Bitcoin is the most coveted and also the largest cryptocurrency. This is a digital currency that promises lower transaction fees than traditional online payment mechanisms. Unlike fiat currencies (such as US Dollar, Euro, etc.), Bitcoin is decentralized in nature. It is neither issued nor controlled by any government or central authority (like central banks).
Is it a Good Idea to Buy Bitcoins?
Yes, absolutely. Here are some essential facts about Bitcoins that will give you an idea of why it is a good idea to buy Bitcoins.
1. Bitcoin is the most popular cryptocurrency with a market share of around 60%. Bitcoin price has been increasing by leaps and bounds since April 2020.
2. The maximum supply of Bitcoin is capped at 21 million. This limited supply gives Bitcoin its store value similar to that of gold. This has been acknowledged by JPMorgan analysts too recently. In fact, more and more institutional investors are investing in Bitcoin, especially since 2020, to beat inflation and geo-political uncertainties.
3. The momentum of price rise increased after the Bitcoin mining reward halving in May 2020.
4. In March 2020, the average price of each BTC was US$6,412.5. One year later (in March 2021), the price of Bitcoin is hovering around US$59,000 with an all-time-high (ATH) at US$61,556.59 (also reached in March 2021). Within a year (March 2020 – March 2021), the price increased by almost 10-times or 860%.
5. Almost the entire Wall Street believes that the price of each BTC will reach anywhere from US$100,000 to US$400,000 by 2021-end or mid-2022.
6. The leader of crypto exchange Kraken, Jesse Powell, has said during a Bloomberg Television interview that Bitcoin (BTC) price will reach US$1 million in the next decade. He went on to say that supporters of Bitcoin say that this leading cryptocurrency may eventually replace all of the major fiat currencies.
With such a high prospect of Bitcoin, you should buy Bitcoin immediately either as an investment asset or as a medium of transaction. Even Tesla now accepts Bitcoin for its products. Hurry and buy Bitcoin now to reap maximum benefit and return.
How to Purchase Bitcoins?
You can purchase Bitcoins through reliable and reputed cryptocurrency exchanges. Besides crypto exchanges, you can also buy Bitcoin from specialized Bitcoin ATMs or through P2P exchanges. Since the early 2020s, Bitcoin ATMs need government-issued IDs to buy bitcoins.
If you are willing to buy Bitcoin, you need several things such as:
- A Cryptocurrency Account in any of the leading cryptocurrency exchanges such as: Coinbase, Binance, Kraken, Huobi Global, KuCoin, Bithumb, Bitfinex, Coinone, Bitstamp, bitFlyer, Bisq, Gemini, Coinmama, eToro, CEX.IO, Bittrex, Exmo, Luno, Liquid, OKEx, Poloniex, and many more.
- Personal identification documents (in case you are using a KYC platform)
- A secure internet connection
- A personal wallet (cold or hot wallet) for storing bought Bitcoins outside of the exchange account (Recommended)
Both privacy and security are important issues for Bitcoin investors. If you accumulate a large number of Bitcoins in your holding, try to avoid bragging about it. Keep your private key to the public address on the Bitcoin blockchain a secret. If cybercriminals come to know that you have large BTC holdings, they may attempt to steal the private keys and in turn transfer all your bought Bitcoins to their account.
Always keep in mind that your BTC transaction history can be viewed by anyone. However, the person viewing a transaction history will not be able to identify the user or any information regarding the user buying or selling Bitcoin. This is because only the public key of the user appears next to a BTC transaction.
While bitcoin transactions remain confidential, they are not anonymous. That’s why, in comparison to cash, BTC transactions are more transparent and traceable. However, you can use Bitcoin anonymously.
In the US and most other developed countries, Bitcoin is legal. Now, let’s explore the different payment methods through which you can buy or sell Bitcoin in the US.
1. Buy Bitcoin with PayPal
A person in the US can buy Bitcoin using his or her PayPal account since 2020. This facility is going to be available in various other countries and international markets in 2021.
You’ve to log in to your account and scroll down to the bottom of the screen. You’ll find small buttons such as “Scan/Pay”, “Send”, “Request”, “Crypto”, and “More”. Click the “Crypto” button and tap on the “Buy” button next to Bitcoin. If this is your first time buying BTC through Paypal then you’ll be prompted to provide and verify some basic information. Then you’ve to agree to their terms and conditions to proceed and buy Bitcoins.
