Jan 27
Bitcoin (BTC) is a decentralized digital currency that can be transferred electronically from one user to another without the use of a middleman. Purchasing Bitcoin is an excellent way to invest in financial and technological futures, it is very risky, so invest responsibly. We will walk you through the process of purchasing Bitcoin and explain the various options available to you in this guide.
What is Bitcoin (BTC)?
Bitcoin was originally described in a 2008 whitepaper by a person, or group of people, using the alias Satoshi Nakamoto. It was launched soon after, in January 2009.
Bitcoin is a peer-to-peer online currency, meaning that all transactions happen directly between equal, independent network participants, without the need for any intermediary to permit or facilitate them. Bitcoin was created, according to Nakamoto’s own words, to allow “online payments to be sent directly from one party to another without going through a financial institution.”
Some concepts for a similar type of decentralized electronic currency precede BTC, but Bitcoin holds the distinction of being the first-ever cryptocurrency to come into actual use. It has managed to create a global community and give birth to an entirely new industry of millions of enthusiasts who create, invest in, trade and use Bitcoin and other cryptocurrencies in their everyday lives.
At the time of writing this article, the CoinMarketCap ranking is #1, with a live market cap of $796,510,493,806 USD. It has a circulating supply of 18,932,400 BTC coins and a max. supply of 21,000,000 BTC coins.
How to buy Bitcoin
Step 1: Choose a Bitcoin Wallet
You must first have a place to store Bitcoin before you can purchase it. A Bitcoin wallet is a digital wallet that stores, send, and receives Bitcoin. Wallets come in a variety of forms, including software wallets, hardware wallets, and paper wallets.
Software wallets are digital wallets that can be accessed via an app or a website. They are convenient and simple to use, but less secure than hardware wallets. Hardware wallets are physical devices that securely store your Bitcoin offline. They are an excellent option for the long-term storage of large amounts of Bitcoin. Paper wallets are a type of cold storage in which private keys are printed on paper; they are secure but not as user-friendly as hardware wallets.
Step 2: Find a Bitcoin Exchange
After you’ve created a wallet, you’ll need to locate a Bitcoin exchange. Bitcoin exchanges are online marketplaces where you can buy and sell Bitcoin. There are numerous exchanges available, each with their own set of fees, features, and payment methods. Among the most popular exchanges are:
- Coinbase: This exchange is based in the United States and is one of the most popular options for buying Bitcoin.
- Binance.US: This exchange is based in Malta and is popular for its low fees and wide range of altcoins.
- Kraken: This exchange is based in the United States and is known for its high security and advanced trading options.
Step 3: Buy Bitcoin
After you’ve decided on an exchange, you can purchase Bitcoin by opening an account and completing the verification process. You must then link your wallet to the exchange and deposit funds via bank transfer, credit card, or other methods.
You can then buy Bitcoin at the current market price or place a buy order at a specific price. Once your order is filled, the Bitcoin will be sent to your wallet.
Step 4: Store and Secure Your Bitcoin
It is critical to securely store Bitcoin once you have purchased it. Keep your private keys in a secure location and keep your software and hardware wallets up to date. It’s also a good idea to keep multiple backups of your wallet in case it gets lost or damaged.
How to buy Bitcoin with a Credit card or Debit card?
You can buy crypto with a credit card, we would advise against it though. There are many ways to do it, but the most popular way is through Coinbase.
Coinbase is one of the most popular cryptocurrency exchanges in the world. It has a mobile app that allows you to buy and sell cryptocurrencies with your credit card. You can also use your debit card or bank account if you prefer not to use your credit card.
Please follow our step-by-step guide below to buy Bitcoin.
Create a Coinbase account
To buy Bitcoin from Coinbase — you need to create a Coinbase account.
- Click on the ‘Sign up’ button, choose “Individual” and hit “Get started”.
- Enter your name (it has to be exactly the same as what is written on your photo ID), email, password.
- Coinbase is regulated by the US government and follows strict financial rules. As such, they need to verify your identity. It takes some time and effort, however, this makes Coinbase reputed to be the most reliable way to convert regular currency to cryptocurrency.
Verify Coinbase account
As Coinbase needs to verify your account, you must provide your phone number, upload a picture of your photo ID and verify your card (credit or debit) or account back.
Buy Bitcoin with Coinbase App
Only once verification is done, you will be able to buy cryptocurrencies. If you use a card on Coinbase, your fees will be higher, but your purchases will be instant. It’s cheaper to use bank transfers. When your payment details are verified.
- Search for Bitcoin and click on “Trade”
- Choose the type of transaction
- Buy BTC
- Sell BTC
- Convert BTC
- Once you choose “Buy BTC”, on the next page verify how you want to pay with
- Your bank ( which you have to add in advance) — We prefer this option
- Apple pay ( if you have this set up)
- Wire transfer
- Now input the amount you want to buy
- Verify the amount using “Preview Buy”
- If all looks good then hit “Buy Now”
- Congratulations you just bought some Bitcoin!
