How to buy and how to sell bitcoins – a guide for beginners

If you decide to become a bitcoin owner, then one of the available options is to buy them. You can do this in several ways and with the help of different means of payment. Start an essential condition – your anonymity is paramount and one of the advantages of cryptocurrency trading, so think about it before choosing one of the above purchase methods. In particular, if we are talking about an online purchase, it is advisable to familiarize yourself with the requirements for user verification resources.

In any case, the first thing you need to do before you buy is to choose a bitcoin wallet and get acquainted with its functionality. Once you become the happy owner of such a wallet, you can make a purchase and send them to him for storage.

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Where can you buy and sell bitcoins?

1. On the stock exchange

Bitcoin is the most popular digital currency, so it’s no surprise that you can buy it at any cryptocurrency exchange. However, it is better to stop your choice on a well-known trading platform whose name is not associated with scandalous news of hacking or fraud—research as much information as possible before opening an account on one of the exchanges.

The purchased cryptocurrency is storing in a wallet on the exchange itself. Those who plan to trade additionally can leave funds on the deposit. In all other cases, it will be safer to transfer purchased bitcoins to your individual offline wallet. There is a saying in the world of cryptocurrencies: Your keys are your coins. Not your keys – not your coins.

It is worth noting that a commission is paid for all operations (replenishment, transactions, withdrawals). Its size is worth knowing in advance.

An important point when choosing an exchange is the method of payment. To perform commercial operations on the site, you must first fill out the deposit, which you can do differently.

2. Filling in cryptocurrency

This method is the safest method from the point of view of confidentiality, as it does not require verification. As you may have guessed, you should already own a cryptocurrency for this.

3. Fiat replenishment

Many crypto exchanges accept fiat currencies, most often US dollars. It would help if you remembered that fiat currency transactions require proof of identity and, in some cases, residence.

How to deposit fiat money on the stock exchange?

1. Bank transaction

Bank transfers take more time, sometimes up to a few business days – you need to be prepared for that. In addition, if the currency of the account differs from the currency that the exchange accepts, the bank converts the funds at its rate, below the market rate.

2. From a bank card

This option is not available on all exchanges due to the risk management rules of the sites, which minimize the likelihood of refund of the fee for yourself – refund of the card at the initiative of the cardholder.

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In principle, withdrawing money from the stock exchange is analogous to daily withdrawing money from a bank. I.e., you can quickly transfer them to your crypto wallet, bank account, or debit/credit card. Necessary: most sites specify a minimum transfer amount as well as a KYC / AML check. This is an essential condition when choosing which platform to use.

3. Through the exchanger

You can purchase Bitcoins not only on exchanges but also on specialized exchange platforms. The trick is that in exchange offices, the rate is usually different from the exchange rate. Therefore, to make the purchase as profitable as possible, it is advisable to use aggregation sites where a list of exchangers is displayed, the percentage of the purchase, and the number of available bitcoins indicated. There are customer reviews.

The conditions for buying cryptocurrency in exchangers may differ.

There are several ways to pay to buy digital coins:

  • cryptocurrency – ETC, ETH, LTC, and others;
  • from the electronic wallet – Perfect Money, QIWI, WebMoney, Payeer, Skrill;
  • via Internet banking and credit cards;
  • money transfer;
  • cash in offline branches.

You can always use the services of regular offline exchangers nearby and pay in cash. This option is the safest way to buy bitcoins in terms of privacy.

4. ATM (bitcoin ATM)

Another way to buy bitcoins is to use special Bitcoin ATMs. You can find out if such devices are available in your region of residence in the CoinATMRadar service.

5. For a private person

To buy bitcoins “on hand,” you need to find a seller and negotiate a price with him. This step can be done on p2p sites, by agreement on any thematic forum, or by live knowledge. The latter options are considered risky; it is much safer to deal on a specialized platform.

A good example is a LocalBitcoins service, which looks like a message board for those who want to buy and sell bitcoins. The site has a feedback section so that the user can immediately assess the reputation of the seller.

6. OTC purchase

OTC deal (OTC deal – over-the-counter) is another way of buying bitcoins, which is usually carried out with the involvement of an intermediary – a neutral third party. This term used when talking about large transactions concluded outside the exchange. The main reason why investors choose this type of purchase is the complexity of carrying out such an operation through the sale.

Since the BTC rate is influenced by supply and demand within the network, a multimillion-dollar sale on the exchange would instantly bring down its price, and vice versa. If the investor does not pursue such goals, he chooses an OTC transaction, which does not affect the market in any way.

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