You can buy as little as US$1 worth of Bitcoin through PayPal. You can also preset an amount such as US$20, US$50, US$100, or US$500. Once the amount is chosen, proceed to select a debit card or bank account from where you’ll make the payment. All the pertaining information including exchange rate, fees, and others will be prompted to you. Once you have completed buying Bitcoin, it’ll be reflected on the dashboard.
2. Buy Bitcoin with Credit Card or Debit Card
You can buy Bitcoin (BTC) smooth and fast through renowned cryptocurrency exchanges such as Coinbase (USA), Bitpanda (Europe and UK) Coinmama (worldwide), and many more.
Let’s consider buying BTC with a credit/debit card through Bitcoin exchange, Coinmama. You can buy up to US$5,000 per day or US$20,000 worth of Bitcoin every month through debit/credit card through Coinmama. This exchange offers one of the highest limits for buying BTCs with credit cards.
Simply open an account on Coinmama, verify it (by completing your KYC), and use a credit or debit card to buy Bitcoins. The fee generally hovers within 4.9-to-5.9%, which varies from one crypto exchange to another.
Buying Bitcoins by using credit cards is fast and less technical, enabling non-technical users to buy cryptos easily.
3. Buy Bitcoins with Cash
- Cash In-Person:
You can search for local Bitcoin groups on meetup or Facebook, meet with trusted friends, and deal in cash to buy Bitcoins. If you decide to meet with friends, bring your phone or laptop with an installed Bitcoin wallet for verifying receipt of your coins.
- Escrowed In-Person Trading:
Visit the Paxful site, sign up, and click the link “Buy Bitcoin” in the top menu. Now, enter your location, cash as the preferred mode of payment, and the amount of Bitcoin you want to buy.
You’ll be shown a list of BTC sellers. Now, choose a bitcoin seller who has a considerable positive reputation. Message the person with the desired amount of Bitcoin you want to buy and negotiate further details of the trade.
You don’t have to wait for multiple confirmations after the Bitcoins are released by the seller. You can trust Paxful.
- Mycelium Local Trader
A Local Trader feature is present in Mycelium mobile wallet. It is one of the best cash-only matching and escrow services available for Bitcoin traders. Once you make the payment through cash, the seller releases the agreed-upon Bitcoins from his/her Mycelium wallet to that of yours.
- Bitcoin ATM
You can locate the nearest Bitcoin ATM to your location with the help of CoinATMRadar or CoinFlip. Visit any of these sites and you can know all details (including precise location, fees, limits, and ID requirements) of buying Bitcoin. You’ll also receive the contact details of the operator from any of these sites. Carry your Bitcoin wallet or address when you go to the Bitcoin ATM near you.
Wall of Coins is another similar service that enables users to buy Bitcoin through cash deposit at the bank. Its service is available in the US, the UK, Romania, Poland, Mexico, Latvia, Germany, Canada, Brazil, Australia, and Argentina.
This method requires the Bitcoin seller to provide his/her bank details to the buyer. Then the buyer visits the relevant bank, completes the deposit form, and deposits cash through the bank teller service to the bank account of the seller. Always use a reputable escrow service while conducting bank deposit trades of Bitcoin to avoid fraud.
Scan or photograph your bank deposit receipt so that you can show it as proof to the escrow service that you have made the payment. Once this happens, the seller’s coins are released from the escrow account to your Bitcoin address.
You’ll find many Bitcoin sellers in the darknet markets. You can send them cash through the mail. Always use an escrow account for such trades to avoid fraud. Wrap the US Dollars in a couple of layers of paper, put it in an envelope, and then mail it to the sender.
The seller may ask you to photograph/film yourself placing the money in the envelope, sealing it, and mailing it. Try using registered mail so that you can have the seller sign after they receive it. Use this mail cash buying method of buying Bitcoin only if you live in a location too remote for other methods of purchase.
How To Buy Bitcoins Anonymously?
