Note: This article is not complete and is to be edited.
When it comes to acquiring your first Bitcoin to put into the system, there are a number of offerings on the market as it stands right now. We will be focusing on two forms of exchanges for this response:
- Peer to peer.
An openbook exchange is fundamentally one that allows individuals to put a bid and ask price for the coins being traded. This allows individuals to get the best market rates on basis of what is going on in the industry and ensures they are not being manipulated by exchanges that work on a spread model - where they buy coins from users and sell at a higher premium and consider the difference to be their income. The downside of using an openside exchange is the fact that often times they function relatively slow when it comes to processing your transfer and can require heavy amounts of documents in regards to AML / KYC requirements. This can make it difficult for you to deposit large sums and buy bitcoins with relative ease.
A peer to peer exchange differs in the sense that it does not get involved in the transactions of its users but rather only permits them to meet and discuss the terms of a trade through the platform. This means the platform holds no records of your financial transactions or has no ability to manipulate prices. In addition, provided you can find a seller you are comfortable with, you can continue buying from the same person without having the hassles of looking for a new source or waiting on transfers each time.
How to use localbitcoins for buying coins?
- sign up on their landing page;
- enter your nation, and payment method in the search boxes;
- vet sellers on basis of their reputation, past reviews;
- click on their ad, discuss what are the agreeable terms of purchase;
- transfer the money and wait while the seller verifies your purchase.