How to Buy Bitcoin

how to buy bitcoin

Purchasing Bitcoin is frequently the first move for newcomers to the cryptocurrency realm. For someone who is used to standard financial products, you must be wondering how to buy bitcoin; it can be a strange environment. You can purchase Bitcoin from exchanges, stockbrokers, and other owners. However, it would help to consider the hazards of investing in digital assets regardless of where you acquire them. 

The world’s first and most popular cryptocurrency, Bitcoin, has increased in value from $3,237 in December 2018 to temporarily break new highs exceeding $65,000 in 2021. Bitcoin, like all cryptocurrencies, is risky and volatile compared to numerous tried-and-true investments like equities, bonds, and mutual funds. 

Buying Bitcoin vs Trading Bitcoin

Buying Bitcoin can be simple – depending on wallets and exchanges – but it’s not the same as purchasing foreign cash when traveling abroad. It does not, however, necessitate a great deal of knowledge. You will be required to select an appropriate wallet and the exchange and payment of crypto coins.

On the other hand, Bitcoin trading is a more short-term endeavor; Getting into the market, remaining in it for a few months at most, then exiting when the price reaches its peak. As a result, Bitcoin traders have a reputation for being price sensitive and fleeing the market when it becomes unprofitable.

How To Buy Bitcoin?

All you need is an exchange account to buy Bitcoin, which is easier than you would believe. Here are the 5 easy steps you’ll need to follow to buy Bitcoin quickly and easily.

  1. Choose which exchange or brokerage you want to use to buy Bitcoin.
  2. Create a user account.
  3. Carry out the required KYC checks.
  4.  Deposit into your account.
  5.  Purchase Bitcoin and keep it in a wallet.

How To Trade Bitcoin?

To invest in BTC, you do not need to buy it. You can exchange BTC instead if you prefer. Trading BTC is slightly different from buying it; follow the procedures below.

  1.  Look for a broker.
  2.  Create a user account.
  3.  Carry out the necessary KYC checks.
  4.  Decide on a strategy.
  5.  Once you’ve determined how you want to trade, fill your account with BTC assets. You can use leverage to maximize your winnings but keep in mind that it also increases your risk of losses.

Different Ways On How To Buy Bitcoin

  • How To Buy Bitcoin With Paypal

You can buy bitcoin using PayPal Holdings (PYPL), Inc., a payment processor. Using PayPal, you can buy bitcoin in two ways. 

  1. The first and most straightforward approach is to buy cryptocurrency with a PayPal account linked to a payment method like a debit card or a bank account. 
  2. The second alternative is to purchase cryptocurrency from a third-party supplier using the funds in your PayPal account. 

Because few third-party sites allow customers to purchase bitcoin via the PayPal button, this approach is not as convenient as the first.

  • How To Buy Bitcoin Using Debit Card

To buy Bitcoin with a debit card, you have to enter the card details, and you’re ready to go. Remember that you must have funds in your bank account before purchasing Bitcoins with a debit card.

  • How to Buy Bitcoin With a Credit Card

Buying bitcoin with credit cards works similarly to buying it with debit cards or via automated clearing house (ACH) transfers. You must submit your credit card information and authorize the transaction with the exchange or online trading firm. Purchasing bitcoin with a credit card, on the other hand, is generally not a brilliant idea–this is due to several factors. First, due to processing fees and the danger of fraud, not all exchanges allow credit card purchases of bitcoin. The second reason is that using a credit card might be costly.

  • How To Buy Bitcoin using Bitcoin ATM

Bitcoin ATMs function similarly to bitcoin exchanges in person. Individuals can put money into a machine to buy bitcoin, subsequently sent to consumers’ online wallets. Bitcoin ATMs have grown in popularity in recent years, and even Walmart Inc. (WMT) is experimenting with a pilot program that will allow customers to buy bitcoin. Coin ATM Radar can assist in locating the nearest machines. If you are looking to buy bitcoin using a bitcoin ATM and are confused about using it then you should check out a guide on using bitcoin ATM

  • How to Buy Bitcoin By Peer-to-Peer Exchanges

Unlike decentralized exchanges, which anonymously match buyers and sellers and assist all parts of the transaction, some peer-to-peer (P2P) exchange platforms allow users to connect directly. An example of such an exchange is LocalBitcoins. After creating an account, users can submit requests to purchase or sell bitcoin, providing information about payment methods and prices. Users then search through purchase and market listings, selecting trading partners they want to do business with.

  • Other Deposit and Withdrawal Methods

A bank transfer from your bank account, Neteller, Paysafecard, and other methods are other options for purchasing BTC.

Things To Consider When Buying Bitcoin

  • Deposit Fee

The deposit fees you pay will vary depending on the cryptocurrency exchange or brokerage. Although cryptocurrency transactions are usually cheaper, credit card and debit card fees are the most expensive. You’ll have to pay these fees every time you deposit or withdraw money from a cryptocurrency exchange.

  • Trading Fee

Like maker and taker fees, trading fees are present on almost every platform. Most of them have a tier-based structure dependent on your monthly trading volume. Your charge percentage decreases as you trade more.