You can purchase BTC anonymously in various ways. Let’s take a quick look:
- Mine and receive Bitcoins in terms of rewards for successful mining. This doesn’t reveal your identity to anyone.
- Set up Bitcoin-only stores so that you can sell goods (physical or digital) in exchange for Bitcoin only. You can do this anonymously because Bitcoin transactions through websites don’t disclose your identity to the buyer of your products or services.
- Buying Bitcoins in-person through Bitcoin ATMs gives you anonymity.
- Use P2P exchanges such as Localcryptos and local.Bitcoin.com and make payment through an account that you control but not in your name. In this way, the seller will not be able to know your identity. You can also use a Paypal business account for “Acme Trading” or a Venmo account of your friend to conceal your identity to the Bitcoin seller.
Check out our detailed guide on buying bitcoin anonymously!
How Much Does It Cost To Buy Bitcoins?
The cost of buying Bitcoins depends on where you are buying them.
- If you buy from cryptocurrency exchanges, the fee varies from $0.99 to 5.9% of the Bitcoin purchased. Some of the best crypto exchanges to buy Bitcoin are Coinbase, Binance, Gemini, and Coinmama.
- Bitcoin ATMs usually charge 7-10% to buy or sell BTCs.
- There is no fee for buying Bitcoins through Paxful on all payment modes.
What is the best way to buy bitcoins?
Reliable and reputed cryptocurrency exchanges such as Coinbase, Binance, and others are the best ways of buying Bitcoins.
Buy Bitcoin on Coinbase?
Coinbase is one of the most popular crypto exchanges through which crypto traders buy and sell Bitcoins (BTC), Ethereum (ETH), and other altcoins. It is extremely popular among US buyers because it allows them to easily link to their bank accounts.
When you buy Bitcoin from Coinbase, they charge a spread of around 0.5% along with a fee. The fee varies depending upon the region and payment mode. If the BTC purchase is funded by a US bank account, the fee is 1.49%. In case of the amount transferred, the fee is flat, ranging from US$0.99 to US$2.99.
Where To Buy Bitcoin Near Me?
Search for a Bitcoin ATM near you to buy BTCs. You can locate the nearest Bitcoin ATM to your location with the help of CoinATMRadar or CoinFlip. Visit any of these sites and you can know all details (including precise location, fees, limits, and ID requirements) of buying Bitcoin. You’ll also receive the contact details of the operator from any of these sites. Carry your Bitcoin wallet or address when you go to the Bitcoin ATM near you.
Bitcoin stores are the stores that accept Bitcoin (BTC) for selling products or services. Here are some of the leading stores that accept Bitcoin as their payment method:
- Planet Express
- Shopify (Shopify stores)
- Reeds Jewelers
- More Stamps Global
- Star Jets International
- Norwegian Air
- Garbarino Viajes
- Alternative Airlines
Should I Buy Bitcoin Now?
You should buy Bitcoin immediately because the market is in a paradigm shift. 2021 is a bull market and the price of each Bitcoin has already increased from US$29,359.9 on January 1, 2021, to around US$58,000 by the end of March 2021. This means the price almost doubled in just 3-months.
Almost the entire Wall Street believes that the Bitcoin price will reach new heights by the end of 2021 or mid-2022. The prediction varies from US$100,000 to US$400,000.
PwC’s global crypto leader Henri Arslanian said that the entry of more institutional investors into the market is partly driving the rally in the BTC and crypto market in 2020. Bitcoin’s price resurgence in 2020 was in part fueled by well-known Wall Street billionaires (such as Paul Tudor Jones and Stanley Druckenmiller) publicly backing the cryptocurrency. Large financial companies such as PayPal and Fidelity as well as Square and MicroStrategy have invested heavily in the cryptocurrency market recently.
One of the biggest institutional investors invested in the Bitcoin and crypto market is the Grayscale Bitcoin Trust (GBTC), a product of Barry Silbert’s New York-based Grayscale Investments, LLC. As per their investor disclosure forms, some of the biggest names that are invested in this fund are Ark Invest (with $4.5 billion investment), Horizon Kinetic (managing $5.3 billion), Rothschild Investment Corporation, Addison Capital, Corriente Advisor, and many more.
