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Buy Bitcoin: Complete Tutorial

Want to buy cryptocurrencies and Bitcoin? It is an investment that has already proven to be profitable for many investors. If you want to take the plunge, here is our ultimate guide to buying Bitcoins in 2021.

You don't know which broker to go through? Choosing a crypto broker is a crucial point in your Bitcoin investment success. Here are the top 3 of the editorial staff.

How to buy Bitcoins ₿?

  • You can buy bitcoins on exchange platforms like, eToro, Capital.com, Libertex or BitPanda.

  • You can accept it as a means of payment for a good or a service.

  • You can buy bitcoins from someone close to you who owns it (nothing prevents you from setting your own exchange rate, you can even donate bitcoins).

💰 You can also “mine” it using your computer.

Should you buy Bitcoin ₿?

Advantages

Freedom of payment: you can trade bitcoin anytime and anywhere in the world. No holidays, no borders, no forms. Full control of its currency.

No transaction fees, unlike Paypal, Western Union or any other money transfer service.

More security. Transactions are secure, anonymous, irreversible and therefore do not contain personal or sensitive information. It is impossible to defraud and “hack” the payment system, unlike bank cards for example.

Transparent and neutral. No hidden fees, all transactions are recorded and therefore searchable, no institution receives commissions on transactions.

Community. Bitcoin is seen as an alternative method to the domination of banks and states.

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Disadvantages

Mistrust. Not everyone is ready to accept bitcoin as a payment system. The list of institutions that accept it is growing but remains limited, no network effect yet. Rumours are circulating that big names like Amazon may accept it as a payment method soon. This is already the case for Expedia, Shopify, Microsoft and Paypal.

Volatility. The value of bitcoin is extremely volatile. Bitcoin was worth less than 30 euros in 2013 and, in October 2017, it was worth more than 4,800 euros. We do not know if bitcoin will still exist in 5 years and we do not know how much it can climb. Also, relatively minor geopolitical events can affect its value. China issued a temporary “ban” on Bitcoin in September 2017, causing it to drop 15% in a matter of days. However, the stability is expected to increase as the technology matures.

Development. We are still in the “beta” versions of the programs that govern Bitcoin. It is not yet fully democratised and many people around the world do not understand how it works.

Use. Transactions are more or less anonymous. It is therefore a means of payment used for the purchase of weapons, drugs and pornographic videos. Because of this, Bitcoin sometimes gets a bad rap.

67% of retail investor accounts lose money when trading CFDs with this provider. You have to ask yourself if you can afford to take the high risk of losing your money.

Buying Bitcoin: Is it anonymous? 👻

Contrary to popular belief, buying Bitcoin is not completely anonymous (you can always follow the path of IP addresses). It is believed to be anonymous for three main reasons.

1. Bitcoin Addresses ₿

First of all, unlike bank accounts and other payment systems, Bitcoin addresses are not linked to user identities.
That is, anyone can create a new Bitcoin address (and associate it with a private key) at any time, without needing to give any personal information to anyone.

2. Transactions

Second, transactions are not tied to user identities either. So (as long as a miner includes the transaction in a block), anyone can transfer bitcoin from any address to any address, without needing to reveal any personal information (on the block). 'sender or on the recipient).

3. Network nodes

Finally, data relating to Bitcoin transactions are transmitted by nodes on the peer-to-peer network. Bitcoin nodes are well connected to each other using IP addresses. However, we do not know the role of each node.

bitcoin and altcoins compared

Is buying Bitcoin legal?

It depends on the country you are in:

1. In Japan, it will soon be a formal payment method.

2. In India, they're also considering its formalisation.

3. China has decided to ban it temporarily, while they find a system of regulations.

4. Countries like Estonia have fully accepted it.

In most countries, it is still a grey area, with no official "ban" or authorisation.

67% of retail investor accounts lose money when trading CFDs with this provider. You have to ask yourself if you can afford to take the high risk of losing your money.

Buying Bitcoin: How Much Does It Pay? 

Buy bitcoin for what benefit? Many people ask themselves this question, it is legitimate and perhaps even the most important. However, the gain that can be expected from BTC depends on the profile of each investor. A day trading specialist sees it as a very volatile tool and therefore good for speculation while some long-term investors use it for portfolio diversification. 

