Bitcoin can be bought on exchanges, or directly from other people via marketplaces. Cryptocurrency exchanges will buy and sell bitcoin on your behalf.
There are hundreds currently operating, with varying degrees of liquidity and security, and new ones continue to emerge while others end up closing down. .
Most exchanges accept payment via bank transfer or credit card, and some are willing to work with PayPal transfers. And most exchanges charge fees, which generally include the fees for using the bitcoin network.
Each exchange has a different procedure for both setup and transaction, and should give you sufficient detail to be able to execute the purchase. If not, consider changing the service provider.
Once the exchange has received payment, it will purchase the corresponding amount of bitcoin on your behalf, and deposit them in an automatically generated wallet on the exchange.
This can take minutes, or sometimes hours due to network bottlenecks. If you wish, you can then move the funds to your off-exchange wallet. As with wallets, it’s advisable to do some research before choosing.
Buying with cash
If you’d like to buy bitcoin you can do so quickly, easily and safely on a licensed bitcoin exchange. You don’t need to be a member of any system or scheme, or pay any monthly fees to anyone for the privilege. As long as you are over 18, you can open a free account on a bitcoin exchange, and buy and sell bitcoin all day long.
There are no monthly admin fees, or activation fees, it’s just you transacting directly with the exchange, and being part of the bitcoin ecosystem. That’s how you buy bitcoin.
Platforms such as LocalBitcoins will also help you to find individuals near you who are willing to exchange bitcoin for cash.
Buy bitcoin at a Bitcoin ATM South Africa’s first Bitcoin vending machine has been installed, giving users the ability to get Bitcoin in exchange for rand. The vending machine is situated in Kyalami, North of Johannesburg, at a business called Metroman. Visit the ATM at the Metroman store to purchase bitcoins using cash (Rand) during regular office hours.
To get Bitcoin at the Bitcoin vending machine, consumers need to have a Bitcoin wallet installed on their smartphone with a QR code that the Bitcoin ATM can read. Use it to deposit the purchased virtual currency. Just feed in the bills, hold your wallet’s QR code up to a screen and the corresponding amount of bitcoin are beamed to your account.