Buying bitcoin does seem hard for many people, especially if you intend to buy it for the first time. However, that is not true. Purchasing bitcoin is just like the way you exchange your fiat currency for a commodity. For bitcoin’s case, you simply need to exchange your cash for digital currencies. This occurs through several ways, which this article has outlined five (5) mediums for you. By following these outlined procedures, you get to store and spend your satoshis. Before then, let’s take a look at what Bitcoin entails.
WHAT IS BITCOIN?
Bitcoin is a digitized currency invented by Satoshi Nakamoto in 2008. Running on blockchain technology, it is decentralized. Thus, no one can control it. Functioning as electronic money, it gives room for every form of financial transaction as it uses the peer-to-peer network. The peer-to-peer network gives room for transactions to occur directly between two parties (the sender and the receiver). Although its value often fluctuates, it remains the m3ist valuable digital currency today. As of the time of this article, Bitcoin’s value closed at $52,621.15.
FIVE (5) EASY WAYS TO BUY BITCOIN
Thanks to blockchain technology, there are different ways by which you can purchase a cryptocurrency including Bitcoin. However, for the sake of this article, we shall only examine five. They include:
BUY WITH YOUR CREDIT/DEBIT CARDS
Investing in Bitcoin through your credit/Debit Card is an easy and fast method. It’s easy and fast because it is similar to making a payment for a specific commodity. That is, all you have to do is input your card details (Card number, expiry date, and CVV) on a trusted site. For instance, Binance offers this option to its users and processes transactions at an incredible speed. However, buying with cards has its disadvantages. For some sites, you can only purchase a low amount of Bitcoin with your cards. Also, the transaction fees for the purchase of the digital coin are usually high.
BUY VIA P2P TRANSACTION
Peer-to-peer (P2P) Transaction refers to the electronic transfer of funds from an individual to another through an intermediary, usually a decentralized exchange. With P2P, you can transfer funds to the recipient without interference from the third-party. Meaning, P2P enables investors to transfer funds to one another without interference from third parties like commercial banks, governmental agencies, and more. Sites that provide investors with this opportunity include Binance, Localbitcoins, local.Bitcoin.com, and more. However, you have to create an account with these sites to harness more of the opportunity.
USE A BITCOIN ATM
Does Bitcoin have its Automated Teller Machine? Yes, it does. It’s currently popping all over different locations today. Although this method does not provide you with privacy like the others, it still provides you with the opportunity of investing in bitcoin. To locate a Bitcoin ATM, you may use some ATM locators like Paxful, Coinatmradar to find ATMs near you. In buying Bitcoin through the ATM, here are some steps to follow:
- Select the option that offers BTC
- Scan the QR code of your wallet address via the bitcoin ATM scanner
- Enter the amount you wish to buy and insert your cash
- Allow the machine to process your transaction for a few minutes
- Select “Finish” and collect your printed receipt.
BUY ON AN EXCHANGE
A reputable cryptocurrency exchange gives you confidence when purchasing a digital currency. Today, different exchange platforms offer you simple ways to buy bitcoin. Payment methods include bank transfers, cash deposits, credit/debit cards, P2P, and many more. For many exchanges, you will have to create an account. Then, you will verify your identity before you can perform some transactions. Also, different exchanges charge transaction fees, though the price usually varies. For beginners, sites like Binance, Coinbase, and Kraken are suitable for you.
After purchasing your digital coins on these apps, it is advisable to move your coins to a private wallet for security. You should only keep a bare minimum on the central exchange platform when you need it. Safeguarding your digital currency in a private wallet prevents your coins from being stolen by hackers. However, it is essential to protect your private keys as they are the entry point to your private wallet.
Bank transfers allow investors to purchase cryptocurrencies via their local currencies. Although the process can be a bit slow, you can buy a large amount with a low transaction fee. It all depends on the notable exchange platform used in your country. For the United States, the notable cryptocurrency exchange is Coinbase. Meanwhile, it is CEX to the UK, Coinmama to Canada, Binance to Russia, China, and Nigeria, Coinspot to Australia, and more.
Buying cryptocurrency is an easy task that requires little or no stress. What matters is your exchange platform as it determines the procedural requirements in purchasing Bitcoin.
If you have any questions, kindly drop them in the comment section below and it will be attended to immediately.