Guggenheim Partners, one of the largest investment companies in the United States, has requested the Securities Exchange Commission (SEC) to allow it to invest a part of its asset under management in Bitcoin. Reports say that they would invest US$500-million in Bitcoin.
In fact, JPMorgan’s strategists have said that the insurance companies and pension funds are expected to invest around US$600-billion in the near future. All these factors are the reason (along with the technical charts) why the analysts in Wall Street believe that 2021 and 2022 are going to be bullish years. Their prediction varies from US$50,000 to US$400,000 by the end of 2021 and mid-2022.
Bitcoin (BTC) Price Prediction 2021
Let’s check some of the Bitcoin price predictions of 2021 and beyond:
1. Pantera Capital’s CEO Dan Morehead believes that the Bitcoin price against the US Dollar (BTC-USD pair) will reach $115,000 by August 2021.
2. BTCC cryptocurrency exchange’s founder, Bobby Lee, has said that the BTC price has the potential of rising by another 500% from the current level after a correction takes place.
During a CNBC interview, Lee said that bull markets come after every 3-to-4 years and 2021 is such a bull year market. Bobby Lee predicted that BTC price could increase to US$100,000 “by the summer” and eventually reach up to US$300,000 by 2021-end. He also said that the price of Bitcoin will correct by around 80-to-90% after reaching its peak.
1. Jesse Cohen, the senior analyst at Investing.com, has said that BTC prices will continue to rise in the coming months and will reach above US$100,000. They believe that the BTC/USD pair will peak out at US$250,000 by July 2021.
2. Tim Draper, Bitcoin advocate, and billionaire investor has said earlier this month (March 2021) that the price of Bitcoin will hit the US$500,000 level by 2022-end or the beginning of 2023.
3. JPMorgan strategists have said that they believe the leading cryptocurrency will reach US$146,000 in future years.
4. Citi analysts expect the Bitcoin price to increase to US$318,000 by 2021-end.
5. Guggenheim Investments, an asset management firm, expects the price to reach around US$400,000 by 2021-end.
6. Ali Mizani (Founder of FiCAS AG) and renowned crypto statistician, Willy Woo, have both predicted a BTC price jump to the US$200,000-US$300,000 range by the end of 2021.
Do you need more reasons to buy BTC? Buy Bitcoin now and earn maximum ROI.
Increase your Bitcoin Investment’s ROI with NapBots.com
Increase your Bitcoin’s return on investment (ROI) by taking the help of Napbots.com. It is a cloud-based automated trading solution for crypto-assets. It provides well-designed trading strategies to increase your investment returns. Napbots currently provides exposure to 15 specific working strategies in an easy-to-use and very safe environment, with different time horizons.
With Napbots, in just one phase, you’ll be able to build your own mix of strategies letting you manage your savings. The Napbots service will then perform the specific combination automatically on account of your preference. You will be able to track the output of your investments from your cell phone and change your allocation in absolute independence.
NapBots offers complete trading automation solutions through the use of its own tested trading strategies; offering quantitative trading strategies previously reserved for hedge funds to the public.
NapBots.com is a reliable copy trading platform having a 4.6 review rating out of 5. Instead of using complicated trading tools, this crypto bot scans the market in real-time and automatically trades for you. Exploit their 15 years of experience in quantitative trading at global financial institutions. If you don’t have the time to study charts and graphs, let the experts trade for you, and copy exactly what they do.
The best thing about the Napbots trading software is that you don’t have to monitor charts and candles to predict your next move. Any novice trader with zero skills can also start trading like a pro and earn money with this unique trading tool. They run 24/7, which means that you can keep earning your passive income even when you are sleeping. This gives you an edge over other investors as it enables the bot to book profits on your behalf when other investors are sleeping.
If you still need assistance, you can refer to the following step-by-step purchasing guides for the various payment methods:
- How to buy Bitcoin with PayPal?
- How to buy Bitcoin with a credit card
- How to buy Bitcoin with a wire transfer
- How to buy Bitcoin with cash
- How to buy Bitcoin with Apple Pay
- Trusted Bitcoin exchanges
- Bitcoin wallet: Everything you wanted to know before to buy
- Best hardware wallets
- Best wallet app
- Bitcoin Paper Wallet
- Buy Bitcoin Anonymosly