Whether you want to buy bitcoin as a store of value or as an investment, there are many ways to get started. Before you start, however, consider your long-term plans for this new asset class.
The first step is to decide where you want to buy your coins from. There are a number of options, including peer-to-peer exchanges and centralized crypto exchanges.
1. Open an account
The best way to buy bitcoin is to open an account with a crypto broker. These services offer a range of features including secure transactions, user-friendly interfaces and a selection of altcoins to choose from.
To open an account with a crypto broker, you’ll need to supply some basic personal information. This includes your name, address and email address. Most exchanges also require some form of identity verification in the form of a utility bill or bank statement.
A crypto broker’s customer service team will also be on hand to answer any questions you might have about how to buy bitcoin. Some platforms have a free demo version to get you started, but you’ll usually need to pay a small fee if you want to invest in the real thing. A popular choice is Coinbase, which offers a $5 signup bonus and the ability to purchase BTC using your bank account or credit card. The site will then convert the money into your chosen currency.
2. Deposit money
Buying Bitcoins with cash is a popular and safe way to invest in this cryptocurrency. This method also saves time since the coins are delivered immediately rather than waiting for bank transfers or verification by an exchange.
Using cash deposits is a common option on P2P exchanges like Bybit https://www.bybit.com/en-US/ and LocalBitcoins. Other services that support this payment option include Athena Bitcoin, Liberty X (in the US), CEX, and Wall of Coins.
To deposit cash with these exchanges, choose the appropriate currency and enter your wallet address. Once the payment is completed, you will receive a cash receipt and can present it to the exchange if there are any issues.
Buying with cash offers more privacy and anonymity than centralized crypto exchanges, but it’s still important to watch out for scams. You should always meet with a seller in a public place like a cafe or a bank, and maintain a low profile.
3. Place your order
There are a number of ways to purchase cryptocurrency. Some of the more common options include exchanges, trading apps and brokerages. Each option varies in terms of how you deposit money and what type of coins you can buy. The best part is that most of these methods are free and quick to use.
Place your order by clicking the Buy, Trade or New order button on the homepage of your chosen crypto broker. Most exchanges will provide you with a variety of order types, including market order, stop order and limit order. In the case of a limit order, you can set a price at which you want your order to be filled. If your order is taken, the exchange will then execute it on your behalf. You can also make your order in USD or in the fractional quantity of a specific cryptocurrency. The most important thing to remember is that your order may take several days to complete.
4. Receive your coins
Once you’ve deposited your money and placed an order, the broker will send your coins to your account. You’ll receive a confirmation email. You can then deposit them to your bank account or PayPal account, if applicable. Transaction fees may apply, and withdrawals take 4-6 days.
If you want to send Bitcoin to someone else, you’ll need their public address or public key. These can be generated by your wallet software, or you can get them from their website. Make sure to double-check that the address is correct and has not been compromised by a hacker. In addition, you’ll need to generate a seed phrase that can be used to recover your coins from the blockchain in the event of a disaster. You can also use a QR code if you’re sending to a friend. You can also create a wallet offline to store your private key in case of a computer crash or hard drive failure.