How To Buy Bitcoin (BTC) Guide

Published on: 03.11.2022

Bitcoin (BTCUSD) investments may appear complicated, but all you need to start trading is an account with a company or an exchanger and a secure place to keep your coins. To invest in bitcoin, you will need access to a cryptocurrency exchange, proof of identity if you’ll be using a KYC platform, a payment method, a secure Internet connection, and a separate wallet from the exchange account.

Bitcoin payments are more easily traced than cash transactions because they are recorded in a public ledger called the blockchain and the identities of the persons involved are impossible to conceal. However, academics and the FBI have asserted that Bitcoin blockchain transactions may be linked to other account information, including digital wallets.

What is Bitcoin?

Bitcoin is a decentralized digital money that works independently of regulatory authorities such as central banks and national governments. Bitcoin was the first cryptocurrency, appearing online in 2009.

It was Satoshi Nakamoto’s stated intention that “online payments may be transmitted instantaneously from one entity to another without passing via a financial institution” when he developed Bitcoin. As a result, Bitcoin now accounts for 40% of the market’s value of over $1.1 trillion.

Bitcoin was first designed as a payment network but has become a valuable asset. As the name “digital gold” suggests, most BTC investors keep their holdings as a hedge against inflation.

What To Know Before Buying Bitcoin

Putting money into Bitcoin could seem complicated at first, but after you split it into more miniature stages, you’ll see that it’s relatively simple. In addition, the reliability of Trading platforms and wallets is growing, making it more straightforward to acquire Bitcoin. However, you’ll need a Bitcoin wallet before making a Bitcoin purchase.

A “wallet” is the term used in the realm of cryptocurrencies, and there are many different kinds of wallets available. Bitcoin holders may choose from various storage, access, and security methods provided by wallets. Wallets for Bitcoin may be stored in one of five significant ways: on a computer, in the cloud, using specialized hardware, on a mobile device, or paper.

However, your Bitcoin is not stored in your wallet. On the contrary, it holds the private keys necessary to spend Bitcoin from a given address. If Bitcoin users lose their digital keys, they will no longer be able to sign transactions and have no access to their BTC.

How To Buy Bitcoin (BTC) Guide

There are more ways to acquire Bitcoin, giving investors a more comprehensive range of options when deciding how to put their money into the cryptocurrency market. Please read the parts below if you wish to learn the processes for investing in Bitcoin.

1️⃣Select A Cryptocurrency Exchange

Currency markets may be traded on a variety of cryptocurrency exchanges. Users may stay anonymous on decentralized exchanges that don’t ask for identification details. Anonymity in financial transactions may be a gateway to economic inclusion for particular groups. Such as refugees or people from countries with limited government banking or credit access.

United States legislation requires users of popular exchanges to provide identification, and these exchanges are not decentralized. Coinbase, Gemini, FTX, Kraken, and Binance are just a few of the many businesses where Bitcoin and an increasing number of altcoins may be purchased and sold.

Binance is geared toward experienced traders since it provides superior trading features and a more comprehensive selection of alternative cryptocurrencies. On the other hand, FTX, is a rapidly expanding cryptocurrency exchange with a multibillion-dollar value. Only provides a small piece of altcoins to customers in the United States.

2️⃣Decide On a Payment Option

Even the acceptable means of payment might vary across different markets. Most major platforms, for instance, make it possible to connect a bank account to enable wire transfers and a bank card to make payments. Coinbase is one of the few that takes both Apple Pay and PayPal.

Identification verification is required when creating an account and adding a payment option for the first time. In the U. S. for instance, it is common practice to request photo identification in the form of a driving license or state-issued ID card. In addition, depending on your location and the platform you use. You may be asked to upload scanned copies of other documents, including your passport and residency proof.

3️⃣Place Your Order

You may begin purchasing Bitcoin once you have been authenticated and have funds in your account. Then, based on your marketplace, buying and selling Bitcoin may be as simple as clicking a “Procure”/”Sell” button and inputting the desired amount.

As a rule, the three most common forms of orders offered by cryptocurrency exchanges are market orders, stop orders, and limit orders. You may do any of these things by clicking the corresponding Trade, Buy, or New order buttons on the main page of an exchange. After choosing among those three possibilities, you can send your response by clicking the corresponding Submit button.

4️⃣Safe Storage

A Bitcoin or cryptocurrency wallet is a safe location to save your digital money. However, if investors keep their cryptocurrency away from the exchange in a wallet. They will always have access to the private key. Therefore, we do not suggest using the exchange wallet for substantial or long-term bitcoin holdings.

Buying Bitcoin With PayPal

Payment processors like PayPal also facilitate Bitcoin purchases. For example, if you have a bank card or savings account linked to your PayPal account, you may buy bitcoin from a third-party source or use the money in your PayPal account to purchase bitcoin.

You may use your PayPal account to buy Bitcoin, Litecoin, Ethereum, and Bitcoin Cash. Anyone except Hawaii citizens may use or create a PayPal account. Through “Checkout With Crypto,” you may now pay for your purchases with cryptocurrency.