Are you interested in Buying Bitcoin so you can start investing in Cryptocurrencies, but, as a beginner, are not sure how and where to start?
With so much information available right now, finding the right place to start with your crypto investments can get very confusing, especially since there are so many options to consider.
Then again, you might be considering the security risks that accompany cryptos, and are looking for the safest way to proceed.
Regardless, you’re in the right place!
I’ve created this complete guide to buying bitcoin for beginners in order to help you figure out all the issues you might face when taking your first steps.
By the end of this guide, you’ll be fully caught up with how to buy Bitcoin (as well as where) so you can start investing in this crypto simply, quickly and safely!
Let’s begin!
Taking Your First Steps
If you don’t have time to read the entire complete guide, I’ll try to provide a short summary of the steps required in order to buy Bitcoin as a beginner:
1. How to Buy Bitcoin
The procedure to buying Bitcoin online is as follows:
- Choosing the appropriate Platform
- Creating an Account & Verifying it (through KYC)
- Transferring Funds through Card or Bank Transfer
- Buying the Bitcoins
- Transferring the Bitcoin to another Wallet (or not)
Since there are astoundingly many platforms out there to consider, I’d highly recommend sticking to those who have many years of experience to show.
It’s an easy way to protect your investments from frauds, scams, ponzi schemes and also possible security breaches, which might be the case when dealing with “fresh” platforms.
Some of the most popular options are:
Crypto Platforms | ||||||
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| G1FKGIAP | c2wr2gzajd | QBSSSMXW | Ikylgu6JIc | 69828185 | 9290161 |
Bonus: | $50 & -10% Fees | $25 (CRO) | -15% Fees | -10% Fees | -10% Fees | -5% Fees |
Platform:
Code:📚 Reading Material:
Before completing any purchases, I’d recommend checking out the Guide to Safely Buying Bitcoin and following all the steps and preparations required.
Better safe than sorry.
2. Keeping your Bitcoin Safe
After you purchase your first Bitcoins, the next step is to find a place to store them safely.
The options are two:
Either you keep them on the platform where you bought them in, or you transfer them to another Wallet or platform
Which of the two should you choose?
A “compass” that can lead you to the correct choice, is to figure out the reason why you bought them in the first place.
If you’ve bought a rather small amount, are looking for short-term investing and want to frequently Trade with other currencies then a Crypto Exchange is the way to go.
Crypto Exchanges make buying and selling crypto very simple, offer a big variety of altcoins and (usually) have the lowest commission rates.
Some of the most popular and safest Crypto Exchanges are Binance, Crypto.com, Gemini and Kraken.
On the other hand, if you’re a long-term investor, and are looking to hold on to your Bitcoin for a longer time and profit from the yielded income, your best option would be a Crypto Saving Account.
Such an account would allow you to earn interest on your Bitcoins, passively, without the need to actively do anything.
Some notable examples, which also offer up to 6.2% (APY) on Bitcoin, are YouHodler, Celsius.Network and also BlockFi.
Finally, if you’ve bought Bitcoin and are in for the long run – not looking to actively trade them – the best way to be safe 100% against potential hacks would be to store them in some Cold Hardware Wallet such as Nano Ledger S & X which only you have access to.
How to Buy Bitcoin Guide Index:
- What is Bitcoin
- When should I buy Bitcoin?
- How to Buy Bitcoin
- How to Store Bitcoin
- Crypto Wallets Guide ▶
- Crypto-safety Guide ▶
- How to Buy Bitcoin via CoinBase
- How to Buy Bitcoin via CoinMama
- More Material ▶
What is Bitcoin & How Does it Work?
Bitcoin is a digital currency, and more specifically a crypto currency.
It’s a form of digital currencies*, that are encrypted and can be transferred digitally from person to person (peer to peer, P2P) like any other currency.
*Although Bitcoin “begun” as a means of transferring value (i.e. money), currently it appears it’s become more of a digital store of value – almost like digital gold.
What makes Bitcoin so unique and revolutionary, is the fact that it’s a completely decentralized digital currency.
What this means, is that unlike other conventional currencies (Fiat Money), Bitcoin has no central bank or regulatory institution that overviews its operations or manages it.
The Bitcoin network runs on a protocol known as BlockChain, which makes it possible for information to be sent directly from user to user (Peer 2 Peer Bitcoin Network), without the need for any mediators (hence the term decentralized).
