So, you want to jump the crypto train as it seems to be speeding up once again? That’s completely fine, but it is a process that requires a bit of knowledge on your side, as cryptocurrencies – bitcoin, to be precise – are a bit different from fiat currencies. Therefore, in order to understand how to buy bitcoins and altcoins, you need to take a couple of things into consideration and learn more about transactions of cryptos.
Luckily for you, we are going to provide a step-by-step explanation of the entire process of obtaining bitcoin. The procedure in this article is probably the most popular method of buying it since it is also the most straightforward method.
Let’s explore the process. Read on!
Step 1: Get Yourself a Bitcoin Wallet
When you have cash, you must also have a wallet for it. That’s exactly how other cryptos, including bitcoin, work. Cryptocurrency wallets are simple tools that store your digital currencies, and you are the only person who gets access. You can use a Bitcoin personal wallet to send and receive payments using your wallet address.
Thinks of wallet addresses like they are email addresses with one significant difference – you use them to send and receive money.
There are several types of bitcoin wallets, and it is very debatable which one is the finest of them. Therefore, feel free to read more about this type of crypto storage programs and choose the one that suits you.
Step 2: Select an Exchange
Exchanges are the websites and mobile apps, which enable people to exchange fiat money for cryptos, and one crypto for another. There are a couple of things that you need to take into account when choosing one such exchange.
First of all, you need to ensure that it is accessible in your area, as a lot of exchanges are restricted only to a small number of countries. This is quite a straightforward thing to check, as you will immediately be informed if you cannot register on the platform.
The next thing to pay attention to is whether the exchange supports the cryptocurrency that you want to obtain. Since we are talking about bitcoin, chances are high, as it is listed on all exchange platforms out there, so there’s no need to worry about that. However, if you want to buy other cryptos, this is an essential thing that you need to check before you continue with registering on the exchange.
Also, you should check payment methods that are offered on the platform you want to register on. Although the majority should support the most popular payment options such as credit and debit cards, bank transfers, and eWallets, you should check it anyway.
You should read more about the fees of exchanges as well. Some platforms have higher costs than others, but you don’t necessarily want to go with the one that offers the lowest fees, since many may struggle with providing high-quality service.
Safety and Security
Every once in a while, some exchanges are hacked, resulting in funds being stolen. Therefore, make sure to choose an exchange that has good security and safety measures.
Finally, the most important aspect of every online cryptocurrency exchange is its overall quality. Some exchanges are faster, offer better customer support, and better underlying software. You can define all of that from dozens of online reviews.
Step 3: Create an Account at a Cryptocurrency Exchange
Commonly, new users do not experience any difficulties in the process of registering on a crypto exchange is intuitive and simple. It is clear that you need to be sure that you have chosen a trusted exchange, as you will need to leave some of your personal data there. Additionally, the more secure a platform is, the safer your funds are.
One of the exchange platforms that checks all items on the list is CEX.IO, therefore we will use it as an example to guide you through the process of buying bitcoin. In the particular case of using CEX.IO, you are able to log in via your Google or Facebook Account. Such feature saves you lime and makes the process of registration smooth.
If an online exchange offers you to turn on 2-factor-authentication and other security measures, make sure to do that as well.
Step 4: Connecting a Payment Option
During the process of registration, you will have to connect your preferred payment, which can also be connected once you created an account. Follow the instructions and input all the necessary data to successfully make a connection.
Step 5: Deposit Fiat Money
Once you connected your payment option, you should go to the deposit option, which is located in the upper right corner of the site at CEX.IO and choose that method of payment, as well as the amount of money that you want to deposit. Depending on the payment option, you might have to wait a bit before your exchange account is loaded with funds.
Step 6: Choose the Amount You Wish to Buy
It gets quite simple from this step on. You only need to choose crypto that has set your eyes on (bitcoin in this case) and enter the desired amount. After that, proceed with the transaction. Once again, depending on the traffic at the moment, you might have to wait for a couple of minutes before your exchange balance is filled with bitcoin.
Step 7: Withdraw Bitcoin
Our first step was to create a wallet and now we finally get to the last one – moving your digital currency there. The plan of action is pretty clear: after you buy a certain amount of the desired coin, you go to the Withdraw section and move it to your wallet. It sounds pretty easy and on practice, users do not experience any difficulties on this stage as well. Small advice: re-check the bitcoin wallet address that you inserted before confirming the withdrawal. Usually, your bitcoins should appear in your wallet within a couple of minutes.
To sum up, buying bitcoin is not rocket science, but it takes some time before you get into the swing of things and start understanding how it all works. There are several key factors that you need to take into account, and they are all discussed in this article. Good luck with buying bitcoin!