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How to Buy Bitcoin In China

Buy Bitcoin in ChinaWe get it…

Buying Bitcoin in China might seem confusing if you’re new to cryptocurrency.

But don’t worry, as this is where Bitpremier comes in.

After researching Chinese exchanges, we’ve come up with a guide to help you make the right decision.

Let’s jump right in!

Coinmama

Coinmama Review

First off, we have Coinmama.

Coinmama is a cryptocurrency brokerage that allows users to purchase Bitcoin and other cryptocurrencies for fiat currency. The exchange specializes in credit card and debit card transactions

The exchange is very well known, most likely due to their extremely strong customer support team, and a wide range of supported countries.

Before purchasing Bitcoin on Coimmama, it’s important to have a cryptocurrency wallet address to send to.

Luckily for you, Bitpremier has several guides on Bitcoin wallets. If you have a valid wallet address, you are now ready to purchase Bitcoin on Coimmama. In terms of fees, Coinmama has around 6% fees on their purchases.

Visit Coinmama

CEX.io

CEX.io is another popular option for the purchasing of Bitcoin in China. In addition to Bitcoin, CEX.io also features altcoins such as Ripple and Stellar Lumens.

They serve countries around the world and allow for the trading and storage of cryptocurrencies. While exchange wallets are fine to use short-term, it can be somewhat risky to do so in the long run.

For fees, CEX.io seems to charge around 6% fees as well. This fee is somewhat hidden, as it comes from a premium on the price of cryptocurrencies.

At the end of the day, it doesn’t make too big of a difference as you are getting the same amount of cryptocurrency for your money.

Visit CEX.io

BTC China

BTC China is a large Chinese exchange that has been around for a long time, making them very trustworthy. They offer a large amount of liquidity making it quick to trade, although the exchange can be difficult to use at times.

The exchange requires heavy identity verification, which can turn away some users. The exchange also features relatively low fees, with bank transfers being the only option.

Visit BtcChina

LocalBitcoins

LocalBitcoins is a very popular person to person exchange. It’s an escrow service that helps facilitate transactions between people. One of the reasons this exchange is so popular is due to its high levels of privacy.

In exchange for its escrow services, LocalBitcoins charges 1% fees. In addition to this fee, there is often a seller premium attached to transactions.

Visit LocalBitcoins

Huoboi

Huobi is another massive exchange in China that allows users to purchase Bitcoin and other cryptos.

At press time, the exchange is only available to residents in China. There’s a separate exchange HBUS operated in San Francisco that servers Americans as well.

For payment methods and fees, Huobi offers CNY bank transfers, OKPay, and international wires. These all incur around a 1% fee which is fairly low.

Okcoin

OkCoin is another China-based exchange that allows users to purchase Bitcoin with bank account transfers.

The exchange has extremely low fees, around .15% for most users. This trading fee depends on a few factors, such as trading volume and if you are offering or taking liquidity.

Bitcoin ATM’s

Bitcoin ATM

Bitcoin ATM’s are another option for purchasing Bitcoin in China.

These are scattered around the world, and allow users to exchange cash for Bitcoin.

In order to find an ATM near you, look at Coinradar.

Bitcoin ATM’s often have a higher fee compared to other methods (usually around 10%), although they offer a much higher level of privacy.

Bitfinex

Bitfinex Final

Bitfinex is a trading platform and cryptocurrency exchange that sells a wide variety of cryptocurrencies. In addition to their altcoin pairings, the exchange also allows fiat deposits. Bitfinex is available in China and serves almost every country besides the United States.

Bitfinex’s user interface can be somewhat tricky, although it’s a very safe and secure exchange with relatively low trading fees.

Bitcoin in China

Despite the less than friendly stance of the Chinese government on Bitcoin and cryptocurrencies, China remains one of the most influential entries in the cryptocurrency space.

In this all complete guide, you would learn the Chinese government’s disposition towards cryptocurrencies and whether it legal to trade BTC or not in your country. As well as essential developments on how you can involve yourself in Bitcoin in the country without missing out: there is more than one way to make money with BTC—especially in China.

