How to Buy Bitcoin Around The World (Best Guide)
So you’re interested in buying Bitcoin, the digital currency that everyone’s talking about. Maybe you heard of the people who have made fortunes investing in it, or maybe you’re just a technology junkie who’s interested in this new aspect of technology. Whatever the reason behind your choice, you want to know where and how to buy bitcoin. But before buying Bitcoin, you may be interested in guides:
- Bitcoin Explained
- Bitcoin Mining Explained
- Bitcoin Investment Tips
- Who Accepts Bitcoin
- What World Leaders Say About Bitcoin
Earlier, the only way to get Bitcoins was to mine them, but soon enough, exchanges opened, allowing people to buy and sell Bitcoins as per their desires.
Exactly as designed, this decentralized currency has spread across the world. Hundreds of Bitcoin Exchanges now operate across the world, serving millions of buyers and sellers every day. The power of Bitcoin refuses to stop growing.
No matter where you are in the world, there is a method available to buy Bitcoins. Choosing which is the best method, however, depends on three factors.
The three factors are:
- KYC Requirement or Information to be Provided to Exchanges (Privacy)
- Payment Method
Depending on these three factors, you can choose the perfect method for you to Buy bitcoins. You simply need to gauge how much risk you want to take on.
Buying Bitcoin – KYV Requirements and Privacy Risks
Since Bitcoins act as a currency, they are subject to financial regulations. What this means is that rules have been set in place by most exchanges to stop money laundering. One of the ways these exchanges confirm who is trading Bitcoins is by instituting Know Your Customer (KYC) rules to confirm user identities.
One of the main aspects of the Blockchain is that all transactions can be traced back, all the way to the first transaction ever made on that chain. If someone learns a user’s identity, they can find out every single transaction that person has ever made. This has major implications for privacy.
Therefore, choosing the correct level of KYC for your needs is vitally important. Depending on how much privacy you require, you can choose the kinds of protections you want. There are three levels of privacy you can choose from. Make sure you use the correct level of identification for your purposes.
Level 1 – Zero KYC
Zero KYC means that the exchange, platform or seller of Bitcoins has no idea who you are. No documentation is necessary. Payment is usually done via cash transfer, using services like Western Union, Moneygram or Paysafecard. Buying bitcoins without KYC is usually done in peer-to-peer marketplaces, and it’s usually more expensive than other options. There is a risk of getting scammed too, whether you are buying or selling. These kinds of transactions are only done for small quantities of Bitcoins.
Level 2 – KYC Light
At this level, you are identified by your phone number or your payment channel. When paying for Bitcoin, you have to provide your bank account details, credit card details, Paypal details or the details of whichever system you are using. This means that the payment providers know your identity. This system is more secure than most, and it is less expensive than pure cash transactions. With KYC light you can buy limited amounts of Bitcoins in any exchange or Marketplace.
Level 3 – Full KYC
This method of verification is used when you want to trade on exchanges or invest large amounts of money. After verifying your identity with your phone number and bank account, you need to provide documents that prove your identity. This means submitting anything from a passport to a driver’s license to the exchange. Certain exchanges also require you to provide confirmation of your identity documents by a trusted third party like a notary or a bank. This degree of KYC is only used for larger trades. Therefore beginners will not need to use all of this.
Buying Bitcoin – Payment Options
Bitcoins may act like money, but they are not a fiat currency. That is to say, they cannot be used as legal tender. However, they do need to be bought with money. Depending on the quality of the financial system, Bitcoin transactions can be easy or hard. The more options there are for digital payment, in general, the easier the transactions can be.
Here are a few payment methods you can use to buy Bitcoins, ranging from the old to the new.
Buy Bitcoin with Bank Transfer
One of the oldest methods of buying Bitcoins, bank transfers have long been used to buy Bitcoins. All you need to do is send money to a seller, and you will receive the Bitcoins when the money is transferred. Most exchange platforms tend to use bank transfers.
Credit cards are not commonly used to pay for Bitcoin, as there is a risk for the seller of Bitcoins. Credit card transactions can be reversed, so scammers used them to buy bitcoins, reversed the transactions and moved the money to another wallet. Very few exchanges support credit cards. We have already covered a detailed guide on “Buying Bitcoins with Credit Card’, you can find it here – How to Buy Bitcoin With Credit Card
Buy Bitcoin with Paypal
The same problem that affects the usage of credit cards also affects Paypal. Namely, the transactions can be reversed easily. Very few exchanges take Paypal.
Buy Bitcoin with Cash Transfer Services
Direct cash transfer is no longer used by most exchanges. However, smaller, peer-to-peer sellers still use services like Western Union.
Buy Bitcoins in United Kingdom (U.K.)
Coinfloor is the premier exchange in the UK, offering users a range of services. If people wish to buy bitcoins, they can use Coinbase, one of the world’s biggest bitcoin sellers. Coinbase allows UK citizens to buy bitcoins with bank transfers as well as credit cards