How to Buy Bitcoin

Learn all about how to buy bitcoin with this handy and informative guide, including where to start, what is involved and hints and tips on how to be effective.

Key Steps Before Buying Bitcoin

For any investor who is planning to buy bitcoin, there are several key steps that must be followed to ensure maximum privacy, safety, and efficiency.

Select an Exchange

The first step involves signing up for a cryptocurrency exchange, which allows you to buy, sell and hold various cryptocurrencies. There are many different exchanges currently available on the market, so it is important that you take care to do proper research into all the details before deciding on a product to go with. Exchanges that give users the option to withdraw cryptocurrency into their own wallet are considered to have the edge over those that do not offer such a feature. Indeed, many exchanges do not include this option, so check over the finer print and establish what your personal priorities are. When choosing an exchange, it is advisable to use safe internet practices, particularly a two-factor authentication setup. Meanwhile, using a strong and unique password that includes lowercase and capitalised letters, special characters, and numbers is also highly recommended.

Add a Payment Option

Once you have decided on an exchange, the next step is connecting your account to a payment option. For this, you may need proof of identity documents, such as a driving licence, social insurance number or proof of funds or income. It is a similar process to what would be required if you were setting up an account with a brokerage. Once you have successfully passed the security checks, you will then need to connect either your bank account, credit, or debit card directly to the exchange. Prior to doing this, you may wish to check with your bank that it allows deposits into a cryptocurrency exchange, as some do not. Moreover, it is important to note that there may be processing fees for deposits via a bank account, credit, or debit card. Therefore, as mentioned previously, it is best to do your research and check the potential fees involved.

Available Exchanges

There are plenty of choices for investors when it comes to deciding on an exchange to go with. Popular options include: Coinbase, CashApp and Binance.

Store your Bitcoin Safely

Once you have purchased your bitcoin, it is extremely important that you store it safely and securely. To avoid the risk of being exposed to hackers and potentially losing your funds, bitcoin wallets are a useful place to store your digital assets. There is a wide range of market options when it comes to bitcoin wallets, with many different features being offered to users. For example, some are only compatible with bitcoin, while others can store numerous other types of cryptocurrencies, such as altcoins.

There are two main types of wallets available: hot wallets and cold wallets. Hot wallets are online wallets that function and operate on devices connected to the internet, such as a phone, tablet, or computer. In simple terms, a cold wallet is not connected to the internet and operates primarily offline. This feature can give cold wallets an advantage over hot wallets, as it means there is a much lower risk of the stored cryptocurrency being compromised.

Bitcoin
Wallets

These are different to bitcoin exchanges, as wallets are simply a way of storing digital currency, whereas exchanges are where bitcoins can be bought and sold.

Exchange Operation

A bitcoin exchange works in a very similar way to a brokerage, meaning you can deposit funds via traditional methods, including bank wire or transfer, as well as various other payment methods.

Wallet
Updates

Remember to ensure the security of your bitcoin amount by keeping your online and offline wallets up to date with the latest software.

Broaden your knowledge of bitcoin

At Bitcoin harvest ltd we have a wealth of informative material on all you need to know about cryptocurrency!