Have you been itching to get your hands on some Bitcoin but don't quite know how to buy it with your local currency using decentralized Bitcoin exchanget? Fear not, many others are in the same boat, and HUD is here to help you with your crypto adoption process.
Although it may seem daunting, buying Bitcoin with your local currency and local payment method, is actually a straightforward process. In this blog post, we'll guide you through the process step by step, so you can easily get started with buying Bitcoin using your local currency, no matter where you are in the world.
What is Bitcoin and P2P Bitcoin exchange?
Bitcoin is a digital currency that works on a peer-to-peer network and operates independently of central authorities like banks or governments. It was created in 2009 by an unknown person or group under the pseudonym Satoshi Nakamoto. Bitcoin is not only used as a currency but also as an investment asset, with many people using it as a store of value despite its highly volatile nature.
Decentralized peer-to-peer (P2P) exchanges enable direct buying and selling of Bitcoin between people without involving any government authority. Unlike traditional exchanges that require you to provide personal information and undergo KYC verification, decentralized P2P exchanges offer decentralization and privacy protection which is at heart of Bitcoiners.
How to Choose the Decentralized P2P Exchange to Buy Bitcoin Anonymously?
When it comes to buying Bitcoin through a decentralized P2P exchange, choosing the right platform can feel like a big decision. But don't worry, the first thing you should consider is the exchange's reputation. Read reviews and check the security and privacy protection measures of the exchange to ensure you feel comfortable using it.
Payment methods are also an important consideration. Some exchanges might only allow certain forms of payment, so it's essential to confirm that you can pay and receive money using the payment method allowed on the exchange for peer-to-peer trading with other Bitcoin traders.
We recommend using Hodl Hodl as a platform to buy Bitcoin from anywhere in the world with your local currency.
Why we Selected Hodl Hodl?
When it comes to P2P Bitcoin decentralized exchanges, Hodl Hodl and Bisq come to mind, but what really drew us to Hodl Hodl is its user-friendly interface and ability to fight scams for Bitcoin beginners who want to stay anonymous. Bisq is a completely decentralized p2p Bitcoin trading platform, but it is not beginner-friendly.
Hodl Hodl is a non-custodial p2p bitcoin exchange that puts privacy and security first. It doesn't hold your money and allows you to keep your funds in your own wallet, minimizing the risk of centralization or hacks. Additionally, with no KYC or AML requirements, you can stay anonymous while making transactions.
Buy Bitcoin with Your Local Currency
Step 1: Create an Account
Jump onto Sign up page. Please enter your email and choose a nickname using lowercase words (you can use a dash). Then enter your password, confirm it, tick the checkbox, solve the CAPTCHA, and click Sign up.
Now, Hodl Hodl will send a confirmation link to your email. Please confirm it and you'll be redirected to your profile page.
Take your time to set up your profile so that you can appear authentic to like-minded individuals you'll be trading with.
Step 2: Set Up Hodl Hodl Profile
This side bar will be displayed where you was setting up your profile. Click Hodl Hodl highlighted with blue color.
Now you're on your Hodl Hodl homepage. Place cursor on your nickname. Click Dashboard.
Hodl Hodl will display the trading fee, which will be deducted on each trade made on the platform. This fee can be reduced when you refer someone to the platform. The platform will also show you your current account limits and trading statistics.
Click Create payment address.
During peer to peer bitcoin trading on Hodl Hodl, you'll be asked to create a multisig escrow Bitcoin address unique to each trade, using a payment password
Enter your Payment password, confirm it and click Create payment address.
Now, enter the Bitcoin wallet address where you want to receive the Bitcoins when your trade is completed. Select your country and the contracts you would like to allow on your account at one time. Keep in mind that new accounts have limits on the number of contracts they can have, which increases as you do successful trades.
Select the transaction fee type for receiving Bitcoins, it is same as like gas fee on crypto transactions. High speed transaction means more network fee on Bitcoin. Medium is a safe option to select, in which case the network fee will be automatically adjusted. Click here to see the updated average network fee for Bitcoin always. Click Save changes.
