The international markets are going into a freefall and commodities like gold and cryptocurrencies like bitcoins are showing signs of stability. This means that investors will want to cash in on this stability by investing in bitcoins. If you are among those investors who are looking to invest in bitcoins but have no idea how to, then you are at the right place.
There are many ways to purchase bitcoins but out of all the ways through which you can buy bitcoins, the fastest methods are;
- Credit/Debit card
- Bitcoin ATM
- P2P exchange
- Cash purchase
Using credit or debit card is the fastest way to purchase bitcoins, without any doubt. Cards are regulated and thus any transaction that you make will be known to the regulatory authorities, so you will not be able to keep your identity secret at the point of origin of the transaction but this is hardly any issue for anyone who doesn’t have anything to hide. Cards have a drawback of having a high rate of fees on transactions. The fees on bitcoin purchase through cards starts from 3% and can go up to 6%. This charge however makes up for the processing time. If you fulfill all the pre-requisites like digital wallet and personal verification on an exchange, then you can get bitcoins transferred into your wallet almost instantly.
Cards however have another drawback and this includes caps and floors on the purchase of bitcoins on a daily or weekly basis. For example if you purchase bitcoins through Coinbase then you will be subject to purchase limits based on the level of your profile. Higher tier accounts can transact up to $50,000 daily whereas Coinmama has a $5000 daily limit and $60 minimum limit.
So if you are fine with sharing your data with the regulatory authorities and high processing fees then buying bitcoin with credit or debit card might be the option for you. Within minutes of making the transaction you will get confirmation of the transfer of bitcoins into your digital wallet. It cannot get simpler than this.
Bitcoin ATMs are exactly what their name suggests. These are ATM machines that allow people to use cash to purchase bitcoins. No personal information is required in order to purchase bitcoins through ATMs. You will simply need to insert the cash into the machine and insert the relevant details to transfer the bitcoins into your digital wallet. As soon as the transaction is complete the bitcoins will be transferred to you.
The only issue with Bitcoin ATMs is their accessibility. You can locate your nearest Bitcoin ATM at coinatmradar.com. You can only use this service if you are lucky enough to have it in your vicinity. Bitcoin ATM are probably the best option to buy bitcoins if you have access to them, the charges are minimum, you are not required to furnish any identification and you can purchase bitcoins through cash almost instantly.
Peer to Peer bitcoin exchange platforms like Local Bitcoin or Hodl allow users to purchase bitcoins instantly from other sellers. We are not promoting any particular P2P platform by the way, the names mentioned were simply presented as an example.
P2P exchanges work in a manner similar to P2P lending platforms, they perform the role of a market bringing together bitcoin sellers and purchasers. Sellers list their quotes and if the buyers find it suitable they can proceed to make the purchase. Some sites offer deposit services where the buyers can deposit their cash and then get the bitcoins when the transaction goes through, this usually takes anywhere between a few minutes to a few hours.
There is however an element of risk involved in this sort of purchase. Although it is fast but there are a lot of P2P exchanges and many of them are not trust worthy, a good tip is to use the oldest P2P exchange platforms as they are the most trustworthy. Secondly never send your money to any seller without any guarantee, if you are meeting the seller in person then do not leave till you have received the bitcoins.
P2P exchanges offer quick service, at relatively low fees as compared to credit cards and they also offer the protection of data since users use cash to purchase bitcoins. It is important to know that P2P exchanges take the bulk of bitcoin traffic, most users prefer to transact through these peer to peer platform instead of bitcoin exchanges. So if you are looking to purchase bitcoins through a peer to peer network then make sure that you carry out due diligence first.
Two of the preceding methods above are methods of purchasing bitcoins through cash but there is another method. If you are not interested in using a P2P platform then you can purchase bitcoins through an exchange that allows users to purchase bitcoins through cash. Sites like Local Bitcoins, Paxful and BitQuick offer cash purchase options to the customers. The methods of cash collection may vary with each site. Most sites however employ a cash deposit service and the bitcoins will be transferred into your account as soon as the transaction is processed and finalized. This process can take a few hours. Once again it is important to carry out proper due diligence first because when it comes to dealing in cash there is always an opportunity for scammers to scam upon unsuspecting bitcoin purchasers. The scammers take advantage of the general unawareness people have about bitcoins and the methods of purchase to scam them.
All of the methods that have been discussed above are methods that ensure speed of transaction. You can instantly purchase bitcoins if you use credit cards, bitcoin ATMs or P2P platforms and if you can wait a few hours then you can use the cash deposit service of some of the bitcoin exchanges to purchase bitcoins.