How to Buy Bitcoin?
How to Buy Bitcoin
Buying bitcoin is simpler than you think. With cryptocurrency’s rapid rise in popularity in 2017, the industry has grown and developed exponentially, providing tools and marketplaces that are extremely friendly to beginners. However, before buying your first bitcoin, there are a couple things to take into consideration.
- Choose Your Exchange
To get started, you first need to select an exchange and create a trading account. Different exchanges offer different payment methods and currency pairs. So, if you’re looking to spend US Dollars, you might want to avoid exchanges like Binance, which offers only crypto-to-crypto pairs. Crypto-to-crypto meaning you can only buy Bitcoin with another cryptocurrency and not with fiat cash. However, there are many exchanges that offer fiat to crypto pairs that act as an on-ramp for funds in traditional bank accounts into the cryptocurrency market. If you want to know which exchange is best for you, see our Top 10 Crypto Exchanges page. Once you have your account setup on your exchange, it is time to choose your payment method.
- Choose Your Payment Method
Different exchanges and marketplaces offer different payment methods. It is important to understand how each operates differently with respect to fees, transaction speed, and ease of use. If you are a beginner, one of the easiest payment methods is your debit card or bank account that can link to the exchange of your choosing. With exchanges such as Coinbase, the process of linking your debit card is simple and using this payment method is much faster than a Bank Transfer. Bank Transfers are more secure if you are hesitant to give an exchange your card number but generally take 1-2 business days to confirm. Another payment method is using a credit card, an option that has become increasingly difficult recently as some banks have announced they will not allow cryptocurrency purchases with their issued credit cards. The speed of credit card transactions makes them the fastest option but check with your bank first to see if they will allow you to make such a purchase.
- Purchase Your Bitcoin
Once you have selected your payment method, navigate to the appropriate site page of your exchange that has Buy and Sell services. You will then specify how much you want to spend. So, for example, if you wanted to trade $1,500 for the equivalent in bitcoin the exchange would tell you how much bitcoin you would receive at the current market price. On the other hand, if you wanted to buy a specified amount of bitcoin, the exchange would tell you how much that would cost in your selected fiat currency.
- Receive Your Coins
After completing your trade, you should receive a notification of some kind either via email, text, or in-app notification that your transaction has been confirmed. From here you can now see the bitcoins in your bitcoin wallet, as well as the exchange rate in your selected currency. From your exchange account, you can also sell your Bitcoin for either cash or another cryptocurrency (depending on the exchange).
You are now a part of a rapidly growing industry and the exciting world of cryptocurrency! Now you can send bitcoin to a friend or use bitcoin to pay for goods and services with anyone that has a Bitcoin wallet. To keep your Bitcoin safe, it is important that you take whatever security measures your exchange suggests. This can include two-factor authentication via SMS or Google 2FA. However, the safest and most reliable way to keep your coins safe is with a hardware wallet. It allows you to keep your coins off of exchange servers and gives you control over your private keys. A cardinal rule of cryptocurrency trading is that if you don’t own your private keys, you don’t own your coins. As far as hardware wallets are concerned, we recommend using a Ledger Nano S which you can purchase here. If you are interested in wallets both hardware and software, visit out Wallet Reviews page.