Buying Bitcoin for the First Time: Here’s How You Should Do It.
Are you also inspired by the most prominent digital currency that has graced the digital world? The hype of cryptocurrencies is unmatchable. If we talk about the giant of crypto, Bitcoin, it has tremendously shaken the entire digital world and taken it by storm. The world already knows how strong Bitcoin is and needs no further explanation.
Therefore, today we will directly dive into how we can get our hands on it. Do you want to know how you can purchase Bitcoin? This article has got you covered. Read further to understand how you can buy Bitcoin in different ways.
But before discussing how you can effectively purchase Bitcoin, let’s first discover the requirements of buying Bitcoin.
What are the Requirements for Buying Bitcoin?
If you are buying Bitcoin for the first time, you need to make sure that you have the following things in line:
First and foremost, avoid using public Wi-Fi because it can result in security threats, including hacking or data theft. Always use a private and protected internet connection.
You must show your passport or national identity card to complete the KYC process if you are a foreign purchaser.
Then, you will need a smartphone where you will verify your identity by using the (2FA) two-factor authentication (2FA).
Buying cryptocurrency requires the buyer to have some fiat currency deposits in their bank accounts. So make sure you have a credit card and bank account with some fiat deposits.
Last but not least, a wallet to store your funds. In that case, crypto wallets always help. And when we talk about crypto wallets, you can choose between soft and hard wallets. However, if you wish to ensure the security of your funds, trust hardware wallets because they are more reliable than soft wallets.
How can you Purchase Bitcoin?
This section will discuss the different steps of buying Bitcoin safely and efficiently. So continue reading.
1. Through Cryptocurrency Exchanges
When you initiate your first Bitcoin purchasing journey, the first step needing your attention will be choosing the best crypto trading service. You will get a lot of options, including crypto exchanges, payment services, or brokerages. However, if you wish to opt for effective service, there is no better option than an exchange.
Cryptocurrency exchanges are unique platforms where people buy, hold, and sell their coins. You will find many features to help you get the most out of your purchasing experience. You can even transfer your assets into your personalized wallets to ensure their protection.
A cryptocurrency is formed with the idea of eliminating central control, but unfortunately, many of the exchanges are centralized. They ask users to submit their information. Some examples of such exchanges include Coinbase, Kraken, Gemini, FTX, and Binance.US. If you live in the Middle East, you can Rain.com because the Central Bank of Bahrain licenses it to ensure its optimal protection.
Steps to Purchase Bitcoin Through an Exchange:
- Once you have chosen your desired exchange, you must go through the Know Your Customer (KYC) process. It requires you to submit your data, including a driver’s license, Social Security card, employment details, fund details, or identity card.
- The next step requires you to connect your payment options with the exchange-for instance, your credit, debit card, or bank account.
- Then, you will pay some deposit fees or transaction fees.
- Make a purchase and transfer funds into your wallet.
2. Purchasing Bitcoin Through PayPal
PayPal Holdings, Inc is a payment processor and can be used to buy Bitcoin. However, unfortunately, this processing system does not allow users to store funds in their wallets.
3. Buying Bitcoin With a Credit Card
While using other ways of buying Bitcoin, remember that specific funding options can be costly for you because crypto platforms can charge higher transaction fees. And credit cards are not an exception. You will experience expensive transaction fees while using them. Moreover, you will also experience higher interest rates because it will be regarded as a cash advance. Therefore, you should go for cash or crypto to purchase Bitcoin.
4. Mainstream Brokerage
Crypto rates are very uncertain and highly unpredictable. Therefore, you will not find many brokerages. Take the example of Robinhood Markets, Inc. (HOOD). It is an app that offers crypto trading and excites retail investors with 0% commission fees. However, it falls short regarding the number of crypto coins and the required features.
5. P2P Exchanges
Peer-to-peer or P2P exchanges are known for directly connecting sellers with buyers. Here, you can post requests for trading and share information regarding prices or payment methods. You can browse the trading requests and choose what suits you better as a user.
6. Bitcoin ATMs
Bitcoin ATMs act as a physical exchange where you can purchase Bitcoin by inserting cash into a machine. This step is followed by receiving funds in your wallet. However, this trading service is costly because users are liable to pay purchase and conversion fees that convert fiat currency to bitcoin.
When we talk about Bitcoin or other cryptocurrencies, they have a high risk of security threats. Most people forget the vital step, which leads them to unfortunate consequences. When you purchase your cryptocurrency, you must not forget to store it in your wallet.
Your wallet is more secure than built-in wallets provided by the exchanges. You can maximize the safety of your funds by preventing hacks and theft that you can easily experience in exchanges. Therefore, it is wise for people to store their crypto in a hardware wallet.
Investing in cryptocurrencies is always tempting because of how lucrative and valuable digital currency has become. The journey of cryptocurrency has been incredible, and it is still experiencing the same excitement and performance within the market. However, there is one thing we can not deny: their volatility. Despite how influential and profitable Bitcoin has become in the digital market, you can still experience price drops and losses as an investment. Therefore, avoid a higher percentage of investment if you want to remain on a safer track. Start low, observe and examine the market practices or performances, and make mindful purchases.