It first appeared in a paper in 2008, published under the alias Satoshi Nakamoto, whose identity (or identities) remain unknown, as a new Peer 2 Peer Electronic Cash System.
Lately Bitcoin is becoming more and more mainstream, increasing in demand as even more people are looking to get hold of it, each for their own reasons.
📚 Reading Material:
If you want to learn more about Bitcoin, I recommend checking my detailed guide – many of your questions will be answered there.
▶ What is Bitcoin & How Does it Work
Many view Bitcoin as a Trading opportunity especially since it’s value is extremely volatile.
Just consider the fact that it managed to drop 80% in value in only a couple of months, only to skyrocket way higher in just a couple more.
As a result, many ambitious traders are drawn to it, trying to capitalize on these volatilities by buying and selling Bitcoin for short-term profits.
On the other hand, many consider Bitcoin to be a monetary revolution that will replace modern currencies as the currency of the future.
They also believe that it’s still in the making, in its “newborn” state as it is yet to be accepted by the vast majority of the population. It will skyrocket in value when that happens.
Why is Bitcoin Important?
The truth is that it’s the first time in human history that there’s been an alternative to the current economic system. Bitcoin is the first decentralized currency ever that’s not regulated by any bank or government.
In order to fully comprehend the importance of this, let’s consider how access to any sorts of information was available before the existence of internet.
The flow of information was limited to only a couple of available means, such as big newspapers, television networks or libraries.
Nowadays however, thanks to the Internet, the flow of information is completely decentralized. Anyone can send or receive information to and from everyone, easily and faster than ever before, with just 1 click.
Sounds cool right?
Now try swapping the terms in the example above: information with money and Internet with Bitcoin.
Most supporters and investors of Bitcoin believe that it’s going to lead humanity into a decentralized currency because it allows for people to exchange money by themselves, without the need of any mediators.
In the same way the Internet revolutionized the way Information is shared, by decentralizing the means of access, Bitcoin is going to decentralize the flow of Money!
❤️ Sharing is Caring
Share this guide with someone who wants to know how and where to buy Bitcoin.
You will help him and me!
When should I buy Bitcoins?
Now that we know what bitcoin is, it’s time for the million dollar question.
It’s almost always the first question that comes to mind when thinking of buying Bitcoin and also causes them a lot of trouble:
What’s the best time to buy Bitcoin?
Is it right now?
Or maybe I should wait a bit for prices to drop so I can profit from the next rise in value?
*The so called: Buy the Dip
But what if it never rises again? What if it stays the same or even worse, drops?
As you realize these are questions no-one can give you answers to!
Since time travel is still limited to sci-fi movies and past performances does not guarantee for future ones, no-one can be sure how Bitcoin is gonna do in the future.
Anyone that claims they know with certainty how Bitcoin is going to evolve in value, and are willing to share this fantastic knowledge with you, are definitely lying to you, and chances are they’re looking to make money off you.
The price of Bitcoin right now:
But, before you get to this point, you should first answer this to yourself:
What is the reason you want to buy Bitcoin?
The reasons someone wants to buy Bitcoin are two:
Either they’re looking for Short-Term Profits by Trading, or for Long-Term Profits by Investing.
Bitcoin Short-Term Trading
In order to earn any short-term (immediate) profits on Bitcoin, you’ll have to buy in when the price is low and sell when the price is up so you can capitalize the difference. (This is called Going Long on Bitcoin)
For more experienced users, the opposite is also an option: trying to short Bitcoin.
(Going Short on Bitcoin – Borrowing Bitcoin today to sell it at a higher price and buying it at lower price in the future)
If this is closer to your style, you’ll have to get familiar with Bitcoin Trading techniques which depend on Bitcoin Technical Analysis.
What this technical analysis does, is analyze Bitcoin price indexes in order to “extract” patterns which it can use to “project” (guess) what prices are going to look like in the future.
⚠️ Warning:
Bitcoin Trading is NOT recommended for new users and investors of Bitcoin. It required a lot of experience, knowledge and also is very risky.
Bitcoin Long-Term Investing
Thankfully for most, the Bitcoin market is still a valid option for people who don’t want to follow this short-term strategy.
If you support Bitcoin and believe in the rudimentary change that it’s going to bring to the way money works in our society, it’s worth considering Long-Term Investing.
