Buying Bitcoins (the newbie version)

This page aims to be the best resource for new users to understand how to buy Bitcoins. The existing Buying bitcoins page is too complex, and not transparent enough for new investors. Be extremely careful when buying bitcoins from not accredited websites or individuals. Like in the real world there are many scammers around.

For more information on buying bitcoins with your credit card, please see the wikipedia page, How To Buy Bitcoins With Your Credit Card, which is dedicated to that payment method.

Warning: Please be careful with your money. When sending money to an exchange or seller you are trusting that the operator will not abscond with your funds and that the operator maintains secure systems that protect against theft -- internal or external. It is recommended that you obtain the real-world identity of the operator and ensure that sufficient recourse is available. Because Bitcoin services are not highly regulated a service can continue operating even when it is widely believed that it is insecure or dishonest and webpages recommending them (including these) may not be regularly updated. Exchanging or storing significant amounts of funds with third-parties is not recommended.

PayPal

You can't directly buy Bitcoins using PayPal, because it is risky for the seller, and therefore few sellers will offer this. There are basically 3 reasons for that:

• The buyer of bitcoins can always perform a chargeback and there is no way for the seller to contest that
• There are many hacked accounts and when PayPal realizes that such an account has been fraudulently used, they will also perform a chargeback
• PayPal doesn't like bitcoin, as the bitcoin network is in direct competition to it? . They will ban accounts that have anything to do with Bitcoins, and freeze their balance.

Having said that there is a workaround that can be done in order to use Paypal to buy Bitcoins but it holds within it higher transaction fees. Using the Virtual World Exchange you can buy Second Life Lindens (SLL) with Paypal and then convert your SLL to Bitcoins. This process will charge you transaction fees of around 6% but will let you purchase Bitcoins pretty quickly as opposed to a wire transfer. The reason this method works is because you do not buy Bitcoins with Paypal directly, you only buy SLL with Paypal (which is acceptable by Paypal's TOS) and then exchange your SLL to Bitcoin.

Note: If you only want to take advantage of Bitcoin's price volatility You can trade CFDs on Bitcoin via Paypal on sites like AvaTrade or Plus500. When trading online your capital may be at risk. Trading CFDs is suitable for more experienced traders.

Local Bitcoins

Local Bitcoins allow seller and buyers who are located nearby to meet and exchange Bitcoins through various methods including cash, wire transfer, Money Bookers, Skrill and more. Local Bitcoins offer a Bitcoin escrow services that holds the funds until the transaction is complete, therefore reducing fraud.

Cash (US)

BitQuick.co (info) allows sellers to connect to buyers via cash deposit or SEPA transfer. You can buy bitcoin instantly by providing only your email address and bitcoin address. As soon as the deposit is received, the bitcoin are sent.

Cryptxchange allows you to buy bitcoins by depositing cash at a local bank, or by sending a wire transfer. Low rates, fast customer service, no account verification or creation needed. Average transaction time of 30 minutes depending on the time of the day. We recently automated every step of the process, with our record transaction standing at three minutes. In the future we hope to get our average transaction time down to five minutes.

BitBothers LLC allows customers and bitcoiners to purchase bitcoins by either sending in cash, money orders, cashiers checks, or MONEYGRAM to a designated location. Bitcoiners can also deposit money directly into one of the corporate business accounts increasing the transaction time to less than an hour. These methods of payments are avaliable to ensure anonymity and protect the ideals bitcoins were founded on. For customers who wish to preform bank transfers, the option will be avaliable shortly. BitBrothers LLC gurantees that all customers will be satisfied with their exquisite customer service and overall experience that they are even offering discounts to select customers!

Cash (International)

Cryptxchange allows you to buy bitcoins by depositing cash at a local bank, or by sending a wire transfer. Low rates, fast customer service, no account verification or creation needed. Average transaction time of 30 minutes depending on the time of the day. We recently automated every step of the process, with our record transaction standing at three minutes. In the future we hope to get our average transaction time down to five minutes.

BIPS are able to accommodate most request.

BitBrothersLLC allows customers to either send cash, money orders, cashiers checks, or MONEYGRAM. Prompted by incredibly fast customer service and the most anonymity in the entire industry!

BitQuick.co (info) allows sellers to connect to buyers via cash deposit or SEPA transfer. You can buy bitcoin instantly by providing only your email address and bitcoin address. As soon as the deposit is received, the bitcoin are sent.

