The Ultimate Guide To Investing In Bitcoin Without Coinbase

There are several ways to buy Bitcoin without using Coinbase. One option is to use a credit or debit card to purchase Bitcoin through a crypto exchange or wallet such as CEX.IO, Exodus, Binance, Coinhouse, or MoonPay. These platforms may charge higher fees and require Know Your Customer (KYC) checks. Another option is to use a peer-to-peer marketplace like LocalBitcoins, where buyers and sellers agree on prices and trade terms. Bitcoin ATMs are also an option, but they typically charge a markup of 5-10%. Additionally, some platforms like BitQuick and Purse.io facilitate Bitcoin purchases through cash deposits or by fulfilling wish lists for people on Amazon.

Buy Bitcoin with a credit card through Exodus

If you are looking to invest in Bitcoin without using Coinbase, one option is to use Exodus, a non-custodial cryptocurrency wallet with a built-in decentralised exchange. Here is a step-by-step guide on how to buy Bitcoin with a credit card through Exodus:

Step 1: Download the Exodus App and Open an Account

Firstly, you will need to download the Exodus app and create an account. Exodus is available on desktop and mobile, supporting Windows, Mac, Linux, Android, and iOS.

Step 2: Click on "Buy Crypto"

Once you have set up your account, navigate to the "Buy Crypto" section. This is represented by a dollar sign icon. Here, you will be able to choose your desired payment method and select the amount you wish to purchase.

Step 3: Select "Credit Card" as Your Payment Method

In the Exodus app, you will have the option to choose from various payment methods, including credit and debit cards, bank accounts, Apple Pay, Google Pay, and PayPal. For this guide, ensure you select "Credit Card" as your preferred option.

Step 4: Choose Bitcoin and Enter the Amount

After selecting your payment method, choose Bitcoin as the cryptocurrency you wish to purchase. Here, you can enter the amount of Bitcoin you want to buy. Keep in mind that Exodus uses a third-party provider for credit and debit card purchases, so the fees may vary.

Step 5: Complete the Transaction

Finally, complete the transaction by entering your credit card details and any other required information. Once the purchase is processed, the Bitcoin will be deposited into your Exodus wallet within 10 to 20 minutes.

It is important to note that Exodus supports over 50 different blockchains, allowing you to store a wide range of crypto tokens and coins. Additionally, you can integrate your Exodus wallet with Trezor for added security. Exodus also offers the ability to withdraw funds to your Visa Debit card in many countries, providing flexibility in managing your crypto assets.

Try localbitcoins.com

If you're looking to buy Bitcoin without using Coinbase, one option to consider is LocalBitcoins.com. LocalBitcoins was a peer-to-peer bitcoin exchange platform based in Helsinki, Finland, that facilitated over-the-counter trading of local currency for bitcoins. While the platform shut down in February 2023, it's worth noting that at its peak in 2020, it had over 1,000,000 active traders and a trade volume of 612 million US dollars between October and December of that year.

On LocalBitcoins, users posted advertisements stating exchange rates and payment methods for buying or selling bitcoins. Other users would then reply to these advertisements and make the payment using the specified payment method. The platform implemented an escrow system, ensuring that the transfer of bitcoin only occurred after the seller received the funds in their account.

LocalBitcoins was particularly attractive to casual traders seeking more privacy. It offered a reputation system for users, and its peer-to-peer nature meant that buyers and sellers had to agree on a price and the terms of a trade before any transaction could be made. It was also possible to buy bitcoins on LocalBitcoins without ID, either by purchasing with a cash deposit or meeting in person and trading cash.

However, it's important to note that in 2019, LocalBitcoins implemented new Know Your Customer (KYC) rules. Additionally, there were some security concerns, with hackers stealing bitcoin worth $28,200 from users' accounts in 2019. Nevertheless, LocalBitcoins was able to identify and resolve the issue promptly, demonstrating their ability to handle such incidents.

If you're considering using LocalBitcoins or similar platforms, it's essential to prioritize security and privacy. Always enable two-factor authentication and carefully research any potential trading partners before engaging in any transactions.

Use Purse.io

Purse.io is a platform that lets you buy wish lists for people on Amazon in exchange for bitcoins. It is a good option for those looking to buy bitcoins without using Coinbase. However, it is important to note that there are scammers on Purse.io, so it is essential to be cautious and know what you are doing.

One way to minimise risk is to use PurseInstant, where Purse.io acts as a middleman and assumes all the risk. While this option generally offers only a 5% discount, it is safer than the "exchange" option, where larger discounts are available but there is a higher risk of fraud.

When using Purse.io, it is recommended to avoid buying gift cards as these are instant-transfer, which does not allow time for fraud detection. Instead, opt for physical goods that have shipping delays, as these make fraud detection possible. It is also important to be reasonable when it comes to discounts. Offering a 50% discount may attract fraudsters, so it is better to stick to lower discounts that are more in line with what is typically offered on similar platforms.