Long-Term Investors of Bitcoin think that the entry-price is irrelevant, since its value is going to greatly increase in the long-term.
So it doesn’t matter much if you buy in at 200$ or 2000$, it only matters that you buy.
Even though Bitcoin has had its ups and downs (short-term) in value, in the long run, it’s been steadily on the rise.
(VERY on the rise)
So indeed, at least until now, they’ve been right:
In support to their claim is the fact that the total amount of Bitcoin that will be available is fixed. In total, 21.000.000 Bitcoins will be mined (the way they’re created) and not a single more!
Currently, 88% of the total amount of Bitcoins has been mined, which means there are more than 18.600.000 Bitcoins available right now.
The fact that there will be a fixed amount of Bitcoins is something that makes the currency deflationary, unlike other conventional currencies which are inflationary (can be “printed” without any limits by central banks).
This is a strong indicator as to why its value will increase in the future.
If demand increases (more people looking to buy Bitcoins) while the supply stays the same (fixed amount of Bitcoins), will result at the prices going up.
This argument, as you can tell, will only hold true in the scenario where Bitcoin is successful in the long-term.
If it fails to be assimilated by society in its economy and demand isn’t as high as projected, prices won’t surge the way we talked about above.
🔖 Bookmark it
I would recommend bookmarking this guide so you can look back at it anytime you want.
How to Buy Bitcoin
Bitcoin can be purchased online, either through a Crypto Exchange or directly from other users.
In this particular guide, we’ll focus solely on the Online Exchanges, since it’s the fastest, safest and easiest way to buy Bitcoin and also the most popular choice amongst users.
Also, keep in mind that not all Exchanges are the same and can be divided in the following subcategories:
- Online Brokers
- Trading Platforms
- P2P Platforms
Online Brokers will directly sell you Bitcoin, usually have higher commissions but their platform UI is easier and simpler to use.
They are the preferred option among beginners because they offer the best user experience.
On the other hand, what Trading Platforms do is bring buyers and sellers in contact, connecting demand and supply. Typically Trading Platforms have lower fees compared to Online Brokers but are harder to use.
They are the go to options for more advanced users because they offer more Order options (Limit & Stop/Loss Orders) & Cryptos
Finally, P2P Platforms also connect users but take it a step further, by introducing loans. Users can lend their cryptos (in the form of loans) and earn interest whereas others can loan money by using their crypto as collateral.
In this guide I’ll mention briefly the most popular and trustworthy options regarding buying Bitcoin on the Internet. They will be platforms I’ve used myself in the past, are highly regarded by the community and have been operating for years.
So let’s take a look at 7 of the most popular Bitcoin Exchanges that provide an all-in-all solution for those who want to buy, sell, invest, save and pay with Bitcoin.
- Binance – The Biggest Exchange ▶
- Crypto.com – A Holistic Solution ▶
- KuCoin – 🎁 15% discount forever ▶
- Gate.io – 🎁 10% discount forever ▶
- FTX – 🎁 5% discount forever ▶
- Kraken – The “Dinosaur” ▶
- Gemini – The Safest Exchange ▶
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₿ Cryptos: | 386 | 766 | 328 | 1178 |
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Maker/Taker Fees:
Αγορές με Κάρτα:
Μεταφορά με Έμβασμα:
Mobile App:
Desktop App:
Sign up Bonus:
Ιστοσελίδα:Next, we’ll take a look at 3 platforms where you can open your own Crypto Saving Account in Bitcoin and earn interest on your stored crypto.
They are an excellent option for those who have bought Bitcoin and are looking for a long-term investment (HODLer) and want to earn some interest on them in the meanwhile.
Moreover, in the end you’ll find Bitcoin Buying Guides for Crypto.com, Coinbase and Coinmama.
Binance
The Biggest Exchange
Binance was founded in 2017 and has already become the biggest exchange in transactions volume in the world. It’s one of the most popular and trustworthy Online Exchanges and offers a complete user experience for everything Cryptocurrency.
It’s one of the most all-inclusive Projects in the Crypto world where you can buy, sell but also Trade more than 200 different cryptocurrencies (among them, Bitcoin) with (maybe) some of the lowest fees in the market (0.1%).
On Binance you can buy Bitcoin through your credit/debit card, through Bank Transfers or simply by trading other cryptos you have for Bitcoin.
