Okay, so you've done some research and finally decided to jump into the Bitcoin bandwagon. That's great - it's nice to have you onboard! But before you start handing out your hard earned cash to random websites and services, you need to do even more research and find out the best places to actually buy the Bitcoin.
In this guide we're going to go over some of our favourite and most trustworthy places for you to get your hands on some 'coin.
Exchanges
By far the most popular place to get your Bitcoin is via an exchange. An exchange is a website that matches buyers and sellers with each other. A seller can put their Bitcoin up for sale at a certain price and if some one is happy to pay that, then they will submit an order and snap up the Bitcoins.
And if a seller wishes to sell his or her Bitcoin for a certain price, then they place a sell order at their desired price and wait for someone to come along and buy it. They could be waiting for hours or even days for someone to buy it - it really depends on what their sell price is and if someone thinks it's worth paying that amount at that present time.
Whilst there are many shady exchanges that you should avoid, there are a great deal of legitimate and secure ones that we can recommend. These include:
CoinSpot
GDAX
Gemini
Bitcoin ATM
Bitcoin ATMs are another great option to buy and sell Bitcoin. Although some machines only offer a "buy" function. Bitcoin ATMs work just like regular ATMs (but kind of opposite): you access the machine, tell it how much Bitcoin you want and then insert your money. The ATM will then send the desired amount of Bitcoin to your wallet. Easy!
Then if you want to sell, you have to access the machine, send your Bitcoin to the machine and then the machine will dispense your money. Although they aren't in every city just yet, they do seem to be getting installed more regularly.
LocalBitcoins
LocalBitcoins is a site that works similar to an exchange in that it matches buyers with sellers, but some of the meetings actually take place in person. For example, someone will post a sell order in Sydney, then another user in Sydney wishes to buy those Bitcoin, they can arrange to meet and to a cash exchange. The seller will then send the Bitcoin to the buyers' wallet (usually a mobile wallet). This option comes with some associated risks that you should always be aware of - it's not advised that you meet in quiet or dark places and don't flash around huge amounts of cash.
OTC
OTC means "over the counter", this is an exchange that is done between two parties without the need for a third party (such as an online Bitcoin exchange). This is usually done for extremely large amounts and is normally done between two parties that trust each other. Such deals are normally done behind closed doors between wealthy people so as to protect their privacy and to not have an effect on exchange prices.
These are the 4 most common methods of obtaining some Bitcoin! As with anything, always do as much research as you can and never invest more than you can afford to lose.
Nothing on this blog is financial advice and should be taken as entertainment.