A simple observation of the price of bitcoin (BTC) since its launch in 2009 is enough to realise that there is no asset with a potential to bring in so much money. The price of a bitcoin went from zero to over $60,000 after just twelve years 🚀.

💰 This is why individuals see it not only as a currency or a medium of exchange but as a store of value in the same way as gold.

That's not all, buying BTC can bring in more than money. Satoshi's invention is seen as an alternative to flat currencies. Indeed, some merchants, especially those in countries with an archaic banking system, use it to carry out international transactions instead of resorting to a bank transfer that is too expensive in terms of time and costs.

Bitcoin may not have this usefulness in a country like France, but people in emerging countries may only have bitcoin as a last choice.   

In short: a bitcoin purchase can bring in:
1. Money (especially over the long term).
2. Efficiency in online payment.
3. More anonymity and security in transactions. 

When to buy Bitcoin ₿ ? 

Without having a crystal ball, no one can know when to buy bitcoin. This is valid for the rest of cryptocurrencies. Indeed, in the short term, the price of cryptocurrencies can go in all directions, upwards or downwards. Rather, this is a great opportunity for traders.

In fact, trading is all about buying lower and selling higher. This can be done on two short units of time. In addition, CFDs allow you to cash in gains during a price drop.

Bitcoin can be traded at any time on online platforms that operate 24 hours a day without any interruption, even on weekends. This is different from what happens on the traditional exchange. To answer more simply: the purchase of bitcoin can be done at any time and on any day. 

💰 However, long-term investing is the best way to gain exposure to bitcoin.

Indeed, the price of bitcoin is too volatile in the short term. An investor with a long-term vision is therefore more likely to have a positive capital gain, which is not always the case for short-term investors. They only do trading, a very risky activity.

Another often overlooked detail is that the best time to buy bitcoin is when you really need it. For example, if you want to make a quick transaction, an anonymous payment… but that's another subject. 

Buy Bitcoin: which investor profile is it for?

Buying bitcoin is suitable for any type of investor. When it was launched, bitcoin was just a tool for geeks. For the cypherpunks, it was a bet for a world with a monetary system without trusted third parties. For the more radical, a bitcoin transaction is a political act, an act of defiance against the current monetary system. 

Over time, millions of traders around the world have taken hold of the crypto market. They take bitcoin as a great tool for trading, speculation. 📈

However, bitcoin has become increasingly credible in recent years, notably thanks to the arrival of institutional investors.

💰 Pension funds, companies; all are flocking to bitcoin to protect themselves from the inflation hitting fiat currencies.

The fact that it is possible to buy small fractions of bitcoins makes it one of the most accessible assets for everyone, individuals and professionals. 

Is it too late to buy Bitcoins?

In our opinion, it is not too late to buy bitcoin. Indeed, the latter is still too young an asset. The arrival of institutional investors in the market is a sign that cryptocurrencies still have a lot to offer. More than that, nation states are only beginning to take the subject seriously.

💰 El Salvador has made bitcoin legal tender just like the US dollar.

It cannot be guessed if this will be done by other states. In addition, if this trend solidifies, it can be said with certainty that bitcoin still has a bright future ahead and that the adventure has only just begun. 

risk with investing in bitcoin

Buy Bitcoin : how to do it?

There are several ways to buy Bitcoin. The easiest is to go through:

  • A crypto-exchange (exchange platform)

  • By a broker.
     

These usually offer their services through online sites or even physical offices. The most used means of payment are bank transfer and credit card.

There are also several ways to make an anonymous purchase of cryptocurrency, even if it is done on an online platform. On the other hand, it is more difficult to buy bitcoin anonymously (without revealing its identity), the easier is to go through the exchange platforms. 

More concretely, how is it going? Here is a guide that you may find helpful.

Buy Bitcoin via Paypal ₿

It is possible to buy bitcoin natively on Paypal in the United States. Other cryptocurrencies such as ethereum or litecoin are also concerned.