You also have access to Crypto Saving Accounts with Interest (1.2% APY on BTC), loans with crypto as collateral, Staking/Investing features as well as Trading (with or without leverage) of Crypto CFDs (such as Futures & Options).
Finally, Binance offers a free VISA Card, which you can use for your daily purchases with crypto and receive up to 8% cashback bonuses.
If I had to add something to the cons, it would have to be the fact that it has so many different options, features & services, that would make the platform rather complicated for new users.
But to sum up, Binance is a perfect all-in-one solution for both Bitcoin Traders and Bitcoin Investors who do have some experience with cryptos (or are willing to earn):
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🎁 Binance Bonus: | -10% Fees |
🏷️ Referral Code: | G1FKGIAP |
📅 Έτος Ίδρυσης: | 2017 |
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💳 Αγορά Bitcoin με Κάρτα: | ✅ (+1.8% Fee) |
₿ Ελάχιστη Αγορά: | 15€ σε BTC |
🏦 Αγορά Bitcoin με Έμβασμα: | ✅ (0% Fee) |
💸 Χρεώσεις: | 0.1%/0.1% (Makers/Takers) |
💰 Αποταμιευτικός Λογαριασμός: | 1.2% Ετήσιο σε BTC |
🖥️ Desktop App: | ✅ |
📱 Mobile App: | ✅ |
Ελλάδα:📚 Reading Material:
More on Binance in these articles:
▶Binance: A Complete Guide
▶ How to Buy Bitcoin on Binance
Crypto.com
The Most Complete Solution
Crypto.com was founded in 2016 and is again one of the most all-inclusive Projects in the crypto world, offering features to cover every need a user might have.
Through the Crypto.com Mobile App you can buy and sell more than 80 cryptocurrencies (BTC included), store them and earn monthly interest (up to 6.5% APY on Bitcoin under certain conditions) and receive loans by using BTC as collateral.
Crypto.com also offers a VISA Card that you can use for daily spendings and receive up to 8% cashback bonuses.
For more advanced users, Crypto.com Exchange, the desktop version trading platform, offers all the advanced features that experienced Crypto/Bitcoin Traders are looking for, with very competitive fees (o.1%/0.16%)/
Finally, on the pros of the platform I have to mention the friendliness of the Crypto.com App, that makes it very easy even for complete beginners to navigate.
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🎁 Crypto.com Bonus: | 25$ σε CRO |
🏷️ Referral Code: | c2wr2gzajd |
📅 Έτος Ίδρυσης: | 2016 |
| ✅ Διαθέσιμο |
💳 Αγορά Bitcoin με Κάρτα: | 2.99% Προμήθεια |
₿ Ελάχιστη Αγορά: | 0.00074 BTC |
🏦 Αγορά Bitcoin με Έμβασμα: | 0% Προμήθεια |
💸 Χρεώσεις: | |
💰 Αποταμιευτικός Λογαριασμός: | έως 6.5% Ετήσιο σε BTC |
🖥️ Desktop App: | ✅ |
📱 Mobile App: | ✅ |
📚 Reading Material:
More information on the platform is available in these guides:
▶ Crypto.com: A Complete Guide
Kraken
The Safest Exchange
Kraken was founded in 2011, and is considered one of the “dinosaurs” of the crypto world, as well one of the safest Crypto Trading Platforms as no-one has ever been able to hack it.
In the Kraken platform you can do both Spot and Margin Trading (for the more advanced) on more than 40 Cryptos (Bitcoin of course included).
Commissions although listed 3rd compared to Binance and Crypto.com, are still regarded as competitive in the market. They start from 0.16%/0.26% and depending on the volume of transactions can be reduced all the way to 0%.
Finally you can also “store” your Bitcoins by Staking them on Kraken with an APY of up to 0.25% which is however much lower than its competitors.
On the cons of the platform are the facts that you can’t buy cryptos by credit/debit card and the not so effective Customer Service.
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📅 Έτος Ίδρυσης: | 2011 |
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💸 Trading Fees: | 0.16% - 0.26% |
🏦 Αγορά Bitcoin με Έμβασμα: | ✅ (0% Fee) |
💳 Αγορά Bitcoin με Κάρτα: | ✅ +3.75% + 0.25€ Fee |
₿ Ελάχιστη Αγορά: | 0.0002 BTC |
💰 Αποταμιευτικός Λογαριασμός: | 0.25% Ετήσιο σε BTC |
🖥️ Desktop App: | ✅ |
📱 Mobile App: | ✅ |
How to Store Bitcoin with Safety
Bitcoin is stored in Bitcoin Wallets.
