How to Buy Bitcoin
Bitcoin is a digital asset—a cryptocurrency that you control with a private key. In technical terms, users do not physically own a specific bitcoin because it has no physical appearance. How can users buy bitcoin if they cannot touch it?
There is no need to make Bitcoin tangible. Bitcoin functions as internet money transmitted over the blockchain. Therefore, users can buy it anywhere where they have an internet connection and a desktop computer or mobile device. The most user-friendly experience is buying bitcoin on an online cryptocurrency exchange. Of course, users can buy them locally but for greater amounts; therefore, an exchange is the safest place. Additionally, it is not advised that users carry large sums of banknotes around.
Bitcoin is a form of digital currency that users can buy from several different vendors. Apart from buying bitcoin from peers, over the counter, or at crypto ATMs, the Bitcoin community’s favourite buying channel is online cryptocurrency exchanges. They are the most reliable, safest, and cheapest way to buy bitcoin. Trading platforms normally have the lowest fees for exchanging bitcoin and the biggest supply. To buy bitcoin on a trading platform, all you need is a decent computer skills and a basic understanding of how to pay bills online, and you are all set.
Download Bitcoin wallet
Bitcoin is not a physical object. To buy bitcoin, you need a wallet first—that is, a store of private keys. With a bitcoin wallet (a software) you receive a Bitcoin address that is generated from a private key. A private key is a number (or 12 or 24 words) visible only to the user to prove ownership of bitcoin, so keep it safe! Read more about how to choose a bitcoin wallet here.
A wallet at an online cryptocurrency exchange is connected to the user account, and cryptocurrency exchanges provide each user with his/her own bitcoin address. The user’s login credentials are the key. Most online exchanges use login credentials such as an email and a password to log in. Pick a trading platform that is best suited for your skillset. We recommend buying your first bitcoin from a trusted source. Centralised exchanges have proven to be the single most reliable. Open a free account to start trading.
When opening an account, do not neglect the safety measures. You can read more about them here.
Once you successfully created your crypto exchange account, you can buy bitcoin with fiat money or with other cryptocurrency. First, log in to your account, go to Balances in the top-right menu and choose Overview from the dropdown menu. Once you are at Deposits and Withdrawals, you can buy bitcoin in one of two ways: with fiat money or by depositing cryptocurrency you already have and exchanging it for bitcoin.
- To buy bitcoin with fiat money, click on buy with Visa/Mastercard next to the bitcoin ticker (BTC) and follow the instructions for a SEPA transfer or buying with a credit card.
To deposit cryptocurrency of your choice and trade it to bitcoin later on, click Deposit cryptocurrency. Once the transaction of deposited cryptocurrency is confirmed, you will have available digital assets to exchange.
Then, go to Platform and click on the corresponding trading pair from the dropdown menu. After selected trading pair, you can choose from Click Trade or Limit Order. Click Trade means that you agree with the market price displayed and just enter the amount of cryptocurrency you wish to exchange for bitcoin. Limit Order means that you will decide on the price you are willing to pay for bitcoin by entering the amount of cryptocurrency you wish to exchange and at what price. The amount of bitcoin you will receive will be displayed in the total before you click the Confirm button. You can always determine your order more exactly by clicking Advanced. In this section, you can set up order expirations and/or Take Profit.
Never buy bitcoin worth more than you can afford to lose. Cryptocurrencies are volatile, and value can go down as fast as it can go up. Avoid buying out of FOMO, FUD or hype.
Historically, buying was an exchange of goods or services, and it started with exchanges person to person, and the price was negotiated on the bitcoin forum. A decade later, the market has changed drastically, from a previously reserved asset for only selected few to online cryptocurrency exchanges that are making digital assets accessible to anyone anywhere.