Our Top 3 Picks For Efficiency And Price
Not all online exchanges are created equal. When you are deciding on which one to pick make sure they provide the services you need in the country you are located. Each country has a different governing law surrounding Bitcoin. Knowledge is power.
1. Runner Up—Paxful
What Is Paxful?
Similar to LocalBitcoins, Paxful is a P2P platform that allows buyers and sellers to meet and make negotiated trades on cryptocurrencies through a variety of payment methods. Paxful is available in most countries and is incredibly user-intuitive.
Where Is It Available?
Besides a few of the more totalitarian countries, Paxful is widely available for use by most individuals. There isn’t a large amount of verification required. Level 1 verification allows for $1500 purchases and only requires an email and a cell phone.
What Is The Process?
The process is a bit more involved than LocalBitcoins as you will need verification if you are looking for higher limits. However, the KYC (Know Your Customer) process is straightforward and quick. Once you have identified your payment method of choice then you can identify a buyer or seller that has the terms that you want. You reach out and the Bitcoin is held in an escrow until the deal is sealed.
What Payment Methods Are Available?
There are over 200 payments that are acceptable in Paxful. The most common payment methods are debit cards, credit cards, PayPal, Amazon gift cards, wire transfers, and Western Union. Costs are similarly set up to LocalBitcoins. The Paxful platform takes only a 1% commission on the trade. However, due to the nature of the P2P environment, you are also at the mercy of the seller or buyer for a good deal. Paxful has instituted a trust rating on the sellers to show how well they have performed in the past. High ratings mean you most likely won’t be scammed.
Pros:
- It has the most options on how to purchase Bitcoin.
- Paxful only takes a 1% fee on the transaction.
- Bitcoin is available instantly for transfer.
- Paxful has a trust rating system for all buyers and sellers to make sure your transaction goes smoothly.
- You can expect quality and efficient customer service.
- There are over 200 different types of payment methods.
- Mobile apps are available on Android and iOS.
Cons:
- Some buyers and sellers need ID verification for purchases negating the privacy of the market.
- Fees to the buyers or sellers can be higher due to the type of payment.
- Not all buyers and sellers are online at any given time.
2. Best Brokerage—Coinmama
What Is Coinmama?
Coinmama is an Israeli-based Bitcoin brokerage that specializes in selling Bitcoin to buyers via credit cards and bank account charges. Coinmama isn’t a trading platform. You can buy and sell Bitcoin out of Coinmama’s stock of assets. On regular crypto exchanges, you are buying and selling on a market. Here you are buying and selling straight to and from Coinmama. This means it is highly trusted and highly popular for people to onboard to different types of digital currency such as Bitcoin Cash, Litecoin, or Ethereum.
Where Is It Available?
Coinmama isn’t available everywhere. Further, it isn’t available in every US State or Territory. Sorry citizens of Florida, Hawaii, New Mexico, Oregon, and Vermont, none of you can use Coinmama. However, as it is growing in acceptance, it may be that these issues have changed. It is always good to check with a quick Google search the current status of the location restrictions.
What Is The Process?
There are KYC requirements. Coinmama incorporates a very quick verification process that requires a government-issued ID and a photo of yourself with the card. This process takes about 15 minutes. Once you have filled out all of the information then you are fully registered for the platform. However, this doesn’t mean that you can buy and sell whatever you want. Initially, you will register at Level 1, which places restrictions on the amount of Bitcoin you can buy and sell in a day and a month. There are 3 different levels and each has different limits and restrictions based on your verification and of your purchasing patterns. Once you’ve purchased your Bitcoin, you will immediately have full access to your coins. Coinmama doesn’t hold onto your coins. Instead, they require you to transfer each transaction to an outside Bitcoin wallet.
What Payment Methods Are Available?
Coinmama excels at purchases and sales through credit cards and bank transfers. There are fees for each type but the fees are tiered and lower as the volume of trade increases. Though there are only a few options for types of payment methods, Coinmama is secure and trusted. There is no chance of a scam or bad sale because you are buying directly from Coinmama, not a third party.
Pros:
- It is available in many countries.
- There is a very high limit for credit cards.
- The customer service is prompt and reliable.
- This is a highly trusted exchange.
- There has been zero cryptocurrency stolen from this platform.