A Bitcoin Wallet is basically software that allows you to manage your Bitcoins (transfer, receive & store) and has been designed to interact with Bitcoin’s base code: BlockChain.
📚 Reading Material:
More on what a Crypto Wallet is here
How does a Bitcoin Wallet work?
In order to fully understand what a Bitcoin Wallet is, think of it as an eMail Client, such as Gmail or Outlook, where Bitcoins are eMails.
To send and receive eMails you need 2 things:
Some kind of software (for example Gmail) and an incoming or outgoing address (for example sterg@gmail.com).
The same is true with Bitcoins.
In order to send and receive Bitcoin you need a Bitcoin Wallet (software) as well as an incoming/outgoing address (e.g. 3CNSjdCJJzf2PByw5iT1G1fEPWNA2C7i2r).
This is what a Bitcoin Wallet essentially does, provide the necessary address where you can send and receive bitcoins from.
📚 Reading Material:
More on how Crypto Wallets work here
How can I be 100% Safe?
Before we say anything more, I want to mention the following saying:
Not your keys, not your Coins
If you’ve ever dealt with cryptocurrency security, you’ve surely heard it before.
What it means is that in order to truly own any cryptocurrency, you have to own its Private keys.
In essence:
Whoever owns the Private Keys to a Cryptocurrency is the one who decides what happens with it.
Every known Crypto Exchange or Broker available offers a Bitcoin Wallet. The real question is who owns the Private Keys of your Crypto.
Some examples to make this more clear:
- If you keep your Crypto on an Online Exchange (such as Binance or Crypto.com) then you entrust said Exchange with them and trust that they’ll keep them safe for you.
- If you store your Private Bitcoin Keys in a Cold Hardware Wallet then you’re the only one with access to them
Does this mean that a Cold Hardware Wallet is the only way to go?
If you own a significant amount of Crypto and want to be 100% safe, then yes.
However if you’re actively using them (Trading) or utilizing them in any way (Staking/Lending/Investing) then a Cold Hardware Wallet will stop you from doing so, since you can’t do that through it.
You’ll have to transfer them in and out all the time, something very inconvenient and costly.
Maybe the best solution would be a combination of the two.
The idea is that you store those you’re not actively using safely in a Cold Wallet while you use a part of them for your trades and investments.
Think of your real life wallet and your bank account:
On the first you keep money you need for daily purchases, while you store your life savings in the latter.
You can do the same with Exchanges and Hardware Wallets.
Keep reading, we’re about to take a deeper look in this.
Which Bitcoin Wallet should I choose?
There’s a plethora of Bitcoin Wallets to choose from – one for every taste. The answer again lies to the reason you bought Bitcoin in the first place.
What I mean by this?
As we’ve mentioned before, choosing the right Wallet to keep your Bitcoins in depends on what type of investor you are:
- Bitcoin Trader
Short-Term Investor who is looking to frequently Trade Crypto, Stable Coins & Conventional currencies. - Bitcoin Investor/HODLer with higher Risk & Performance
Long-Term Investor who is looking to earn steady interest on Bitcoin by including some risk in their investments. - Bitcoin Investor without any Risks
Long-Term Investor who wants their Bitcoin to be 100% safe without taking any chances.
Let’s take a look at what options are available:
Store Bitcoin as a Trader
If you want to frequently trade Bitcoin and other Crypto then it makes sense to have instant access to them.
The easiest and most practical solution would be to keep them on an Online Exchange through which you can complete all your trades. Most Bitcoin Exchanges (such as Binance, Kraken, Coinbase) are also a type of Wallet.
If you choose this option, then you trust the exchange to keep your Bitcoin safe.
This means they are susceptible to the following risks:
- Fraud or Scam
A dreadful morning where you can’t access your exchange because the owners have cashed out and are sipping on their Pina Coladas with your Bitcoin in the Bahamas.
Check Mt. Gox & BitConnect - Hacks
Just because your Exchange is honorable and won’t steal your Bitcoin doesn’t mean that hackers are the same and won’t try to steal them from you.