For EU residents, it is possible to buy bitcoin via Paypal on the FTX exchange platform. Also, Paypal can be used in bitcoin exchanges in France thanks to P2P like LocalBitcoins and Paxful. These facilitate decentralised exchange. Payments are made from person to person. Several users of these platforms offer Paypal as a means of payment

💰 It is imperative to create an account and provide your identity. Exchanges are only possible after verification of the personal data provided. 

Buy Bitcoin via wire transfer

Several platforms offer to buy bitcoin (BTC) by bank transfer. The best known are:
 

  • eToro

  • Binance

  • Coinbase

For residents in EU, it is more interesting to buy bitcoin by a SEPA transfer to exchange platforms established in Europe. Indeed, SEPA transfers are processed much more quickly than a transaction outside the old continent. 

Buy Bitcoins through an ATM

To buy bitcoin anonymously, there are several solutions available to you. ATM is one of the most effective solutions because purchasing on them does not require identity verification.

But how do you buy bitcoin from an ATM? It's very simple, a blink of an eye on the site www.coinatmradar.com is enough to locate the bitcoin ATM closest to you.

On the other hand, ATM is not the fastest solution to buy bitcoin in EU.

💰 Indeed, the hexagon has only 9 on its territory, a low number compared to the 21,014 located in the United States or the 1690 of Canada.

Buy Bitcoins at no cost

How to acquire bitcoins at no cost? 💵  It seems utopian.

Indeed, even if there are platforms that allow you to buy bitcoin and other cryptocurrencies such as dogecoin or even cardano by paying fees close to zero, banks or money transfer establishments do not grant such a chance. to no one. Indeed, to make a bank transfer to a broker, the bank retains some fees. This is why a purchase of bitcoins always requires the payment of some fees. 

Also, the most efficient way to pay as little fees as possible is to buy from platforms that charge too low a fee. Some of them work in France and hold PSAN status. These are Stackinsat (1.5% fees), Bitpanda or Dux Reserve, a Neo-bank which promises fees below 1%.

67% of retail investor accounts lose money when trading CFDs with this provider. You have to ask yourself if you can afford to take the high risk of losing your money.

Conclusion: Where and how to buy Bitcoin in 2021?

There are currently several ways to buy bitcoin. However, the best way to do it depends on individual needs.

  • A novice feels more comfortable going through a broker or an exchange platform.

  • A more informed user who is concerned about the protection of his identity goes through P2P platforms or a 100% anonymous solution such as bisq. 

💰 The fastest way to acquire bitcoin is still purchasing by wire transfer or credit card from easily accessible sites like Binance, Coinbase, and eToro. 

Buy Bitcoin FAQ

✅ How to buy Bitcoins in 2021?

To buy bitcoin in 2021 you just need to have money in a bank account. Indeed, several online platforms like Binance, Coinbase or eToro accept payment by bank transfer or credit card. In short: you have to go to their sites, pass the identity verification, deposit money and place a buy order on the EUR / BTC pair. 

✅ Should I buy Bitcoin?

For 12 years, Bitcoin has been the best performing asset in terms of investment. Its blockchain is used more and more by companies like Microsoft. The arrival of institutions and countries in the crypto industry suggests that all of this has only just begun. But also, buying BTC is like betting on a revolutionary technology, the blockchain. And so yes, it is not yet late to get on the train. 

✅ Buying Bitcoins: Which mistakes should be avoided?

Here are the mistakes to avoid before buying Bitcoin (BTC)


Do not send money to a platform without ensuring its reliability. For example, it is important to check that the platform has existed and offers the “BTC purchase” service for a long time, that it has a PSAN status etc.


Although there are solutions to preserve his anonymity on Bitcoin, we must stop believing that it is natively anonymous, it is in fact a pseudonym. Any purchase of the BTC on a platform that requests identity verification is harmful to anonymity. Indeed, exchange platforms link BTC addresses to the identity of their customers.


Do not venture to trade CFDs. Indeed, the majority of those who trade these products lose their money. Buying Bitcoin and being sure to come out on top requires a long-term investment.


Do not leave your Bitcoins on an exchange platform; it is advisable to manage your own wallet and store your private keys yourself to avoid hacking.