and also how to sell Bitcoin the same day. Local Bitcoins is a great way to both buy and sell Bitcoin.
- Many different options to buy and sell bitcoin the same day in a matter of minutes. Bank transfer, PayPal, Cash, Bank deposit, western union, pingit, Amazon gift cards, Moneygram and more!
- Escrow protection – Bitcoin is locked into escrow while waiting for the seller to confirm they’ve received the payment.
- You have many different options and prices available to select. Rather than buying from Local Bitcoins themselves, they simply provide a platform which matches buyers and sellers together.
- You can become a Bitcoin trader by listing your own adverts.
- Chance of con artists trying to steal. When selling, NEVER RELEASE THE BITCOIN FROM ESCROW UNTIL YOU’VE RECEIVED PAYMENT. Always wait until the you have received the payment. Some users try to con users by forging fake screenshots and convincing people to release the Bitcoin early, only to never receive payment.
- Only Bitcoin is supported, although similar sites are available for the direct purchase of other altcoins.
- Depending upon the limits set by the people buying and selling, the best price may not be available to you. Adverts specify the limits (minimum and maximum trading amounts), as well as the payment methods they accept.
How to Buy Bitcoin on Local Bitcoins
This is a screenshot from Local Bitcoins. As you can see, each ad has a different price and various limits. The cheaper prices are at the top, but depending upon how much you want to buy, you may have to work your way down the list.
At these prices, only National Bank Transfer is available, so if you want to buy Bitcoin with PayPal or one of the other methods, you’ll have to work your way further down the list. The further down, the more expensive it gets.
When you open a trade, the seller will advise you on how to send them the payment.
When you’ve sent the payment it’s important to click ‘Payment Sent’, then as soon as they confirm they have received it, the Bitcoin will be automatically sent to your wallet.
You can choose to keep the Bitcoin in the Local Bitcoins wallet (not recommended), or you can send it to a more secure wallet. (Read our guide on how to do this).
Please note that if this is your first time, you may be asked to send ID in order to confirm you are not a hacker. Only payments sent from an account in your name are allowed.
How To Sell Bitcoin The Same Day:
Again using Local Bitcoins, it’s very easy to sell your Bitcoin the same day in most cases just a few minutes.
If you don’t already have the Bitcoin in your Local Bitcoin’s wallet, then you must first send it there. The funds must be in your wallet as the system locks your Bitcoin into an escrow as soon as the trade is initiated, both to protect you and the buyer.
Now select ‘Sell Bitcoin’. Again you can sell Bitcoin the same day through various methods and all at different prices depending upon how much you need to sell.
In order to get the best price, it’s recommended you use Bank Transfer.
If you’re wondering about the price differences between buying and selling, it’s worth noting that sellers sell for usually 4% over the market price, and buyers buy for 4% under the market price.
Assuming you’re doing bank transfer, when you open the trade you will be asked to enter the name, sort code and account number of your bank account. The buyer will then send you the requested amount.
When you receive it, mark the payment received and the Bitcoin will be released to the buyer.
Again, Under no circumstances, NEVER release the Bitcoin until the payment is available in your account!
It’s also heavily recommended to only trade with people with 100% positive feedback. Always check the feedback score and recent reviews of the person you’re either buying from or selling to. Each profile shows the number of trades, and volume of past trades. It’s a good idea to go for traders with over 100+ trades just to be extra safe.
Other How To Guides:
- How to Buy Bitcoin
- How to Buy Ethereum
- How to Buy Altcoins
- Learn about different altcoins
How To’s For Beginners:
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