Is Bitcoin Legal in China?

The short answer is…

YES

Bitcoin trading is still legal in the country. 

In December 2013, the Central Bank banned every financial institution in the country from dealing in Bitcoins. A year later, commercial banks were also banned from confirming or dealing with Bitcoin transactions.

Fast forward three years later in 2017, the government took a bolder stance and banned every ICOs in the country claiming 90 percent of previous ICOs in the country were scams. Bitcoin exchanges were prohibited from offering services to Chinese residents too.  

Although the Chinese government would seem to be doing everything in its power to ensure the latter, holders of BTC are still nonetheless protected by the laws in China, as made clear by The Shenzhen Court of International Arbitration late last year.

Right now, Bitcoin trading is banned by China’s Central Bank and its holders and traders have been repeatedly warned of the ‘risks’ associated with trading them.

This has however not stopped the government from protecting their citizens’ rights of cryptocurrency possession, frowning against any case of theft or fraud to steal Bitcoins.

The Shenzhen Court of Arbitration published in October that while it does not recognize BTC as a legal tender, it does not see a reason why it should not be protected as legal property with economic values.

Is there Hostility towards Bitcoin by the Chinese Government?

China has the most thriving mining pools in the world, and currently hogs more than two-thirds of the entire Bitcoin hash rate thanks to its very cheap electricity tariffs. The country has one of the cheapest electricity rates in the world, thus a far greater incentive that gives miners in China an advantage over foreign competitors.   

The seeming centralization of Bitcoin in China has not settled with the Chinese government; however, a development that should come as no surprise for a country that bans its citizens from Facebook, Twitter, and Google.

The Chinese government thrives on direct control, and Bitcoin isn’t big on that. For one, international transfers bordering around and above $500,000 are strictly restricted and monitored throughout the whole process, but with BTC, transactions cannot be controlled. Chinese citizens and crypto enthusiasts especially can now make transfers in Bitcoin within minutes without strict limitations.

It is thus no wonder that the government had to place a ban—most likely temporary, once China finds a way to retain a bit more direct control, the ban would almost surely be lifted.

Thus, what’s the government stance on cryptocurrencies? They want more control; Bitcoin is a loosely unregulated space. That hasn’t stopped China from being one of the major influencers and hub of Bitcoin, if anything, you should buy some if you do not have already.  

How to Gain Profits with Bitcoin in China

While the first most obvious answer is to trade your bitcoin or hold for the long term, you can also make good profits and gains by mining Bitcoin in China. China constitutes 71 percent of the total hash rate of Bitcoin and has the five biggest mining pools in the world.

With a number of farms solely dedicated to mining Bitcoin, miners often join the popular mining pools in China such as F2 Pool, because of easier and more guaranteed rewards. By combining hash rates, miners can easily mine a block in less time.

The next country seconding the hash rate ranking is India at a far lower 4 percent.

How to Buy Bitcoin in China

Before the 2017 shutdown of exchanges by the government, there were a few prominent exchanges to buy Bitcoin such as Huobi and BTC China. However, in the current situation, alternative methods to exchanges seem the likely bet to buying some Bitcoins.

While you could set up accounts in some overseas exchanges such as Coinbase and Bitfinex, registration could prove very hard, and the government’s yearly $50, 000 limits would do no good.

This, considering these situations, the best way to buy bitcoins in China currently is to use peer-to-peer marketplaces or OTC (over-the-counter) bitcoin exchanges such as LocalBitcoins. The process is easy. Say, you live in Beijing for example, you could just log on to your Local Bitcoins app and find an interested trader. And in a populated country like China, over the countertrades are becoming easier and faster by the day.

Exchanges are being regulated, and stricter measures are being imposed, but cryptocurrency is still thriving in China as ever. Get yourself some bitcoins.

Conclusion

Overall, there are tons of options for purchasing Bitcoin in China, you just need to look in the right place. Depending on your payment method, a certain exchange may or may not be better for you.