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“How to Buy Bitcoin” Guide for Beginners

Beginner’s Guide: How to Buy Bitcoin

You will walk through all the processes to buy Bitcoin. Now, let’s start with the cryptocurrency’s definition. The cryptocurrency or digital coins represent a form of assets in a decentralized network. The decentralized web is immune to government interference or surveillance. In other words, your crypto assets stay outside government control. The decentralized network is generally based on blockchain and related technology. There has been a significant change in the industry, like finance and law. Also, the advantage of crypto is cheaper and more straightforward money transfer. In particular, the transfer in the decentralized network isn’t stuck at any point of failure. However, negative energy is the volatility of prices and miners’ high costs and represents the use of criminal practice. You enable online payment or transactions without the support of a third party.

The most common way to purchase coins is speculating or investing in digital tokens. They believe the prices of these will come up down the road. I am sure you may have seen the cryptocurrency’s meteoric rise in prices like Bitcoin or Etherium in the past. If you believe in the digital assets industry, making speculative investments in crypto is a good way. You will increase your monetary value in the day to come. The crypto-currency occupies the fourth-most popular investment in the world. However, the first half of 2022 has seen an alarming trend in the cryptocurrency market due to the Soviet-Ukraine conflict. If you pay attention, you will see the crypto-currencies fall 50% from all-time highs compared to last year. Furthermore, nobody knows for sure the future of the crypto market. Cryptocurrency experts predict that the price will reduce even further before the recovery.

Where to Buy Bitcoin – Best Platforms

Bitcoin is the best crypto
Bitcoin is the best crypto. Credit: economictimes.indiatimes. com

As a newbie, you will wonder which platforms are best to buy Bitcoin. The answer is that there are a lot of cryptocurrency trading platforms which support you in direct payment. However, it depends on your goal or plan. First, you need to know how much the platform charges you. Next, the platform should be under the control of a reputable finance organization like the UK Finance Conduct Authority (FCA). FCA is a financial regulatory unit that works independently with the UK Government. Its task is to protect the customer, enhance market integrity, and promote healthy competitiveness. In other words, FCA is a well-known, trustful regulatory body in this industry. Last, the best crypto a trader is looking for among the best cryptocurrencies in 2022 is bitcoin. All these things decide the platform you should take. Now, you are walking through the top five venues worth buying.

eToro – Overall Best Place to Purchase crypto in 2022

Logo of eToro Platform
Logo of eToro Platform. Credit: eToro.com

eToro represents an Israeli-based international social trading and multi-asset investment body that provides you with financial and copy trading services. In addition to its headquarters in central Israel, the company has a lot of registered offices in Cyprus, the United Kingdom, the United States, and Australia. eToro is a multi-asset trading platform based on social collaboration and investor education. As a result, you can connect, share and learn in the community.

Then, why is eToro the best coin trading platform? A couple of reasons rank eToro at the top of the list. First, you can identify that eToro has much more than just Bitcoin. In other words, you can find more than 50 cryptocurrencies available on the platform, like Ethereum, Bitcoin Cash, Ripple, Lite Coin, and many more.

Also, eToro gives you easy swaps between Bitcoin and other digital coins in the world of virtual money. Additionally, you like eToro because it doesn’t charge you deposit fees. You don’t incur extra costs to buy Bitcoin with credit or debit cards. You only pay a fee of 1% for all the transactions you have done, such as buying or selling. While you find eToro a user-friendly platform, you also see some beneficial trading tools such as customizable technical charts. In particular, in-depth analysts support you with a lot of investment. In addition, you can contact crypto investors on a built-in social network to share discussions on crypto trading. It helps you to find ways to purchase digital coins.

If you are a newbie, you shouldn’t worry about a way to purchase coins. eToro has an impressive trading tool; it’s a copy trading tool. You can’t put aside your portfolio and copy the moves of crypto experts like digital coin traders.

