It is almost mid-year for 2019, many have predicted that Bitcoin is going to reach its all-time high again. An economist from Yale University had once mentioned that we should keep 6% of our investment portfolio as Bitcoin. Are you one of the many in Hong Kong who is interested in buying Bitcoin but not sure what are the ways to start trading? Below are some of the major platforms where we can buy Bitcoin in Hong Kong:
- Bitcoin ATM
- Local Exchanges
- Overseas Exchanges
- OTC Over-the-Counter Trading Platforms
- Peer-to-Peer Trading Platforms
The most common way in Hong Kong would definitely be Bitcoin ATM. Basically, Bitcoin ATMs enable buying and selling Bitcoin with cash at the spot. In Hong Kong, the major providers are HKBitcoinATM, Genesis Block, and NCX, however, the exchange rate is usually less desirable and ‘cash only’ creates a lot of hassle especially when the volume gets high.
As for more sophisticated Bitcoin traders, they will probably go to Fiat-Crypto Exchanges, such as ANX or Gatecoin. However, for these exchanges, the setup process tends to be more lengthy. It generally requires creating an account and going through a series of KYC (Know Your Customer) verification etc.
For most Hong Konger, there is a trend in switching to P2P exchange platform. Peer-to-peer platform enables instant, direct and quick trading, plus most P2P platform offers free escrow service, providing monitoring and protection to every trade. However, it is worthy to take note that the transaction amount per trade tends to be small since most buyers and sellers are individuals. Other than the prominent platform – LocalBitcoins, Paxful is also gaining popularity in Asia and the United States.
Paxful, compared to other platforms, provides more payment options for buyers to purchase Bitcoin. On Paxful, there are over 300 payment methods; in Hong Kong, Paxful now enables buying Bitcoin with common mobile payment methods. PayMe, which has recently announced over 1 million of Hong Kong users, can also now be used to purchase Bitcoin on Paxful. The whole process of buying Bitcoin with PayMe is quick and safe, can be completed in 10 minutes:
- First, find the current market price of bitcoin in Hongkong Dollars using Paxful’s bitcoin converter to give you an idea of how much BTC you’ll get with your HKD. Next, create an account on the Paxful website, no KYC verification is required. By default, Hong Kong region landing page has already set PayMe as the first payment method. Once you have input the amount of Bitcoin you want to purchase or the equivalent amount of Hong Kong dollar you want to invest, simply click “Buy Bitcoin Now”:
2. The interface will then be showing the price that the seller is offering and the range which the seller can conduct the trade. Other than PayMe, on the left-hand side of the page, you can view the other offers for gift cards and more. Paxful, connecting all the buyers and sellers in the world, provides a lot of options for you to choose from.
3. After all, it is a P2P platform, we would advise checking on details such as the sellers’ ratings, region and how long has the seller been on the platform. Paxful will also provide free escrow service, which means Paxful will first escrow the Bitcoin from the seller first, once buyer has paid the equivalent amount of HKD on PayMe, the Bitcoin will be released instantly. This will avoid situations where you have paid, but the buyer refused to do the transfer to your wallet. Once you click on “Buy”, a “Live Chat” box will pop up, this will kickstart your conversation with the seller:
4. Using the case of PayMe, the seller will be uploading a QR Code from PayMe for you to scan and make the payment.
5. Next step, simply go to the left-hand side and click “PAID” to inform the seller that the payment is settled. Subsequently, the seller will click “RELEASE BITCOIN”:
6. Basically you have completed the whole trading process in this step, it takes just 10 minutes. Once the trade is over, the word “TRADE COMPLETED” will show on the screen, the escrowed Bitcoin will then be transferred to your Paxful wallet instantly. What a quick way to purchase Bitcoin! At last, you can leave a good feedback to your seller, honest feedback is important, regardless if it is a positive or negative feedback. Your experience will be valuable to other users on the platform.
You can start experiencing this P2P trading platform by buying a small amount of Bitcoin. Paxful platform is very flexible, you can start a trade as low as 0.01 Bitcoin.
There is one limitation to be aware of if you are trading with PayMe, as each PayMe account has a default maximum trading volume. In this following section, we will be sharing more about how to increase the daily limits of PayMe:
Currently, most Hong Konger will add credit cards to PayMe account in order to collect credit card spending points. However, if you add a credit card without doing HKID verification, the daily top up and transfer limit will be HK$3,000. However, simply doing HKID verification can increase the limit to HK$5,000. In addition, if you can connect your HSBC bank account to PayMe and top up using bank account, your limit can be increased to HK$20,000 when both your HKID and proof of address are verified. For more details, please view the table below:
(This table is captured from the link: PayMe introduces HSBC bank account top-up & higher limits)
The whole verification process is very simple, just follow the steps illustrated on this page PayMe introduces HSBC bank account top-up & higher limits, in 2 mins, you can increase your PayMe limits easily. Start buying Bitcoin with PayMe on Paxful starting today! If you have any questions about trading on Paxful, feel free to join our Telegram Group t.me/paxful_EN Paxful Hong Kong Group_EN, we are keen to answer your questions.