How to Buy Bitcoin in Hong Kong

While there are many ways to buy Bitcoin in Hong Kong, it is still difficult to do so safely, conveniently, and cheaply. Bitcoin’s legal status as a currency is clear, but banks and other financial institutions tend to refuse services to companies or individuals associated with Bitcoin.

The purchasing process of Bitcoin can be difficult to understand and time-consuming, with many opportunities for scams. A lot of trading is done on platforms where people can trade directly with each other, using either cash or different kinds of currencies. Some of this trading also happens on exchanges located in other countries. Bitcoin trading should not be done in secret and there is no legal reason why someone would need to hide their purchases or sales of cryptocurrency in Hong Kong.

Banks may close your account if you mention Bitcoin or make large or repeated transactions with an overseas account associated with cryptocurrency.

General points to consider

Bitcoin gives us the ability to have an open financial system that is available to anyone with a smartphone or computer. When used correctly, Bitcoin will protect you from theft, seizure, devaluation, and high fees. Although there are numerous risks associated with Bitcoin, many of these risks can be minimized with the proper precautions.

You should always hold your Bitcoin in your own custody when it is possible to do so. Do not store Bitcoin on exchanges or custodial wallets. Withdraw them as quickly as possible when exchanging them. Bitcoin has existed for 12 years and will most likely persist for many more years, though most of the systems handling them will not.

Bitcoin should only be sent to people who are known and trusted. Make sure that you only send Bitcoin to people and businesses that you know and trust. Be aware that Bitcoin transactions cannot be reversed, and that accounts cannot be frozen.

Be prepared

Because Bitcoin is decentralized and operates on a peer-to-peer network, you need a Bitcoin wallet before you can buy Bitcoin. A wallet that does not require a username or email address for login, and does not require personal identifying information, would be ideal. When someone asks for your personal information, it could be a sign that they are trying to scam you.

Create your wallet in a quiet place where you will not be interrupted. Don’t let anyone see you as you set up this wallet, and make sure you have a backup of the seed phrase (usually 12 to 24 random words) in a safe place, like a password manager or a piece of paper. Seed phrases should not be stored in the cloud or on a notes app because apps may have access to this information.

Decide on the right venue to buy Bitcoin

Thoroughly examine the various choices and consider the expense, effort and dangers. Be comfortable with the trades you make and always prioritize your safety and the security of your finances and information. Do your friends have any experiences with Bitcoin in real life? If you know someone who owns Bitcoin, you could ask them to sell you some or help you buy some for yourself.

Peer-to-peer platforms

A peer-to-peer platform is a messaging board or chat group where people can trade with each other. These platforms are highly popular in places where the financial system is either not developed, or does not provide access to Bitcoin.

When trading peer-to-peer, you will need to trade with people that you trust, or when trading with friends of friends, appoint friends that both parties trust to act as an intermediary. Trades between friends tend to be the most desirable, since neither party charges a fee. Selling your Bitcoin to your friends is legal in Hong Kong, but there may be restrictions if you’re dealing with people you don’t know or if you turn it into a business.

What is escrow?
In Bitcoin, escrow is a form of trade where a third party takes custody over the funds and arbitrates conflict between buyer and seller. Typically, the seller of bitcoin will send their BTC to the escrow party before the buyer sends the dollars or goods. When the seller confirms receipt of the dollars, the bitcoin are released to the buyer. If there is disagreement, for example in case the buyer has sent the funds but the buyer did not receive them, the escrow party will collect information and make a judgement on whether to return or forward the bitcoin. In Bitcoin, you can make use of multi-signature addresses to prevent against the risk of the escrow party becoming unavailable or taking the funds for themselves.

Paxful is a commercial peer-to-peer platform that aims to provide a safe environment for users to buy and sell Bitcoin from strangers. The escrow mechanism is an important feature to use when trading. You can look at what other people are offering or put up something yourself. The platform usually charges a fee and only collects minimal information about the users.

