We get it; buying Bitcoin (BTC) for the first time can be a little intimidating. With the community being a little over 12 years old now, there are a ton of exchanges to choose from before you settle on one. Having all those options can make it a little hard to find the cheapest way to buy Bitcoin.
Another issue that seems to intimidate many new users is BTC’s high volatility—the rate at which price goes up and down. Even in the past few years alone, we’ve seen BTC’s worth under the 10,000 USD mark and soar as high as 60,000 USD.
Lastly, there’s the issue of fees. Not only does an exchange have to be easy on the eyes, but it also has to have reasonable fees. Each platform will differ vastly in terms of what they charge you for, adding another layer of research for you to do.
Together, these three aspects steer many newbies away from the wonderful world of Bitcoin.
What if we told you there was a workaround?
The workaround: P2P finance
Peer-to-peer (P2P) Bitcoin marketplaces, although they’re relatively new to the scene, have been getting a lot of traction in the crypto world. Compared to their traditional counterparts, they add a personalized touch to the trading experience.
Their predecessors, traditional Bitcoin exchanges, act as a middleman and help users complete their trades. Although that may be appealing to newer traders, the help they give will often come at a price. Instead of acting as a middleman, P2P marketplaces like Paxful let the buyers and sellers complete the trade themselves—allowing for a more flexible and personalized trade system.
So how does P2P finance act as a workaround?
Since P2P marketplaces eliminate the need for a middleman, they’re often one of the cheapest places to buy Bitcoin. Paxful, for example, has zero fees for buyers and thousands of offers to choose from—allowing you to expand your horizons and get BTC at the best prices.
Secondly, volatility on P2P marketplaces is irrelevant. With hundreds of payment options available on P2P marketplaces, the money is continually changing in form—and when users constantly trade, the price of BTC doesn’t matter. Paxful alone has nearly 400 payment options, allowing you to trade basically whatever you want for BTC.
Buying BTC on Paxful
Get started right away on Paxful by signing up, getting your free Bitcoin wallet, and using these three simple steps to buy Bitcoin:
Step 1: Choose an offer
The first step to buying Bitcoin on Paxful is to choose an offer that suits your needs. On the home page, you can set your preferences:
Once you’ve filled everything out, click on Find Offers and you’ll be taken to the offers page. Here, you can see all the available offers.
When selecting an offer, make sure to keep these factors in mind:
- Profit percentage – This refers to how much the seller is making on the trade. The more BTC you get on the dollar, the better. Additionally, you can use Paxful’s BTC calculator as a reference.
- Offer terms – This is a short summary of your seller’s payment requirements. Basically, it’s what they need from you as payment. Make sure to only buy from sellers with terms you can comply with.
- Vendor reliability – You want to make sure you’re trading with a legit seller, right? You can check the trader’s feedback score as a reference. If you need more insight, you can check their trade history and trade volume.
- Vendor availability – Before starting a trade, make sure that your seller is available. If they aren’t, you could end up starting a trade that’ll eventually just expire.
Step 2: Start the trade
Once you see an offer you like, click on the Buy button. You’ll then be taken to a page with a more detailed set of instructions.
Make sure to go over them one more time, and if you’re ready, you can input the amount of BTC you want to buy and then click Buy now.
Once the trade starts, make sure that you follow the trader’s instructions to the dot. If you don’t, it could be taken against you in the case of a dispute. If you have any questions, feel free to message the seller using the live chat feature.
After sending in your payment, mark the trade as Paid and wait for the seller to verify your payment.
Step 3: Receive your BTC
Once your payment is verified, the seller will release the BTC from escrow and the trade will be complete. All that’s left for you to do is leave feedback for your trade partner and be on your way.
P2P at its finest
As you can see, buying Bitcoin on Paxful isn’t hard at all. With thousands of offers available from our trusted traders, we’re sure that you’ll find great deals in no time.