Buying bitcoins is sadly not as easy as purchasing a carton of milk at the supermarket (yet).
In order to procure the digital cryptocurrency, you need to perform different operations.
The process is not complicated and there are different options, but you might get frustrated that you can’t purchase them directly (or even if you can, there is still a waiting period for things to be cleared).
There are several methods.
PayPal and credit/debit card
But where to buy bitcoins with PayPal? A more accurate question would be, “How to buy bitcoins with PayPal?” Since Bitcoin is more or less in competition with PayPal, PayPal are not very fond of the idea of helping their customers acquire digital currencies.
That being said, there is still a workaround. The same method would work if you’re asking, “Where to buy bitcoins with debit card?” You just need to link your card to your PayPal account.
After that you want to buy Second Life Lindens which you can then exchange for bitcoins. This method involves paying some extra fees but it’s one of the fastest way to get bitcoins.
With some exchanges or trading platforms you can also buy bitcoins via a bank transfer. For American bank accounts, possibly the best option is Coinbase.
They allow you to link your bank account to your Coinbase account and purchase from there. After a 30 day period, you can even link your account to your card (if everything has been fine so far) but the transactions have a 1% fee and take up to a few days to process.
Bitstamp went online in 2011 and in 2016 it was the second largest Bitcoin exchange in terms of volume. The same year it became the first licensed Bitcoin exchange. It provides reasonable fees, and offers added fetures such as a Bitcoin debit card.
Kraken is another option.
It’s not only an exchange, but a trading platform, so if you’re adept at trading, you can actually make a profit out of this.
The platform allows you to buy or sell bitcoins via wire transfers so it’s relatively easy to use.
A downside is that there are still additional fees present, albeit much lower than in other methods. And, of course, the process is not instantaneous.
Other than that, it’s a pretty solid platform you can use for your bitcoin related needs.
Other notables: Huobi, Coinbase, Poloniex, and GDAX.
Before using anything related to money transactions of any sort, it’s always good to have a look online, read reviews and look up potential threats on Reddit, and see how the general community receives the service provider.
If there are frequent problems or many people complain, then maybe it’s time to have a look at another service provider.
Bitcoin value goes through significant fluctuations over large periods of time.
If you look at a chart over one year, you will notice that there were grand jumps up and down the scale.
For example, the bitcoin exchange rate for US dollars according to CoinDesk on July 1st 2013 was $84.61 for a bitcoin.
On December 4th of the same year, the value of bitcoins was $1,147.25 or approximately 14 times more. Move on to present day and the current bitcoin value is $592.60.
The fluctuations are apparent and are caused by many different phenomena. Even now that the price seems to have stabilized a bit, daily movements can have $30-40 (or more) differences between highs and lows.
This gives a unique opportunity for the people who adept in trading to score a hefty profit, but this is not without a risk.
For the past week the movements have been somewhat steady, with only about a $40 difference between the highest and the lowest point.
However, look at the monthly graph and you can see differences of more than $100. If you’re good at following these differences and capitalize on the current market value, then you can make some really nice money out of this.
Especially for miners, it’s essential that they sell when the price is high.
The profit and the return on their investment (hardware, power, etc.) depends entirely on when they decide to sell.
They always need to ask themselves, “What is the price of bitcoin?”
Depending on the answer, they should either sell or keep their bitcoins until they find more favorable conditions. Sadly, nothing is certain in this game.
Sometimes the price may seem low to you, but it can then additionally plummet, leaving you in an even more unfavorable position.
That’s why it’s important to follow the bitcoin live price and draw your conclusions from there. Can you afford to wait several months (potentially) for the price to go up?
Or do you need to cut your losses while you’re ahead. These are very important questions you need to find the answers to. Bitcoin mining is actually a very small part of the potential profit you can make.
The bitcoin exchange rate is a lot more important. It’s one thing to sell 50 coins while the price of bitcoins is $600, but another thing altogether to sell at $200.
Keep it smart and try to stay ahead even though it’s insanely difficult.
If you’re a miner who’s already made some considerable amount of bitcoins, or you simply want to start trading the digital cryptocurrency, then you would be wise to find a good bitcoin exchange.
The top Bitcoin exchanges offer better rates and are far more secure than your garden variety exchange. Here are some of them.
Coinbase is one of the most renowned currency exchanges in the world.
It is situated in San Francisco, the exchange not only accepts US customers, but they also make the process of procuring, storing and selling your bitcoins much, much simpler than other venues. Here’s where we need to note that there is a period of a few days where your transactions are cleared.
Very few exchanges work directly with bank accounts and credit cards due to the risks they hold, which is why you have to wait for up to a few days for your transactions to get cleared. After that, you’re good to go. You can easily manage your bitcoins using the platform.
