Bitcoin is the leading currency in the crypto space, boasting of the most substantial market value, and robust technology backing compared with the other cryptocurrencies. The price fluctuations in Bitcoin usually affect most of the other altcoin in the market because it largely controls the markets.
Most investors and traders make use of Bitcoin. Online and offline stores now approve Bitcoin as a mode of payment when buying a commodity.
This implies the full range of use of this currency. This piece of writing is highly useful to individuals who are just starting crypto investing and trading. Persons looking to buy bitcoin, or make some purchases using bitcoin will find the guide equally helpful. No matter the category of buyer you may belong, rest assured that this article will meet your goals. All you need is to follow the steps outlined below.
STEPS TO BUY BITCOIN
OPEN A BITCOIN WALLET
This is the first step involved in the purchase of Bitcoin because you will always need a wallet to store your coin after purchase. Bitcoin wallets can be likened to leather wallets that keep our fiat currency in; only that this time, it becomes a house to our Bitcoin.
There are several wallets owned and moderated by renowned developers and other leading forces in the crypto market. These wallets can be operated online or offline. Whichever wallet option you choose to store your bitcoin, you need to consider before opening a wallet.
Considerations when choosing a Bitcoin Wallet
- Ease of Operation: The wallet you store your Bitcoin in must be easy to operate. This means that it should be easy to create an account with them, and the layout should not be too complicated. You don’t want to end up looking around for your Bitcoin within the wallet after making your purchase.
With this in mind, you can proceed to obtain a wallet. A functional wallet will only request your name, email address, and phone number. Then you will be told to input a secure password, followed by the necessary verifications. Offline “cold storage” wallets offer more protective mechanisms; hence they may request more details from you while opening an account with them.
- Advanced security feature: This is the essential feature that any bitcoin wallet must possess. The security of your wallet should not only be limited to the password you provide during the creation of the account.
Some of the popular wallets provide more advanced encryption keys and a two-step verification process. This will keep your account more secure, and you can worry less about losing your bitcoin to cyber hack.
CHOOSE A BITCOIN TRADER
Once you have successfully opened a bitcoin wallet, the next step in the purchase process is to select a bitcoin trader where you will make your first bitcoin purchase. There are several trusted traders and legit exchange platforms online where you can easily make your first purchase.
You can choose to purchase bitcoin from an online exchanger or peer-to-peer platforms. The two function differently. Before we discuss their different purposes, it is essential to point out that you will also have to create an account on whichever of the two platforms you choose to make your purchase.
Creating an account on the two platforms (exchange & peer-to-peer) follows the same principle. These include:
- First off, hover to their website and click on the register or sign in button, easily accessible on the site.
- Fill in your full name, email address, and phone number.
- Create a secured password that is only known to you.
- Finally, verify your details. They may ask for your phone number, email address, and ID verification in some cases.
Once you’ve successfully created an account, the next step will be to choose a preferred payment option you will use to complete your transaction. You will be faced with the possibility of purchasing your bitcoin via an exchange platform or peer-to-peer trading platform.
Exchange Vs. Peer-to-peer Platforms
Exchanges have a trading option that allows users to place a buy or sell option on market trends. Buying on an exchange platform is quite easy. The platform pairs you with one or multiple sellers, usually ones with the lowest offers. You are at the liberty of choosing the best seller among the available options.
On the other hand, a peer-to-peer service (such as LocalBitcoin or BitQuick) does not allow Bitcoin exchange or trading. Buyers and sellers meet on the site and make trading happen. Trading can happen online or offline.
CHOOSE A PAYMENT OPTION
Exchange platforms and peer-to-peer services offer various payment for Bitcoin purchases. Most of the known platforms allow Debit or Credit card options, while some other ones will enable the use of PayPal and other e-wallets for Bitcoin purchase.
Be sure that whatever exchange platform you choose offers several deposit options. This will help you to select the best means of payment for your needs. You should know that different payment option requires different time and speed of delivery. You want to make sure that you choose a payment option that guarantees fast deposit and withdrawal.
A few platforms allow the direct wire transfer option because of the complications and the relatively slower speed attached to using this mode of payment. Hence, you might have to consider other options, especially if you can use your card or the e-wallet.
BUY YOUR BITCOIN AND STORE
Buying your bitcoin on exchange sites require you to place an order, which will move into the order book. Once your order becomes filled, it will be paired with interested sellers at the most affordable rate. You will immediately get your Bitcoin deposited into your exchange account as soon as the transaction is complete.
After a successful purchase, the next step is to move your Bitcoin from the exchange platform into the wallet created in the first step.
DECIDE THE NEXT STEP
The cryptocurrency industry is known for its market volatility. Hence, prices can suddenly rise or fall within a short period.
Therefore, you need to quickly decide how you want to put the purchased Bitcoin to use. Better if you make this decision even before the purchase of the Bitcoin.
It is okay if you intend to store the bitcoin, hoping to profit in the eventual rise in price value. However, it is better to put the bitcoin to immediate use if you have the intention to use it to place a trade or complete an online or offline transaction.
Few crypto ATMs are now in circulation that allows you to trade your fiat directly for Bitcoin and vice versa. However, since they are only available in a few locations, it is crucial to make your purchase using other options as explained above so as not to fall victim to online fraud.