There are many exchanges/accounts/wallets available for cryptocurrency. This means a huge confusion on how to buy Bitcoin, Litecoin, Ethereum, and other Cryptocurrencies. Too many options leads to headache and thus you might end up missing on an emerging crypto market. We did research to give you step by step instructions on how to but Bitcoin or other currencies…
For residents of USA, Australia, Canada, Singapore & EU
1. Open an account with coinbase.com. Use this link to get 10$ credit for opening the account. I prefer coinbase as it keeps your USD balance in FDIC insured accounts. What this means is even if coinbase goes bankrupt your money is safe until $250,000. Coinbase supports buying 3 most popular crypto currencies – Bitcoin or BTC, Litecoin or LTC, and Etherium or ETH.
2. Coinbase will require your personal information to open the account like name, date of birth, address, bank account details to transfer money from, Social Security Number, photo and/or identification. Don’t be hesitant! DO NOT ENTER FAKE INFORMATION – follow the law and pay tax on whatever profit you make.
3. Fund your coinbase account from US bank account. Note this is going to take 8-10 days. There are other ways to fund the account like wire transfer and credit card, but cost is very high.
4. Coinbase charges ~1.5% fee with a min of $3. If you are planning to buy very small amount of currency ~$200 coinbase is fine as it has easy to use user interface. Otherwise use GDAX.
5. gdax.com is an exchange owned by coinbase so you are still dealing with reputed company. Just go to gdax.com and login with coinbase username + password and you will be all set. Here’s how user interface looks like.
6. Now deposit money in GDAX using your coinbase account.
7. Finally how to buy bitcoin in GDAX? Place a limit trade to buy fee free cryptocurrencies. When you place a limit trade you are considered to be making market – meaning setting price vs when you place a market trade you are seen as taking market meaning consuming services offered by market. on GDAX making market = limit trades have no fee while taking market = market trades charge 0.3% fee. Even if you have to pay fee its much less than coinbase.
In the image below I am placing a limit order to buy 0.1 Litecoin for 15 USD (calculated based on current market price) and the order is good till cancelled. I would suggest you place an order “Good till Time” -> “One Minute” instead.
8. Finally after an order is placed, it can be cancelled before its executed as shown below.
For residents of India