Open source peer-to-peer platforms, such as Bisq, may be more difficult to use, but they offer the advantage of not requiring you to submit personal information, or to entrust your Bitcoin to a centralized service.

To get the best deal when looking for Bitcoin offers on online platforms, find one that uses your local currency and offers local payment methods. When you meet a trader to exchange cash, it’s best to find a well lit location with security, such as the lobby of a large hotel or bank.

ATMs

Bitcoin ATMs can be found all around Hong Kong. Bitcoin ATMs are the most convenient option to buy Bitcoin, as they do not require personal information and accept cash. While ATMs are convenient, they charge high fees, typically 5-8% above the market exchange rate.

Make sure your wallet is set up, synced with the network, and ready to receive before using the ATM. To deposit Bitcoin into an ATM, you will need to hold the QR code of your Bitcoin address up to the ATM’s camera. The machine will then deposit the corresponding amount of Bitcoin into your account. Some ATMs have a limit on how much money you can take out, or they might only accept certain types of bills.

Bitcoin ATMs can be found on sites such as coinatmradar.com, CoinHere, HK Bitcoin ATM and Nitroswap.

Exchanges

Exchanges allow you to have a lot of control over your Bitcoin purchases because they provide a liquid order book and allow you to set conditions for your purchases. Bitcoin ATMs are beneficial for those who buy small amounts of Bitcoin regularly, as well as those who speculate or buy large amounts of Bitcoin.

There are many different exchanges that offer different products, such as futures, options, derivatives or hundreds of smaller cryptocurrencies. In Hong Kong, it is difficult to find a reputable spot exchange to buy Bitcoin. If you are not in Hong Kong, you can get a foreign bank account to transfer money to, typically in the United States. Be sure that the account’s name here at the bank matches the listed name in the exchange’s terms and conditions. Also be positive that the exchange is a reputable one.

Where to Buy Bitcoin in Hong Kong

This section will look at where to buy bitcoin in Hong Kong from various platforms. With so many different crypto brokerages to choose from, it’s important to evaluate your options in terms of the cryptocurrencies they support, the tools and features they offer, and the fees they charge.

Users can invest in bitcoin in Hong Kong with the following cryptocurrency platforms:

1. eToro – Best Platform to Buy BTC in Hong Kong

The best place to buy bitcoin in Hong Kong is eToro. eToro is a

A global trading platform with over 26 million users in 140+ countries, including Hong Kong.

eToro charges a 1% spread fee on buying and selling all cryptocurrencies, including BTC. A BTC position can be opened on the platform after a quick and easy registration and verification process.

eToro is popular among cost-conscious users for several reasons. Beginners can start investing in BTC with a deposit of just $10 on the platform. In addition to buying Bitcoin, users can also deposit cash using credit/debit cards, bank transfers, wire transfers or e-wallets.

2. Crypto.com – Stake BTC for Passive Income

Crypto.com is another platform where you can buy Bitcoin in Hong Kong. A crypto exchange that supports the trading of BTC and 250+ cryptocurrencies. After users access the platform via the website or mobile app, they can buy Bitcoin instantly with a debit card. This method will cost 2.99%.

Instead of using a credit or debit card, users can save money by transferring funds via ACH wire transfer. What is the simple slide fee? The simple slide fee is a 0.40% fee charged per transaction. Although the fees are high, you can reduce them by holding CRO coins, which are the native cryptocurrency tokens of Crypto.com.

Capital.com – Trade BTC without holding the underlying asset

Capital.com is a popular trading platform in Hong Kong that launched in 2016 for investing in bitcoin.

Capital.com does not charge a commission for BTC or cryptocurrency trading. The platform does not charge transaction fees. Instead, it charges a low spread fee, which is the difference between the buying and selling price of BTC in real-time.

While most brokers require users to hold the underlying asset, Capital.com only requires users to hold a contract for the asset. This allows users to trade without having to physically own the asset. While some people choose to trade BTC directly, others opt to invest in the future price movements of the currency and use leverage to amplify their positions. This can be an attractive proposition for traders who are willing to take risks and buy and sell BTC and other cryptos regularly.