Check Binance Hack
The most popular, tested & trustworthy Bitcoin Exchanges:
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Before committing to an Exchange do your research and check for:
- Founding Date & Seniority
The oldest, the better
For example Kraken was founded in 2011 and has been operating without any hacking incidents since. - Active Security
Check if the platforms offer all features for actively securing your account, such as 2FA, SMS Authentication, Anti-Phishing Codes etc
And don’t be lazy! Turn them on! - Passive Security
Look at what insurance schemes they have in place for protecting their investors’ deposits.
Binance for example keeps a separate insurance fund (SAFU) which guarantees for their investors’ deposits safety in cases of emergency.
And guess what…there was one!
In 2019 hackers managed to steal 7.000 worth of Bitcoin from depositors and they got reimbursed 100%
Store Bitcoin as an Investor/HODLer
The most popular platforms which offer Bitcoin Lending & Saving Accounts are:
[wptb id="88762" not found ]Store Bitcoin with 100% (?) Safely
If the amount you invest is not significant, you can always keep it on the Exchange without having a separate Wallet account.
The risk however remains!
The bigger the invested capital the bigger the risks, which means more the security measures you have to take.
It’s always up to you though!
For large Bitcoin capitals or for long-term investors, the best option as far as safety is regarded would be a Cold Storage Hardware Wallet, so you can be protected by hacks or bankruptcies.
You can also think of it as a USB Stick that has been designed to keep your Private Addresses safe and only transfer crypto to and from other addresses when you connect to it and unlock it.
The most popular and trustworthy options for Hardware Wallets right now are those by the company Ledger: the Nano S & Nano X.
Buy Bitcoin via Coinbase
[Step by Step]
Basic information about Coinbase
Coinbase is one of the oldest Bitcoin exchanges in the market since it was founded in 2012 by Brian Armstrong and Fred Ehrsam.
It is completely licensed and functions under a fully regulated framework.
It’s the number one choice of all new cryptocurrency investors since it has a well-made and easy-to-use interface, it has well-developed marketing, and it has built a trustworthy brand name throughout its history.
Besides Bitcoin, you can buy and sell other cryptocurrencies on Coinbase, like:
Ethereum (ETH), Ripple (XRP), Litecoin (LTC), Bitcoin Cash (BCH), EOS (EOS), Stellar Lumens (XLM), Ethereum Classic (ETC), Zcash (ZEC), Augor (REP), Dai (DAI), USD Coin (USDC), 0x (ZRX) and Basic Attention Token (BAT).
*Coinbase BONUS for MoneyMinority*
In cooperation with Coinbase, if you open your account via the following link, then you’ll get 9€ when you buy 90€ worth of Bitcoin!
Coinbase Fees
Coinbase’s fees are complex but I’ll do my best to make them as clear as possible.
When you buy Bitcoins on Coinbase, you pay as follows:
- The current exchange rate of Bitcoin on Coinbase Pro + 0.5% Spread
- Along with a proportional Transaction Fee:
For <10€ you pay 0.99€
For >10€ and <25€ you pay 1.49€
For >25€ and <50€ you pay 1.99€
For >50€ and <200€ you pay 2.99€
If the amount is >200€ then the transaction fee is 1.49% of the exchange amount, if the exchange takes place using money sent to Coinbase through bank transfer.
If the exchange is takes places through a credit or debit card, then the transaction fee is 3.99%!
Complicated, right?
Quite a bit!
If you want to know more concerning the fees, then you can see Coinbase’s fees more detailed, here.
Despite Coinbase’s fees being a puzzle, they’re still the lowest when compared to the other Brokers (lower than Coinmama’s for example).
A few examples to get an idea:
Buying 50€ worth of Bitcoins using your card: A flat fee of 1.99€
Buying 250€ worth of Bitcoins using your card: A fee of 9.59€ (3.99%)
Buying 1000€ worth of Bitcoins using your card: A fee of 38.37€ (3.99%)
As you must have already realized, the more you invest, the less sense it makes to use your credit/debit card for the purchase. Sending money to your Coinbase Wallet using a bank transfer is clearly a much wiser choice!
How do I open an account in Coinbase?
Step 1:
You create your account using this link (so you can get a Coinbase Bonus of 9€ when you buy 90€ worth of Bitcoins), and you fill in the information requested of you.
Step 2:
Confirm your email address in the email you’ll receive.
Step 3:
Confirm your mobile number.
Step 4:
Fill in your personal details.
