Whether you want to buy and hold Bitcoin or are looking to invest in Bitcoin, you need to know how and where to buy it. Below, we are going to look at some of the most popular ways of buying Bitcoin.
Credit or Debit Card
Using a credit or debit card is by far the most common way people buy Bitcoin. Its popularity might be because almost everyone has a credit or debit card, and using a credit or debit card is also simple enough.
The main advantage of using this payment option is that the transaction usually happens almost instantaneously, taking a few seconds in most cases. It is also a familiar process for everyone who has ever bought anything online using a credit or debit card.
Almost all Bitcoin exchanges let you buy bitcoin Canada using your debit or credit card, further increasing the appeal of using this method.
One downside you should be aware of is that the fees are usually higher than if you use bank transfer. That said, bank transfers are always slower and should only be used if you are patient and do not need your Bitcoin immediately.
Additionally, you might need to prove your identity before buying bitcoin using your credit or debit card. Expect to be asked for your ID before the transaction goes through.
Bank Transfer or Bank Account
If you are patient and want to pay very low fees, bank transfers are the better option. Using a bank account to buy bitcoin also opens up higher buying limits which is why this option is recommended for those who want to buy large amounts of Bitcoin. Do note that since the bank needs to authorize the transfer, the transaction might take quite a bit.
If you want complete privacy, this is not the option for you. Bank transfers can be traced and the transfers will lead directly to your Bitcoin purchase. ID verification might also be required.
Cash
This option is relatively uncommon but it is great for those who value their privacy because there is no personal information or identification required. All you have to do is provide your wallet details, deposit the cash and then wait for a few hours for the Bitcoin to be deposited into your account.
Also, you do not have to wait for lengthy bank transfers to complete.
The main downside of using cash to buy bitcoin is that there is a very high chance of getting scammed, so ensure you only give your cash to a reputable exchange or seller. Also, using cash can be quite expensive and you can expect to pay a 5-15% premium over the prevailing market rate.
PayPal
Using PayPal to buy bitcoin is hard, complicated and costly. Also, remember that PayPal discourages the use of your merchant’s account to purchase cryptocurrency, but some workarounds do make this possible.
If you have a PayPal balance you would like to use, this is a great way to do so. But remember that the fees for using PayPal to buy bitcoin can be as high as 12% so if you can use any other methods, use those instead.
If you want to buy bitcoin, there are a lot of different ways available to you. Just weigh up the pros and cons of each and choose one that would work best for you.
