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Bitcoin ATMs
Buying Bitcoin from an ATM is quite similar to having a Bitcoin exchange experience in person.
Just as you would buy any product from a vending machine, Bitcoin ATMs allow you to put money into the machine and receive Bitcoins in return. For this purchase, you will need to have a secure digital wallet on which the Bitcoins you have purchased will be deposited. The process is simple and usually takes a few minutes.
With the increasing adoption of Bitcoin and cryptocurrencies in general, the number of Bitcoin ATMs installed and operating continues to increase. You can check CryptoATMRadar.com for a map that shows you the nearest Bitcoin ATMs in your location.
The disadvantage of using a Bitcoin ATM is that it tends to be prohibitively expensive (due to fees) and there can be security concerns.
Person-to-person (P2P) transactions
If you can’t find a Bitcoin ATM near you, you can easily buy Bitcoin directly from another Bitcoin owner.
This experience is quite simple and similar to buying an item from eBay or Craigslist. Several platforms allow you to connect with Bitcoin owners in your area.
On LocalBitcoin.com for example, you can spot people near you selling Bitcoin. You can also arrange in-person meetings to conduct trade, or you can use the escrow services provided as a security measure.
This is one of the riskiest ways to acquire cryptocurrency, but the escrow services mentioned above can be very useful.
Ideally you should simply buy your Bitcoins from someone you already know and trust 100% (like a friend or family member).
Encrypted credit cards
Selected credit card
issuers allow users to make Bitcoin purchases using a credit card.
For credit card issuers that allow Bitcoin purchases, the process is usually quite similar to linking your bank account to a crypto exchange via an automated clearing house or ACH. However, it is important to note that Bitcoin credit card purchases are valued differently than regular credit card purchases.
In most cases, the process is considered risky as the credit card issuer may lower the credit limit or close the card completely given the volatile nature of Bitcoin and also depending on the credit limit. Bitcoin credit card purchases also incur higher costs as there are broker and credit card fees, as well as transaction fees to consider. Also, if you’re not in the United States, you may need to consider an exchange fee of 1 to 3%.
Digital payment platforms
If you already have an account with a digital payment platform like PayPal, Cash App, or Venmo, you can buy Bitcoin.
However, these alternatives are not ideal if you want to self-guard your cryptocurrency since platforms like PayPal and Venmo don’t allow you to keep cryptocurrencies in your wallet. Cash App allows crypto withdrawals.
With most digital payment platforms, your private keys remain within the platform and therefore you are forced to use the digital payment app as a wallet. Although most digital payment solutions offer a simple and intuitive way to buy Bitcoin risk-free, they also have relatively higher fees.
Bitcoin Rewards
As mainstream adoption of Bitcoin continues, a number of banks and financial institutions are creating new ways for Bitcoin enthusiasts to access via Bitcoin rewards.
These are mostly in the form of credit card-based incentives that hand out cryptocurrency rewards to credit card users. Examples include platforms like BlockFi that offers a credit card with Bitcoin rewards as cashback for transactions made on the card. Other platforms include Brex cards, Sofi credit card, Tomo credit card, and Gemini credit card to name a few.
