The most convenient way to buy bitcoin in the USA is through Coinbase. Once you link your bank account you can purchase bitcoin with your checking account and receive the bitcoin in your Coinbase account in 3-4 days.

Coinbase charges a 1% fee to buy or sell bitcoin, and customers with verified ID can buy or sell up to 50 bitcoin per day instantly. Anyone can use the Coinbase wallet but at present you need a USA bank account to buy or sell bitcoin.

LocalBitcoins.com allows you to buy bitcoin in person from local traders using cash or from sellers online and has an escrow service built in.

Cash Into Coins is a new service (US only) that allows you to deposit cash at your local bank and receive bitcoins in about a day.

Can bitcoin be purchased using Paypal? Yes, there are sellers on LocalBitcoins.com who accept Paypal. You can also use Paypal or your credit card to purchase bitcoin through the Bitcoin Insanity service.

Regardless of where you buy bitcoin you will need to transfer your bitcoin to a bitcoin wallet. The Blockchain.info online bitcoin wallet is a good choice. Blockchain is the only online bitcoin wallet that lets you create a hybrid paper wallet that combines the ease of use of an online wallet with the security of an offline wallet you can back up on paper, and Blockchain supports all popular mobile devices. For more in-depth information on bitcoin wallets visit the guide to recommended bitcoin wallets.

If you bought bitcoin from a site that required your personal information those coins are no longer completely anonymous and could be traced to you. See the guide to sending bitcoin anonymously for details on how to use a ‘mixing service’ to substitute someone else’s bitcoin for yours.