Bitcoin is the digital currency used for most online purchases like investments. People from the Bitcoin community earn their coins by doing calculations with their computer or mining. Many people have been lucky with bitcoin trading, but many people have lost many coins from this cryptocurrency. Bitcoin is very unpredictable and it is not the best place to invest money you need. If you are interested, follow us in this article to understand how to use bitcoin, bank account transfer, buy bitcoin and sell bitcoin.
Steps to buy Bitcoin ($BTC).
1. have a digital wallet
The first step before you buy bitcoin is to get a place to store it. In the cryptocurrency world, the place where you store Bitcoin is called a wallet. The digital wallet stores the Bitcoins until you are ready to exchange them for another currency or use the Bitcoin. The bitcoin wallet is attached to the account you use to buy and sell. Your digital wallet helps you use your other financial resources, such as your debit card or bank account, to complete the purchase of bitcoin.
Notably, the wallet does not technically store the bitcoin, but the bitcoin wallet contains private keys that you use to access a bitcoin address, and therefore you can spend the money. The digital private keys are required to sign bitcoin transactions, and if you lose them, you lose your bitcoin access.
How a Bitcoin wallet works
The public key is where your bitcoin transactions are withdrawn and deposited. It is also what appears as a digital signature on a blockchain ledger. On the other hand, the private key is the password you need to buy BTC or sell bitcoin in a wallet.
There are various BTC wallets and they differ in terms of security level, features and platforms on which they are acceptable. Once the verification process is completed and you receive the user credentials, you can buy and sell bitcoin.
We Recommend: - Ledger - hardware wallet
2. choose the right bitcoin exchanges
Bitcoin users buy Bitcoin and other cryptocurrencies from many marketplaces. For your first bitcoin purchase, it is recommended to buy bitcoin from an exchange. There are a variety of exchanges around the world and they differ in the features they offer.
Some of them are limited to a specific cryptocurrency, others are not trustworthy, so be careful when choosing an exchange. Of all the exchanges, CoinBase and Binance Exchange are the best exchanges that we recommend.
It is important to note that there is a difference between a bitcoin wallet and a bitcoin exchange. Bitcoin Exchange is almost similar to the foreign exchange markets.
a. Coinbase noob friendly
This is the largest bitcoin platform in the US and it is easy to sign up for an Exchange account and you will need to provide some form of identification. This platform offers a wallet and exchange on one platform, making it one of the easiest places to buy bitcoin online. It is a secure platform for buying bitcoin and can be accessed through a mobile app and the web app with two-factor authentication. Coinbase also supports Ethereum and Litecoin.
How do I sign up for Coinbase.
To sign up, follow this link, and please note identification is required, and it will be a copy of your ID, and you should send a real-time image of your face via webcam to verify your identity. Once you sign up, you can freely transfer money and convert it to any currency or cryptocurrency you prefer, such as Bitcoin. The fees of this platform are a 1.49% fee for transactions from a Coinbase USD wallet or a bank transfer. Debit card or credit card purchases have an additional fixed fee of 3.99%.
Coinbase has linked an exchange platform called Coinbase Pro to ensure you can better estimate your purchases. In addition, cash balances of up to $250000 are insured against storage or theft breaches, and for added security, Coinbase keeps most customers' currencies offline to avoid hacking issues.
Sign up for Coinbase
b. Binance-Lowest Fees ↑.
Binance fees are very low at 0.10% for trading and are recommended for anyone who wants to use more than the popular coins. It supports a variety of digital currencies such as its own Binance coin, Ethereum, and Bitcoin Cash. Another service it offers is trading in multiple currencies, such as Bitcoin cash, TRON, EOS, Astraleums Classic, Litecoin, Stellar Lumens, Ripple, and Skycoin.
One of the disadvantages of this platform is the delay of withdrawals with some currencies and the other is that it is not insured and therefore does not pay in case of hacks or theft.
Of all the exchanges I have used (20+), they have the best customer support. I had a small problem with something and they not only solved my problem within a few hours, they even sent a swag as an apology!
$ Binance to the moon!
Getting started with Binance
c. Coinbase Pro
Coinbase Pro is the best exchange for active traders to buy and sell bitcoin. It was formerly known as GDAX and it is a bitcoin trading platform similar to Coinbase that you can buy in higher volumes. Their fees for buying range from 0.04% to 0.50% depending on the volume.
Coinbase Pro is a secure BTC exchange and insured against losses or theft up to a limit of $250000.
3. choose your payment method
Exchanges accept various payment methods, but make sure you do your due diligence as there are scam sites out there. With a digital wallet, you can buy bitcoin via a credit card or bank account transfer. The payment method is crucial to the BTC exchange you choose and also your location. Depending on the exchange account you choose, there may also be drawbacks to the type of payment method you want and use. A bank transfer is a better payment method than credit and debit cards in this case as it has low fees, but its disadvantage is that it may take longer. One of the reasons why we recommend Coinbase to buy bitcoin is that it is a safe place for exchanges. It allows bank transfers and credit and debit card transfers for payments. However, you will need to link a payment solution to your Coinbase account before you start trading.
4. buying bitcoins
Exchanges give ready information about how much bitcoin you can buy for any amount of money. For your first Bitcoin trade, enter the amount of Bitcoin you want to buy in the displayed area and click the Buy button. For Coinbase or Coinbase Pro site, this is a standard market buy order that buys bitcoin at the current best market rate. Alternatively, you can set an order limit that allows you to set the price you want to pay for a certain amount. This way, trading will only occur when the amount is displayed at that price.
5. save to your wallet
Once the purchase is complete, first save your BTC in your Coinbase wallet. There are 5 types of BTC wallets, and they are,
This is a BTC wallet installed on the trader's computer that provides budget security and offers complete control over their funds.
This is one of the most secure bitcoin storage options and comes with two QR codes. One QR code is a public key that is an address to receive BTCs, and the other is a private key that is used to spend bitcoins.
This is a risky bitcoin wallet as the private keys are stored online, but also have an advantage as users can easily access money from any device at any time.
These bitcoin wallets are portable devices that can store your private keys and facilitate payment.
6. make sure you use a secure internet connection.
If you want to trade BTC online, especially make sure that you use a secure internet connection. Trading on an unsecured network makes you more vulnerable to hack attacks.
Where do I buy bitcoins?
Bitcoins are mainly bought through an exchange or broker. Exchanges are the popular way to buy bitcoins for anyone who wants to buy BTC, as they allow easy exchange of fiat money into cryptocurrency. The other common way is to use brokers. Brokers are efficient because they can access BTC more easily without delays, unlike exchanges that cause delays and can have a lengthy ID verification process. Brokers can buy Bitcoin and sell BTC at a fixed price and are also open to different payment methods from users, making it a good option to buy BTC either through cash, a debit card or a credit card. If you want to buy Bitcoin through brokers, keep in mind that they have to pay premium fees for their service.
Alternative ways to buy Bitcoin
1. peer-to-peer exchange(P2P).
P2P offers direct exchange services between users unlike other bitcoin exchanges that anonymously match people buying BTC and selling bitcoin. After setting up your account and verifying your identity, you can post offers to buy or sell bitcoin, providing payment information and price. Potential buyers then browse the offers and choose who they want to trade with. This P2P has system ratings that you can check and rate BTC buyers or BTC sellers before you pay, while giving the many buyers the freedom to buy Bitcoin from the best offer.
2. bitcoin ATMs
Bitcoin ATMs work like in-person Bitcoin exchanges, where people put money into a machine and buy BTC that is transferred to a digital wallet. You can track the nearest BTC ATM with Coin ATM Radar.