It looks like the Bitcoin craze is here to stay, and it’s giving you F.O.M.O. (fear of missing out.) Bitcoin prices are still soaring, despite the gloomy predictions financial experts have been foretelling all these last years.
The truth is, cryptocurrency is still a viable means of investment, and you want to get your hands on some.
We’ve got you covered. Here’s a step-by-step guide on how to purchase bitcoin for a crypto beginner like you.
Beginner’s Guide to Purchasing Bitcoin
1Get a Bitcoin Wallet
Before thinking about buying your first bitcoin, you have to have a place to store it in first. Finding an excellent digital wallet is just as important as buying and trading bitcoin. A bitcoin wallet is where you can safely store your bitcoins until you are ready to exchange or use them.
Different wallets have different features, and it’s essential you pick one that will give you the best security and accessibility.
Most people use digital wallets that can be accessed over the internet where you get a unique and secret set of numbers that will form as your PIN. However, since there have been many reports of scams and bitcoin hacking, people have started opting for hardware wallets.
This type of wallet is physical and usually comes in the form of a USB stick. This could prove a safer option as it can be disconnected from the internet whenever you are not using it.
2Choose a Bitcoin Trader
Now that you have a wallet, you can start buying bitcoin. The place you will likely buy them from is through a cryptocurrency exchange. You might get overwhelmed because there are a lot of exchanges out there.
However, this vast pool of options could be to your advantage. Some exchanges are fairly straightforward and are suitable for beginners. Coinbase, for example, is one of the most popular and trusted exchanges in the crypto world and is great for those who are just starting.
The important thing is to research properly and analyze which exchange suits your and your needs most. You also have to consider things like transaction fees, security, accessibility, and terms of payment.
Once you choose your exchange, you will have to sign up and get verified. This process may take some time depending on the exchange. Some exchanges don’t require verification, but you have to be careful with these types of exchanges as they are not really as secure.
3Choose Your Payment Method
Once you’ve signed up on your cryptocurrency exchange, you can start funding your account to begin buying bitcoins. Since 2018, the payment options available to purchase crypto have increased.
A lot of exchanges have started accepting payments through credit card, debit card, and even PayPal. This means you have a few options aside from paying through bank transfers, which typically takes some number of days.
As mentioned earlier, buying bitcoin involves some additional fees. The fees also depend on your payment method. Some exchanges may chard more for credit card purchases and lesser for bank transfers.
Other exchanges also are not upfront about the fees and may have hidden fees attached to the transaction. Keep these things in mind when you do the step below.
Sidenote: There is also the option of using a Bitcoin ATM. These ATMs allow you to exchange Bitcoin compatible wallets for cash. However, Bitcoin ATMs are only available in a few cities.
4You can now start buying Bitcoin.
Congratulations! You can now begin buying bitcoins! You can go ahead to your exchange’s “buy” section and select the amount you wish to purchase. Because of the high price of bitcoin, you can buy less than one.
Right now, bitcoin can be divided up to 8 decimal points, which means you can buy 0.0005 or 0.00002, depending on your preferred budget.
It is imperative that after your purchase, you immediately transfer your own bitcoins to your digital wallet. Leaving your bitcoins in the exchange might not always be a safe idea. You should always keep your bitcoin in your own wallet.
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