We explain how to buy Bitcoin and enter the world of cryptocurrencies
Bitcoin is these days on everyone’s lips. Thanks to price rises and roller coaster crashes, everyone is interested in learning how to buy and sell Bitcoin. Being the most popular of all cryptocurrencies (and the blockchain technology that powers it), Bitcoin is now widely accepted around the world and has a growing number of applications. But before you can get into the game, you should first have a good understanding of how to buy Bitcoin and how to store it. There are some simple steps that you need to follow to make your first purchase, and if you are willing to enter the new blockchain universe, here we will teach you everything about how to buy Bitcoin in a short time.
We start with some quick tips
These are the main points that you should keep in mind when buying Bitcoins:
- Install an offline Bitcoin wallet and set up a strong password to protect it.
- Set up an account with Coinbase (and GDAX if you want additional control).
- Choose your preferred payment method.
- Buy some Bitcoins.
Digital wallets or wallets are used to store Bitcoin until you are ready to spend what you have or exchange Bitcoin for another currency.
There are several platforms that can be used and that guarantee security. Therefore, it is important to choose a wallet that meets your needs and demands.
So when you find a wallet or wallet with all the important features, download it to the right platform.
For beginners, we recommend starting with a simple wallet that makes transfers easy. These wallets are free to download, but currency exchange fees may apply when moving money to other accounts.
These are our recommended options:
Exodus – An all-in-one app with support for various cryptocurrencies, including Bitcoin. Exodus is free to use, has a shape swap feature, and some simple charting tools to help you visualize your cryptocurrency portfolio.
Mycelium – is a popular mobile wallet known for being compatible with more advanced technology such as Trezor (for maximum security) and Tor.
Note : While an online wallet or wallet is fine for your first Bitcoin purchase, if you come across a large amount of valuable cryptocurrency due to trades or an increase in value, make sure you store it in a “cold storage” wallet. » Offline cold storage for maximum protection.
The best place to make your first Bitcoin purchase is at an exchange. In fact, there are a large number available, with variable performance. Some are less reliable than others and some can be quite limited, so it’s important to pick the right one to start with. We recommend using Coinbase, although there is no harm in checking the competition using a Bitcoin exchange comparison site.
Signing up for a Coinbase account is easy, though you’ll need to provide some form of identification. However, it is important to follow these rules and guidelines as they allow the site(s) to comply with “know your customer” regulations.
Although Coinbase will only allow you to buy and sell Bitcoins, it is also worth signing up for their Coinbase Pro platform, which will give you more control over your purchases.
If you prefer to take a more direct route to buying Bitcoins, you can choose to use a peer-to-peer service, such as LocalBitcoin or BitQuick. They offer a wider range of payment options and allow you to buy Bitcoins directly from a seller without the middleman. If you choose to use these and plan to trade them in person, make sure you meet in a safe place.
Exchanges accept a variety of payment options based on what you are willing to use. It should be noted that some payment methods have been used to scam in the past.
Bank transfers and credit cards are generally accepted by most services, with some limitations. Bank transfers are a bit more hit and miss, and PayPal transfers may not be allowed.
Coinbase, however, allows all of these payment methods, making it, once again, an easy recommendation for beginners.
It should also be noted that Bitcoin ATMs allow you to exchange Bitcoin in compatible wallets for cash. These ATMs are available in a limited number of cities, but offer an alternative to withdrawing money through an exchange.
Once again, most exchanges and online wallets will not deal directly with cash.
You will notice that exchanges give you information on how much Bitcoin you can buy for specific sums of money. However, due to its volatile nature, prices and value can vary dramatically across the exchange.
That means that even if you have a lot of money to spend, you will probably think about buying a fraction of Bitcoin. There is nothing wrong with that and for most people it is the right route, but the rich can afford more than that.
To make your first trade, enter the amount of Bitcoin you wish to purchase in the field provided and click the Buy button.
On Coinbase or GDAX, this will be a basic “market” buy order, which will buy Bitcoin at the best rate.
Alternatively, you can place a “limit” order, which allows you to set the maximum price you’re willing to pay for a certain quantity and the transaction will only occur if that quantity appears at that price.
Once you have made your purchase, your Bitocin will be stored in your Coinbase wallet. You will then need to look for the option to transfer these funds to the Bitcoin wallet address you have created that is outside.
Mind you, you will have to pay a small fee to do so, but that is part of Bitcoin transfers. Fortunately, the fees for such transactions are not extremely excessive.
Important note : Bitcoin transfers can be a bit sporadic. Unlike other currency exchanges, when you buy Bitcoin funds, the transaction needs to be recorded on the blockchain and confirmed.
This can take a while, especially during busy times. It’s not uncommon for a trade to take an hour or two to complete, so you may not want to immediately jump into your account and start moving funds.
Whether you plan to sell your Bitcoin (hopefully at a profit) or use it to buy something, be prepared to do so at a moment’s notice.
Depending on how the value of Bitcoin fluctuates it is important to have your end game planned from the start.
Get ready by setting up a seller account now or find out how to buy what you want before you actually do. That way, when the time comes, you won’t be in a rush to panic while everyone else is trying to do the same.
To see where you can spend your Bitcoin, here is a list of supported online stores. Always read the reviews and the fine print before making any purchases or trades with your Bitcoin to avoid any surprises later.