Coinbase even offers an app for automated buying and selling of bitcoins, but the platform isn’t really all that good for day trading since there is a fee of about 1% for every transaction.
Still, it’s a very nice and easy to use platform and a perfect way to enter the Bitcoin fever.
This is the best option for US citizens.
Bitfinex is a full-fledged trading platform that allows you a variety of different options.
However, unlike Coinbase, it’s not as easy to use and the options it offers might be confusing to new users.
The learning curve can be quite steep, especially if you’re new to this sort of field. Nonetheless, you’re going to have a great time here if you’re an advanced user. The fees can also be lower than Coinbase which is a great thing if you’re considering trading.
We feel compelled to warn you that the bitcoin market is highly volatile, meaning that if you know what you’re doing there is a great potential for profit, but if you don’t, the risk is huge. Make sure that you’re aware of what you’re getting yourself into before you start investing your money.
Kraken is one of the top Bitcoin exchanges, something between the two we’ve mentioned above.
It’s not as technical as Bitfinex, but it’s still a very good platform for trading (which is their primary focus).
The low fees and ease of use make it an excellent stepping stone for anyone who wants to enter the field. The security is top notch and the services – excellent. You can definitely check them out.
Bitcoin is good and all, but at some point, for some reason people want to exchange it for a fiat currency (which is in most cases USD).
Bitcoin is becoming more and more widely accepted, but even though this is the case it’s still not a universal currency which means that you can’t always count on it.
This is when you have to sell your bitcoins and make a profit in a currency that is more universally used.
How to sell bitcoins for USD?
There are two main methods to do this. You can either use an exchange or make a direct trade.
If you choose the direct trade route, you will be placing a selling offer and if there is a buyer interested in doing business with you, you will be informed by the site you’ve chosen.
It’s very important to choose a proper site that matches the ease of use you want (especially if you’re not very adept in trading), and of course one that doesn’t require big fees.
For the US one of the most reputable sites that deal with this sort of trading is Coinbase.
The site is exceptionally easy to use which is why it’s gained lots of support and the number of users has grown exponentially over the past several months. The system is simplistic and offers you the option of getting a wallet at the site.
You should know, though, that this method may require some… finesse. People may try to bargain with you in order to get a better price and sometimes they won’t take no for an answer so you need to learn how to handle these situations before you start giving your bitcoins away left and right.
Another approach to the problem can be using an exchange. Once more you will be placing your sell order but this time you won’t have to be so involved in the process – the exchange will take care of the rest.
Unlike direct trading, there won’t be any haggling.
However, some fees shall be present so even though this method might be more comfortable for you, it still has its disadvantages. Where to sell bitcoins for USD this way?
Kraken is one of the most well-known and respected exchanges and it has a variety of different payment methods. Of course, there’s also Bitstamp.
It’s very important to do proper research before you decide to use a service. Conditions change so you need to be up to date.
If you want to sell bitcoins for cash, you need to get ready for a bumpy ride.
Or it can be as easy as it gets. It depends on whom you’re trading with, really.
On one hand, you can trade with people you know.
This is the best and easiest way of selling bitcoins for cash. People you know will (most likely) not try to cheat you or rob you, and you can (in most cases) trust them.
If you know someone who wants to get some bitcoins but they don’t know how, you can help them by either explaining the different methods of buying bitcoins with a credit card, how to get bitcoins with PayPal or how to mine. Or you can simply sell them some of yours and make a nice profit so everybody wins.
How should you proceed? We assume that you want to be fair and accurate so you and the person you’ll be selling bitcoins to should have a look at the current price.
Then you will set them up with a wallet and send them the bitcoins while they pay you in cash. Thus you won’t have to use exchanges and pay fees in order to get fiat money for your bitcoins, and they won’t have to go through all the entire process of buying bitcoins (which can sometimes take a while).
It’s what you may call a win-win situation.
Sadly, you can’t always trade with people you know but if you still insist on selling your bitcoins for cash, there are other ways. You can use LocalBitcoins which is a marketplace for people who are looking to do the same.
You can use Western Union or schedule a meeting to sell your bitcoins in person. The site is pretty good and the rating system will come in handy for learning whom you’re dealing with.
If a person has had many different positive reviews, then they’re probably worth dealing with and if they don’t have any reviews, you should probably avoid them or at least be extra careful.
If a person doesn’t have any reviews, they might be new to the system, but you still need to be careful.
In case you decide to meet them in person, choose a public place with many people around and be sure to bring a friend or two (the more formidable, the better).
This may sound like a movie to you, but is actually pretty serious. You really need to take care of yourself.
PayPal doesn’t like Bitcoin.
In a sense, Bitcoin is their competition, so that’s a bit understandable.
After all, instead of paying PayPal’s ridiculous fees, people can simply send money over the network for a lot less.
