How does one buy Bitcoin? That question went up the search query charts like into a frenzy when the king of cryptocurrencies started going uphill in terms of price. Interest towards Bitcoin skyrocketed in the early months of 2017, when the so-called ICO fever started and a slew of blockchain-based projects were launched, driving interest on the part of the masses towards the innovative technology. Being the sole contender for the role of a universal cryptocurrency and digital currency, based on the legacy of Satoshi Nakamoto, Bitcoin reveled in its laurels of glory for quite some time. The onset of the Ethereum network and its spread eventually created a mass of competitors, but Bitcoin retained its position as the main driver of both the entire cryptocurrency market and the digital economy as a whole.
With interest on the part of institutional and retail investors growing in light of the ending bearish cycle, Bitcoin is growing in price yet again, reaching a mark of $47,000 by the time of writing. As analysts predict the increase in the asset’s price throughout the year 2024, both newcomers into the blockchain market, and established investors, are looking for new ways to stock up on the asset in hopes of capitalizing on its price momentum.
The introduction of an entire array of sanctions across borders between competing factions and nations in the ever more polarized world has resulted in the raising of barriers and restrictions that impede the free flow of funds. With such cross-border transaction systems as Swift being offline and even such seemingly unbiased financial services as PayPal restricting transactions on a national basis, investors are looking for ways to buy Bitcoin in ever more innovative ways. Luckily, one can buy Bitcoin from many sources, provided they have the money to pay for the extremely pricey asset. Luckily, the global digital economy was created for a reason, which included the unrestricted and free flow of funds without the interference of intermediaries, centralized authorities, or governments. In the given material, we shall explore the many ways through which one can buy Bitcoin.
How Does One Buy Bitcoin?
The first method that comes to mind when one thinks of buying any digital assets is cryptocurrency exchanges. Apart from Bitcoin, these venues offer users the chance to buy other cryptocurrencies as well Bitcoin, Ethereum, USDT, or any number of their variations, such as NFTs. The exchanges negate any issues with buying Bitcoin with fiat or other cryptocurrencies, since they act precisely as intermediaries, offering users a number of significant advantages, such as:
- Convenience of accessibility;
- On-ramp and off-ramp facilities;
- High security;
- A wide range of traded assets;
- A broad variety of instruments for trading.
These and other amenities offered by currency exchanges attract users who are unwilling to trust unproven or little-known services that provide precisely the same scope of functionality. They have reason to do so as well, since the rampant amount of fraud and scams in the cryptocurrency space have bred a significant aura of distrust towards any kind of dealings with digital assets. It will take a considerable amount of time and an even large amount of positive user experience and shared knowledge to dissipate that aura, giving cryptocurrencies the air of usability they deserve.
In order to purchase Bitcoin from an exchange, users must first decide which kind of exchange best suits them and their needs. Those looking for security and a high degree of convenience will likely look towards centralized exchanges, which have dominated the market with their centralized services that have the underpinning advantage of being legal and reputable. The availability of connections these platforms offer in terms of bank card and e-wallet services make them ideal for anyone who wants to connect and directly top up their balance accounts for an instant purchase of Bitcoin.
Apart from centralized exchanges, there are many decentralized ones, offering almost the exact same services, but in a manner that is detached from a legal entity. Such services do not require their users to share personal data and offer a more unorthodox approach that does away with a centralized service that would otherwise be responsible for processing transactions, leaving the process up to the blockchain itself. Though more secure than the centralized exchanges, such decentralized services have inherent disadvantages, such as lower liquidity and limited functionality, by virtue of being less popular. Nonetheless, they still provide the same opportunity to buy Bitcoin.
P2P
Apart from the better known exchanges like Blockchain.com or Binance, there is also the option of buying Bitcoin directly from another user on a service known as a peer-to-peer exchange. Such services are less exchanges and more like venues that act as a meeting point between users willing to buy and sell their digital assets at prices they can negotiate on. The market and its benchmark still plays a role in determining prices, but individual users can agree on terms on their own, while the platform itself will act as a guarantor of the execution of the transaction. By providing communication tools, a vesting contract, and a host of convenient on and off ramps, P2P exchanges are ideal for users who value anonymity and are not interested in the trading volume or other parameters of a platform in order to conduct their trades.
PayPal
PayPal is another service which you can resort to for your crypto purchase needs. The service is known around the world as a reliable financial gateway capable of transferring funds across-borders at the price of a small commission for business purposes, or without one between friends and acquaintances. The service started providing cryptocurrency purchase amenities at the height of the last bull market during the Covid pandemic, providing instant purchase options for Bitcoin and Ethereum. The convenience of such an approach resides in that the balance account of the service can be used to directly convert a fiat currency into Bitcoin at the touch of a button by relying on a real-time market price aggregator. The conversion price is fair enough and many users will find the small discrepancy a sufficient tradeoff between platform hopping and a noble compromise.
Key Takeaways
If your Bitcoin is waiting for you out there somewhere, then you definitely need to stock up on some cash before embarking on the journey to spend it. Make sure you first learn everything there is to know about security and blockchain storage, since a Bitcoin is not a penny, but is worth a pretty penny. It would be a shame to lose your assets to a hacker attack, since the first thing the intruders of a wallet do is sell Bitcoin before it can be traced to any specific address.
Whether it is an exchange or a peer-to-peer service, there are many ways users can turn to for their cryptocurrency needs. In fact, anyone can buy these days even from a special Bitcoin ATM. Though such devices are a rarity, they can still be found in countries like Japan. But remember that there is always the option to buy BTC during a trade, which will always involve a degree of risk.