- The buying limits are large even for the beginner.
- The verification process is done conveniently.
- A decrease in trading fees for high-volume buyers.
Cons:
- There are higher fees associated with credit card use.
- The platform requires you to verify your identity.
- The platform requires trading levels based on identity verification.
- Trades are instantly accessible because they don’t have wallets available.
- This is not available in all US States or Territories.
3. Best Overall—LocalBitcoins
What Is LocalBitcoins?
LocalBitcoins is a P2P Bitcoin exchange platform. This means that buyers and sellers meet and discuss the sale or purchase of any amount of Bitcoin. The platform LocalBitcoins is used as the escrow until the deal is finalized.
Where Is It Available?
LocalBitcoins is available in nearly every country with an Internet connection. Because the platform itself isn’t hosting an exchange it gets around the banking regulations on buying and selling Bitcoin. Each user becomes an independent buyer or seller of Bitcoin. You connect with that buyer or seller and not the platform to negotiate the sale.
What Is The Process?
The process is very simple. There is little to no information required by LocalBitcoins. Rather you will need to abide by the requirements of the buyer or seller that you have selected. Some require certain types of verified identification. Others don’t require anything. Most buyers and sellers have their prices posted. If you like their terms then you make a connection and see if they are around. Once you have initiated the deal the Bitcoin will be held in escrow until the seller confirms your payment. Once the payment passes the seller will release the Bitcoin and you will be the proud owner of a bunch of 1s and 0s.
What Payment Methods Are Available?
The site is organized by many factors that you may be looking for in the purchase. The main one is the payment method. There are more payment methods available than you could ever use or want to use. Have gift cards lying around? Those can be used. Have a PayPal account? That can be used as well. This flexibility will cost you. There is a price for flexibility. However, if you are looking for security, privacy, ease, flexibility, and increased access then LocalBitcoins is your absolute winner.
Pros:
- It is the most private way to purchase Bitcoin.
- It has the most options on how to purchase Bitcoin.
- It may be the only way to purchase Bitcoin in some countries.
- LocalBitcoins does not impose limits on buying and selling Bitcoin.
- LocalBitcoins only takes a 1% fee on the transaction.
- Bitcoin is available instantly for transfer.
- LocalBitcoins is one of the oldest trading platforms and is not a scam.
Cons:
- Some buyers and sellers need ID verification for purchases negating the privacy of the market.
- Fees to the buyers or sellers can be higher due to the cost of instant privacy.
- Not all buyers and sellers are online at any given time.
- Your sale is dependent on the speed of the other party.
- Even though the reputation of the platform is high your experience is dependent on the reputation attached to the parties in your transaction.
What Are The Best Bitcoin ATMs?
It depends. Why? Well, based on where you may be living you may only have access to a small number of Bitcoin ATM locations. If there is only one in your area then you are out of luck unless you are willing to spend more money traveling to another city, most likely a major city, that has a branded kiosk different from your town. That is a major limitation. CoinATMradar.com can show you on a Bitcoin ATM map the closest one based on your current or proposed location. You can use it to see what brands are available.
In terms of numbers and costs, Bitcoin ATMs can vary wildly because they aren’t competitive against each other and are not prevalent like cash ATMs. CoinCloud, Bitcoin Depot, CoinFlip, RocketCoin, Coinsource, Bitcoin of America, Paydepot, Bitstop, National Bitcoin ATM, and Localcoin are the top 10 crypto ATM operators. They account for nearly 4,000 Bitcoin ATMs, which is just under 50% of all of the Bitcoin ATMs in the world. The top three (CoinCloud, Bitcoin Depot, and CoinFlip) hold about 25% of the machines in the world and about 33% of the machines in the United States.
If your town has one or multiple Bitcoin operators in it you should consider the fees associated with buying from and selling to an ATM instead of an online exchange. Whatever the fees are, you are stuck with them. It is very difficult to shop around as you are physically limited by their proximity to your location. Currently, fees to buy Bitcoin from an ATM range anywhere from 7% to 19%. This means on a $100 purchase you would only get $93 to $81 worth of Bitcoin. Compared to the largest online exchange the fee is only around 2.99% for the same purchase. Similarly, when you go to sell your Bitcoin at the same ATM you will be subject to another 15% fee on your sale.