Step 5:
In the next step, you need to confirm your identity.
This can be done using one of three methods: Via your ID card, your Passport or your Driving License.
After uploading a photo of your document, the identification process will be completed in a few hours.
After it’s confirmed, you’ll receive a notification, and you’ll be ready to proceed with your first Bitcoin investment!
Bitcoin Purchase Methods on Coinbase
After being done with all the formalities, now’s the time to get to the practical stuff!
You can make your purchases on Coinbase by paying either using your credit/debit card (Visa & Mastercard) or using a bank transfer.
Each method comes with its pros and cons.
Let’s examine them in more detail:
Buying Bitcoins using Bank Transfer
It’s the cheapest way to buy cryptocurrencies since (as I’ve mentioned above) you’ll be charged with the lowest transactional fee (1.49%) in comparison to the instant card purchases (3.99%).
On the other hand, since it’s a money transfer via bank the amount transferred will reach your Coinbase wallet in, aproximatelly, 2 working days. This means that you have to wait a little bit longer in comparisson to instant card purchases.
Finally, your bank will probably charge a fee to complete the transfer abroad. For example, the bank I am using in Greece charges a flat fee of 1€ for remittances abroad.
To send money to Coinbase using a bank transfer, follow this procedure:
A. Choose the item “Accounts” from the menu, and then “Deposit” to your Euro Wallet.
B. Fill in the details that will be asked from you in the text box that will appear.
C. Store the code that will appear and press “Continue“.
D. All the necessary bank details that you’ll need for the bank transfer will appear.
E. Log in to the e-Banking platform of your bank, choose to send a remittance, and follow the instructions, filling in the details that Coinbase has provided.
Voilà!
In 2 working days, the money will be in your Coinbase wallet, ready to be invested in cryptocurrencies!
Warning:
- Do not forget to fill in the Reference Number Coinbase provided in the field “Information for the Beneficiary”.
- Choose Normal Priority.
- Choose to pay ONLY for your bank charges – SHA method.
Buying Bitcoins using your Debit/Credit Card
This method is the most direct method of purchasing cryptocurrencies on Coinbase, since the purchase takes place in a few minutes.
The downside here is the higher Transactional Fee which can be as high as 3.99% for purchases of $200 or more using credit or debit cards.
But if you’re in a hurry because you want Bitcoins and you want Bitcoins NOW, and you don’t mind paying something extra for that, see below for a step by step guide on how to buy Bitcoins using your card:
A. Open your Coinbase app on your mobile phone (or your desktop, we don’t judge) and go to Settings.
B. In the Settings menu, next to Payment Methods, tap on the “Add” button.
C. Next, choose the payment method “Credit/Debit Card“. Coinbase is a “good guy” and informs you that buying cryptocurrencies using your card is recommended only for small amounts.
D. Fill in your card details and press “Continue“.
E. Return to the starting screen. There, choose the cryptocurrency you’re interested in buying, then choose “Trade” and then “Buy“.
F. Fill in the amount of euros you want to spend buying Bitcoins and choose “Preview Buy“.
G. In the next screen, Coinbase will display all the necessary information about the transaction. You’ll see how many Bitcoins you‘ll buy, the current exchange rate as well as the fees you’ll pay.
If you agree with everything, you just have to press “Buy Now” and you’ll receive your Bitcoins!
That’s it!
The Bitcoins are now yours, “secured” on Coinbase!
Allow me to give you an advice: Buy your Bitcoins on Coinbase via bank transfer.
You may need to wait a little longer for the money to reach your Coinbase wallet, but, in the end, you’ll get more because of the lower fees!
*Coinbase BONUS for MoneyMinority*
If you open your account via the following link, then you’ll get 9€ when you buy 90€ worth of Bitcoin!
Buy Bitcoin via Coinmama
[Step by Step]
Basic information about Coinmama
Coinmama was founded in 2013, a year after Coinbase, in Israel, and right now has more than 1.6 million customers in 190 countries.
This company functions as a broker through which you can buy (and sell) Bitcoins (and other cryptocurrencies) directly. Just like Coinbase.
This means that you’re buying the cryptocurrency directly from Coinmama and not from other users, as would be the case using an exchange.
In Coinmama you can buy or sell the following Cryptocurrencies: Bitcoin (BTC), Etherium (ETH), Ripple (XRP), Litecoin (LTC), Bitcoin Cash (BCH), Cardano (ADA), Qtum (QTUM) and Etherium Classic (ETC).