4. Coinbase – Beginner Friendly Platform

“Another global crypto exchange that allows users to buy BTC is Coinbase.” Coinbase is an easy way for people with no prior experience or knowledge of the crypto industry to buy Bitcoin.

After completing a simple process to verify their identity and registering, users in Hong Kong can choose to pay for Bitcoin using a credit or debit card, or by bank transfer. Coinbase charges a hefty commission of 1.49% per trade. When you use a debit or credit card to purchase something, an extra 3.99% will be added to the total. If you buy bitcoin using PayPal, you will have customer support available to you 24/7.

5. Binance – Buy BTC & 600 crypto assets

Binance is the most popular crypto exchange, with users able to buy and sell over 600 cryptocurrencies on their platform. Binance has very low fees when compared to other exchanges when you are buying Bitcoin or altcoins. Users can begin trading BTC and will be charged a 0.1% fee per trade. Although the platform does charge 4.5% for debit/credit card payments. An alternative to using ACH and wire transfers is to use a different method.

Binance is an ideal platform for experienced traders who want advanced charting options and access to hundreds of indicators and overlays. Binance not only allows users to easily exchange cryptocurrencies with each other, but also lets investors earn money from their holdings without having to do any work.

6. Tidebit – Hong Kong-based crypto platform

If you’re looking to buy bitcoin in Hong Kong, Tidebit is a local crypto exchange that allows users to do so. Tidebit is a decentralized on-chain platform where customers can hold their assets with a private key.

The platform has a flat fee model, where users can choose to pay a fee of 0.30% to invest in BTC and HKD trading pairs. Access to wire transfers is the only available payment method on Tidebit.

Tidebit costs $93 to withdraw 0.003 BTC. One notable aspect of Tidebit is its multi-channel customer service, which allows users to connect with the support team via Whatsapp, Facebook and email.

You can buy Bitcoin in HK using Tidebit’s web interface or mobile app.

Should I Buy Bitcoin?

Bitcoin is the current leader in the cryptocurrency market, with a value of $600 billion. BTC has seen long-term growth since its inception in 2009, making it an attractive investment for new investors entering the digital asset space.

Users may want to invest in a token after carefully evaluating it. There are many new projects and altcoins entering the space.

Benefits of Buying Bitcoin

Before investing in Bitcoin, users in Hong Kong may want to consider how much they are willing to spend. The sections below discuss some of the main advantages of owning BTC, which may help you decide whether or not to invest in Bitcoin in Hong Kong.

Market Leader

Many investors look to the top performers when investing in any asset class. Bitcoin is the biggest performer in the cryptocurrency industry, despite its volatility compared to other assets.

At the moment, Bitcoin accounts for 46% of the total cryptocurrency market value. Although a monopoly in the current market does not guarantee future success, BTC is the most traded cryptocurrency. It is twice as valuable as the second-largest token in the industry.

Discounted Price

Even though BTC has a current market cap of $600 billion, it has still dropped by more than 50% since November 2021. After BTC’s last major bull-run, it corrected massively and then trended sideways before its next rally, based on past performance.

The price of BTC cannot be predicted in the future, however it is much more affordable now than it was a couple months ago. If you’re okay with a lot of risk, it’s a good idea to look at the token and try to figure out when the best time to buy Bitcoin would be.

Hedge Against Inflation

Since Bitcoin’s token supply is limited, it has often been considered a good investment during periods of inflation. Although most altcoins have a low price due to an abundance of coins and low demand, the price of Bitcoin has been increasing because of high demand. Bitcoin’s total supply is capped at 21 million tokens.

Many people think that the limited supply of tokens will make the price go up, but this is just speculation.

Decentralisation

The creators of Bitcoin and other cryptocurrencies intended for them to be decentralised. This cryptocurrency is not regulated by a third party or agency.

General points to consider

Be prepared

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