Can I Buy Bitcoin Instantly?

Obviously, I’ve heard about Bitcoin. I confess that I am intrigued by it. So much so, that I want to own some Bitcoin myself. I just don’t know where to buy Bitcoin. Is this something I can do through my bank? Is there a way to buy Bitcoin instantly? What is the process? Is it safe?

— Short Answer —

Yes, there is a way to purchase Bitcoin instantly. The most secure method involves going through a digital currency exchange such as Coinbase.

— Digital Currency Exchanges —

A digital currency exchange performs the role of bringing together buyers and sellers of cryptocurrencies. These can be negotiated for conventional currency or other cryptocurrencies. The digital currency exchange will usually charge a fee for this service.

Other exchanges will act as market makers. This means that they do not charge a fee to their clients, but they do use a bid-ask quoting system which creates a slight difference in the buying and selling price. That difference is how they generate their income.

— Buying Bitcoin —

Once you have signed up with a digital currency exchange, you will be able to use your credit or debit card to fund the purchase of Bitcoin. The Bitcoin that you purchase can be stored in a digital wallet.

Some digital currency exchanges will apply a daily or monthly limit on the amount of Bitcoin that you can purchase. Also, your individual bank may limit or prohibit the use of its credit and debit cards for the purchase of cryptocurrency. These are details that you must research on an individual basis.

Some currency exchanges allow you to use PayPal to purchase Bitcoin, thereby bypassing any limitations that your bank may impose.

— Bitcoin ATMs —

Bitcoin ATMs are not, as the name might imply, automatic tellers operated by banks to sell Bitcoin. They are digital kiosks that people can use to purchase Bitcoin on the spot. Normally they are operated by digital currency exchanges.

The user inserts traditional currency into the Bitcoin ATM. They also input the public key to their Bitcoin wallet. The transaction is instantaneous. One thing to be aware when using these types of kiosks to purchase Bitcoin is that the fees tend to be higher than those from traditional digital currency exchanges.

As of early 2018, the number of such Bitcoin ATMs in the U.S. is fast approaching 1,000.

— Security Precautions —

As with any activity that involves the exchange of money, you should take certain precautions when looking to buy Bitcoin. First, it is important to look for a digital currency exchange that is well established and has a solid reputation. Coinbase would be a classic example of this.

Regardless of which specific exchange you choose, always be on the alert for potentially cloned sites or phishing schemes. Much as you would with traditional online banking, make certain that the site that you are on follows security protocols such as using https, etc. Keep your phone or computer updated. With modern browsers, if they detect suspicious activity they will alert you to the fact that something is wrong.

Also, always be mindful of clicking on any link that you receive via an email purporting to be from a digital currency exchange. Some of these might be phishing schemes in which they try to obtain your personal data and Bitcoin wallet information.

Suffice it to say, if you use the same level of awareness, caution, and common sense as you do with your traditional online banking, you will be safe buying and selling Bitcoin on digital exchanges.