How to Get Bitcoin Without a Middleman
While exchanges like Coinbase or Binance are the most common way to buy Bitcoin, they are centralized companies that require your identity and permission. The Bitcoin network itself requires neither. Here are two practical ways to get Bitcoin permissionlessly.
Scenario: You're a freelance designer in Spain.
A client in Japan wants to pay you $500 for a logo design.
Your Traditional Invoice
To receive your $500, you send the client:
- Your full legal name and address
- Your bank's name and address
- Your IBAN number
- Your bank's SWIFT/BIC code
- A reference number for the payment
Problems: High fees (~$25-$50), 3-5 day delay, requires sharing lots of personal data, payment can be reversed.
Your Bitcoin Invoice
To receive your $500 worth of Bitcoin, you send the client:
- A single Bitcoin address
Advantages: Low fees (~$1), arrives in ~10 minutes, requires no personal data, payment is final.
Scenario: An In-Person Cash Trade
Let's walk through the steps of a direct, in-person trade.
Step 1: The Agreement
Alice wants to buy 0.001 BTC. Bob wants to sell 0.001 BTC for $50 cash. They agree to trade in person.
Alice (Buyer)
Wants Bitcoin
Bob (Seller)
Has Bitcoin
In both scenarios, no third-party company was needed to approve the transaction. It was just a voluntary agreement between two people. One person provided value (a service, an item, or cash) and the other provided Bitcoin in return.
This is the foundation of the Bitcoin network. It's a global system for value transfer that operates entirely on the consensus of its users, not on the rules of a central authority. While exchanges provide a convenient service, they are an optional layer, not a requirement.