If you haven’t read the first article about how to buy Bitcoin, click here to find out how to buy. If you are interested in buying but want a further comparison about which service to choose, we will be identifying the key features and benefits of each of these brokers with the hopes of helping you figure out the one for you.
US-based Coinbase is one of the most popular brokers in the world and sells both Bitcoin and Ethereum. The service offers the ability to deposit funds using PayPal, Bank transfer, credit and debit cards. The great thing about Coinbase is that it is known for its reliability in the crypto community, and is easy to send Bitcoin to people via Coinbase using an email address. This allows users to send Bitcoin to those who don’t even have a Bitcoin wallet. Coinbase itself charges a 2 – 4% fee for withdrawing and purchasing which is usual for all services.
One problem with Coinbase is, according to some users, problems have arisen about funds being locked up and no-reply support. With an additional problem in the US, Coinbase is continuously under fire. However, the majority of purchases are confirmed and the website is fully functional and since these are brokers we are talking about, it is highly recommended to withdraw directly into your own Bitcoin wallet as soon as possible.
CoinMama itself is like Coinbase, a fast way to buy Bitcoin, and deals Ethereum as well using a credit card, debit, or cash. This allows a speedy way to get your coins and has removed the bank transfer option to speed up the process. Like a regular Bitcoin broker, CoinMama verifies both payments, buyer and seller, and then releases the funds for both. According to the website, they do not store credit card information.
Unfortunately, CoinMama has removed the PayPal option which is a huge problem for those who want an easy way to add funds to purchase Bitcoin. Unlike some brokers, CoinMama only deals in EUR and USD and levies a 5% fee on all purchases.
With a minimum purchase of $10 worth of Bitcoin, Paxful has a unique way of letting you buy Bitcoin. You can buy using transfers, cash deposits, debit and credit cards, but something unique is gift cards. Amazon, Target, Bestbuy gift cards, and others are accepted by Paxful via private trade, opening up a new way of buying Bitcoin for those who have random gift cards sitting around and want to trade for something more usable. Like the other services, Paxful’s price for Bitcoin is set by its merchants to be a little above market price and is an escrow service, not a proper exchange. Paxful charges no fee for buyers which means you are buying at 100% seller offer, however, that offer will be above market price to compensate for the 1% seller fee.
One problem is that Paxful’s gift card system requires you to pretty much buy whatever the balance on the card’s value in Bitcoin. This is because you are sharing with the seller the card info which after receiving, have full access to the card’s entire balance. This forces you to split up the card balance to make sure the rest of your balance is not tampered with.
Finally, we have Xcoins which is rather different from the other brokers. Instead of a standard p2p buyer-seller transaction, Xcoins does a loan system which allows you to pay and “loan” out Bitcoin without being forced to pay it back after a set amount of time. This allows you to buy some Bitcoin and when you https://www.stealthsecrets.com/transcribeme-review/ are done, you have the choice of paying it back to the seller for your money back. Xcoins itself accepts credit cards, debit, eCheques, bank transfers, and PayPal. Xcoins charges the interest for the “loan”, payment processing fees, and bank transfer fees.
Explanation by Xcoins website:
“The process of receiving bitcoin is exactly the same as at an exchange. First, you give money to the lender. Then, he or she gives you bitcoin. But, as an added bonus, should you decide you do not need the bitcoin any more, or you found a better exchange rate, you can return the bitcoin to the lender and get your deposited amount back!”
Since Xcoins is a loan-based platform, you need to pay back the seller. For example, someone loans you 1 BTC and you pay them $1000, you could be using that Bitcoin for a few months and eventually, you have to pay them back with interest. Technically, you still have to pay them back but it not that big of a rush since interest is relatively low for Xcoins. Plus, the seller has the collateral, the $1000 in fiat currency.
All of these brokers are trusted, however, there are people with many different experiences which you should consider checking out. Especially reviews and reasoning, which could affect your choice. We are not responsible for any scams, or financial loss associated with Bitcoin or these services and are just helping you consider.…