05.11.2021 Crypto Basics By George Gus

How to Buy Bitcoin with US Dollar (USD)

buy bitcoin with US dollar

Some experts predict that the price of bitcoin will reach over $100,000 per coin by the end of 2021. Others argue that it is a bubble that will inevitably burst. Nevertheless, cryptocurrency is now in trend and demand from institutional and retail investors more than ever, with a yearly adoption rate exceeding 110%. Newcomers to the space must find an on-ramp to enter the crypto market by exchanging their US dollar for Bitcoin. 

To buy bitcoin with dollars, you first need to create a crypto wallet where your bitcoin needs to be stored. Each crypto wallet has a unique number, the so-called bitcoin address. Bitcoin addresses are unique numbers and letters used by each crypto wallet. Usually, they are about thirty characters long and randomly created. For example, the address might look like this: 14tScKvSjLtxNgqFUeStoIN7egydaD1JXM. It is similar to the account number of your bank or credit card. 

Places to buy bitcoin 

Many different methods are available to purchase bitcoins using dollars today, with each option having its advantages and disadvantages. 

Purchase through ATMs

A Bitcoin ATM is similar to a regular ATM, but instead of dispensing fiat currency, you guessed it, it dispenses bitcoin. While the principle may differ slightly between different ATMs, the general process for buying bitcoin from an ATM is the same: 

1. Click on “buy”, then enter the desired amount of bitcoin.

2. Verify your phone number after receiving an SMS message.

3. Fill out your bitcoin wallet address in the deposit section ) 

5. Deposit the required amount of fiat into the ATM with cash or debit/credit card.

Note: some bitcoin ATMs may also require additional data, such as fingerprint or ID, depending on the purchase amount. 

For ATM locations around the globe visit coinatmrader.com

A transaction on a crypto exchange 

Buying bitcoin with USD can be done on crypto exchanges at the best available market price. There are many exchanges today, with new platforms constantly appearing. It is best to select an exchange with a good reputation and user-friendly platform.

To buy bitcoin on the exchange user need to complete several steps:

  1. To register on an exchange, you must specify an email, password, then residency, name, surname, date of birth, and phone number;
  2. After registration, you need to verify your account. To do this, you will need to upload a passport photo. 
  3. For the first transaction, you need to fund your account. Go to the wallet section, look for the deposit button then click on cash. After you top up your account with USD, you need to go to the trade section and select the BTC / USD trading pair to convert your USD to BTC.

Note: only After registration, verification, and installation of two-factor authentication, you can buy bitcoin. The process and requirements may vary from one crypto exchange to another.

Buying cryptocurrency with cash 

Bitcoin can be bought with USD anonymously through Swedish LocalBitcoins, a service used by people around the globe. On this bulletin board, bitcoin owners list how much crypto they want to sell and the preferred method of payment.

After creating an account, users can place buy and sell orders, including information about payment methods and prices. Users then browse the list of buy and sell offers to close a deal.

Another way to buy bitcoin with cash is to find someone in your city to meet and exchange in person. If you are meeting a stranger, always choose to meet in a public space.

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