As blockchain becomes more mainstream, many people are interested in getting involved and buying Bitcoin. To fully understand the topic and avoid losing funds, this financial commitment, like any other, should be treated with awareness and devotion.
Even though the process can seem to be confusing and complex, it only consists of a few key points to bear in mind:
- Buying Bitcoin on CoinBase (Official Website);
- Storing Bitcoin in wallets such as Ledger Nano (Official Website);
- Staying informed and safe;
How to buy Bitcoin?
Purchasing Bitcoin is straightforward and can be accomplished in a number of ways. It can be risky, much like any other financial investment, so try to be cautious and educate yourself before investing in BitCoin.
To purchase Bitcoin, all you need is some cash and the time to set up an account on one of the various exchanges such as CoinBase (Official Website), which gives you $10 of free Bitcoin when you buy at least $100 in Bitcoin. This is the most popular method of purchasing cryptocurrency, and it is ideal for beginners.
Another consideration is keeping your Bitcoin secure, and this is where you choose the wallet to store it in. Since cryptocurrencies are virtual and decentralized, they need a specialized wallet such as Ledger Nano (Official Website) which is a physical wallet or or you can choose a cloud wallet like CoinBase (Official Website).
Where to buy bitcoin?
Here are the most popular methods for purchasing Bitcoin:
- Exchanges – Exchanges (such as CoinBase – Official Website) are the most efficient and simple way to purchase Bitcoin.
- P2P – You can buy Bitcoin directly from the owner, but be careful with this investment.
- ATMs for Bitcoin – There are many ATMs specialized in buying and selling Bitcoin.
- Grayscale funds – Buying through brokers.
Coinbase (Official Site) is one of the world’s biggest markets, and it is often promoted for beginners because it is simpler to use than other sites. However, when deciding on this website, keep in mind that the fees could be marginally higher than in other places.
Binance (Official Site) is one of the most popular exchanges because it is simple to use while also providing clients with security and a plethora of additional features. There are several coins to choose from, and the fees are considered minimal. As a result, Binance is a decent option for both beginners and experts.
Bitpanda (Official Site) is one of the best in the European market. They have over 25 cryptocurrencies available for trading and are known to accept a variety of payment methods such as credit cards (that are not supported everywhere). The platform is quite easy to use, but their fees are considered to be higher.
What to know before you buy?
Purchasing Bitcoin and other cryptocurrencies can seem daunting at first, which is why we recommend that you be well trained and on top of the game.
Here are a few points to think about before making a purchase:
- Although opening an account on any trading site is easy, it can involve the submission of additional documentation such as your ID, passport, and debit card. So have those things ready;
- Be cautious when adding the payment system to the network, and resist using credit cards even though the alternative is available;
- Since the cryptocurrency industry is very volatile, be prepared to handle the risks because there is no protection. Frauds and theft are a common thing thus always keep your passwords private and secured.
- Always use a secure internet connection when making financial investments. And think about storing your Bitcoin in a proper wallet.
How to store bitcoin?
After you have made your order, you may need to consider how to safely and securely store your Bitcoin. Cryptocurrencies are stored in special wallets. Wallets are classified into two types:
- A hot wallet is one that is online, often on an exchange platform, for example Coinbase (Official Site);
- A cold wallet is one that is not online, but either on your computer or another device such as Ledger Nano (Official Website).
An online wallet, Coinbase
Online wallets, such as the one provided by Coinbase (Official Site), are created automatically when you buy Bitcoin through this exchange. It is kept in a hosted wallet, which means that someone else is storing the money (crypto) for you. This option might be the easiest one, but it can be problematic when we are talking about safety.
Hard wallet, Ledger
Any hard wallet, including Ledger (Official Website), provides greater security for your Bitcoin. This is usually a physical device, such as a USB drive, where all information is kept away from the internet and in the privacy of your own home. Since your passwords and funds are in your custody, this is a safer choice for long-term investments.
Hard wallet, Trezor
Trezor (Official Website) is yet another excellent hard wallet on the market. This is a method for keeping Bitcoins and other cryptocurrencies safe and offline, on a hardware device. They offer excellent customer service and a user interface that is simple enough for beginners to use.
