If you are new in the cryptocurrency ecosystem, one of the overarching issues that engulf your mind is how to buy Bitcoin.
This is because to you, investing in Bitcoin is reserved for a chosen few due to the complexity that comes with it. However, buying Bitcoin is not complicated as long as you follow the right steps.
What You Need
One of the surest ways to get conned when buying Bitcoin is to walk into the market and buy Bitcoin from the first trader you find. To successfully purchase Bitcoin, there are a few things that you need.
First, you must have a cryptocurrency exchange account, a secure internet connection, and a reliable payment method. In some instances, you may require personal identification documents if you are using a Know Your Customer (NYC) platform.
It is also recommended that you have a secure wallet such as Tezro outside your exchange account. Valid methods of payments include credit cards, debit cards, and bank accounts. However, you can also get Bitcoin through P2P exchanges and specialized ATMs, as you shall find out later in this article.
Prioritize Your Security Before You Buy Bitcoins
Before we dive into the details of how to buy bitcoin, it is critical to stress the need for caution. Bitcoin investors cannot overlook the importance of privacy and security.
Even though physical Bitcoins don’t exist, and some wallets such as Tezro have employed military-grade SSL encryption in their systems (click here to find out more), it is a bad idea to invest in Bitcoin without a personal security strategy in place.
Remember, anyone who gains a private key to a public address in a blockchain network can authorize transactions.
While private keys are kept secret, there are criminals working day and night to steal them. Make sure you adopt the right strategies to secure your assets.
This includes keeping your private keys offline, ensuring your private key stays private, using a strong password for your wallet, securing your internet connection, using a reliable VPN to hide your location, and ensuring you invest in a secure exchange.
How to buy Bitcoin in 5 Easy Ways
Now that you understand what you need to buy bitcoin and the steps you need to take to guarantee the security of your investment, let’s look at some of the ways you can use it to buy Bitcoin.
Choose Your Bitcoin Wallet
Choosing your Bitcoin wallet should be the first thing you should do before you even think of how many assets to buy.
However, you don’t do a simple Google search about “best bitcoin wallets in the market” and choose the first one you come across. If you are choosing your Bitcoin wallet randomly, you are doing it wrong!
First, you should understand how cryptocurrency wallets work and what are the different types of wallets.
Seconly, you need to understand the value of Bitcoin. Today, one BTC is valued at $50,000. This means that buying bitcoin is a serious investment.
Therefore, you cannot afford to choose a wallet based on basic research or a suggestion by a friend who is a few days older in experience than you in the crypto space.
There are a few things you need to consider when choosing a Bitcoin wallet, irrespective of whether it is a hardware or a software wallet. Ensure you judge a good wallet based on the following criteria:
- Backup & security features: Make sure the bitcoin wallet you choose is secured by SSL encryption and other advanced security features. Additionally, the exchange you decide to work with should provide you with unmatched seed backup and pin codes.
- Control private keys: If you find a wallet that doesn’t allow you to own and control your private keys, don’t use it. Non-custodial wallets are the best since they assure security and privacy in all transactions.
- Active developer community: Do your homework well and choose a wallet that has an active developer community for regular system upgrade and maintenance.
- Ease of use: Some Bitcoin wallets are too complicated and not friendly to newbies in the crypto world. Find those wallets with elegant and easy-to-use UI. Some wallets such as Tezro have fast and interactive UIs and are highly recommended for starters.
- Compatibility: You might need to use your wallet in your home, office, or when on the go. Therefore, make sure the wallet you choose doesn’t restrict you to one device. Opt for one that is compatible with multiple operating systems.
- HD wallets: Consider choosing HD wallets that generate new addresses whenever you perform a transaction. Such wallets are highly secure since they never use one public address twice.
- Multi-blockchain wallet: As the crypto market continues to thrive, it is critical to choose a wallet that allows you to store other blockchain assets other than Bitcoin. Renowned wallets such as Coinbase and Tezro are multi-blockchain wallets that eliminate the need for multiple wallets.
