How to Buy Bitcoin Without Using a Cryptocurrency Exchange?

Bitcoin and moonpay

Ever since Bitcoin (BTC), the first cryptocurrency, was launched in 2009, the financial world has been taken by storm. 

Satoshi Nakamoto, an anonymous developer, founded this virtual currency to eliminate the roles of centralized authorities like banks, as far as financial transactions are concerned.

As of now, BTC is the largest cryptocurrency in the world in terms of market capitalization, with over $ 376.17 billion in value. 

There are a number of reasons why investors are attracted to this emerging asset class, and massive growth prospect is one of them.

How to Buy Bitcoin Without Using a Cryptocurrency Exchange?

Today, you can purchase and trade Bitcoin using fiat currencies like the US dollar, Euro, Pound, etc. similar to any other assets. The cost you have to bear to purchase BTC depends on the current market value, which is similar to how shares work.

When it comes to buying Bitcoin, you have several options to choose from. One easy way to buy BTC is through cryptocurrency exchanges. However, what if you don’t want to use an exchange? Well, there are other ways as well to buy bitcoin without using a cryptocurrency exchange.

Here, we would explore those ways. Let’s get started.

1. Buy Bitcoin with Paypal

Bitcoin, How to Buy Bitcoin Without Using a Cryptocurrency Exchange?

If you want to buy bitcoin without having to open an account at any cryptocurrency exchange, the most convenient, popular, and reliable option would be to buy BTC with PayPal. PayPal, one of the leading payment processors in the world, allows you to purchase all leading cryptocurrencies, including bitcoin and Ethereum.

There are generally two ways you can buy BTC using PayPal. The first and most popular approach is to link your PayPal account to your bank account or debit card. The second available choice is to purchase cryptocurrency from a third-party vendor, such as MoonPay, using the funds available in your PayPal account.

In this regard, it is worth noting that residents of almost all states in the USA, except Hawaii, are eligible to use their PayPal accounts for purchasing BTC. PayPal offers a special function, called  “Checkout With Crypto”, which enables users to purchase different goods and services using their cryptocurrencies.

If you want to purchase BTC using your PayPal account, you would require filling out the following information:

  • Name
  • Physical address
  • Date of birth,
  • TIN (Tax identification number)

Although PayPal does not currently allow credit card payments for Bitcoin transactions, you can use credit cards on MoonPay to get hold of your preferred cryptocurrencies. Now, let us explore what a BTC transaction with PayPal looks like.

While you go ahead to initiate a transaction, the price for BTC would appear on your dashboard, which is subject to change every minute as per the current market value. So, it is always recommended that you have enough money in your bank account to successfully purchase BTC even if market volatility drives the price upwards at the last moments of the transaction.

Now that you know how to buy BTC with PayPal, now let us shift our focus to another important aspect; transaction fees. In this regard, it is worth noting that when you opt for a BTC purchase through PayPal, the company makes money through the cryptocurrency spread, which is the difference between the current market price of the cryptocurrency and its US dollar exchange rate.

Additionally, be ready to pay an additional transaction fee on each of your BTC purchases. For starters, transactions valued between $100-$200 are charged a fixed rate of $0.50. Again, an additional 2% of the total purchase amount is charged as a transaction fee. So, if you are buying BTC worth $100, you would be charged $0.50 and 2% of $100, which totals to $2.50.

2. Buy BTC using Bitcoin ATM

Another way to buy Bitcoin without any cryptocurrency exchange is to opt for a Bitcoin ATM. In these ATMs, you can buy BTC using cash currencies or fiat money. But now you might be wondering how exactly a Bitcoin ATM works.

One of the biggest advantages of buying BTC from an ATM is that you don’t need to have a Bitcoin address. You can disclose not having a wallet when transacting at the ATM. Once you inform the machine that you don’t have an existing wallet, the ATM would instantly create a new paper wallet for you.

Once your wallet is created and ready (it takes only a few seconds), you can transfer the coins from the ATM to your personal crypto wallet (you can either choose a cold or a hot wallet) by importing the private key from that newly created paper wallet.

Now that you know what the BTC purchase process looks like, here are the essential steps you need to take to initiate the transaction. Follow these below-mentioned steps closely:

First of all, you need to visit a Bitcoin ATM and scan the QR code that contains your Bitcoin wallet’s address. This is the very address where you would receive your BTC.

Depending on the functions of the particular ATM, you might be required to scan your fingerprints or provide any other form of personal identification.

Now that your identity is verified, you need to enter the quantity of Bitcoins you want. Or else, you can also input the worth of BTC you want to buy in exchange for your preferred fiat currency. For instance, you may buy $100 worth of BTC.

Once you have followed the previous steps, now is the time to insert the cash and wait a short while. Shortly after, your preferred amount of Bitcoins will be deposited to your designated Bitcoin wallet address.

And there you go, you are now a BTC owner.

3. Buy Bitcoin using a prepaid card

In case you are reluctant to buy Bitcoin with debit card or credit card, but still want ownership of BTC, here’s another alternative for you. You can use a BTC prepaid card to purchase your favorite cryptocurrency. In its true essence, a prepaid card is a highly secured option for buying cryptocurrencies. Besides, it also has its fair share of advantages.

The process of buying BTC using prepaid cards is pretty straightforward. All you need to do is follow the steps mentioned below:

  1. Open an account on your preferred online prepaid card platform.
  2. Fill out your personal details, including your name, home address, and email ID, and then set an account password.
  3. Upload the necessary paperwork in order to verify your identity.
  4. Deposit money to your prepaid card and then choose your preferred cryptocurrency buying platform. Next, you need to tap your device and initiate the transaction of your choice.
  5. Now you can purchase Bitcoin by simply entering your desired quantity and get ready for the instant transfer of BTC in your digital wallet.

4. Accept BTC payment

This particular option might not be particularly about buying BTC. However, it can be a great way to accumulate this asset without having to open an account on any cryptocurrency platform. If you sell something online then you can easily set up a Bitcoin acceptance wallet as an alternate mode of payment.

In this regard, it’s worth noting that some of the biggest companies in the world including Microsoft, PayPal, Starbucks, and Etsy, to name a few, have moved to accept bitcoin payments. You too, can join this big league and innovate the way your business handles payments.

There are numerous specialized web platforms that allow you to integrate BTC payment acceptance infrastructure in your online store. All you need to do is find a suitable platform that meets all your needs and start accepting BTC and other cryptocurrencies of your choice, on the go. If you are not sure if this is the right time to buy crypto, let us remind you of history.

Back in 2009, when BTC was founded, skeptics were reluctant to add this emerging asset class to their portfolio, citing that Bitcoin may not grow. In 2010, a person named Laszlo Hanyecz bought 2 pizzas for $10,000 BTC.

If April 2021’s BTC price is taken into consideration, those pizzas were worth $600 million. Experts claim that BTC might rise to $1 million per coin over the next decade. So, now might be the right time to start accepting BTC as payment.


As you can see, you don’t need to have an account on cryptocurrency exchanges in order to buy or own Bitcoin. 

Here we mentioned the four most popular and common ways to add Bitcoin to your investment portfolio without having to deal with a third-party exchange.

The options that we mentioned above are seamless and convenient. More importantly, when you buy BTC from exchanges, you never know whether those companies will survive in the long term. Since cryptocurrencies are highly unregulated, your funds might disappear in case exchanges go bankrupt.

In contrast, buying BTC using reputable and regulated services like PayPal or a Bitcoin ATM would mean that you are the sole owner of your assets. In case you are searching for the exchange, you may find your best cryptocurrency exchange.

Leave a Comment

Related Articles

Our Partners