A Step-by-Step Guide on How to Buy Bitcoin
Bitcoin is arguably the most popular cryptocurrency in the world. Accepted by businesses as a means of payment, it’s no doubt that investing in it is a smart move. And as prices surpass the $50,000 mark, you are bound to reap big in the future. Here is a beginner-friendly guide on how to buy Bitcoin.
Sign up with a platform
Choosing a cryptocurrency exchange platform will allow you to buy and sell Bitcoin. You also get other cryptocurrencies that you can buy and sell on these platforms. They include Ethereum, Dogecoin, Litecoin, and others.
When choosing an exchange platform, go for one that enables you to withdraw Bitcoin and save it in hot or cold wallets. This is to ensure your investment is safe should the site go down or get hacked. There are exchange platforms intended for beginners while others are designed for intermediate and advanced traders.
Keep in mind that beginner-friendly sites charge a hefty fee since much of the buying process is done for you. It is therefore crucial to learn cryptocurrency trading before choosing a platform to trade in. also, ensure that the exchange platform allows you to buy in fiat currency, preferably your country’s currency.
Here are some of the most trusted platforms:
Coinbase is one of the most popular exchange platforms on the market. Supporting over 50 currencies, it is no doubt a go-to platform. The San Francisco-based company boasts of more than 56 million users from over 100 countries. You can find dozens of cryptocurrencies on Coinbase, among them Bitcoin.
Like most premium sites, it charges a transaction fee of between $0.99 and $2.99. its funding fee can range anywhere up to 3.99% of the invested amount. The platform has stellar security features such as 2-factor authentication and Coinbase Vaults. Coinbase Pro users enjoy different pricing from normal traders.
If you are a new user, expect to get a sign-up bonus. Robinhood supports few cryptocurrencies compared to other platforms on the list. That said, you’ll enjoy the intuitive user interface and instant access to your Bitcoin.
As of writing eToro supports at least 17 currencies and not only can you buy Bitcoin, but also stocks, and ETFs. eToro is hailed for being beginner-friendly featuring a practice account. This account allows you to learn the ropes of Bitcoin trading. What’s more, it has a beginner-friendly interface that enables you to buy and sell cryptocurrency.
The $100, 000 virtual account will help you manage the money without signing up. Here, you can trade up to 15 cryptocurrencies with a transaction fee of 0.75% to 2.9% depending on the crypto of choice. The minimum balance is capped at $50. So, if you are a novice in Bitcoin trading, this is the right platform for you.
This is yet another platform that has no transaction fee and comes with no wallet. As such, it is advisable you use a cold or hot wallet. The platform supports up to 6 currencies. Unlike other platforms on this list, you can borrow and lend Bitcoin and earn an interest. This ensures you make profit even without selling your Bitcoin.
Keep in mind that it charges an interest of between 4.5% and 9.75% when you loan Bitcoin. You can also exchange Bitcoin with other cryptocurrencies at no extra cost. If you started trading Bitcoin in its formative years, you can earn rates of up to 8.6% APY.
Create an account
after choosing an exchange platform, it is time to create an account that will allow you to connect to your payment method. Depending on the platform of your choice you might need to enter and verify your personal identity. Some cryptocurrencies have a strong affinity for privacy that they do not ask you to verify your details.
That said, most platform will ask you to provide details such as a driver’s license, national ID, proof of residence, and more. After this, the platform will prompt you to connect your bank account, debit or credit card.
While Bitcoin is legal in most countries, some countries have outlawed it. As such, you should liaise with your bank if they accept deposits from your preferred exchange. Another thing to consider when linking your bank or card is the transaction fee.
Also, most platforms have different charges depending on the funding method. So, keep that in mind.
Place a cryptocurrency order
Once you fund your account, you can start buying and selling Bitcoin. All you have to do is input its ticket (BTC) and the number of coins you want to buy. The best part, Bitcoin exchange rates are transparent. Gone are the days where they drew suspicion. You can choose from hundreds of vendors selling Bitcoin at any given time.
Depending on your exchange of choice, you can get order offers such as:
- Take-profit limit
Since you can trade Bitcoin with other cryptocurrencies, it is important you understand top crypto symbols. For example, Bitcoin (BTC), Dogecoin (DOGE), Ethereum (ETH), and Binance Coin (BNB), among others.
Choose a storage option
If you are a cryptocurrency enthusiast, you are not strange to exchange platform hacking. People have lost millions when these platforms get hacked. The downside is that Bitcoin is not insured. As such, once it’s lost, it’s lost forever.
Some of the best wallets include:
1. Ledger Nano S
Ledger is one of the most popular cold wallet producers on the market. Coming at an affordable price, the Ledger Nano S wallet ensures that your Bitcoin is safe from hackers. It is in fact one of the first cold wallets to be sold. This wallet not only supports Bitcoin but also more than 1500 cryptocurrencies.
2. Trezor Model T
This is yet another preferred cold wallet by many Bitcoin traders. This is thanks to its top-notch security features that ensures all your Bitcoin are safe. With it, you can use other exchange platform seamlessly. This means you can trade and store as many Bitcoins you want. You’ll also enjoy the user-friendly touchscreen via which, you can change settings.
If you are into cloud storage, Electrum could be your best bet. This free open-source wallet is one of the most secure on the market. Developed a decade ago, the wallet continues to undergo consistent upgrades to keep up with technology and cybersecurity threats. This wallet is intended for Bitcoin users only.
4. Ledger Nano X
Finally, you can opt for the Nano X version that offers one of the most secure cloud storage options. You can connect it to your phone or laptop via USB or Bluetooth. This gives you much needed flexibility that allows you to trade on the go. You can save up to 1,800 cryptocurrencies.
Benefits of Bitcoin trading
Here are reasons why you should buy Bitcoin:
Transparent: thanks to the blockchain technology that fuels Bitcoin, instances of fraud are minimal when it comes to buying Bitcoin. While no one can trace your transaction, it is registered in all nodes (computers) on the blockchain network.
No limits: you can buy or sell Bitcoin through many ways. For example, debit cards or bank transfer. This allows you to choose a method that attracts the least transaction fee.
Top-notch security: again, blockchain technology allows for top-notch security. Besides, you can store Bitcoin in cold wallet where no one can access them except you.
Unmatched control: with Bitcoin, you have full control of your asset. No institution or government controls its value or means of use.