Make your purchase
Now that you have your account set up and understand how to securely store your Bitcoin, let us look at how you can buy Bitcoin. Most exchanges accept debit cards, but more alternatives are being added on a daily basis. Here are some payment options to consider:
The most basic and popular method of purchasing Bitcoin is using a debit card. Most exchanges need you to link your banking account to the platform, and debit cards are the most secure alternative. This way, you can’t overspend or borrow money, but you can still buy Bitcoin in a few easy steps.
Most exchanges do not even accept credit card payments, but even if the platform does, we highly advise against it. Credit cards operate on a borrowing basis, which is not a smart option if you are new to the investment and trade environment. Your losses may be much worse.
Prepaid cards, such as Wirex (official site), are an excellent way to purchase Bitcoin because you cannot surpass the card’s limit and you are not connecting your checking account directly to the platform. This offers additional financial security that can be very comforting for beginners. There are a few exchanges that accept prepaid cards, and others are considering it.
Businesses are more likely to embrace Bitcoin as it grows in popularity. This is why PayPal, one of the world’s most successful financial networks, now allows you to buy Bitcoin directly from their system. This option is not available in all countries, but it is accessible to the vast majority of people. It is a simple and straightforward purchase.
Skrill and Neteller
Should you buy bitcoin?
Purchasing Bitcoin or any cryptocurrency may be considered an expenditure. This, like all other financial investments, carries some risk. The cryptocurrency market is very volatile, and although you may make a lot of money, you must also be prepared to lose some. The good news is that if you stay informed and back out on time, you will minimize your losses. However, if you have the courage and patience, you can wait a few months or even a year.
You should still look at the whole investment as a chance to get interested in other cryptocurrencies. The reality is that they are becoming more popular over time, which is not surprising given that almost everyone with determination can learn how to trade and make smart investments.
Despite the fact that Bitcoin is only getting momentum, it is expected to hit a high price in the future. So, from that vantage point, it might be the best time to invest. Bitcoin can be a very profitable venture if you stay informed and safe, and if you are ready to take a chance.
This is the reason that the question “why buy Bitcoins” has 4 possible answers:
- for a long-term investment preserving them in a wallet like the Ledger Nano (Official Website);
- to trade with brokers like eToro (official site);
- buy altcoin on exchanges like Coinbase (Official Site);
- to make online and physical purchases (but if you consider that the value of the currency will rise in the future, it may not be the ideal time to use them).
Can you buy bitcoin anonymously?
Given that exchanges need you to leave some kind of identity, there are some ways to buy Bitcoin anonymously. The following are the most popular methods of purchase:
- ATMs – The easiest way to buy Bitcoin without an ID is by Bitcoin ATMs. They are getting more common and accessible, and it only takes a few minutes to purchase cryptocurrency this way.
- Peer-to-peer trading – This is how you buy Bitcoin from other users. Many people now own cryptocurrency and are willing to exchange it for cash, but we advise you to proceed with caution.
- Some exchanges, such as CEX.io, enable you to buy a limited number of cryptocurrencies per day without requiring authentication.
What online brokers offer Bitcoin?
Traditional traders are now selling cryptocurrencies and Bitcoin; however, you cannot purchase Bitcoin directly; instead, you may participate through futures markets.
As cryptocurrencies become more mainstream, more people are involved in investing, and many prefer the traditional methods of trading with brokers.
Here are top online brokers that offer Bitcoin in 2022:
eToro (official site) is an Israeli trading and brokerage firm that specializes in financial and copy trading services. They have a variety of stocks and crypto assets, as well as CFD trading.
This is one of the most successful investment sites in the world, and it is now accepting Bitcoin and other cryptocurrencies.
Plus500 (official site) is one of Europe’s largest exchange sites, and it is now a decent place to buy Bitcoin. They are ideal for beginners since the app is simple to use and has a user-friendly interface.
This network also provides negative balance security and stop-loss orders, which can be very useful in volatile markets like Bitcoin.
XBT (official site) is a CFD and forex exchange site that has recently added Bitcoin and other cryptocurrencies to its offerings.
They are well-known for low-cost transactions and excellent account security. However, they do not provide stop losses and do not welcome US customers.