Despite how popular crypto is, many people interested still find it hard to figure out how to buy Bitcoin.
Buying and investing in Bitcoin may seem complicated, but learning how to do so can be effortless. It gets better when you learn about different wallets used to store Bitcoin.
The major things that need to be in place while buying are an account at a crypto exchange, a payment platform, and a Bitcoin wallet.
Here, you will learn the best way to buy Bitcoin and the recommended safe storage practices.
How To Buy Bitcoin
Choose a Crypto Exchange
An exchange is primarily where the transaction for the purchase of Bitcoin begins. One of the major reasons why exchanges are ideal is because they integrate other services, such as Bitcoin trading.
With their features, Bitcoin prices today can easily be checked and updated.
There are many different kinds of crypto exchanges, those that allow you to remain anonymous and require your details.
Most of the time, it is preferable you choose exchanges that put effort into verifying users' personal information. Verification processes such as Know Your Customer (KYC) are necessary for security purposes.
Some examples of exchanges you can choose from include Coinbase, Binance, Gemini, FTX, Kraken, and many others.
Connect to a Payment Option
Once you have chosen a crypto exchange to buy Bitcoin, the next step is to connect the exchange to a supported payment option.
Depending on the type of exchange you are using, you may be required to verify your identity before you will be allowed to connect to a payment option.
One of the best ways to buy Bitcoin is to use an exchange that offers the verification of identity before making a payment. This will help prevent someone from having unauthorised access to make payment in your absence.
The two major payment methods are directly from your bank account or debit and credit cards.
Variations of fees are charged for each transaction, depending on your exchange.
Once you have taken a look at how much to buy bitcoin today, the next step is to make a payment. After this, deposit funds into your exchange account, then place an order or buy Bitcoin.
However, the process involved in buying Bitcoin will differ depending on your exchange.
However, they are similar as the exchange will deduct the value of Bitcoin you want to buy from your bank or card.
Note that the value of Bitcoin deducted will correspond with the current value of the cryptocurrency. Assuming Bitcoin's price today is $19,000, the exchange will charge according to that price.
Store in a Safe Wallet
Many crypto exchanges will allow you and provide provisions for you to store your Bitcoin on their platform.
However, a crypto exchange can be hacked into, and all your funds can be taken away. I recommend you store your Bitcoin in a crypto wallet outside of an exchange.
With such a wallet, you will have complete control over the wallet as you will be the only one with private keys.
Types of Wallets
In the course of practicing safe storage, there are two major types of wallets you can use to store your Bitcoin outside a crypto exchange.
Hot wallets are crypto wallets that are only available on devices such as smartphones, tablets, and personal computers.
The advantage of using hot wallets is that it is very accessible and it allows you to use them on any supported device. The major con is the security aspect; hot wallets, compared to cold wallets, can easily be hacked.
I recommend you use hot wallets to store a small amount of Bitcoin you will use regularly.
A cold wallet is a wallet you would want to use if you are storing a massive amount of Bitcoin for a long time.
The wallet is mostly not connected to the internet, so hackers have almost zero possibility of hacking into it except if they access your private keys.
The only downside users may complain about is that it might be complex to use, not easily accessible, and it can cut much to buy.
One of the best ways to buy Bitcoin is through crypto exchanges, which are faster and easier.
Creating an account with a crypto exchange, connecting to a supported payment option, placing an order, and storing are the steps to take to purchase Bitcoin.
You must practice safe storage measures as you learn how to buy Bitcoin. Store your Bitcoin depending on when you need to use them and the amount you have.