I know you’re here to understand how to buy a bitcoin using your local currency like dollars or pounds or euros or rupees. You are in a right place to find out where to buy and how to buy bitcoin. Let’s get started… To Start with — This article is purely for educational and informational purpose and not to encourage you to buy Cryptocurrency. You should always do your own research , make your own decisions and be comfortable with the risks before making an investment. Investing in volatile cryptocurrencies involves an element of risk: prices of these currencies go up and down, (often in a manner that seems irrational). (DYOR) (MYOD) This 10 baby steps guide would help you get started with your journey to cryptocurrency world Any which way, if you have decided to invest in bitcoin(or any cryptocurrency) — you’ll have following questions in mind. What’s a reliable place to buy a Bitcoin? What’s the process associated and options available? Wallets, Deposits and Purchase Advanced users: A slightly better way. Where can I buy my Bitcoin — This is the place where you can convert your fiat currency(US Dollars) into Bitcoin or other Cryptocurrencies. Coinbase I don’t work for . I just find them convenient. There are a lot of alternative options but is the recommend one! Coinbase Coinbase Always — always pay your taxes and never try to evade them! Bitcoin is not just the one to buy, there are other blockchain based currencies, which are different and in some terms superior to just being a currency. Few of which are Ethereum, Ripple, Monero. . Litecoin is like silver if Bitcoin is Gold Confused about what cryptocurrency is and Blockchain technology is? Head out to our educational chatbot powered by AI https://m.me/confusedcoin _Answers your basic questions about Cryptocurrency_m.me/confusedcoin AI powered Crypto Chatbot provides you ways to buy Coinbase Bitcoin (BTC) Ethereum (ETH) Litecoin (LTC) What’s the process of buying on Coinbase? Signup on Coinbase Verify your identity Choose a payment method Which payment method to choose? Credit/Debit Card obviously has higher fees associated, so you might not want to go for that Among Paypal and Bank Account, I would suggest you to choose Bank Account if you are in the US Factors here are fees associated and limits allowed to transfer as you can see in the image here. After linking Bank Account, What’s next? lets you to deposit money either to it’s USD Wallet or You can buy BTC/ETH/LTC directly. Depositing money to Coinbase takes some time i.e 4–5 business days. This is because of the ACH transfer from bank to Coinbase. This delay is one of the factors to be considered while depositing as you need to think of it and see if you want to deposit or buy directly — we’ll discuss about this as we go ahead. Before that what’s these wallets? Coinbase What’s these wallets? provides you with 4 types of wallets. Essentially each one of them is store specific currency. Coinbase USD Wallet: To Deposit US Dollars, Store USD when you sell any of your currency. Transactions from USD Wallet to buy any of those coins is Instant. BTC Wallet: Your bitcoins will show up here after you buy using USD. ETH Wallet: This is the place where your Ethereum will be stored LTC Wallet: This is the wallet for storing your Litecoins. Deposit to USD Wallet or Direct Buy Depositing money from your Bank to USD wallet takes about 4-5 days. . Meanwhile a lot can happen! These cryptocurrencies are so volatile that price may shoot up even 100% in 4 days. When I mentioned volatile, it’s equally possible that it may go down 100% or more in just 4 days! So it’s all about your own research about what exactly these coins are, what’s the right price — price of these coins mostly depends on supply vs demand as well as some technological breakthroughs and partnerships. You can refer this article to understand why it takes so long Even a direct buy takes 4 days for your bought currency to reflect in your wallet. The very explains it. It’s because of ACH transfer and bank takes 3–5 business days to process the request and send your money to Coinbase. However, same article you get a locked-in price for the selected coin if you buy directly! So, if you think price of a Bitcoin or an Ethereum is right at this point of time, and you think if the price might go up in next 2–3 days and are sure that it will not go down in next 4–5 days — Then go for direct buying of the currency you are interested in. So when you click on big blue button “Buy Ethereum” — you will lock your price to the current value on coinbase and acquire it. It shows on your ETH Wallet as Pending with the amount of Ethereum bought. In this case it would show as 13.82657643 ETH — arriving on Saturday 6/24/2017 and shows $5000 irrespective of current price. This way, if the demand for ETH increases and the price soars to $450 by 6/24, you would have already made profits by then. Same is the case with losses — if it goes to $200 by 6/24, you still got 13.82657643 but valued at $200. If you are looking for detailed analysis on other upcoming ICOs and information regarding cryptocurrencies and blockchain technology in general — check out confusedcoin.com Confusedcoin explains about the technology and investment details about Bitcoin, Ethereum and other cryptocurrencies — visit www.confusedcoin.com Confused Coin Beginners guide to Cryptocurrency & Blockchain Technology When to deposit to USD Wallet? If you think price is high or irrational at current point or you have not decided which coin to buy or not ready to invest, then deposit your money to USD Wallet, so that once you makea decision — it would be an instant buy of either of those coins from USD wallet. Follow me on for updates regarding Cryptocurrency & Blockchain. Twitter Advanced Users: There’s a slightly better way What’s that — Trading via an Exchange — GDAX GDAX: Global Digital Asset Exchange (formerly Coinbase Exchange) is a crypto currency exchange owned by coinbase. Advantage here is you can login to GDAX with your coinbase credentials. An exchange, if you are into stocks before would understand easily — place where people buy and sell stuff. In this case, it’s BTC, ETH and LTC — GDAX is a place where people trade these 3 currencies. GDAX allows you to deposit money in 4 ways Through ACH transfer (takes 4 days) Through wire transfer ($10 fee, available same day if deposited before 1PM PDT) From coinbase account, could be BTC/ETH/LTC/USD. (Instant & Free) From another address(wallets stored in another exchanges or elsewhere) So what’s the key here? Once you’ve your money deposited to GDAX, you can buy a currency (say ETH) at Market Price or Limit Price. Exchange is a place where someone sells a unit of currency and someone buys it. If both of them agree on a price, that will be the market price for that moment. Eg: If someone wants to sell an ETH at $300 and there’s someone who want’s to buy at $299. Sale will never happen unless one of them compromises or a new guy places another order at $300. So one cannot sell unless someone buys at price he quotes and vice versa. Market Price In above example, you say “Buy at Market Price” you will be allotted the ETH at minimum sell order placed by someone i.e. $300 — So you’re called a because someone an offer and you it. Taker made took Limit Price If you’ve said “Buy at Limit Price” and set a Limit Price to $299.23; you will be allotted an ETH when someone sells an ETH for the amount you’ve asked for i.e. $299.23 — In this case, you’re called because you an offer and someone it. Maker made took Same applies for Sell too. Still, What’s the advantage here? On GDAX, transaction fee for is 0% and transaction fee for taker is between 0.10% and 0.25% for BTC books and 0.10% and 0.30% for ETH books. So you save transaction fee, if you understand how the trading works on an exchange and how to place a limit order for buy or sell. We’ll have an article soon on how to do this for beginners. Maker Lastly, if you found this article useful, feel free to leave at a tip of any amount at these addresses: BTC: 1P8ZCe4vUBCzd4eVCvfXYtYJ9HP1gbe38f ETH: 0xc347018DbfCFFBa91872635AC4CFc0521359A420 While you learn to buy cryptocurrency, you also need to be on cryptocurrency trading. Here’s an article which tries to on taxes on gains from crypto trading. responsible and pay taxes reduce confusion and provide clarifications _There’s a pressing need for crypto-traders to calculate their gains from Bitcoin across Coinbase, GDAX, Gemini…_hackernoon.com How to file taxes on Cryptocurrency gains using BearTax _Simple to use platform for crypto traders to import transactions, calculate gains and file taxes._bear.tax BearTax - Your Crypto Tax Assistant

