How to buy bitcoins
- Signup at LocalBitcoins. Add your phone number and also make use of two step verification for enhanced security. Prove your identity by uploading scanned CNIC or passport. You can still buy and sell without proving your identity but some vendors may require it for large transactions. You are now registered and also have a bitcoin wallet
- Go to the main page and select Quick Buy. Enter the amount which you want to invest in buying bitcoins. Choose the transaction method.
- Upon searching you will see a list of traders offering to sell bitcoins. Choose the one with the good reputation and high response time. Also, beware of price per Bitcoin asked by the seller.
- After you select a trader you will see information about terms of trade. If you agree to terms then proceed by clicking on ‘Send the trade request’.
Additional information about where to send the money will be generated. You will have a limited time, usually 90 minutes, to transfer money. Your bitcoins will be available in your wallet once the seller has verified the payment. In case the bitcoins aren’t transferred to your account, you can mark the transaction as a dispute. Disputes are usually resolved in 24 to 48 hours.
How to Sell bitcoins
- Selling bitcoins isn’t much different than buying. Just go to the main page and select ‘Quick Sell’ and enter the amount in rupees for which you want to sell bitcoins. Choose the payment method (eg. Easypaisa).
- Select a trader of your choice and press sell. You will see terms of trade and other information about the trader. Take into account the reputation and trade history of the trader before sending the request.
- Send the trade request. The buyer will contact you and ask for payment details (eg. your account number, in case you selected bank transaction method).
- Once you have received payment click on ‘Release bitcoins‘ to deliver them to the buyer. In case you accidentally released bitcoins before payment there is no going back. Transaction once made cannot be reversed.
How to use bitcoins
- Once you have acquired bitcoins, you can access them through your wallet and use them wherever they are acceptable.
- To send bitcoins to someone just click on ‘Send bitcoins‘. Enter the address of the other person’s wallet where you want to send. Enter the amount and proceed. Your Bitcoins will be sent to the address.
- To receive Bitcoin just generate the address of your wallet by clicking on ‘Receive bitcoins’. Send it to the person who wants to send you bitcoins. That’s all folks.
LocalBitcoins is more like an online marketplace where buyers and sellers are connected with each other. The transaction fees are low and are applied only if other person’s wallet is outside Local Bitcoins. The best thing is that this service is available in Pakistan. If you have any questions feel free to leave your comment below.
In the next story, we will talk about different kind of wallets for storing crypto currencies specially Bitcoins.
How to buy Bitcoins using credit card in Pakistan
Here is walk through the process.
- Signup on Coinmama. It’s an easy process, you just need your email address for creating an account.
- Verify your account. Unless you verify, you won’t be able to make large transactions on Coinmama. You will need pictures of
- National ID card (both sides)
- International Passport (double page)
- Utility Bill/Driver’s License
- Your picture holding CNIC
- Each picture should be high quality and less than 4MB. Almost every exchange requires the identity verification in order to control money laundering. Coinmama claims to ensure the privacy of your personal information by storing data after encryption.
- Get a Bitcoin wallet. Coinmama doesn’t offer wallets unlike many other exchanges. You can get your own wallet from Blockchain.info.
- Go to the Buy Bitcoins select one of the available amounts or use the use “slider” (the price calculator) to buy more or less than the amounts offered. Select the amount and proceed.
- Select the payment method. At the moment Coinmama offers payment through any Credit or Debit Card only as long as it’s Visa or MasterCard.
- Enter your Bitcoin wallet address. You will receive a wallet confirmation email. After you verify it, Bitcoins will be transferred to your wallet. You may experience delays if you are transacting outside their business hours (GMT+3). Otherwise, transactions are processed immediately.
- Check your Bitcoin wallet for new Bitcoins you bought.
Every exchange has different Bitcoin rate, as Bitcoin network has no central body regulating it. It’s better to compare the rates with that of the average market rate by using websites like TradeBlock. Rates you see on Coinmama include 6.3% fee, additionally, for credit/debit card transactions 5% payment processor charges are applied.