When you follow the above criteria, choosing the right wallet for your needs should be a breeze. Once you do, you can now move to the next step.
How to Buy Bitcoins with PayPal
In November 2020, PayPal announced that its account holders would be able to buy and sell cryptos, including BTC in its platform. This followed its earlier announcement in October 2020 that it would roll out cryptocurrency trading through a partnership with Paxos Crypto Brokerage.
Buying Bitcoin with PayPal is quite easy. Below is a step by step process you should follow:
- Log in to your PayPal account. If you don’t have one, you can easily set it up with a bank account or credit card and a functional email address at PayPal.com.
- Now that you have your PayPal account set up, it’s time to buy your Bitcoin. To do this, go to the home screen, click the “Buy Bitcoin and more” banner located at the top of the page. If you are using the PayPal app, you will find this banner on the “Payments” screen.
- Next, you need to select the cryptocurrency you want to buy. Currently, the available options are Ethereum, Bitcoin Cash, Litecoin, and Bitcoin. In this case, choose Bitcoin.
- Choose a pre-set amount of Bitcoin to buy, or click “Buy” to choose a custom amount. The minimum you can buy is $1 worth of BTC. Below the purchase option, you will find a brief description of the cryptocurrency you want to purchase.
- Before you continue, you must confirm some information and agree to PayPal’s cryptocurrencies T&Cs.
- Once you do this, enter the amount you want to buy. Click “Next” to go to the next screen.
- The next screen will display the debit/credit card associated with your PayPal account. At this point, you can add another card or bank account you want to use.
- Hit “Next” to review your purchase. Review the fees you will pay for the amount of Bitcoin you want to buy and click “Buy Now.”
- Once the purchase is complete, your account will be updated to reflect the amount of Bitcoin purchased and its current value.
- Go back to the homepage, and you will see your Bitcoin Purchase under “Crypto.” Here, there is also an option to buy and sell.
PayPal’s transaction fees are fairly reasonable. Expect to pay 50 cents for all purchases under $25 and 1.5% of the transaction for purchases above $1,000.
How to Buy Bitcoins with Credit Card
One of the fastest ways to purchase Bitcoins instantly and have them in your portfolio within minutes is to use your credit card. You can use your credit card to buy assets regularly or a small amount at a time.
There are hundreds of places that give customers the best prices when they buy Bitcoin using credit cards. However, you don’t need any website you come across and expect to find the best deals. You need to consider reliability, security, simplicity, customer service, and costs.
Some of the most recommended sites to purchase Bitcoin using your credit card include Binance, Kraken, and Coinbase. These sites are compatible with multiple devices. Additionally, they are easy to use and make the start of your Bitcoin journey easier than other available options.
Once you identify a platform that meets your requirements, go ahead and sign up. Next, connect your exchange with your credit card. You can then use it to buy Bitcoins. Remember, you will be charged varying fees for deposits depending on the exchange you choose. For instance, Coinbase charges a 3.99% fee for credit cards. Ensure you research the fees associated with different exchanges so that you can choose one that works best for you.
How to Buy Bitcoin with Cash
Sometimes, Bitcoin enthusiasts want to buy Bitcoin with cash. Even though buying Bitcoin with cash might sound difficult for newbies, it is not difficult as long as you follow the right steps.
One of the easiest ways to buy BTC with cash is peer-to-peer, which means you find someone, maybe a friend, family member, or colleague to buy from. However, this demands a little bit of work than you would enjoy.
A convenient way to purchase Bitcoin with cash is at a Bitcoin ATM.
How to do this? Follow the steps below.
Find a Bitcoin ATM near you
There are over 7,000 Bitcoin ATMs around the world. There might be a few of them in your country; hence you may need to do some research and find out of there is one near where you reside.
If you have not seen a Bitcoin ATM before, you might be tempted to think that using it to buy BTC is highly complicated. Truthfully, doing this is fast and easy. To ensure a seamless experience, ensure you have a reliable wallet downloaded and backed up on your mobile device. This way, when you buy your assets, you will easily generate a Bitcoin wallet receiving address without worry.