2. Coinbase – Safe Exchange to Buy Bitcoin for a Newbie

Logo of Coinbase.
Logo of Coinbase. Credit: play.google.com

Coinbase started in 2012 to build a crypto-economy with an accessible, transparent trading network for crypto. It provides you with a straightforward platform for buying and sending coins quickly. In a nutshell, you can purchase coins like Bitcoin, Ethereum, Solana, and many more. However, it doesn’t mean you have every digital currency you want. Coinbase exchange offers over 120 kinds of cryptocurrencies.

Meanwhile, international trading exchanges provide thousands of digital currencies. Still, Coinbase is worth trading because it allows you to exchange or swap the most popular types of coins. It works well as an excellent place to purchase coins.

However, you may find fees on Coinbase a little complicated. It depends on the account types, the volume of transactions, and the funding source. Also, your location, type of payment, and product affect the fee. In a small transaction, there is a spread mark-up of 0.5% of the trade value along with a fee based on the volume of the transaction. For example, if you make a transaction for $10 or less, the fee is $0.99. If the transaction is more than $10 or more, the fee is $1.49.

Also, Coinbase is a good choice for finding a place to store Bitcoin. If you want to access the platform, you have to pass a two-step authentication.

3. Binance – Popular Bitcoin Exchange Offering 600 + Markets

Logo of crypto exchange Binance
Logo of Crypto Exchange Binance. Credit: binance.com

The Binance exchange, one of the leading digital coin exchanges, started in 2007 in Hong Kong. The name Binance is short for binary or bit and finance. According to the company, it combines two essential factors of cryptocurrency: digital technology and finance. Over a million customers worldwide are using the Binance exchange to make billions worth of trading. Daily finance supports US customers with credit or debit card deposits when it comes to buying Bitcoin on the platforms when it comes to buying Bitcoin on the platform. However, you have to suffer a little pricey fee of 4.5% of the transaction volume.

Binance’s strength is altcoin trading; it offers crypto-crypto trading for over 600 types of cryptos. What is an altcoin? The word altcoin stands for alternative and coins. Thus, it represents all cryptocurrencies but Bitcoin. It is the forks or splittings of blockchain from Bitcoins and Ethereum.

In terms of fees, if you use your deposited funds to buy Bitcoin, your buying fee is around 0.5%. On the other hand, Binance commissions on spot trading come around a maximum of 0.10%. You find this fee competitive compared to other platforms. So, Binance is a good option for trading a crypto-crypto pair.

If you are a seasoned customer, Binance is a good address for you. You can find over-the-counter services, state-of-the-art trading platforms, advanced tools, and analysis features.

4. Wellbull – Buying Bitcoin from $1 Only

Logo of Wellbull exchange
Logo of Wellbull Exchange. Credit: investorjunkie.com

Established in 2017, Wellbull is one of the newer trading exchanges and launched a mobile app in 2018. This first-ever launch aimed at Wellbull’s essential target market: the millennium. Wellbull tends to serve self-directed customers with less comprehensive offerings than its competitors’ complete services. On the other hand, Wellbull serves young, active traders and others interested in the platform, providing a wide range of services free of charges, such as no account minimum and commission-free trading of assets. That said, you find the exchange full of bang without your buck, an impressive platform with a broad range of excellent tools and useful features.

If you are new to buying or selling Bitcoin, remember that Wellbull is not a comprehensive broker. Thus, the exchange skews towards younger traders than others. On the other hand, you have to skew towards a bit of DIY, like portfolio management. Free option trading on the exchange draws the attention of active investors because the other platforms charge a commission on every leg of your trading. In addition, Wellbull is a good solution if you want to invest your money in retirement. Finally, when you meet a $2000 balance standard, Wellbull allows you to buy cryptocurrencies on margin.

