How to buy Bitcoin?

This post will guide you through the process of buying Bitcoin, and we will aim at two major platforms for this purpose, namely Coinbase and LocalBitcoins. However, it must be noted that this is (merely) a guide and it does not endorse any of the two exchanges discussed here.Moreover, this should not be taken as a recommendation or investment advice for any potential action that you wish to take in this niche.

Coinbase vs. LocalBitcoins

Before we start discussing the procedures for buying Bitcoins on these two exchanges, let us first differentiate them in terms of their functionality, scale, and features. If we talk about scalability, LocalBitcoins has a clear-cut advantage over its significant other since it offers flexible services across the World, in various currencies while Coinbase is limited to 32 countries only. As far as the payment modules are concerned, Coinbase faces several drawbacks yet again, since the exchange features bank transfers and credit and debit cards. However, LocalBitcoins accepts Paypal, bank transfers,Western Union, credit and debit cards and an array of other options. This is a very vital feature that multiplies its user base since people from all variants of the World can participate without having to worry even if they do not have a credit card.As far as the ID verification is concerned, both platforms have taken subtle measures to ensure that the frequency and probability of scams are kept at its minimum. However, it is worth noticing that even though you need to verify your ID for trading on Coinbase, there are specific payment methods for which you might be asked to verify your ID on LocalBitcoins.

Selecting a Wallet

Even though you could store your Bitcoins on both of these platforms, let us have a look at a couple more just to scale up the options.

Mycelium

It happens to be a very popular mobile wallet that complies with some of the most advanced technologies on the internet, including Trezor and Tor.

Electrum

Well, Electrum specifically targets customers who typically use desktop computers. A great perk is that it provides you with the luxury of creating your own encryption key for additional security. So, if you are planning to buy BTC in whole numbers, then you must consider this option.

Coinbase

Open the website https://www.coinbase.com/
Since this guide covers everything from scratch, I assume that you do not even have an account on the exchange. So please go ahead and hit ‘Sign up.'
Now fill out all the details requested by the exchange and please ensure that the name you enter in the field matches precisely with the name mentioned on your ID(issued by the government). It is in your best interest to keep everything authentic to avoid any consequences later on

It must be noted that Coinbase is the most trusted exchange for converting fiat into cryptocurrency and the reason why it is so acknowledged is that it is modulated by the US government and it accords with strict rules and regulations. This is one of the reasons as to why they take the verification of your ID very seriously.Moreover, if you face any trouble in the verification process, it is advised to download the app and use your phone’s camera.

After this,you will be asked to choose a buying option. Even though a bank transfer appears to be an economical option and it is, but it takes a significant amount of time to receive the coins. As soon as the payment details are verified, you can select the ‘buy/sell’ option in the menu at the top of the screen
Now move to the bottom of the page and select ‘Bitcoins.'
Once you have entered the amount you wish to spend (in your fiat currency), you may click the ‘Buy’ button
As another step of verification, you will be asked to confirm the purchase of your coins.In order to proceed with the purchase, click on ‘Confirm Buy’ button
With that final step, you have now become a Bitcoin holder. You could keep your coins on Coinbase or go for another web/desktop or hardware wallet

LocalBitcoins

Here comes the ‘less-sophisticated' giant exchange. Well, it does not mean that their security measures are diminished, or the platform lacks security. Not, not at all. In fact, I use it personally, and I just mean to emphasize that they are more user-friendly in all aspects. Let us have a look at the steps for buying Bitcoins through this exchange.

Open thewebsite https://localbitcoins.com/
Find the‘Sign up’ button present at the top right
Now choose a username of your preference but please note that if you have a professional username instead of, let’s say billiejijji98, that will be better for your online presence
After selecting password hit the ‘Register' button and proceed to registration
The system will send a confirmation email to the address you have provided
Find the email in your inbox (be sure to check your spam folder if there is nothing in the inbox) and visit the contained link
A new window will be opened, and after confirmation, the system will log you into the account
You will notice that a great feature of LocalBitcoins is that the system automatically detects your geographic location and displays all prices accordingly (e.g., if you are browsing from India, you will observe that the prices are in INR)
In the header section, you would see a ‘Quick buy’ button, click on it
Now enter the amount you are willing to spend in your currency for buying Bitcoin
Now select your country. Please note that this will update any previously set preferences by default
Here comes the most interesting and fascinating feature. See, the entire idea of cryptocurrency is to stay anonymous and trade with absolute confidentiality.Therefore, if you do not want to disclose your identity to anyone, please select ‘ID not required' checkbox. However, it must be noted that selecting this options may reduce the number of people to trade with since some people prefer trading after verifying your ID. In some instances, you may even get the Bitcoins at higher rates. But if you are willing to hide your identity, this is your best bet
Now in the final dropdown list, you are given the option to select your payment methods,ranging from bank transfer to Paypal
Once all selections are made, you can hit the ‘Search’ button
A list willbe populated for you, containing all the sellers matching your criteria
Each row contains the username, feedback of the seller, rate of each coin and the minimum and maximum amount they wish to trade per transaction
After deciding to buy from a particular seller, hit the ‘Buy’ button
A new page will open, containing terms of trade with the buyer. Please ensure that you have no issue complying with terms of trade. As soon as you are ready, enter the number of coins you wish to purchase and hit the ‘Send trade request' button

Here are two important things to notice. Firstly, make sure that you are trading within the buying hours of the seller (buying hours typically means ‘business hours’ at LocalBitcoins for your particular seller).Secondly, you need to pay keen attention towards the payment window, which stays there for 90 minutes. It implies that you have to finish the trade within90 minutes from the time you contact the seller.If you cannot send the payment within 90 minutes, please do not initiate the trade.

Now, in the right side of the screen, you will be provided with the payment details of the seller. In case these details are inadequate, you can ask the seller directly for these details. Please make sure that all of your conversations happen within the chat window since LocalBitcoins ensures that the messages are encrypted, and even the screenshots of payment receipts contain the watermark so they can never be used in any malpractice.
After receiving the details, you can transfer the amount. However, it is crucial that you mention the reference number of the trade as you send the payment so that the receiver knows that you have transferred the amount
After the payment is made, please proceed to click on ‘I have paid’ button
A window will appear, asking you to confirm the completion of payment. Hit the green button

NOTE: ONCE YOU CLICK ON THIS OPTION, THERE IS NO GOING BACK.SO IT MUST BE ENSURED ON YOUR END THAT YOU HAVE TRANSFERRED THE EXACT AMOUNT.

As soon as the seller confirms that he has received the payment, he will release the BTC into your LocalBitcoins account
It is at your discretion whether you wish to keep them in your LocalBitcoins wallet or any other web or desktop based wallets