How to buy Bitcoin?
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How to buy Bitcoin?

written by John Murphy | November 13, 2022

Bitcoin stormed into the limelight about a decade ago. But it has been challenging sailing so far, some people made millions out of bitcoins, but others suffered significant losses. So, considering investing in this decentralized version of digital cash, you must have scratched your head – how to buy bitcoin? Well, there are numerous ways to buy bitcoins.

However, one thing is sure: almost everyone is familiar with the name bitcoin. Despite the big roller coaster ride, it is still making positive or negative headlines. But it has weathered many storms and is here to stay.

Stick around as we will walk you through multiple options to get hands-on bitcoins. Choose the one best suited to you and bring home one of the fastest-growing cryptocurrencies.  

So, let us get started.

Step-by-step guide for buying bitcoins

Buying bitcoins is like a walk in the park; below simple steps will land you in the world of the bitcoins metaverse.

Step 1: Choose a crypto exchange

Firstly, you must select a crypto exchange that best suits your requirements. There are quite a large number of crypto-exchanges operating in the market. Since each has its operating procedures, doing homework is the key to avoiding future problems.

Exchanges are a convenient way to trade bitcoins, enabling you to buy, sell, and hold cryptos. You can even transfer your cryptocurrency to trust wallet for safekeeping.

There are different exchanges, and a few run a KYC (Know Your Customer) protocol before issuing bitcoins. However, others allow you to remain anonymous and do not require personal information. 

Similarly, each crypto-exchange has its commission or service charges. Furthermore, few offer storage facilities, while others may have this option. 

Some popular bitcoin exchanges are Coinbase, Kraken, Gemini, FTX, and Binance.

Step 2: Connecting exchange with payment option

In the second step, you need to connect your exchange account with payment option. It depends on the exchange’s acceptability; few allow debit, credit, and inter-bank transfer options.

Most crypto exchanges accept direct bank transfers, so you can easily make payments. However, since the cryptocurrency market is highly volatile, you should check the exact price of bitcoin before making a purchase. We recommend you first make a one-coin purchase to test the total investment.

Additionally, banks may stop payment to crypto exchanges in a few countries. So, check your local laws and regulations before proceeding with the purchase of bitcoins.

Furthermore, fees vary from exchange to exchange; it is different for direct deposit, debit, or credit card payments.

Step 3: Place an Order

With evolution, crypto exchanges are offering multiple advanced features. You can get offers like market and limit orders, while few others serve stop-loss orders. Hence, you can place an order as per your liking and risk-absorbing level.

Moreover, you can set a one-click buy option; few dealers offer recurring transaction facilities. Coinbase, for instance, allows users to set daily. Weekly or monthly recurring purchases.

So, place your order by transferring money and receiving bitcoins.

Step 4: Storing Bitcoins

Many crypto exchanges provide storage facilities. Usually, these storages are free of charge. In comparison, these storages are hot wallets, which are not generally recommended.

In addition, you have the option to transfer your bitcoins to your wallet. Two types of leading wallets are available in the crypto market: hot and cold.

  • Hot wallet: A digital wallet is always connected to the internet. It is not recommended as it is prone to hacking or scamming.
  • Cold wallet: Contrary to a hot wallet, a hot wallet is only sometimes connected to the internet. You only link to the internet when you wish to make a transaction. It is costly but safer.

Other ways of buying bitcoins 

Previously, we discussed the most famous way of purchasing bitcoins. However, there are more answers to the question: how to buy bitcoins?

There are other ways to buy bitcoins, which are discussed below.

  • Financial Apps

Financial apps like Paypal and Venmo support the purchase of bitcoins and other cryptocurrencies.

PayPal provides an easy trading option for bitcoins; you can use your existing app to buy bitcoins. The fee ranges from $0.49 for transactions less than $5 and $1.8% for trading going between $200 to $ 1000. Similarly, charges for transactions above $1000 are charged with a 1.5% fee.

  • Trading Apps

There are trading apps like Webull or Robinhood, which do not even charge a single penny for buying bitcoins. Isn’t that lovely?

These trading apps are the easiest ways to buy bitcoins.

  • Bitcoin ATMs

You can buy bitcoins directly through their designated ATMs. However, the commission fee is much higher when you buy them through ATMs.

A charge of 7% per transaction will be applied for ATM purchases.

Frequently Asked Questions

What factors should I consider before buying Bitcoins?

A few important factors to consider before buying bitcoins are:

  • Ownership (bitcoins or its derivatives like future contracts)
  • Cost or commission
  • Security
  • Storage facility (hot or cold wallet)
  • Market investment trend (upwards/downwards)

What is the best place to store bitcoins?

Cold wallets are the best option for storing bitcoins; they may cost more compared to a cold wallet, but the security level is much higher compared to a cold wallet.

How can I sell bitcoins?

You can sell bitcoins at the same venue from where you have bought them. All exchanges offer both buying and selling facilities at the same time.

What can I buy with bitcoins?

Here is a list of major retailers that accept bitcoins to offer products or services.

  • Microsoft
  • Overstock
  • Starbucks
  • Whole Foods

Which exchanges offer bitcoins for purchase?

All major crypto exchanges sell bitcoins, including, Coinbase, Kraken, Bitfinex, KuCoin, and many others.

Parting Thoughts

Buying bitcoin is a simple task, as there are numerous different options to buy bitcoins. The best way is to use a crypto exchange. However, you should perform good homework before picking a fair deal.

Similarly, you can buy bitcoins through your debit or credit cards. Additionally, you can locate bitcoin ATMs near you and buy bitcoins.

However, keep in mind the commission fees before selecting a method. It is also essential to review market trends since volatile cryptocurrencies. Choosing the right time is vital for making money from investments in bitcoins.

We always recommend consulting experts before investing in cryptos. That completes our guide on how to buy bitcoin. Leave your experience with buying bitcoins in the comments section.