Popular Exchanges and steps on how to buy Bitcoin:
- How to buy Bitcoin on Coinbase
- How to buy Bitcoin on Binance.US
- How to buy Bitcoin on Crypto.com
- How to buy Bitcoin on Trust
- How to buy Bitcoin on Uphold
- How to buy Bitcoin on eToro
- How to buy Bitcoin on Kraken
- How to buy Bitcoin on BlockFi
- How to buy Bitcoin on KuCoin
- How to buy Bitcoin on Gemini
Also, see our article What makes an Excellent Cryptocurrency Exchange? , Crypto Exchanges and Bitcoin ATM
Frequently Asked Questions
Can I buy Bitcoin with PayPal?
You cannot buy Bitcoin directly with PayPal at this time. If you want to use PayPal, you will have to buy bitcoin first and then exchange bitcoins for BTC using a service like Binance.
Can I buy BTC with cash?
You cannot buy Bitcoin directly with cash. Even though some ATMs support Bitcoin, they are less than 1% of all cryptocurrency ATMs. If you want to buy with cash, you will have to buy bitcoin first and then exchange bitcoins for BTC using a service like Binance.
Can I buy Bitcoin with Ethereum
Yes, you can easily do this using Binance to exchange Ethereum for Bitcoin.
What is the best payment method to use?
The cheapest way to do this is to buy bitcoins with a bank account (or Bitcoin directly with a bank account) and exchange ETH for Bitcoin. The fastest way is to buy Bitcoin with a credit card, but higher fees will be charged.
How can I protect BTC after I buy it?
You must store your Bitcoin in a secure wallet. Leaving Bitcoin on an exchange only puts you at risk of losing money if the exchange is hacked. Your account can also be hacked, so it’s important to use 2FA.
How can I sell Bitcoin (BTC)?
Binance and Changelly are good places to exchange your BTC for any other cryptocurrency. If you want to exchange it for regular currency, exchange BTC for bitcoin and exchange BTC for dollars, euros or other currencies.
Can I mine Bitcoin instead of buying it?
Yes, you can mine Bitcoin.
What is a Bitcoin miner?
A bitcoin miner is a computer or group of computers that are used to validate bitcoin transactions and add them to the blockchain, a public ledger of all bitcoin transactions. Miners are an essential part of the bitcoin network, as they perform the work that is necessary to secure the blockchain and keep the bitcoin network functioning.
In order to validate transactions, miners must solve complex mathematical problems, which require a significant amount of computing power. When a miner successfully solves a problem, they are rewarded with a small amount of bitcoin. This process is known as mining, and it is how new bitcoins are created.
Miners are motivated to participate in the mining process because of the potential rewards, but they also play a crucial role in ensuring the security and integrity of the bitcoin network.
What is a bitcoin wallet address?
A bitcoin wallet address is a unique identifier that is used to send and receive bitcoin transactions. It is a 26–35 character alphanumeric string that represents a destination on the Bitcoin network. Bitcoin wallet addresses are generated using a mathematical algorithm that converts a user’s public key into a unique string of characters.
Every bitcoin wallet has at least one wallet address, and users can create as many addresses as they need. It is important to keep in mind that bitcoin wallet addresses are not tied to a person’s identity, so it is possible for multiple people to have the same wallet address.
When someone wants to send bitcoins to another person, they will use the recipient’s bitcoin wallet address to initiate the transaction. The recipient can then use their private key to access the bitcoin that has been sent to their wallet.
What is a Bitcoin fork?
A bitcoin fork is a change to the bitcoin protocol that creates a new, separate version of the bitcoin blockchain. Forks can occur when there is disagreement within the bitcoin community about how the protocol should be updated, or when there are changes to the rules that govern the bitcoin network.
There are two main types of forks: soft forks and hard forks. A soft fork is a backward-compatible update to the bitcoin protocol that creates a new version of the blockchain, but the old version is still accepted by the network. A hard fork, on the other hand, is a non-backward-compatible update that creates a new version of the blockchain that is not compatible with the old version.
When a hard fork occurs, the network splits into two separate versions, with one version following the new rules and the other version following the old rules. This can result in the creation of a new cryptocurrency, as happened with bitcoin cash, which was created in a hard fork of the bitcoin blockchain.
What is Bitcoin mixer?
A bitcoin mixer, also known as a bitcoin tumbler or bitcoin shuffler, is a service that is designed to obscure the source of bitcoin transactions by mixing them with other transactions. The goal of a bitcoin mixer is to make it difficult for anyone to trace the origin of the bitcoins that are being sent or received, which can help to protect the privacy of users.
To use a bitcoin mixer, a user will send their bitcoins to the mixer, which will then mix the bitcoins with a large pool of other bitcoins from other users. The mixed bitcoins are then sent back to the user’s wallet, but it is difficult for anyone to determine which bitcoins came from the user and which came from other sources.
It is important to note that bitcoin mixers are not illegal, but they have been used in the past to facilitate illegal activities, such as money laundering. As a result, some countries have started to regulate bitcoin mixers or ban them outright.
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