Litecoin

Monero

Maker

Coinbase

fees

Twitter

Getting started with Smart Contracts

Secure mongodb setup using Docker

Write for BearTax

Read My Stories

Too Long; Didn't Read

CTA: Download the FREE AI Productivity Shift report

How to Buy Bitcoin in USA, Australia, Europe & Singapore

How to Buy Bitcoin in USA, Australia, Europe & Singapore

About Author

Comments

TOPICS

THIS ARTICLE WAS FEATURED IN

Related Stories

Untitled Story

ReactJS: The Javascript Developer’s Guide

06/02/2018: Biggest Stories in the Cryptosphere

06/09/2018: Biggest Stories in the Cryptosphere

05/02/2018: Biggest Stories in the Cryptosphere

0 to Pro Crypto Trader: Your Ultimate Guide to Bitcoin and Altcoin Investing

ReactJS: The Javascript Developer’s Guide

06/02/2018: Biggest Stories in the Cryptosphere

06/09/2018: Biggest Stories in the Cryptosphere

05/02/2018: Biggest Stories in the Cryptosphere

0 to Pro Crypto Trader: Your Ultimate Guide to Bitcoin and Altcoin Investing

Light-Mode

Classic

Newspaper

Dark-Mode

Neon Noir

Minty

HN StartUps