Last updated: June 24th, 2016 Looking to buy Bitcoins and don’t know where to start?You’ve come to the right place… After reviewing this guide you’ll be familiar with 99% of the Bitcoin buying options out there, know the 3 things you need to examine before conducting any Bitcoin transaction with an exchange or individual and be able to decide which option for buying Bitcoins today is most suitable for you.If you’re just starting out with Bitcoin – this guide is for you.We wrote it with a “noob mentality” in mind.If you’re a Bitcoin veteran I guess you’ll probably be familiar with most of the stuff here.Even though Bitcoin has been around since 2009 it still seems to be too technical and complicated for the average Joe on the street.For the past three years we’ve been getting two types of letters.The first type are letters from people asking about the safest place to buy Bitcoins.Since there are so many options available, it seems people get into some sort of an “analysis paralysis” and decide to abandon their decision to buy Bitcoins after doing some initial research.

The second type is from people who got scammed, or had their Bitcoins stolen or lost.Since Bitcoin is relatively new to the Internet many (mean) people take advantage of the lack of knowledge of this amazing currency in order to fool other people out of their money.So in order to try and help the growing Bitcoin community as much as possible, we decided to write the definitive beginner’s guide to buying bitcoins.We’re going to teach you how to fish, instead of giving you a fish…so to speak.We will teach you the basics which will be applicable to any Bitcoin transaction you’ll ever make.This way you will be able to make the wisest decision possible the next time you come to purchase Bitcoins.First of all I suggest you bookmark this guide, since it’s not a short read and you may want to refer to it later on in the future.Also if you want to get the PDF version of this guide download it here.Each chapter is a standalone mini-guide which can be read in isolation.But I advise you to read the whole thing through so that everything will make sense.

You can also bookmark this guide and use it as a reference in the future as we will be updating it constantly.java bitcoin blockchainIMPORTANT: If you just want to find out what’s the best place to buy Bitcoins you can skip straight to Chapter 4.ethereum block hashHaving said that, it will be best if you have a deeper understanding of the Bitcoin buying process by reading this whole guide all of the way through.cours bitcoin euroFor additional resources you can visit this site as well.litecoin or vertcoinBitcoin trading can be extremely profitable for professionals or beginners.bitcoin faucet of america

The market is new, highly fragmented with huge spreads.bitcoin conf miamiArbitrage and margin trading are widely available.mine litecoin asicTherefore, many people can make money trading bitcoins.litecoin with asic minerBitcoin’s history of bubbles and volatility has perhaps done more to bring in new users and investors than any other aspect of the crpytocurrency.steam bitcoin confirmationEach bitcoin bubble creates hype that puts Bitcoin’s name in the news.The media attention causes more to become interested, and the price rises until the hype fades.Each time Bitcoin’s price rises, new investors and speculators want their share of profits.Because Bitcoin is global and easy to send anywhere, trading bitcoin is simple.

Compared to other financial instruments, Bitcoin trading has very little barrier to entry.If you already own bitcoins, you can start trading almost instantly.In many cases, verification isn’t even required in order to trade.If you are interested in trading Bitcoin then there are many online trading companies offering this product usually as a contract for difference or CFD.Avatrade offers 20 to 1 leverage and good trading conditions on its Bitcoin CFD trading program.Before we show you how to trade Bitcoin, it’s important to understand why Bitcoin trading is both exciting and unique.Bitcoin isn’t fiat currency, meaning its price isn’t directly related to the economy or policies of any single country.Throughout its history, Bitcoin’s price has reacted to a wide range of events, from China’s devaluation of the Yuan to Greek capital controls.General economic uncertainty and panic has driven some of Bitcoin’s past price increases.Some claim, for example, that Cyprus’s capital controls brought attention to Bitcoin and caused the price to rise during the 2013 bubble.

Unlike stock markets, there are no official Bitcoin exchanges.Instead, there are hundreds of exchanges around the world that operate 24/7.Because there is no official Bitcoin exchange, there is also no official Bitcoin price.This can create arbitrage opportunities, but most of the time exchanges stay within the same general price range.Bitcoin is known for its rapid and frequent price movements.Looking at this daily chart from the CoinDesk BPI, it’s easy to spot multiple days with swings of 5% or more: Bitcoin’s volatility creates exciting opportunities for traders who can reap quick benefits at anytime.As mentioned earlier, there is no official Bitcoin exchange.Users have many choices and should consider the following factors when deciding on an exchange: Regulation & Trust – Is the exchange trustworthy?Could the exchange run away with customer funds?Location – If you must deposit fiat currency, and exchange that accepts payments from your country is required.Fees - What percent of each trade is charged?

