How to Buy Bitcoins Online and Get $10 for Free

(Last Updated On: November 2, 2018)

Do you want to buy bitcoins online? There are dozens of Bitcoin
exchanges; each one with different rules and rates. Some exchanges are
best when you are in a certain country. Other exchanges will be the best
choice if you want to buy Bitcoin instantly. Some accept credit cards.
Other exchanges specialize in low transaction fees. Regardless, there
are many aspects to consider when you are choosing to buy Bitcoin online
and this post will provide you with clear guidance on how to buy
Bitcoins online.

Bitcoin Wallets

Before you buy Bitcoin you should get a Bitcoin wallet. A Bitcoin
wallet is essentially a bank account for your Bitcoin. You can store,
send, and receive Bitcoin in your Bitcoin wallet. Technically, your
Bitcoin wallet stores your public and private keys which are used to
send/receive Bitcoin and access your Bitcoin, respectively. Please note
that you don’t have to get a wallet as you can keep Bitcoin in your
exchange account (where you buy Bitcoin) but the safer solution is to
get a Bitcoin wallet.

Categories of Bitcoin Wallets

There are two main categories of Bitcoin wallets. Wallets are used to store Bitcoin after you purchase it from an exchange.

1. Hot wallet
   1. Includes any wallet connected to the internet
2. Cold wallet
   1. Includes any wallet that is not accessible by the internet

Hot wallets are convenient as they can be accessed anywhere in
the world as long as you have an internet connection. This is where you
should keep Bitcoin that you intend to use in transactions; your
‘chequing/checking’ account, if you will.
Cold wallets are more secure as there is no chance of it being hacked
through the internet. This is where you should keep any Bitcoin that you
don’t plan to use in a transaction in the near future; your ‘savings’
account.

Types of Bitcoin Wallets

1. Software wallets – hot wallet
   1. These wallets involve the download of software to your computer or mobile device.
   2. Copay offers a platform for both desktop and mobile use.
2. Online/web wallets – hot wallet
   1. These wallets only require a connection to the internet and so
      they can be accessed from anywhere with an internet connection which
      makes them really easy to use.
   2. The drawback to using web wallets is in your wallet key being stored
      on another server which can make it more susceptible to being hacked.
      1. An online wallet should only be used for small transactions and not to store large amounts of Bitcoin.
3. Paper wallet – cold wallet
   1. In an ironic twist, one of the most secure ways to store your Bitcoin is with a paper wallet.
      1. A paper wallet is essentially printing out your public and private keys on a piece of paper.
      2. While a paper wallet is more secure from being hacked through an
         internet connection, it is still a piece of paper that is susceptible to
         damage.
         1. It’s a good idea to make multiple copies of your paper wallet and store them in a safe place.
4. Hardware wallet – cold wallet
   1. A hardware wallet is a small device that is plugged into a USB port of a computer when making a Bitcoin transaction.
      1. This is the most secure wallet – they can be password protected.
      2. Keys are generated by the device which allows the device to be a cold wallet.
         1. This eliminates the risk of a malware attack.
      3. LedgerWallet are well-reviewed hardware wallets that offer security and are easy to use.

LedgerWallet in Canada.

 

The type of wallet you choose will depend on how much security you would like when using Bitcoin.

• The easiest option of an online wallet is also the least secure.
• A software wallet offers more security than an online wallet but is
  less convenient as you can only access it through the designated
  software.
• A paper wallet is a great low-cost option for a cold wallet. As a
  cold wallet that does not connect to a computer, a paper wallet is more secure than all other options.
• The hardware wallet is the best option to get a high level of security while having relatively easy access to your funds. If you value peace of mind with convenience, then you will find that a hardware wallet is worth every penny.

How to Buy Bitcoin Stock

I occasionally get asked how someone can buy Bitcoin stock. The
conversation usually goes one of two ways. One is, explaining that
various alt/digital/crypto-currencies can be used to buy coins in
Initial Coin Offerings, or ICOs. It’s like buying shares, or stock, in a
company that is trying to raise money so it can begin operations. While
this is something that you can do with your Bitcoin, it is not the
focus of this post so I will elaborate on ICO’s in a future post.

