Bitcoin (BTC) has been around for a decade now. However, there are lots of people who still don’t know how to buy it. That’s why there are so many Bitcoin denominated scams that prey on the ignorant masses. To help people get into the crypto markets, I decided to come up with a simplified tutorial on how to buy and sell Bitcoin (BTC). Let’s get started.
To buy Bitcoin, you need to open an account with a crypto exchange. The largest and most common exchanges are Binance, Coinbase, Bitfinex, and Bittrex. There are many others, and they are equally good. With these exchanges, you can deposit money via wire transfer, credit cards, and other methods and buy Bitcoin.
However, not everyone has the requisite knowledge to do a wire transfer, or has access to a credit card, especially in developing countries. To overcome this problem, one can use Localbitcoins to buy and sell Bitcoin. It is the most localized Bitcoin exchange, and will be the focus of this tutorial.
How to buy Bitcoin on Localbitcoins
Buying Bitcoins on Localbitcoins is simple. First, you need to create an account. Visit the localbitcoins website and signup for an account. The process is free, and will take less than 5 minutes of your time. Once you are in, you will see several tabs namely: Buy Bitcoins, Sell Bitcoins, Post a trade, Forums, Help, and Wallets. As a newbie ignore Post a trade, and forums.
Next, click on Buy Bitcoins. The website will direct you to a page with the tabs: Amount, Currency, Country, Online Offers and search. Select the amount you would like to buy, country, online offers, then click search. The site will give you a list of people who are online in your locality and are selling Bitcoin. All those who are online will have a green dot next to their names. Check out their prices and go for one whose price is most favorable, and then click Buy.
When you click the buy button, the site will redirect you to a page requiring you to insert how much Bitcoin you would like to buy. You will also see a small dialogue box where you will chat with the seller.
Follow instructions and click the button labeled send trade request. Once you click this button, the seller’s Bitcoins will be held in Escrow. The goal is to protect you from being scammed. Chat with the seller, and let them provide you with their payment details. Proceed to make the payment.
Once you have sent the money, click on the button labeled I have paid. The seller will release Bitcoins to you, and the transaction will be complete. You can click the wallet tab to check how many Bitcoins you now have in your account.
In case the seller is a scammer and doesn’t send Bitcoins, even after sending them money, click on the trade dispute tab and raise the issue with Localbitcoins. They will look into the issue and once verified, they will send you the sellers Bitcoins from their escrow. It’s a very safe and reliable system.
How to sell Bitcoin on Localbitcoins
It is a similar process to that of buying Bitcoin. Click on the sell Bitcoins tab and follow instructions. The only difference is that, you are the one who will be receiving cash in exchange for your Bitcoins. Remember to trade with integrity. If you try to scam someone, you will lose your bitcoins, and your account will be banned.
Once you understand how to buy Bitcoin, you can then try your hand in the other cryptocurrencies. There are over 2000 of them, and if you do your research well, there is money to be made in this market.
I hope this tutorial helps you get a glimpse of the cryptocurrency world.