Liquidity – Large traders will need a Bitcoin exchange with high liquidity and good market depth.Based on the factors above, the following exchanges dominate the Bitcoin exchange market: Bitfinex - Bitfinex is the world’s #1 Bitcoin exchange in terms of USD trading volume, with about 25,000 BTC traded per day.Customers can trade with no verification if cryptocurrency is used as the deposit method.Bitstamp - Bitstamp was founded in 2011 making it one of Bitcoin’s oldest exchanges.It’s currently the world’s second largest exchange based on USD volume, with a little under 10,000 BTC traded per day.OKCoin - Bitcoin exchange based in China but trades in USD.Coinbase - Coinbase Exchange was the first regulated Bitcoin exchange in the United States.With about 8,000 BTC traded daily, it’s the world’s 4th largest exchange based on USD volume.Kraken - Kraken is the #1 exchange in terms of EUR trading volume at ~6,000 BTC per day.It’s currently a top-15 exchange in terms of USD volume.

Global Bitcoin trading data shows that a very large percent of the global price trading volume comes from China.It’s important to understand that the Chinese exchanges lead the market, while the exchanges above simply follow China’s lead.The main reason China dominates Bitcoin trading is because financial regulations in China are less strict than in other countries.Therefor, Chinese exchanges can offer leverage, lending, and futures options that exchanges in other countries can’t.Additionally, Chinese exchanges charge no fees so bots are free to trade back and forth to create volume.If you’d like to learn more about Bitcoin trading in China, this video from Bitmain’s Jihan Wu provides additional insight.Kraken will be used as an example for this guide.The process and basic principles remain the same across all exchanges.First, create an account on Kraken by clicking the black sign up box in the right corner: You’ll have to confirm your account via email.Once your account is confirmed and you’ve logged in, you must verify your personal information.

All Bitcoin exchanges require varying levels of verification as required by AML and KYC laws.Below you can find the first three verification levels: Once your account is verified, head over to the “funding” tab.You should see something similar to the screenshot below.Select your funding method from the left side: Kraken offers many deposit methods, which are listed here: EUR SEPA Deposit (Free) - EEA countries only EUR Bank Wire Deposit (€5) - EEA countries only USD Bank Wire Deposit (Free until 3/1/2016, then $5 USD) - US only USD SEPA and SWIFT Deposit (0.19%, $20 minimum) GBP SEPA and SWIFT Deposit (0.19%, £10 minimum) JPY Bank deposit (Free, ¥5,000 deposit minimum) - Japan only CAD Interac Deposit (Free until 3/1/2016, then 1%, $10 CAD fee minimum, $5,000 CAD deposit maximum) CAD EFT Deposit (Free until 3/1/2016, then 1%, $10 CAD fee minimum, $50 CAD fee maximum, $10,000 CAD deposit maximum) Deposits made using the traditional banking system will take anywhere from one to three days.

Bitcoin deposits require six confirmations, which is about one hour.Now, navigate to the “Trade” tab.Using the black bar at the top of the page, you can switch trading pairs.In this example we’ll use XBT/USD.We want to buy bitcoins, so let’s put in an order.Navigate to the “New Order” tab.Let’s say I’ve deposited $300 into my account with a USD bank wire.In the example below, I’ve submitted an order to buy 0.5 bitcoins (XBT) at a price of $370 per bitcoin.Check the black bar at the top, and you’ll notice that the last trade price was $383.17.Why submit an order to buy at $370 per bitcoin (XBT) and not $383.17?One may submit an order lower than the current price if one expects the price of Bitcoin to fall.In this case, since my order is lower than other offers in the orderbook, I won’t receive my order for 0.5 bitcoin immediately.Placing an order at a specified price is called a _limit order._ Before placing an order, be sure to check the orderbook for your trading pair.

In the example orderbook below, you can see that the highest buy offer is for $382.5 per bitcoin, while the lowest sell order is at $384.07 per bitcoin.Using the order form there’s also an option for “Market”.A market order in this case would submit a buy order for XBT at the price of the lowest available sell order.Using the orderbook above, a market order for 0.5 XBT would purchase 0.5 XBT at $384.07 per XBT.If selling bitcoins, a market order would sell bitcoins for the highest available price based on the current buy orderbook—in this case $382.5.Bitcoin trading is exciting because of Bitcoin’s price movements, global nature, and 24/7 trading.It’s important, however, to understand the many risks that come with trading Bitcoin.Leaving Money on an Exchange Perhaps one of the most famous events in Bitcoin’s history is the collapse of Mt.In Bitcoin’s early days, Gox was the largest Bitcoin exchange and the easiest way to buy bitcoins.Customers from all over the world were happy to wire money to Mt.

Gox’s Japanese bank account just to get their hands on some bitcoins.Many users forgot one of the most important features of Bitcoin—controlling your own money—and left more than 800,000 bitcoins in Gox accounts.In February 2014, Gox halted withdrawals and customers were unable to withdrawal their funds.The company’s CEO claimed that the majority of bitcoins were lost due to a bug in the Bitcoin software.Customers still have not received any of their funds from Gox accounts.Gox’s catastrophic collapse highlights the risk that any trader takes by leaving money on an exchange.Using a regulated Bitcoin exchange like Kraken can decrease your risk.Your Capital is at Risk Remember that as with any type of trading, your capital is at risk.New traders should start trading with small amounts or trade on paper to practice.Beginners should also learn Bitcoin trading strategies and understand market signals.Cryptowatch & Bitcoin Wisdom – Live price charts of all major Bitcoin exchanges.