LocalBitcoins.com offers person-to-person cash exchanging, cash deposits and cash by mail. Site reputation system protects you against fraud and scammers. Quick and easy for direct Cash Exchange, beware of Online Exchange Scammers.

Cash (AU)

Cryptxchange allows you to buy bitcoins by depositing cash at a local bank, or by sending a wire transfer. Low rates, fast customer service, no account verification or creation needed. Average transaction time of 30 minutes depending on the time of the day. We recently automated every step of the process, with our record transaction standing at three minutes. In the future we hope to get our average transaction time down to five minutes.

bitXoin (info) Buy bitcoin via online ordering and bank deposit, cash over the counter at most banks throughout Australia. Fast processing, low reference rate, low commissions.

Bitcoin (Australia) - pay by cash over the counter at local bank branches.

Via Bank Transfer (US)

Coinbase allows you to buy and sell bitcoin by connecting any U.S. bank account. You can start buying right away if you choose instant account verification.

Cryptxchange allows you to buy bitcoins by depositing cash at a local bank, or by sending a wire transfer. Low rates, fast customer service, no account verification or creation needed. Average transaction time of 30 minutes depending on the time of the day. We recently automated every step of the process, with our record transaction standing at three minutes. In the future we hope to get our average transaction time down to five minutes.

BIPS Please make sure you read up, on how to validate your bank account.

BitBothers LLC allows customers and bitcoiners to purchase bitcoins by either sending in cash, money orders, cashiers checks, or MONEYGRAM to a designated location. Bitcoiners can also deposit money directly into one of the corporate business accounts increasing the transaction time to less than an hour. These methods of payments are available to ensure anonymity and protect the ideals bitcoins were founded on. For customers who wish to preform BANK TRANSFERS, the option will be available shortly. BitBrothers LLC guarantees that all customers will be satisfied with their exquisite customer service and overall experience that they are even offering discounts to select customers!

BBCC allows you to buy bitcoins using a bank account located in any country. There is no account verification needed, and no records are kept of any transactions. We use AES-256 encryption for each and every communication, your anonymity is paramount.

Kraken allows verified users to buy and sell bitcoin using USD and EUR by depositing via wire transfer. Other national currencies can be converted to USD or EUR at transfer. Kraken is an exchange and the market is determined by orders.

Via Gift Card (US)

GiftCardDrainer.com allows you to buy bitcoin with Visa, MasterCard, American Express or Discover gift cards. Uses the exchange rate provided by coinbase.com at the time that the customer's gift card is processed within 24 hours of card submission. Most cards are processed within a few hours of submission, however it can take up to 24 hours. Customer must provide a bank account number for identity verification.

Via SEPA Bank Transfer (EU)

BitQuick.co (info) allows sellers to connect to buyers via cash deposit or SEPA transfer. You can buy bitcoin instantly by providing only your email address and bitcoin address. As soon as the deposit is received, the bitcoin are sent.

BIPS All we require is a simple verification process that usually takes less than 2 business days to complete.

bit4coin.net (info) Buy bitcoins with bit4coin gift vouchers. Easy to use online shop experience, and the vouchers will be delivered to your doorstep. bit4coin.net guides you through the entire process of redeeming the voucher and getting your first bitcoins - and the voucher doubles up as a great gift, too!

Cryptxchange allows you to buy bitcoins by depositing cash at a local bank, or by sending a wire transfer. Low rates, fast customer service, no account verification or creation needed. Average transaction time of 30 minutes depending on the time of the day. We recently automated every step of the process, with our record transaction standing at three minutes. In the future we hope to get our average transaction time down to five minutes.

Kraken allows verified users to deposit via SEPA transfer. Transfers can take as little as one business day to arrive in the account. Kraken is an exchange, and the market is specific to open orders on the site.

Via IDeal (NL)

Bitonic allows you to buy bitcoins with IDEAL.

HappyCoins allows you to buy Bitcoins with iDEAL and SEPA bank transfer.

Via mobile phone

BitcoinByMobile.com allows you to buy small amounts of Bitcoin instantly by charging the purchase directly to your mobile phone bill (or from your prepaid balance). The service works in most of Europe (see: bitcoinbymobile.com/where-it-works). Most purchases are completed with the Bitcoins delivered in under 90 seconds.

Via MoneyGram (International)

Bitcoini.com You can buy bitcoins with MoneyGram worldwide. Quick, easy and secure.