5. Kraken – Good Crypto Exchange to Buy Bitcoin through a Bank Transfer

The online exchange Kraken, formed in 2013, is one of the newest platforms in the industry. It is the final platform you think about if you want to purchase cryptocurrencies. You can open a Kraken account quickly and fund your deposit through a local bank wire. The minimum deposit in the account depends on your financial institution. For example, if you make a payment at MVB bank, the bank requires $1 only.

Meanwhile, the minimum deposit at Etana Custody is $150. The bank wire takes 0-1 business day; your deposit arrives at the Kraken. Then you can purchase cryptocurrencies at a commission of 0.26% only. However, you can get reduced commissions if your trading amount is large.

Benefits of Buying Bitcoin

Logo of Cryptocurrency Bitcoin
Logo of Cryptocurrency Bitcoin. Credit: vneconomy.vn

Before learning about the rope of cryptocurrency purchases, you should know its growth. Then, you decide whether or not it suits your portfolio goals. Following the cryptocurrency development, you see it launched in 2009. During the initial years, the value of a Bitcoin was less than one dollar. However, the cryptocurrency was trading even at $1,000 in early 2017. That means if you held Bitcoin for five years, it would hit the all-time high of $69,000 in 2021. In other words, your asset investment would rise by 7,000%. That’s amazing!

The best way to invest in digital tokens is to buy them when the market falls into a dip. That means the price of Bitcoin is on a downward trend. Or, by buying the dip, you can benefit from the discount on the market. For example, the digital token hit an all-time high of $69,000 in 2021 and a low of $33,000 in January 2022. You can get over a 50% discount. Currencies often go through volatile price swings for indefinite periods.

In the fiat money systems, like US dollars, Euros, or pounds, the global currencies have seen inflation. This is because of the money printing central banks have generated. On the contrary, cryptocurrencies are automatically minted every 20 minutes. And the case continues until it reaches the level of 21 million digital tokens. That means you purchase digital assets in some ways that are not too dissimilar to gold from an investment perspective. In other words, cryptocurrencies and gold are fixed supplies.

Ways of Buying Bitcoin

You can use PayPal to purchase cryptocurrencies. For instance, eToro allows you to deposit a minimum of $10. While using other payments like credit cards or debit cards, Binance or Coinbase will charge you 3.99% and 4.5% respectively.

In terms of the best way to purchase digital assets, when you enter the cryptocurrency landscape, the vast majority of the trading places are an exchange. The exchange serves as a middleman between a buyer and a seller. If you want to purchase Bitcoin in US dollars, you do the transaction on the exchange. The seller will sell their digital coins in exchange for dollars. In this case, the exchange will charge you a commission. The problem here is unregulated exchanges. In other words, if the transaction is in a unanimous way, you are not sure that your money or cryptocurrencies are safe.

Another way is a Bitcoin broker. Unlike trading exchanges, brokers stay between you and cryptocurrencies. That means you contact a broker to buy directly. So, the method is far easier, more convenient and safer. If you use eToro, a licensed trading exchange, you strongly believe that your digital assets are in a safe hand. Another advantage of using a broker is that you can deposit US dollars for a broad range of payments. When you buy cryptocurrencies on the exchange, you have to withdraw your digital assets into a private wallet. Meanwhile, you can leave your bitcoin at broker eToro safely.

The last way is a decentralized exchange. The benefit of this method is that you can buy cryptos without a third party. However, the volume of trading on this platform is less than in traditional ways, like brokers or centralized exchanges.

Conclusion

In summary, the key issue of buying crypto is safety and there are several ways to do it. Thus, turning to a regulated broker is not an end only. You could have another issue: wallet security. It goes without saying that a transaction going through a broker is a safe way to do it.

Select brokers who have got a license from the Security and Exchange Committee (SEC). When you buy Bitcoin at a regulated broker, you can make a transaction in a unanimous way. The broker in question observes the anti-laundry regulation; they have to verify the legal status of users.

In terms of wallet safety, whatever wallet types you use like mobile or desktop, you have to realize a safety process like creating a password or pin. Thus, you have to write down them on paper to keep them in a safe place.

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