Hodl Hodl will send Bitcoin address, confirmation link to your email. Click Confirm action.
Back to dashboard. Click Payment methods.
Now, you need to confirm that Hodl Hodl supports payment method that you'll use to pay others or receive your local currency (fiat) from others when trading Bitcoin. Search for the desired payment method and confirm that it is on list. Wise, PayPal, Stripe, Amazon/Apple Gift Card, Google Pay, and Apple Pay are already there.
Alternatively, you can request a new payment method here. New payment methods should be added within 1 business day. Try to include as much information as possible withing new payment method request.
Now you're ready to buy and sell Bitcoin with your local currency anonymously.
Step 3: Buy Bitcoin Anonymously
Click Buy Bitcoin on the dashboard header.
Find a suitable Bitcoin P2P trading offer among the available options by using the currency, country, and payment method filters.
When you've found a suitable offer, simply click on it to proceed. You'll then be directed to a new window where you can complete the purchase anonymously with another crypto guy.
Make sure you're comfortable with the payment window and have checked its conditions, such as limits. The payment window is the amount of time you and seller have to complete the trade after the Bitcoins are transferred to a unique escrow address.
Once you've selected a payment method, enter the amount of fiat money you'd like to use for purchasing your first Bitcoin.
So, when you check out the conversion rate to Bitcoin on Coinmarketcap, it doesn't seem like Bitcoin seller on Hodl Hodl is ripping you off or anything. But just keep in mind that the rate Coinmarketcap show an average rate from all exchanges - so it's not a guarantee that you'll get the exact same rate from centralized exchange.
Now click Accept offer for $$$.
Now, you'll need to generate the escrow address. The seller will transfer Bitcoin to this multisig address. Both you and the seller will use a payment password to generate the Bitcoin multisig wallet address.
Now wait for seller to enter in contract.
Bitcoin seller accepted the contract and unique Bitcoin address has generated, it's now seller's turn to send Bitcoins to that address.
When the seller has deposited Bitcoins in the multisig address, the window will look like this.
Before the Bitcoins arrived in the multisig address, Hodl Hodl wasn't showing the payment details of the seller, and the screen looked like this.
But now, you will see the seller's local payment details here to make the payment.
After sending the payment within the payment window (which was 90 minutes in our case), click on I've sent the payment.
After funds have released, window will look like this. Your trade has completed with seller on Hodl Hodl. Now, wait to receive Bitcoin in your wallet.
The funds should reflect in your wallet after 1-2 hours.
You're someone who values privacy and security like HUD, so buying Bitcoin with your local currency through a decentralized P2P exchange like Hodl Hodl is an excellent option at this time. As more and more people adopt cryptocurrencies, there's no better time than now to start exploring the world of Bitcoin and other digital currencies. So, don't be afraid to dip your toes in and see what all the fuss is about!
Frequently Asked Questions
1. Why don't we have decentralized exchanges for Bitcoin like ETH?
One of the key challenge is that Bitcoin's scripting language is more limited than Ethereum's Solidity language, which makes it harder to implement complex smart contract functionality. The Bitcoin network is designed to exclusively support transactions involving Bitcoin, and is not capable of accommodating other coins. As a result, it is not feasible to host other coins on the Bitcoin network. Last but not least, Bitcoin can't bridge to other blockchain directly.
2. What is Wrapped Bitcoin (WBTC)?
WBTC is short for Wrapped Bitcoin, a token that represents the equivalent value of Bitcoin on the Ethereum blockchain. To ensure that each WBTC token is backed up by actual Bitcoin, Bitcoin holders deposit their Bitcoin with a trusted custodian who issues WBTC tokens in return. It's like currency backed by gold, but currency isn't gold as such.
3. What could possible privacy issues on Hodl Hodl?
They will have access to all users' IP addresses, emails, and possibly payment passwords that were created on their platform.
4. What is Bisq?
Bisq is 100% decentralized Bitcoin peer to peer exchange. This means that you don't have to worry about a central authority holding their funds or facilitating trades. They don't get your single data piece. Bisq relies on a network of decentralized nodes that are managed by users worldwide.