Sure, it may take a little while (you’re usually advised to wait for about six blocks or 60 minutes to make sure everything is in order) but they don’t lose anything on charges, fees and other standard expenses related to moving money via PayPal.
For this reason, PayPal’s terms and conditions forbid you from using it in order to procure digital currency (of any kind, which means that dogecoins, litecoins and all the other Bitcoin alternatives are also off the table).
If you get caught using PayPal to buy cryptocurrency, your account will be frozen, blocked or otherwise erased.
That’s why very few people use PayPal to direct digital currency trades (if anyone does it).
However, that doesn’t mean that there is no turnaround. A part of the human ingenuity and spirt is the fact that we will almost always find a way to bypass the rules, if not break them completely. Hence there is a way to buy bitcoins using PayPal but not directly.
How to buy bitcoin with PayPal?
It’s pretty easy, actually, but it requires some additional fees. Instead of buying bitcoin with PayPal directly, you will first purchase some Second Life Lindens (also known as SLL).
SLLs are not in conflict with PayPal’s terms and conditions and are relatively easy to buy and exchange for bitcoins. Of course, your transaction charges will be a bit higher than alternative methods, but this is one of the fastest ways to receive bitcoins.
It’s not that complicated and even though it may be a bit frustrating to go through all the trouble because of policies, it’s still an option worth exploring.
This is possibly the easiest way to get bitcoins. It’s easy enough to use even if you’re absolutely new to the digital cryptocurrency.
Of course, it would be a good idea to read a bit about it before you start purchasing.
In the very least you need to know how you can trade it, how you can use it and why it matters so much that some institutions are trying to prevent you from acquiring it. The more you know, the better.
After all, isn’t this always the case with every new thing?
There are very few exchanges or other Bitcoin venues that accept credit cards.
Credit cards may lead to chargebacks but since trading bitcoins is an irreversible process, it’s impossible to get back your bitcoins which is why very few enterprises accept credit cards.
However, this doesn’t mean that you can’t still purchase bitcoins using your credit card, albeit not so directly.
Buying bitcoin with credit card is possibly one of the fastest ways to procure the digital currency, even though it’s not a direct transaction from your credit card to the exchange.
However, you need to be aware that this operation will have some additional charges and fees. This is the price you pay for speed and somewhat convenience.
We also need to note that even though the operation seems a bit complicated, there is nothing really complex about it.
It’s a pretty straightforward process but it has a few links in the chain before you reach your “target destination.”
How to buy bitcoin with credit card Visa and Mastercard?
For the purpose of this tutorial we’ll use VirWoX.
The virtual currency exchange will allow you to make a purchase of a bank wire, or with your credit card by using PayPal of Skrill.
Both Skrill and PayPal have been known to ban accounts for trading in Bitcoins. PayPal directly opposes the idea of the digital currency since people can use it as an alternative.
For example, instead of sending money via PayPal and paying their fees, you can send it via Bitcoin and pay a lot less. Skrill are also not too fond of digital currencies. Both companies have banned accounts for trading bitcoins which is why few people trade in bitcoins directly.
However, instead of going for the direct approach, you can use a workaround. Through VirWoX, you can buy Second Life Lindens (Linden Dollars or SLLs) and then exchange them for bitcoins.
The process does have some relatively high fees, but it’s fast and efficient.
No one can forbid you to buy SLLs (at least not yet) so you’re still within the terms and conditions of the sites.
This is a great way to acquire some bitcoins quickly and somewhat efficiently. The best part is that you can exchange the SLLs for bitcoins directly at VirWoX so you won’t have to move them around anymore.
This is the fastest way to buy bitcoins. It’s also possibly the easiest way to buy bitcoins, so it’s great for newbies.
Since Bitcoin is a digital cryptocurrency, it’s generally difficult to buy with cash.
However, it may be difficult but it’s not impossible. How to buy bitcoin with cash? The use of VirWoX is very suitable in this case since VirWoX accept payments via UKash.
UKash is a system that functions via the purchasing of vouchers and using them where they’re accepted. VirWoX accepts these vouchers which means that you can buy them, and then purchase Second Life Lindens (SLLs), after which you can exchange those for bitcoins.
The process is pretty simple, actually, but there are some limitations. For example, there is a transaction limit of 500 euros a day.
This means that you won’t be able to purchase even a whole bitcoin a day at the current prices.
Right now you might be thinking that our math is off because 500 euros are approximately 682 dollars at the current rate and one bitcoin only costs 592 dollars. Very observant of you.
This is indeed the case and you would be absolutely correct if you didn’t jump to conclusions. We’re not that bad at math.
If you had been a bit more patient, we would’ve told you that there is also a 15% transaction fee, which means that about 102 dollars will be lost along the way, leaving you with approximately 580 dollars, which is less than a bitcoin at the current price.
