Bitcoin has been making headlines since its debut in 2009 and is now the topic of the most heated discussions among traders who want to diversify their investment portfolio.
For newbies, buying bitcoin for the first time might be confusing a bit. But don’t worry because Albawaba is here to help! In this article, we’ll provide you with all the information you need so you know how easy and fast it can be to buy digital gold using cash or debit/credit cards!
Buying Bitcoin With Cash
One of the easiest ways to get bitcoin is to buy it with cash as it's private and usually fast. But before doing so, here is what you need to do. First, you must create a crypto wallet to receive and transfer bitcoin. Among the wallets to consider in 2021: Blockchain.com wallet, BitGo, and Nano ledger.
Secondly, buying with cash means that you either buy it from a BTC atm or from someone that is in your area who accepts cash and is willing to transfer BTC to the wallet you created earlier. Make sure that you know this seller personally or is known to be trustworthy with positive feedback on previous trade history.
Pros and Cons of Buying Bitcoin with Cash
Pros:
- Fast, private and easy
- Require no sharing of personal information
- No verification is needed
Cons:
- Requires trust
- It’s difficult to buy large amounts of BTC compared to crypto exchanges
- Saturated with scammers
- Higher fees that are not based on anything and differs from a seller to another (atm charges 5-10%fee per one transaction)
Buying Bitcoin Using Credit/Debit Card
Using credit/debit cards to buy bitcoin can be a lengthy process that requires a lot of verifications. While it is not the most secure and protected way to buy bitcoin as it does put your info, your card details and your BTC at risk of getting hacked, it is still worth it! Here are what you need to do to buy bitcoin using debit/credit cards in the smoothest and fastest way possible:
First: create a wallet.
Second: choose a crypto exchange that is trusted with a good reputation, regulated, has good trading volume, and supports your country/region. Then complete the KYC instructions to get verified.
On a side note, some exchanges like Binance, allows you to purchase BTC locally or virtually and directly from another individual in person or over the web on your own terms using their P2P platform.
Here are our hand-picked Top 5 Crypto Exchanges in MENA!
Third: Link your credit/debit card with your crypto exchange account
This one can be tricky as it depends on your location, exchange, card provider, and bank. For example: for regulatory or internal policies or card issuer restrictions, some banks might not allow you to deposit money into crypto-related exchanges.
Fourth: Buy bitcoin!
Each exchange has its own way and instructions so make sure you follow those right!
Pros and Cons of buying bitcoin using credit/debit cards:
Pros:
- Lower fees compared to buying from a seller or bitcoin atms
- Legal and regulated
- Higher buying limits
Cons:
- Sharing personal information which puts your id and card info at risk
- Exchange wallets are always at risk of getting hacked
- Bank limits
Final Thoughts
Buying your first bitcoin or Satoshis (yes, you can buy less than one bitcoin) can be a very confusing experience but it’s exciting and rewarding at the same time. Depending on what your investment goal is, you can decide what suits you best! Plus you can use all the ways mentioned!
Also, another important thing to know is that you shouldn’t leave your bitcoins on the exchange after the purchase and we recommend you keep them safe stored in the wallet you created earlier.
