Bitcoin has been a part of the cryptocurrency market for an extended time. Today, it is the biggest virtual asset. It is so by market capitalization. If it interests you, you might wonder how to buy Bitcoin. Doing so is relatively easy. You need a cryptocurrency exchange account, personal identification proof, a payment method, and a digital wallet.
In this helpful guide, we will describe the entire process of buying Bitcoin quickly.
How Do Beginners Buy Bitcoin?
When buying Bitcoin, be aware of your payment technique and the platform you’ve used. Also, know where you keep it. Use these steps to buy it.
1. Select a Crypto Trading Service
A cryptocurrency exchange is the ideal choice to start buying Bitcoins. There are two types of exchanges for buying Bitcoin: centralized and decentralized. A centralized crypto exchange uses Know Your Customer or KYC checks to validate the user’s identity. But a decentralized exchange keeps you anonymous.
Purchasing Bitcoin requires you to first create an account on a crypto exchange. The exact process depends on your preferred exchange. You can choose any trading service. It can be Coin base, Gemini, Binance, or Kraken.
Here, we recommend that you use two-factor authentication when creating an account. Also, have a unique password for your account. It should combine different lowercase and capitalized letters. It should also have some special characters.
2. Link Your Bitcoin Exchange Platform to A Payment Medium
Now, you can begin linking your Bitcoin exchange to any payment medium. You may be asked to submit proof of identification. Link your bank account straight with the exchange. Some people also connect the exchange to their credit or debit card.
The price of Bitcoin is volatile, you must know. So, for the users of a credit card, the cost of buying a token can grow. Note that you must pay a fee for depositing via a card or a bank account.
3. Place Your Bitcoin Order
There are various order types in the Bitcoin exchange. You can avail of limit orders, market orders, or stop-loss orders. Kraken is one of the exchanges that provides all of these types of orders. Along with this, it provides take-profit limits and take-profit orders. You can also use the Bitcoin exchange to configure recurring investments.
4. Store Your Bitcoin
After purchasing Bitcoin, you must keep it somewhere safe. Many exchanges let you store the Bitcoin on their platform. There are yet others who have their own crypto wallets or storage accounts. These websites are very secure. So, you will have the assurance that your Bitcoin is always safe.
You can use many types of crypto wallets to store your assets.
- Mobile wallets: These are apps that store your wallet’s private key on your mobile phone.
- Web wallets: It is an online server controlled by a third party that has your private keys.
- Desktop wallets: It means a computer program that keeps the private keys of your Bitcoin on your hard drive.
- Hardware wallets: These are physical devices that store your Bitcoin offline.
Other Methods to Buy Bitcoin
When you search for how to buy Bitcoin, you’ll find that using crypto exchanges is the most preferred option. But there are other methods as well to purchase it. Both beginners and advanced investors can use these methods to buy Bitcoin.
1. Financial Apps Like PayPal:
PayPal, the payment processing app, lets you purchase Bitcoin. You may either link your account to a debit card or employ your PayPal balance to get Bitcoin. You will need to pay $0.49 for trading less than $5.
The fees will increase with your trading amount. If you trade over $1000 worth of Bitcoins, you will need to pay a 1.5% fee. It’s even possible to trade for $1 using PayPal.
2. Use A Trading App
You can also use a trading app, such as Robinhood or Weibull, to buy Bitcoin. Robinhood does not have any commissions. However, it will charge you a spread markup. This trading app allows you to purchase Bitcoin directly. It will also give you access to other cryptocurrencies.
In Weibull, you can trade Bitcoin and various other digital currencies. It charges you a spread markup of 1% on every transaction you make.
3. Use Bitcoin ATMs
A Bitcoin ATM, or BTM, is a place where you can purchase and, at times, sell Bitcoin. To purchase the cryptocurrency, you need to insert your debit card or cash into the machine. It facilitates the exchange of conventional currency with Bitcoin.
If you use a Bitcoin ATM, have an account with its operator. However, the commissions of these ATMs can be costly. They may charge you approximately 7% for every transaction.
How to Buy Bitcoin Using a Crypto Wallet?
A Bitcoin wallet, such as bitcoin.com, lets you buy this digital asset conveniently. It’s a self-custodial wallet. It means that you control your digital asset. The process for buying Bitcoin using it is as follows:
- Get the app of bitcoin.com wallet.
- Now, open it and choose Bitcoin (BTC).
- Next, tap the ‘Buy’ button.
- You will see many instructions on the screen.
- Follow all of them and select a suitable way to deposit them.
- You can also make any number of individual wallets to organize your funds better.
- Verify your identity using the instructions on the screen.
- Now, you can purchase or sell your Bitcoin easily.
- You may also hold your Bitcoin for any amount of period.
Some Things to Consider While Buying Bitcoin
Do not simply buy Bitcoin because everyone around you is doing so. You must consider some crucial factors. These include:
- Your return on Bitcoin is linked to your ownership of the currency. You may own it directly or through a futures contract.
- In the former, your gain increases by a dollar when the currency increases by a dollar.
- In the latter, your gains are quicker, and you don’t need to give as much capital.
- A futures contract gets you a good commission at inexpensive rates. In contrast, if you buy directly, you may be charged several percent.
- Do not forget security. Instances of Bitcoin theft have happened, so you must be aware of the security problems.
Wrapping up
You can use any of the ways above how to buy Bitcoin. Ensure that you have sufficient money with you while purchasing it. Also, be aware of the security and store your Bitcoin in a trusted wallet. Keep researching more about this digital asset to become an expert in trading.