How and Where to Buy Bitcoin

Are you interested in Bitcoin and would like to own a piece of this cryptocurrency? There are a few possibilities how to do that, regardless of whether you prefer to make a fast and simple online purchase or to handle it in person, or even anonymously.

But before you start buying…

You need a wallet

Although you can hold your bitcoins on the exchange (in case you bought them there), we highly recommend that in order to receive, store and use bitcoins, you set up your own bitcoinov bitcoin wallet,

that allows you to control your private keys by you, rather than a third party. There are two basic types to choose from:

A: mobilná či softvérovú peňaženka

A: mobile or software wallet

The easiest way is to set up a wallet which can be controlled via a website or an application. These wallets are easy to use and free, but less secure, which is why we recommend that you keep smaller amounts on them.

Some of the most popular wallets are Bread (iOS), Bluewallet (iOS and Android), Samourai (Android) and Electrum (software wallet on a computer).

WARNING! Avoid wallets from unknown developers, back up your private keys on paper, and keep in mind that although currency exchanges, such as Coinbase, offer their own mobile apps, the real owner of those keys is the exchange, not you!

B: hardware wallet

Do you want to store a larger amount of Bitcoin and have maximum security? If so, the solution is a hardware wallet. It’s a device that functions as online wallets, except that transactions are conducted safely without the need for a computer.

Some of the popular hardware wallets are TREZOR (by the Czech company SatoshiLabs) or Ledger Nano.

WARNING! The hardware wallet requires you to back up the private key which is represented in the form of a so-called seed (12 to 24 random words). Closely follow the instructions attached to your hardware wallet.

In case you want to make a better choice for getting the right wallet, please head over to our article on BTC wallets.

If you already have your own Bitcoin wallet, you’re almost ready to buy.

But wait a minute! Let’s first clarify what you want to do with your cryptocurrencies. Do you want to use them for online payments, store them for a few years as a long-term investment, or use the market’s high volatility and make a profit on exchange differences? Is it speed or anonymity that’s important for you? The answers to these questions will help you decide on the best way you want to buy.

Exchanges

A good place to buy and sell Bitcoin, as far as fees are concerned (about 0.1-0.5% when buying Bitcoin), are cryptocurrency exchanges, where asks and bids meet on the liquid open market and cryptocurrencies can be bought and sold. Exchanges are mainly used by traders who want to actively trade and use the volatility of cryptocurrencies.

To use them you will have to register and authenticate your identity, which may take up to several days. When you are buying on some foreign exchanges and exchange offices, fees for currency exchange and SEPA (when paying in euros) or SWIFT payment (when paying in dollars) should be taken into account.

> Go to the article on cryptocurrency exchanges

ATMs

Bitcoin ATMs are yet another way to buy Bitcoin. They are machines that allow for exchanging a traditional currency for Bitcoin. Some Bitcoin ATMs let you make bi-directional payments (purchasing and selling BTC). Keep an eye on the limit of the transaction. Purchases above the limit require you to register.

The advantage of Bitcoin ATMs is that you do not have to register to any exchange, it is fast, and your purchased bitcoins find their way into your wallet within minutes. The downside, however, is fees due to higher exchange rates.

> Go to the article on Bitcoin ATMs

Peer to peer

Peer to peer means purchasing bitcoins directly from people who own them. These people can be found, for example, on Internet forums, Bitcoin Facebook groups, or at Bitcoin meet-ups. Also, it is possible to use the services of decentralized exchanges.

When making a purchase in person, watch out for scammers. Buy only from people you know and trust, or traders with a good reputation and favorable ratings.

> Go to the article on peer to peer trading