BIPS CVS, 7-11, Walmart, MoneyGram

BitBrothersLLC Buy bitcoins with MoneyGram anywhere in the U.S.

Via Money Transfer

BitBothers LLC allows customers and bitcoiners to purchase bitcoins by either sending in cash, money orders, cashiers checks, or MONEYGRAM to a designated location. Bitcoiners can also deposit money directly into one of the corporate business accounts increasing the transaction time to less than an hour. These methods of payments are avaliable to ensure anonymity and protect the ideals bitcoins were founded on. For customers who wish to preform bank transfers, the option will be avaliable shortly. BitBrothers LLC gurantees that all customers will be satisfied with their exquisite customer service and overall experience that they are even offering discounts to select customers!

You can buy Bitcoins with a Western Union or MoneyGram money transfer via coinmama.com.

Finding a direct seller online

BitBothers LLC allows customers and bitcoiners to purchase bitcoins by either sending in cash, money orders, cashiers checks, or MONEYGRAM to a designated location. Bitcoiners can also deposit money directly into one of the corporate business accounts increasing the transaction time to less than an hour. These methods of payments are avaliable to ensure anonymity and protect the ideals bitcoins were founded on. For customers who wish to preform bank transfers, the option will be avaliable shortly. BitBrothers LLC gurantees that all customers will be satisfied with their exquisite customer service and overall experience that they are even offering discounts to select customers!

Cryptxchange allows you to buy bitcoins by depositing cash at a local bank, or by sending a wire transfer. Low rates, fast customer service, no account verification or creation needed. Average transaction time of 30 minutes depending on the time of the day. We recently automated every step of the process, with our record transaction standing at three minutes. In the future we hope to get our average transaction time down to five minutes.

If you can find another person that is willing to sell them to you, you can transfer him money via whatever method (including PayPal), and he'll send you the Bitcoins. The following websites can be used to find direct sellers online Bitcoin OTC, Bitcoinary or the Currency Exchange Forum Section. Be extremely cautious when using those methods, the best way is to ask an admin, moderator or a trusted person. Bitcoins are now also available at Amazon. The seller only sells in low volumes so far, but it is a great way to turn amazon gift cards into bitcoin with no hassle, and probably one of the first ways to obtain bitcoin with a debit card or credit card.

Physical Trading

BitBothers LLC LOCAL PURCHASES IN COLORADO. We also accept MONEYGRAM

You might be able to find an individual you can Buy bitcoins locally. Always choose somebody with many reviews.

Anonymity

There is a HUGE demand for buying Bitcoins off the grid due to ever-increasing government regulations and private agency intrusions and discrimination against alternative currencies. Due to the possibility of facial recognition cameras at banks and the paper trail involved with credit cards, there are very few options to have high levels of anonymity when buying Bitcoins those ways. DNA, Fingerprints, phone and internet records, audio and video records will not be discussed, but they all are possible tools which attackers could use to uncloak even the stealthiest Bitcoin buyer. There are a couple known ways, depending on your location, to buy Bitcoins outside of the standard banking system with relatively high anonymity. Buying locally with cash using a burner or payphone allows a high level of anonymity with the exchange being the weakest link. Many sellers online will also trade Bitcoins for MoneyPak codes or other cash-like gift codes which can be bought at a local store with cash. Another way to buy Bitcoins with a high level of anonymity is by sending cash in the mail.

Bitinstant

Extremely unreliable service. Taken down indefinitely as of 12:25 AM GMT 07/15/13.

Exchanges

The largest and most trusted exchange is MtGox. For a list of other major exchanges see Major Exchanges

Avoiding Scams

Before using any service it is a good idea to look for reviews and feedback from previous customers. This can be done by simply googling the name of the website or company. The bitcointalk forums are also a good place to find discussions and reviews about services.

Exchange Directories

• HowToBuyBitcoins.com
• HowToBuyBitcoins.info

Links

• http://bitcoin.stackexchange.com/questions/91/how-do-you-obtain-bitcoins
• http://bitcoin.stackexchange.com/questions/4194/whats-the-best-way-to-buy-bitcoin-noob-friendly
• Buying bitcoins
• http://www.reddit.com/r/Bitcoin/comments/nzg4o/the_canonical_newbie_guide_to_bitcoin/c3d5tmc
• https://en.bitcoin.it/wiki/BitcoinByCC
• https://en.bitcoin.it/wiki/How_To_Buy_Bitcoins_With_Your_Credit_Card