The other way the conversation tends to go is talking about finding
the best way to buy Bitcoin using the best Bitcoin wallet and the best
Bitcoin exchange. In the end, it’s about finding what is best FOR YOU.
The rest of this post will be focused on the pros and cons for various
ways to buy Bitcoin.

How to Buy Bitcoins with a Credit Card

The majority of people prefer to buy Bitcoin with a credit card; it
is fast, easy, and you can earn reward points or cash-back for the
purchase.
Coinbase is a great site to buy Bitcoin with a credit card and they offer $10 USD free to help get you started as a welcome bonus after you fund your account if you use this link. The $10 is deposited into your Coinbase account within a few days. You can also get unlimited $10 deposits into your account by referring your friends and family to Coinbase; everyone wins!

Pros:

• The fastest option for buying Bitcoin online
  • Buy Bitcoins online instantly!
• The easiest option for buying Bitcoin online
  • No identity verification required!
• Earn reward points to off-set some of the fees; this counted as a
  purchase and not a cash-advance for my credit card which allowed me to
  earn 1.75% cash-back on the purchase of my Bitcoin through Coinbase.

Cons:

• Higher fees
  • Fees can change depending on where you are but here in Canada the fee is only 3.99% of the purchase amount.
• Lacks anonymity
  • You are required to provide your credit card details

How to Buy Bitcoins with PayPal

With PayPal,
your payment information is secured within PayPal’s system so you don’t
have to share your credit card or bank account information with any
online Bitcoin exchanges. Purchases are also instant, like with credit
cards; however, typically fees are highest when using PayPal compared to
other online Bitcoin purchase options.
LocalBitcoins is a fast and easy way to buy Bitcoin securely using PayPal and other methods – from anywhere in the world.

Pros:

• The most anonymity for buying Bitcoin online
• Fast

Cons:

• The highest fees
• The most difficult way to buy Bitcoin online

How to Buy Bitcoin with a Bank Account

You can use a bank transfer from your bank account to buy Bitcoin.
This is ideal if you want to purchase a larger amount of Bitcoin to
minimize fees.
Access to buy Bitcoin with a bank transfer may depend on your country of residence. Coinbase allows people in the USA to buy Bitcoin with their American bank account. With that said, GDAX is a website that is connected to Coinbase and allows more methods of purchase including bank account transfers through wires (or SEPA transfers in the UK and Europe).

QuadrigaCX
offers easy account verification and the ability to deposit funds with a
bank wire from Canada. Fees are low when compared to other options to
buy online.

Pros:

• Lowest fees for buying Bitcoin online
• Can be easy
• Best for larger Bitcoin purchases

Cons:

• Lacks anonymity
• The slowest way to buy Bitcoin online

Here is a summary of the advantages and disadvantages for each method to buying Bitcoins online.

So, what is the best way to buy Bitcoin online?

If you want Bitcoin in the quickest and easiest way possible then buying Bitcoin with a credit card is for you. Coinbase is a trusted online source for credit card payments and you can get $10 USD for free when you fund your account.
If you want to disclose the least amount of information in aim at staying anonymous then buying Bitcoin through PayPal is your best option.
If you want to minimize fees then doing a bank transfer or wire with QuadrigaCX is the way to go. Typically, bank transfers and wires also allow for higher transaction amounts.

 

Are you tired of using your phone to provide U2F (Universal 2nd Factor) Authentication? This is where the site sends your mobile phone a text or a phone call with a code that you have to enter into the site to prove your identity. I recently purchased a couple YubiKey’s to provide a convenient solution to maintaining security of my crypto currency investment.

 

The YubiKey offers the ability for you to easily authenticate your account without the tedious process of entering a code that was sent to your phone. I purchased the YubiKey NEO as my primary key because it can work while I’m out and about with my phone through NFC as well as my computer through USB. The YubiKey 4 was purchased as my back-up key because I will have access to my computer when I use my back-up key at home. The

 

How would you buy Bitcoin online? Do you have any tips or tricks to buy
Bitcoin quicker, easier, for fewer fees or with more anonymity? Please
comment with your thoughts or questions below or email me directly.

Always here to help.

Cheers,

Justin
justin@investwithcryptocurrency.com

investwithcryptocurrency.com

 

Invest With Cryptocurrency; Grow Money