A Beginner's Guide: Buying Bitcoin In Azerbaijan

Bitcoin is a decentralised, independent and public cryptocurrency that allows users to send money quickly, cheaply and anonymously. While the legality of bitcoin in Azerbaijan is currently unknown, it is growing in popularity in the country. There are several ways to buy bitcoin in Azerbaijan, including through trusted online exchanges such as Binance, Kraken, OKX, CEX.IO, and Paxful, or by using a bitcoin ATM.

Using a credit or debit card

• Changelly: Changelly is a user-friendly platform that offers a smooth and fast purchasing process with a variety of payment methods. You can use a Visa or Mastercard credit or debit card issued in your local currency.
• Coinmama: Coinmama is a well-known exchange that allows you to buy Bitcoin instantly with a credit or debit card, as well as bank transfer. They accept all major currencies, including USD, EUR, GBP, CAD, AUD, and JPY. However, they have high fees for credit and debit card purchases.
• Binance: Binance is a popular and trusted exchange that offers credit and debit card payment options. They support over 50+ currencies, including USD, EUR, JPY, GBP, and more.
• Cex.io: Cex.io is a British exchange with over 3 million users. They allow users to buy Bitcoin with a credit or debit card seamlessly and have multiple payment options, including SWIFT, SEPA, ACH, and Faster Payments. They accept deposits in USD, EUR, GBP, and RUB. However, VISA and Mastercard deposits incur a 2.99% fee.
• Paxful: Paxful is a peer-to-peer marketplace that supports over 300 payment methods, including credit and debit cards. They offer zero fees when buying Bitcoin, and you can pay with any of their accepted payment methods.

When using a credit or debit card to purchase Bitcoin, it's important to note that you may encounter higher fees compared to other payment methods. Additionally, you will typically need to complete a Know Your Customer (KYC) verification process, which may include providing a photo ID and proof of address.

Finding a Bitcoin ATM

Bitcoin ATMs are one of the easiest and quickest ways to buy and sell bitcoins. They are connected to the internet, allowing people to connect directly with a Bitcoin exchange. Bitcoin ATMs are usually located inside retail stores, shops, taverns, restaurants, malls, or airports.

There are tens of thousands of Bitcoin ATMs worldwide, with most of them located in the United States. To find a Bitcoin ATM near you, you can use online maps and tools such as the Bitcoin.com Map, CoinATMradar, or Bitcoin ATM Map. These tools allow you to search for ATMs by address, type of cryptocurrency, or fees charged.

When using a Bitcoin ATM, you will typically need to follow these steps:

• Enter the amount you want to purchase. Depending on local regulations and the amount, you may need to verify your identity.
• Provide your Bitcoin wallet address by scanning the QR code of your wallet address using the ATM's camera.
• Make the payment using cash, credit card, payment app, or other accepted methods.
• Receive the bitcoins in your Bitcoin wallet. This may take a few minutes, and the ATM will provide a transaction ID to monitor the status.

In addition to Bitcoin ATMs, there are other options for buying and selling bitcoins, such as online exchanges, broker applications, and P2P exchanges. However, ATMs provide a convenient and quick way to buy bitcoins with cash, offering little to no KYC (Know Your Customer) requirements.

Using a peer-to-peer exchange

A peer-to-peer exchange operates like a decentralised exchange, but there’s still a central body that acts as an intermediary. Each side in a transaction makes the payment, and the central body releases the funds as soon as both sides have sent money.

You can buy bitcoin in Azerbaijan through a peer-to-peer exchange like Bisq, Paxful, and LocalSwap. These platforms allow you to buy and sell bitcoin anonymously and safely.

For example, Paxful is one of the world's leading peer-to-peer Bitcoin marketplaces, with a robust security system and 24/7 customer support. You can pick from thousands of offers from trusted sellers and find cost-effective deals suitable for you. You pay zero fees when buying Bitcoin and have the convenience of paying with any of their over 450 payment methods.

To get started with Paxful, you need to create an account, get your free Bitcoin wallet, and start trading. You can buy any fraction of Bitcoin with your Azerbaijani Manat (AZN) and pay with a bank transfer, credit/debit card, PayPal, Skrill, or GIRO RealTime24/7.

Another option is Pursa, which is a secure platform that makes it easy to buy, sell, convert or load card with bitcoin anonymously in over 230 countries. Pursa allows you to buy and sell bitcoin anonymously and directly from your blockchain wallet or with your mobile payment account.

Using a broker app

To buy Bitcoin in Azerbaijan using a broker app, you can follow these steps:

• Sign up with a broker app: These applications are intermediaries between buyers and sellers. You can choose from several broker apps, including eToro, which is considered the best crypto exchange in Azerbaijan, offering low fees, top-tier security, and a large range of crypto coins. Other popular options include Kraken, Bybit, Bitstamp, and AvaTrade.
• Open an investment account: You will need to provide personal information, such as your name, email address, and proof of address. You may also need to upload a copy of your ID or passport.
• Deposit money into your account: Most broker apps accept various payment methods, including credit cards, debit cards, and e-wallets. Some platforms may also allow you to use PayPal or other e-wallet services.
• Choose the time to buy Bitcoin: Due to the volatile nature of Bitcoin, prices can vary significantly. Decide the amount of Bitcoin you want to purchase and the price you are willing to pay.
• Purchase Bitcoin through the app: Once you have decided on the amount and timing, open the app, search for Bitcoin, and click "Buy." The broker app will facilitate the purchase, and you will receive a proof of purchase.
• Store your Bitcoin in a secure wallet: Consider transferring your Bitcoin to a secure personal wallet, such as MetaMask or Trust Wallet, for added security. Leaving your Bitcoin on the exchange wallet may pose security risks.

Remember to do your research, compare different broker apps, and understand the risks and volatility associated with investing in cryptocurrencies before making any purchases.

Using a CFD platform

CFD stands for 'Contract for Differences'. CFD platforms allow you to speculate on the price of Bitcoin and to buy derivatives. This means that you can wait for the price to rise and then liquidate the position for profit, but you will not own the cryptocurrency.

A CFD is a contract between a broker and a trader who agree to exchange the difference in value of an underlying security between the beginning and the end of the contract. This is often less than one day.

CFDs are complex instruments that come with a high risk of losing money rapidly due to leverage. They are not permitted in the U.S. due to their high risk.

When using a CFD platform, you will need to:

• Set up an account and prove your identity.
• Fund your account.
• Choose the number of contracts you would like to trade (buy or sell).
• Monitor the price of Bitcoin and decide when to buy or sell derivatives.
• Close your position when you want.

It is important to note that CFD trading is risky and you could make a loss greater than your initial deposit amount. CFD trading is best suited to those with a wealth of experience.

Frequently asked questions