How to Buy Bitcoins?

The main goal of this guide is to be the most convenient resource for new users to understand the principals of buying Bitcoins.

Photo: BTC Trinkets/Flickr

Photo: BTC Trinkets/Flickr

The main goal of this guide is to be the most convenient resource for new users to understand the principals of buying Bitcoins. It is possible to buy and sell bitcoin for different currencies from private entities and from companies. Here you can find information on various payment methods:

  • PayPal
  • Credit Card
  • Bank Transfer and/or Cash
  • Gift Card (US)
  • via IDeal
  • Physical Trading
  • Finding a direct seller online

PayPal System

PayPal system does not allow direct purchasing of Bitcoins, due to the high risk level for the seller, and therefore few sellers will offer this. PayPal has high transaction fees, that’s why using PayPal for buying Bitcoins isn’t beneficial. You can can buy Second Life Lindens (SLL) with Paypal with the help of Virtual World Exchange and after that convert it to Bitcoins.

This variant charges you 6% of transaction fees. But the advantage of this method is the quickness as opposed to a wire transfer. In this case, you don’t buy Bitcoins from PayPal, but you buy Second Life Lindens  and exchange it to Bitcoin afterwards.

Credit Card

VirWox  isThe Virtual World Exchange, which  accepts the most recognizable credit cards. What is more, VirWox allows you to buy SLL and you can trade it to Bitcoin afterwards. This method is faster in compare to most options. The transaction fee is roughly 6%.

CoinMama works via Western Union and allows buying Bitcoins through your credit card. CoinMama doesn’t work in the United States.

Bank Transfer and(or) Cash

Coinbase helps to buy and sell bitcoin instantly via any U.S. based bank account. But You will need a routing number and account number that you can found on a check. Your credit card number will be linked to your account. The system can also work as a wallet for Bitcoin. It can store the bitcoin once it is purchased. Coinbase works exclusively in US.

The method is great for beginners, who get acquainted with Bitcoin.

Bittylicious gives customers a possibility to buy Bitcoins. It has a simple interface. You have to enter their Bitcoin address and email address, select the quantity of coins you want to purchase. To purchase more than the default value which equals approximately £50/EUR 55/$80you have to sign up and make a verification. The systems accept UK bank transfers, European SEPAs, iDEAL and Mister Cash.

BitBrothers LLC helps customers and to buy BTC via sending it in cash or money orders, cashier checks, or even MONEYGRAM  to a designated place. Bitcoin owners can deposit some money directly into one of the corporate business accounts very quickly (less than an hour).This method is good for staying anonymous and protection the ideals bitcoins were founded on. BANK TRANSFERS option will become available soon.

The system guarantees all customers will appreciate their high-level customer service. They even have some discounts to offer customers.

You can purchase Bitcoins using a Western Union money transfer via the website

Kraken allows verified users trading BTC using Euro and US dollar by depositing via wire transfer. What concern other national currencies, they can be converted  into USD or EUR at transfer. Kraken, the exchange and the market is determined by orders.  connects sellers with buyers using SEPA transfer and cash deposit. You can buy bitcoin simply giving your bitcoin address and e-mail. The bitcoins will be send to you after the  deposit is received by is designed to buy bitcoins with gift vouchers. The usage is similar to online shop experience, and the vouchers are delivered to your home.. gives you pieces of advice during the process of redeeming the voucher and when you get your first bitcoins. This voucher is also a good gift as well!

Bitalo allows you to purchase Bitcoins from another person. You can share bitcoins if both of you are online and use the same bank. The operation will take just a few minutes. The security is provided by Bitcoin multi-signature addresses, in this process Bitalo is an escrow. You can save your coins that you had bought s on your own address. You also can use a safe multi-signature Bitcoin wallet on Bitalo for free.

Asia Nexgen (ANX) provides the possibility to purchase Bitcoins via sending a wire transfer. ANX is officially registered and based in Hong Kong. The company has Money Services Operator license that was issued by the Hong Kong Customs and Excise Department. Asia NexGen accepts the most recognizable digital currencies and all major offline currencies like USD, EUR, HKD, AUD, CAD, CHF, GBP, JPY, NZD and SGD.

Local Bitcoins gives sellers and buyers an opportunity to meet  and exchange Bitcoins through various methods including cash, wire transfer, Money Bookers, Skrilare located and other means, if they are located nearby. Local Bitcoins reduces the chance of fraud by holding funds until the end of transaction.

Gift Card (US) provides buying bitcoins via Visa, MasterCard, American Express or Discover gift cards. The system uses for the exchange rate data at the time that the customer’s gift card is processed within one day of card submission. The majority of cards are processed within a short period of time of submission, it can take up to 24 hours. You have to apply a bank account number to verify the identity.

Via IDeal (NL)

Bitonic provides buying bitcoins with IDEAL.

HappyCoins provides buying Bitcoins with iDEAL and SEPA bank transfer.

Bittylicious provides buying Bitcoins with iDEAL and SEPA bank transfer.

Finding a direct seller online

When you find a person, who wants to sell Bitcoins to you, you can transfer money via any payment method (including PayPal) straight to him , and he will send you the Bitcoins. On these websites you can find direct sellers online: Local Bitcoins or Currency Exchange Forum Section.

Note: Be cautious of frauds when dealing over the counter. You should to talk to admin, moderator or another trusted person if you find someone even a little bit suspicious.

Physical Trading

You can find a private entity with whom you can Buy bitcoins locally. Always choose a person with lots of reviews.

By the way, physical Bitcoin ATMs have been installed in Canada, Finland, Slovakia, Australia, Germany, and the UK in October of 2013. To find the nearest to you ATM use a Bitcoin ATM Locator.

Prior to using any of those services you should to read reviews and find the feedback from other customers. Also you can search information on the person or company on the Internet. Bitcoin forum is a good place to read reviews about Bitcoin trading services as well.

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