Purchasing Bitcoin: options to buy Bitcoin currency and open a wallet

1 February 2017

Bitcoin has moved the cryptocurrencies forward with the total number of 16 million and almost 500,000 users, and has taken the leading position. As it becomes integrated in consumers’ lives, a few purchasing methods can be distinguished. Some of them are still fresh, while the others are tried and true, and the modern technical resources supply the creators with new ideas. Nevertheless, the preferable ways of payments depend on users’ needs and the goals they want to achieve.

Getting started

Purchasing Bitcoins requires a specific wallet for safe keeping and its functions are similar to those of a bank account. It secures the procedure of transactions, giving users the opportunity to send and receive digital coins. Setting up a wallet is accessible, taking into account a huge number of online services that only request an email address, and within minutes the private key and the Bitcoin address is ready, which, in turn allows consumers to further interact with a program.

Hardware and software wallets can be righteously called the two main types, and both have their advantages and disadvantages. The software kind has ‘hot’ and ‘cold’ categories, and the former is much safer, since it stays offline, preventing a variety of online attacks, while the ‘hot’ wallet is constantly connected to the Internet, which makes it a subject of cyber attacks. And the hardware type is considered to be the safest since it provides the user with a special device for storing information. Moreover, some of them provide a data recovery if the previous wallet is lost. Once the preferable wallet is chosen, it is time to start buying Bitcoin and there are several options to do that:



So-called exchanges are the web platforms that encourage consumers to exchange traditional currency to Bitcoins and vice versa, and their multitude caters the customers’ needs. Offered payment methods, security settings and fees are on the list of options to be considered, for there is a wide range of prices and services. The users are required to go through the process of registration and verification, which is typically regulated by the government. Despite of it being an unwanted measure for some participants, it guarantees safety and proves all purchases are legal.

Once the consumers have gone through the confirmation process, they can opt for the preferable payment, bearing in mind that every type requires a different document. While some of the platforms follow paths the users are more accustomed to, such as credit card payments, the others offer personal deposits through a bank account. An exchange can be efficient for those who prefer longstanding arrangements; however, depending on consumers’ location, other methods may be taken into consideration.


This purchasing method is suitable for those who live in a big apple and favor anonymity, which, in turn, helps to decrease fees and to omit the usual banking paperwork. The potential consumers can find bitcoin sellers, widely known as over-the-counter (OTC) traders, online and arrange the meeting. There is also a possibility of reaching the merchants offline through specific locations, nevertheless this scheme may be hazardous, therefore some precautions should be taken.

Additionally, the price of the privacy and accessibility is considerably higher, thus, consumers can occasionally pay twice as much as at exchange platforms. Therefore, the use of secure services should be prioritized and the use of secure OTC traders is more perceptive, as long as the price is settled before the meeting. Carrying a huge amount of cash can also be dangerous, so the consumers should consider the time and place accordingly.


Despite of being a comparatively new notion, the number of ATMs has increased lately. Such method is well-corresponding with an OTC trade, but it is machinery based. The procedure requires a consumer to insert the money into the cash machine and scan the digital wallet for the availability of codes necessary for the transaction. One-way ATMs only allow consumers to convert their currency to Bitcoin, while two-way machines give the opportunity to also exchange the cryptocurrency back.

Some cash machines provide users with offline Bitcoin wallets seeking to keep the digital currency. On the downside, ATMs charge 5-8% fees, although this amount is justified by the price their holders have to pay for the register. Nevertheless, it may be inconvenient for tourists insomuch as there is a possibility of higher charges, but purchasing the digital coins before crossing the boarders and selling them afterwards might be an effective solution.



Buying Bitcoin with PayPal is unsurprising, given the popularity of both players. However, Bitcoin transfers are irreversible, and while users still can return PayPal, the conversion process may be tricky. But there are certain options for those who like taking risks, although the process is usually difficult, time-consuming and costly, and, additionally, the charges reach 10% for a transaction; nevertheless, it is a trusted transaction method.

Initially, the consumer needs to create an account and the procedure may take several days. After that, the double exchange process begins with the customer first getting hold of SLL (Second Life Lindens) and obtaining Bitcoin afterwards. Impending transactions are conducted instantly and the maximum amount for the newcomers is $270, with perspective for the future growth. Purchasing Bitcoin with PayPal is still a new method that calls for further development.

The usage of anonymous methods occasionally leads to unpredictable results; furthermore, it is more expensive than operating on the exchange platforms that appeal with their multitude. The variety of Bitcoin exchange websites have proper tools to offer their users. Nevertheless, there are consumers who prefer to keep their privacy without revealing more data than necessary and OTC traders or Bitcoin ATM’s may meet their requirements.

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