Additionally, it is worth considering shipping to a public address if you are concerned about privacy. Overall, Purse.io can be a safe and viable option for buying bitcoins without Coinbase, as long as you are savvy and take the necessary precautions to protect yourself from scammers.

Trade on Paxful

Paxful is a peer-to-peer crypto marketplace with a global reach. It allows users to buy and sell cryptocurrencies directly with each other, using over 400 payment methods, including gift cards, debit and credit cards, bank transfers, and online wallets. It also supports more than 100 currencies across 170 countries.

Paxful offers a free and secure ERC-20 and Bitcoin wallet with institutional-grade custody for every user. It also provides 24/7 customer support and has a dedicated moderation and escrow system to keep trades fair and safe.

To get started with trading on Paxful, you will need to create an account and verify it to access all the platform features. Once you have an account, you can start buying and selling Bitcoin.

Buying Bitcoin on Paxful

To buy Bitcoin on Paxful, follow these steps:

• Click on "Buy" and fill in the required information, including your preferred payment method, location, currency, and amount.
• Use the filters to find trusted Bitcoin vendors. You can sort by popular payment options in your location and enable the "Paxful Verified Users Only" filter to ensure you are dealing with reputable sellers.
• Check all the information about the seller, including their reputation, availability, buying limits, rates, time limit, and offer terms.
• When you find a suitable trader, click "Buy", which will take you to the offer page. Here, you will see the amount you will receive in BTC based on the amount you are willing to pay.
• Once you are ready to proceed, click "Buy now", and the trade will begin. A live chat will appear, where you can discuss the transaction with your trade partner and follow their instructions.
• After completing your payment, click "I have paid" and wait for the BTC to be released to your Paxful wallet.

Selling Bitcoin on Paxful

To sell Bitcoin on Paxful, you will need to create a sell offer and set up your payment method.

• Go to your dashboard and click "Create New Offer". Choose Bitcoin as your cryptocurrency and select "Sell Bitcoin" in the next step.
• Choose your preferred payment method from the seven available options, which vary depending on your trading needs.
• Set up your trade pricing and offer limits. You can choose between a market price, which allows your selling price to change according to BTC's market price, or a fixed price, which will not be affected by market movements.
• Indicate your offer margin, which is your markup and will determine your profit.
• Set your offer trade limits, either a fixed amount or a range with minimum and maximum trade amounts.
• Write clear trade instructions and include some offer tags to help your trade partners quickly understand your requirements.
• Once you are done setting up your offer, click "Create offer" and wait for a buyer to initiate the transaction.
• When a trade begins, a live chat will appear, where you can discuss the instructions with the buyer and ask for any necessary information.
• After verifying the buyer's information and completing the transaction, release the BTC to the buyer.

With Paxful's large community of crypto traders and wide range of payment options, you can explore numerous opportunities to buy and sell Bitcoin and other cryptocurrencies.

Use a Bitcoin ATM

A Bitcoin ATM is a great way to invest in Bitcoin without using Coinbase. These machines are usually located in high-traffic areas such as shopping malls, airports, and convenience stores. They look and operate similarly to traditional ATMs, but instead of connecting to a bank, they communicate directly with the Bitcoin blockchain.

Here's a step-by-step guide on how to use a Bitcoin ATM:

Step 1: Get a Crypto Wallet

Before using a Bitcoin ATM, you need to set up a crypto wallet, specifically a Bitcoin wallet. This can be a paper wallet, a digital wallet, or a hardware wallet. The wallet must be able to send and receive Bitcoin and have security features.

Step 2: Prepare Your Bitcoin Wallet

Check if your digital wallet supports QR codes, as most Bitcoin ATMs use QR codes for transactions. This makes the process easier and reduces the risk of entering a long wallet address incorrectly.

Step 3: Find a Bitcoin ATM Near You

Use live maps like Coin ATM Radar or Bitcoin ATM Map to locate a Bitcoin ATM near you. These websites allow you to filter your search by proximity, operator, fees, and other parameters.

Step 4: Set Up Your Transaction

At the Bitcoin ATM, you will need to verify your identity and enter your PIN. Choose the cryptocurrency you want to purchase (if the ATM offers multiple options) and specify the amount.

Step 5: Enter Your Wallet Information

Provide your Bitcoin wallet address by either scanning the QR code or manually entering the alphanumeric key. Double-check the address to ensure it is correct.

Step 6: Insert Cash

Double-check all transaction details and insert the required amount of cash into the ATM.

Step 7: Confirm the Purchase

Review and confirm the transaction. Once confirmed, the Bitcoin will be sent to your wallet.

It's important to note that Bitcoin ATM operators may have different transaction fee policies, and these fees can be quite high, ranging from 10% to 23%. Additionally, always be cautious when using Bitcoin ATMs, as there are risks associated with any financial transaction.

Frequently asked questions