It’s one of the most popular and trustworthy solutions in the cryptocurrency market if you’re a beginner and you’re thinking of proceeding with your first purchase.
Coinmama’s pros:
- Ability to make purchases via Bank Transfer & Credit/Debit card
- Great Customer Support
- Quick User Verification Process
- Friendly User Experience
Coinmama’s cons:
- High fees (especially if you’re buying using your card)
Coinmama Fees
Let’s see Coinmama’s fees along with a few examples.
As we’ve mentioned before, there is no central bank that controls cryptocurrencies.
This means that each broker chooses their own rates — and that’s something that is often left hidden on purpose!
Coinmama prefers transparency and chooses to follow the XBX Index and add on that a flat fee of 5.90%.
On top of that, you need to calculate an extra 5% fee if you’re buying using your credit or debit card!
If you choose to send the money to your account using SEPA transfer from your bank, there are no extra fees by Coinmama.
But depending on your bank, there might be bank transfer fees for remittances abroad.
For example, a bank transfer from my local Greek Bank costs 1€ regardless of the amount sent.
If, on the other hand, you use a digital bank (like Revolut or N26—read my detailed reviews) for your transfer, there are no fees!
To sum up:
Buying cryptocurrencies using your credit or debit card in Coinmama has a 10.9% fee.
Buying cryptocurrencies using SEPA transfer on Coinmama has a 5.9% fee + the fees charged by your bank.
As you can understand, from a financial standpoint, purchasing using a SEPA transfer is the best option.
How do I open an account in Coinmama
Step 1:
Start by creating a free Coinmama account filling all the necessary details.
Step 2:
Now’s the time for the email confirmation. Connect to your email account and confirm it.
Then, you need to verify your account.
Step 3:
Fill in your personal details, like your First Name, your Last Name, your Phone, your Date of Birth, your Address, and your country of residence.
Then, choose “Next“.
Step 4:
Then, you need to upload an official document that certifies that you are, indeed, you!
This can be your identity card, your passport, your driving license or your residence permit.
In Coinmama’s FAQ, the reply to the question regarding why we’re uploading our ID, is this:
Before creating your first order, we need to know a bit about you. As a financial service, Coinmama is committed to the highest security and privacy standards. This also helps us keep your account safe, fight fraud, and more. The process is called verification and is something everyone must go through before buying cryptocurrency anywhere. After submitting your details for verification, we’ll then quickly go over it and make sure everything looks good. This usually happens within the hour.
Coinmama FAQ
Step 5:
The last step asks you to upload a selfie from your phone, and it needs to feature, clearly:
- Your face
- An official identifying document
- A piece of paper where you’ll write “Coinmama” along with today’s date
Follow the example of the woman in the picture below!
Step 6:
Allow them 15 minutes to check what you’ve submitted.
Step 7:
After your verification is completed successfully, you’ll be ready to buy your first cryptocurrency!
Go go go!
Bitcoin Purchase Methods on Coinmama
As we mentioned above, you can buy Bitcoins and other cryptocurrencies on Coinmama using two methods.
Either using a debit or credit card, or using a SEPA bank transfer.
Each method has its pros and cons, though the scales tips clearly towards one of the two.
In summary:
- Buying using a Card
The purchase takes place immediately, but you’re charged with a 10.9% fee - Buying using a SEPA transfer
The money will reach Coinmama in 1 to 3 working days but you’re charged with a 5.9% fee (+ any bank transfer fees)
Whew!
That’s quite the read, isn’t it?
Did you like it?
Do you feel ready to take your first steps in the world of Cryptocurrencies and Bitcoin?
Have you already taken them?
I want to know more about that!
Anyway, let me know in the comments below!
S.
Disclaimer:
I’m not a professional investment advisor and the following information is not an investment suggestion, only a guide to help you.
Always keep in mind that investment = risk! Especially when we’re talking about cryptocurrencies, which are incredibly volatile!
Only invest money you’re willing to lose!
Affiliate Disclaimer:
Some of the links the site uses are affiliate links.
They don’t cost anything to use; they let other sites know you’ve accessed their services through MoneyMinority, and is a great way to support and keep MoneyMinority going!
If you don’t wish to use them, feel free not to! Your interest in MoneyMinority is still appreciated!
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