Bitcoin, the world’s first and most popular cryptocurrency, continues to captivate investors. If you’re interested in joining the growing number of people who own Bitcoin, you might be wondering how to buy Bitcoin online. The process is actually quite straightforward, and this guide will walk you through everything you need to know.
Understanding Bitcoin
Before diving into how to buy it, let’s take a couple of minutes to understand what Bitcoin really is. It’s a digital currency operating on top of a decentralized network called the blockchain. Simply said, it doesn’t belong or is controlled by any central authority—including banks or the government. All transactions are transparently recorded on the blockchain publicly.
Fractions for selling and buying bitcoin do exist, called Satoshis. This name was derived from the pseudonymous creator of Bitcoin, Satoshi Nakamoto. The price keeps on changing continuously; hence, while purchasing, one has to be aware of the conditions that prevail in the market.
Choosing a Platform to Buy Bitcoins Online
There are quite a number of sites on the internet through which one can buy Bitcoins online. What one calls those individual platforms is cryptocurrency exchanges. These are very much like marketplaces in which buyers and sellers of wide varieties of digital currencies, including Bitcoin. Below are some factors to consider in selecting a suitable cryptocurrency exchange:
- Regulation: Look for a good exchange that is duly licensed and regulated in your jurisdiction. This will go a long way to ensure that the platform has adhered to set security and compliance standards.
- Charges: Every exchange holds a different fee schedule. Compare the fees for buying, selling, depositing, and withdrawing before choosing one.
- Currencies Supported: Make sure that the exchange provides support for your deposit mode, like via bank transfer or by credit card, and that you can buy Bitcoin with your preferred currency.
- Security: The security of your funds is the most important consideration for investing in cryptocurrency. Always go for an exchange that has a clean record regarding security and offers two-factor authentication.
- User Interface: Be considerate of how easy the interface of the platform is. You should search for clarity and easiness in layout use, with special consideration if you’re a beginner only.
Some of the more popular cryptocurrency exchanges include Coinbase, Gemini, Kraken, and Binance.
Important Note: Cryptocurrency laws and regulations differ by state or country. Always check regulations in your area before operating on any cryptocurrency exchange.
Setting Up Your Account
Once you have chosen a platform, next would be setting up an account. Most of them basically ask you for general information: name, email address, phone number, and maybe proof of identity through their KYC, which in some cases might be required to further verify the identity.
Security Tip: Be sure to choose a strong, unique password when you create your account. Turn on two-factor authentication, too, if it is an option.
Funding Your Account
Before purchasing Bitcoin online, you will have to deposit money into your exchange account. Most cryptocurrency exchanges offer several deposit options for your account, including bank transfer, credit/debit card, and bank wire. Some of these may be unavailable depending on the platform and your location.
Important to Note: Deposit fees may vary depending on the method used. Bank transfers, in most instances, come at the best prices, while buying with credit/debit cards attracts higher fees.
Placing a Buy Order
Once you have money in your account, you are now able to buy Bitcoin from the web. This indeed revolves around proceeding to the section of the homepage dubbed ‘Trading’ and then navigating to the field of ‘Bitcoin Market.’ You will have a chance to specify the amount of Bitcoin that you wish to buy, or the money you want to spend.
Understanding Order Types: Most exchanges provide an array of order types. Many trading platforms provide different order options, such as market orders to purchase Bitcoins at the current market price or limit orders to specify the buying price.
Review and confirm: Before completing any purchase, make sure all the details are correct in your order—the quantity of the Bitcoin you would like to buy and at what price—excluding any additional fees. Once everything is correct, finalize the order.
Congratulations! You have just successfully bought Bitcoin!