  • Volatility

Volatility is another factor to consider. It refers to the quick change in the price of cryptocurrency tokens. If you acquire Bitcoin now at a specific price, it may be significantly higher or lower tomorrow.

  • Regulations

You’ll need to follow various restrictions depending on where you are and what type of crypto exchange you use. As a result, many exchanges will request KYC and AML documentation from you.

  • Long-Term Holding (HODL)

A HODL investment lasts for at least six months. You’ll adopt this technique when you predict the price to rise over time.

  • Short-Term Holding

Any investment you can hold for less than a year is considered short-term holding. The goal with BTC is to sell as soon as the value rises rather than wait.

Is It Safe To Buy Bitcoin Online?

Buying bitcoins (BTC) online is risk-free if you choose a crypto exchange with stringent security measures.

Before anything else, keep your coins separate from your exchange in a wallet. You can use two-factor authentication (2FA) to add an extra degree of security to your account.

We advocate using a hardware wallet to store your money when it comes to wallets. You’ll be able to keep them off the Internet— and away from prospective hackers — in this manner.

If you use a peer-to-peer P2P exchange, it’s also worth remembering that you should communicate to sellers before buying. Other measures you can take to safeguard yourself include:

  • Not disclosing your account password to anyone.
  • Only use authorized forums and websites to seek advice.
  • Before selecting an exchange, read customer reviews.
  • Not buying bitcoin on public internet connections. 

How To Store Bitcoin?

Wallets for bitcoin and other cryptocurrencies offer a secure way to store digital assets. Keeping your crypto in your wallet instead being on an exchange ensures that only you have access to the private key to your funds. It also allows you to store funds outside of an exchange, reducing the chance of your assets being stolen if your exchange is hacked.

You have several alternatives when it comes to selecting a Bitcoin wallet. The concept of hot wallets (online wallets) and cold wallets is the first thing you should learn about crypto wallets (paper or hardware wallets).

  • Hot Wallets

Hot wallets are another term for online wallets. Hot wallets are digital wallets that run on Internet-connected devices, including PCs, smartphones, and tablets. Because these wallets generate the private keys to your money on these Internet-connected devices, this can pose a risk. Though a hot wallet can be helpful for quickly accessing and transacting with your assets, putting your private key on an Internet-connected device makes it more vulnerable to hacking.

  • Cold Wallets

A cold wallet is not linked to the Internet and has a far lower risk of being hacked in its most basic form. These wallets are also known as hardware wallets or offline wallets. These wallets hold a user’s private key on a device that isn’t connected to the Internet, and they can include software that runs in the background so that the user can browse their portfolio without risking their private key.

How To Sell Bitcoin?

After gaining a deeper understanding of how to buy bitcoin, you must be curious about the ways of selling it. Following are the ways that you can use to sell your bitcoins.

  • Bitcoin ATM

Even though Bitcoin ATMs resemble typical cash machines, they are not ATMs in the classic sense. Instead of linking to the user’s bank account, they connect to the Internet to make Bitcoin transactions possible.

At their most basic level, Bitcoin ATMs allow you to scan a wallet QR code and subsequently sell BTC for cash. However, not every Bitcoin ATM supports both purchase and sell transactions, which is to bear in mind while looking for a Bitcoin ATM to sell BTC.

  • Peer-to-Peer Exchanges

Direct trade with another entity, either online or in person, is another way to sell your Bitcoin. There are numerous options, including setting up a face-to-face meeting to trade Bitcoin or conducting the transaction online using a specialist platform.

  • Cryptocurrency Exchanges

Despite several drawbacks, exchanges provide a one-stop-shop for buying and selling Bitcoin. When it comes to trading bitcoin, exchanges function as a middleman, storing the funds of both sellers and buyers.

You must first create an account with your preferred platform to use a crypto exchange. Many legitimate exchangers require identity verification. To withdraw money, you’ll need to connect to a bank account. However, be aware of any exchange limits imposed by your nation. Some exchanges do not allow people from particular countries to participate.

So, Now You Know How To Buy Bitcoin The Question Is That Is It Worth Buying Bitcoin Right Now?

Investing in the popular cryptocurrency can be tempting significantly when its price is increasing. However, even though it has the potential to be a profitable investment, you should proceed with caution: It’s a very volatile investment that experts advise against putting a significant portion of your money into.

Nonetheless, in terms of market capitalization, it is the world’s largest cryptocurrency. It is also among the fastest-growing cryptocurrencies, based on its performance during the past years.

If you’re new to cryptocurrency trading, you should know that Bitcoin is a must-have for every cryptocurrency portfolio and, as such, is worth purchasing.

Concluding Remarks

The four steps in the bitcoin buying process are selecting a service or venue for the purchase, connecting with a payment method, submitting an order, and guaranteeing safe storage for your obtained cryptocurrency. Each of these processes necessitates research and a thorough examination of the benefits and drawbacks of each service. Bitcoin can also be purchased through Bitcoin ATMs, using payment systems such as PayPal and mainstream brokerages like Robinhood. We hope all your queries about how to buy bitcoin are answered with the above guide.