Bitcoin is first of all a store of value, meaning that is useful to save in bitcoin. So, if you’re in Indonesia or anywhere else, looking to get your hands on some bitcoin, there are several ways to do it. You can exchange it, earn it, or mine it. Each method comes with its own set of pros and cons. In this blogpost, we’ll simplify the process and explain the different options available for getting bitcoin.
1. Exchanging Your Indonesian Rupiah For Bitcoin 🔄
1.1. Online Bitcoin ATM:
To get started, we recommend to try out this online ATM, where you can buy your first bitcoin within a few minutes. You can use Indonesian Rupiah or QRIS.
- Pros: Very fast, good to get a feeling of how easy it can be to buy bitcoin, anonymous, redeemable to your self-custodial wallet.
- Cons: Limit of Rp 25,000 per transaction.
Bitcoin Lightning ATM for Indonesia
1.2. Online Exchanges:
Online exchanges are platforms where you can exchange your Indonesian Rupiah (IDR) for bitcoin. You’ll need to create an account, verify your identity, and then you can start buying bitcoin.
- Pros: Convenient, beginner-friendly, and mostly offers a variety of payment methods.
- Cons: Requires identity verification (KYC), which can be a privacy risk.
Please check this page to see the best Indonesian exchanges in comparison.
Overview of Exchanges
1.3. Offline Bitcoin ATMs & OTCs:
Bitcoin ATMs work like traditional ATMs but for bitcoin. You insert your cash and receive bitcoin in your digital wallet.
Currently, there are no Bitcoin ATMs available in Indonesia. However, you can use the this online ATM or use the OTC (over-the-counter) service from an exchange (e.g. Indodax) to deposit your cash and exchange it to bitcoin.
- Pros: Fast, user-friendly, and (most of the times) anonymous. Sometimes, there is a threshold how many bitcoin you can buy without KYC identification or you have to buy a certain amount to be allowed to use the service.
- Cons: Limited availability, often higher transaction fees.
1.4. Peer-to-Peer (P2P) Marketplace:
Platforms like Paxful allow you to buy bitcoin directly from other Bitcoiners. You can meet someone in person or trade online, using Indonesian Rupiah to purchase bitcoin.
- Pros: Potentially better exchange rates, anonymity.
- Cons: Higher risk of fraud, requires more effort to find a trustworthy seller.
1.5. Bitcoin Meetups:
Attending a Bitcoin meetup is a great way to learn and buy bitcoin. You can find individuals willing to exchange IDR for bitcoin directly.
- Pros: Build connections in the Bitcoin community, learn from experienced Bitcoiners, no KYC required.
- Cons: Might not be available in all areas, risk of scams.
2. Earning Bitcoin 💼
Instead of buying bitcoin, you can also earn it by selling goods or services and accepting bitcoin as payment (please note: officially, this is currently not legal in Indonesia). Additionally, some companies offer salaries in bitcoin. So, you could get paid in bitcoin (e.g. if you work for a Bitcoin-related company).
- Pros: Earn bitcoin without having to buy it, potential for increased earnings if bitcoin’s value goes up.
- Cons: Limitations due to current laws in Indonesia, the value of bitcoin can be volatile.
3. Mining Bitcoin ⛏️
The third way to get bitcoin is by mining. Miners receive a reward in bitcoin for processing transactions and securing the network. However, due to the competitive market, technical requirements, and expensive hardware, it’s no longer profitable for most individuals.
- Pros: Earn bitcoin and contribute to the Bitcoin network.
- Cons: Requires significant investment in specialized hardware (ASIC miners), access to cheap electricity. Not practical for most private households.
Please note: In Indonesia, there is a lot of cheap and abundant renewable energy available (e.g. geothermal, hydroelectric, and solar energy). Therefore, Bitcoin mining could in fact be very lucrative here. If you want to learn more about Bitcoin Mining possibilities in Indonesia, please contact us.
Bitcoin Mining Indonesia (see book “Bitcoin for Indonesia”)
Conclusion
Buying bitcoin can be as simple as using an online exchange or as complex as mining. For most people, using an exchange or a Bitcoin ATM will be the most straightforward methods. However, if you’re looking for more control over the transaction or wish to integrate bitcoin into your business or personal finances, earning bitcoin or participating in the P2P market might be a good way to go. Please remember, each option has its pros and cons, so consider what works best for your situation and start your Bitcoin journey today!
What’s next? Storing Bitcoin
You bought your first bitcoin? Congratulations! What’s next? Regardless of how you acquire bitcoin, securely storing it in self-custody is crucial, especially as the amount of your savings increase. Self-custody ensures you control your bitcoin without relying on third parties like exchanges. Bitcoiners always say: “Not your keys, not your coins.” Learn more about secure storage methods and the differences between custody and self-custody in the next blogpost.