The limitation alone means that cash is not the most favorable way for you to buy bitcoins, but when you add the fee, as well, it makes it even less viable.
Another way you can go for it is through Western Union.
Buying bitcoins through Western Union is easy but it will still have fees and every bitcoin will be at least 10% more expensive than if you use other means.
However, you should consider that buying bitcoins with cash, no matter how you proceed to it, will always be less beneficial for you than if you use any other method.
Still, if you insist on buying bitcoins with cash, we can’t really stop you but we can warn you to be careful. There are different groups and people that offer selling you bitcoins for cash with fraudulent intents.
Always make sure that you check the sources.
Don’t just agree to any old thing someone offers you. Look for reviews and opinions online and always take a look at the current bitcoin price before you accept anything.
Technical analysis is the notion that past price and volume movements can help an analyst establish the movements in the future.
There is certainly some truth to this but in some cases making an accurate prediction is really hard.
Bitcoin has showed enormous movements over the past few years, with prices ranging from a few dollars at one point, to more than a thousand dollars at another.
This is why bitcoin value predictions are difficult to make.
This is also why it’s very important that if you decide to start trading and try to make some money out of the Bitcoin movements, please, make sure that you are only investing money you can afford to lose.
The market has great potential, but it’s uncertain so you would be wise not to risk something you can’t afford. Also, reading into fundamental and technical analysis might be beneficial for you. The more you know before you start trading, the better.
Now that we’ve issued a warning, here’s a bitcoin price prediction in the following months. Bitcoin’s ascension to over $1,000 levels at its peak was followed by a significant drop in price.
However, no matter how much the price, it still didn’t reach the levels before the peak, and it went up again.
Right now it’s about 50% of the highest it’s ever been, which indicates that it has somewhat stabilized around these levels for the moment. However, as more and more people adopt the system, this is likely to change.
There seems to be an uptrend in the price which means that if Bitcoin breaks the current levels its price will exponentially grow. We may be looking at significant price increases a few months from now. Usually when bitcoin prices increase, they increase considerably. It’s not far-fetched to be looking at prices in the over $2,000 levels by September.
However, a downtrend cannot be excluded at this point, either. The fact that Bitcoin value has fluctuated so much in the past makes it extremely had to predict with a good level of accuracy what’s going to happen.
If the prices do go down, then we may be looking at a powerful downtrend that will lead the prices to levels at half their worth now. If this happens, then we may be looking at a bitcoin price of $260-$280.
As you can see, there is enormous amplitude between the expected highs and expected lows.
If you take a look at some older charts, you will see why. The bitcoin value 2012 was relatively steady, moving from about $4 at the lows to about $13 at the highs and staying at those levels.
Bitcoin value predictions 2013 could not have foreseen the value going up to $1,000 levels but it did. This only means that it’s hard to make further predictions so this amplitude is to be expected. Only the trends will show us where the price will go in the next few months.
Bitcoin has stormed the world by surprise.
No one in 2009 expected that there would be so much interest in this amazing digital cryptocurrency and if someone had assumed so and made sure that they had a large stash of bitcoins, they are probably millionaires by now.
How so? There was a time when one could purchase a bitcoin for only a few bucks.
The price was very low so imagine that someone had bought 100 bitcoins at that price with, say, $300 investment.
Now, there was a point in the beginning of the year when a bitcoin’s price was around $1000, meaning that if our hypothetical person sold their bitcoins, they would make $100,000 out of a $300 investment.
Now imagine if someone had bought more. Of course, like we said, very few people could’ve predicted that Bitcoin was here to stay.
However, this basic principle of making a profit by buying at a lower price and selling at a higher one can still be used today, albeit on a much smaller scale.
The price of Bitcoin still experiences great fluctuations, and even though they’re not as great as in the beginning of the year, they still leave you with enough space to make a profit. However, in order to do so you need to trade at the right time.
Here’s the problem though – since Bitcoin is a decentralized currency, it’s being traded around the clock. There are no weekend limitations, bank holidays or other such down times. This makes it that much harder to be at the right place at the right time so you can buy at low prices and sell at high prices.
This is where a bitcoin trading bot comes in. A bitcoin robot can be programmed to purchase or sell at certain prices based on your overall trading strategy. For example, there is a very nice bot for BTC-E – the BTC-E Trade Bot.
It allows you to trade on BTC-E without even being near a computer.
Depending on your level of expertise, you either want a robot that has more options, or one that comes basically preprogrammed.
If you don’t know much about trading but you want to try it anyway, you need all the help you can get so a bot that comes with lots of options is what you need.
If you’re an adept trader, then something you can tinker with will do the job. However, we would still advice you to get familiar with the whole trading concept before you start making investments.