Bitcoin machines are slightly different based on their location, but they basically follow the same procedure. The machine will ask you to verify yourself by entering your phone number so that you can receive a confirmation SMS.
Then, it will ask you where you want your BTC to be sent. At this point, enter your Bitcoin wallet address. If your wallet generates a QR code, the machine will scan it in a few seconds. Once you confirm that the QR code displayed on the machine is similar to that on your wallet, proceed and insert the cash you want to buy bitcoin with into the machine.
A Bitcoin ATM allows you to insert any amount of money as long as it meets the minimum and maximum amount allowed. On the screen, you will see the amount of BTC you are buying denominated in your local currency and the coin ticker amount. When you see this, complete the transaction. Just like the normal ATM, this machine will print out a receipt which will show the transaction details.
Once the transaction is complete, you will receive Bitcoin in your wallet in a few minutes. To find different things you can buy with Bitcoin click here.
How to Buy Bitcoin in an Exchange
Buying Cryptocurrency from an exchange is pretty straightforward. All you have to do is follow these steps. (Kindly note these steps may slightly differ depending on the exchange you are using).
- Visit a cryptocurrency exchange (ensure you visit the right website since there are many scammers who have built sites similar to major exchanges and they steal millions of bucks from unsuspecting individuals)
- Login to your account. If you don’t have one, follow the instructions provided and create a new account.
- Follow the instructions provided on the exchange’s website to purchase Bitcoin.
- Once you have purchased your assets, make sure you move them into your wallet to keep them more secure.
How to Use a Bitcoin ATM
Statistical reports that there are over 7,000 bitcoin ATMs across the globe. This means that the demand for these ATMs is continuously rising. But what is a Bitcoin ATM? Do you know how to use Bitcoin ATM? Well, a Bitcoin ATM, also known as BTM, is a kiosk that allows one to purchase Bitcoin using a debit card or cash. There are three types of Bitcoin ATMs:
- Those that convert BTC into fiat currency
- Those that you can buy Bitcoin from
- Rare ones that allow you to convert BTC into fiat currency and buy Bitcoins
These nifty machines make it easy to buy and sell BTC since they eliminate several steps in the process. Traditionally, it would have been difficult for people to spend their BTC on a day-to-day basis. This because in order to use it, they had to get into an exchange, sell their assets, withdraw the money into a bank account, and then wait for some time for the money to get to them so they can spend it. With the availability of Bitcoin ATMs, most of these steps are eliminated, and people can now spend their money faster.
How to use a Bitcoin ATM
On Bitcoin ATMs, the price of Bitcoin depends on the current exchange rate. Nonetheless, they charge a fee for their services. On average, the charges are 8-10%, which is quite high. Remember, fees differ; hence you need to read the machine’s instructions before using it.
When you withdraw from a Bitcoin ATM, Bitcoin is dispensed to your bitcoin wallet via a QR code, although there are some that generate a paper wallet. Modern machines require users to provide identification for KYC purposes; hence you need to carry a form of identification with you.
Buying BTC via a Bitcoin ATM varies. Generally, you need to select the option to buy BTC. Then, scan the QR code sent to your wallet using the ATM’s scanner. Enter the amount you want to buy, insert cash, and give the machine a few minutes to process the transaction. Once complete, check your wallet to confirm the sale.
The process of selling BTC using a Bitcoin ATM depends on the machine you are using and the system it runs on. Luckily, regardless of the machine you are using, simple instructions are displayed, and all you need to do is follow them, and you will complete the sale in no time.
Now that you have used these ways on how to buy Bitcoin, you are now a proud owner of the world’s most valuable cryptocurrency!
You have now joined the bandwagon of the brightest minds in a technology that is rapidly changing the financial landscape.
Enjoy your investment as you watch the prices rise and fall and ultimately achieve the success you desire. If you want to keep your Bitcoin assets safe and trade them with other crypto enthusiasts download Tezro app today and start using this fully encrypted messaging app.