How to Buy Bitcoin – A Beginner’s Step-by-Step Guide

Don’t know how to buy Bitcoin? You’ve come to the right place!

Whether you’re a first-time buyer or a seasoned crypto investor, we’ll cover the basics and beyond. We’ll discuss various platforms, the benefits of buying Bitcoin and if or when you should buy it.

How to Buy Bitcoin in 4 Steps!

Let’s look at how you can buy Bitcoin in the US in less than 10 minutes. For this tutorial, we’ll use Coinbase – a regulated broker that supports low-cost Bitcoin purchases.

Where to Buy Bitcoin – Best Platforms

When deciding where to buy Bitcoin today, consider the crypto platforms reviewed below. 

1. Coinbase – Good Place to Buy Bitcoin as a Beginner      

Coinbase is beginner-friendly and one of the best exchanges open to the US. With its clean and jargon-free interface, Coinbase allows you to easily open an account. Once you are verified, you can then transfer funds via ACH for free. 

Then, when the money is credited to your Coinbase account, you can proceed to buy Bitcoin at a commission of 1.49%. Although this is deemed expensive, Coinbase charges even more when you buy Bitcoin with a debit/credit card – with the commission amounting to almost 4%. This option does, however, allow you to buy Bitcoin instantly. Should you wish to diversify, other digital currency markets are available on Coinbase. This means you can gain exposure to the most undervalued cryptos on the market from the comfort of your own home.   

Coinbase is also a good option for storing your Bitcoin tokens. The platform requires all users to pass a two-step verification process in order to log in. Moreover, 98% of all client funds are kept in cold wallets – and attempting to log in from a new device or IP address requires an extra verification step. 

Additionally, Coinbase supports a wide range of digital assets which means you can buy Ethereum, Dogecoin and other popular altcoins from your smartphone device.

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

2. Kraken – Safe Cryptocurrency Exchange to Buy Bitcoin via a Bank Wire 

The next platform to consider when thinking about where to buy Bitcoin is Kraken. This online exchange was first launched in 2013 – which makes it one of the most established platforms in this industry. US clients can open an account in minutes and then deposit funds via a domestic bank wire. ACH is only supported for withdrawals. The minimum deposit to get started at Kraken depends on the financial institution that you bank with.   

For instance, payments sent from MVB Bank require just $1 while at Etana Custody, the minimum is $150. Nevertheless, once your bank wire arrives in your Kraken account – which usually takes 0-1 business days, you can buy Bitcoin at a commission of just 0.26%. If you trade large amounts, your commission will be reduced. In addition to Bitcoin, Kraken supports more than 220 other digital currencies.

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

3. Binance – Popular Bitcoin Exchange Offering 60 Markets  

Binance is a cryptocurrency exchange that was launched in 2017. The platform is used by more than 100+ million people and it facilitates billions of dollars worth of trading volume every day. When it comes to buying Bitcoin here, Binance supports US debit/credit card deposits. You will be charged a rather pricey fee, however, at 4.5% of the transaction amount. 

And, when you proceed to buy Bitcoin with your deposited funds, you will be charged an instant buy fee of 0.5%. On the other hand, spot trading commissions on the main Binance exchange amount to just 0.10%. This is very competitive, so Binance could be a good option if you find yourself trading crypto-to-crypto pairs. 

When it comes to supported markets, the US version of Binance offers 60+ markets. This covers a relatively broad selection of digital tokens – covering both large and mid-cap projects. For seasoned investors, Binance offers over-the-counter services as well as an advanced trading platform with enhanced tools and analysis features. 

As one of the largest crypto exchanges across the board, did you know that you can buy Celo and other popular new crypto coins including Terra Luna with some of the industry’s lowest transaction fee rates when compared to the likes of Coinbase and Kraken? For more details read our Binance review today.

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

4. Paybis – Buy Bitcoin Using a Credit Card or Debit Card

Launched in 2016, Paybis has taken the Bitcoin trading world by storm by providing a combination of an intuitive interface and a convenient trading platform that lets users buy Bitcoin using credit cards and debit ones. Featuring inclusive features such as a low fee rate, and the added advantage of no fee on the first transaction, Paybis is suitable for beginners and veterans alike.

Other notable features of this platform include high-security standards, fast security checks, and instant payouts – which is a plus given the current market circumstances.

The platform is licensed and compatible with the regulations of the EU and the USA, which makes it accessible in more than 180 countries and 48 US states. Additionally, the platform supports more than 150 cryptocurrencies and fiat currencies. These factors have contributed to Paybis processing more than $2 billion in trading volume.

In addition to these features, Paybis also gives users access to utilities such as Crypto Calculator and Crypto Price charts – making it easy for users to pick the cryptocurrencies they want to invest in. Paybis also features a crypto wallet that lets users buy, sell and store crypto. The wallet has a host of security features, such as two-factor authentication and underground facilities like 3-layer protection to secure crypto assets.

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

5. Webull – Buy Bitcoin From Just $1  

Webull was designed for US-based investors to trade stocks, ETFs, options, and cryptocurrencies in a simple and user-friendly manner. Whether you decide to trade online or via the Webull crypto trading app, accounts can be opened in a matter of minutes. You will need to transfer funds via ACH or a bank wire before you can buy Bitcoin – as debit/credit cards or e-wallets are not supported.   

In terms of fees, Webull does not charge traditional trading commissions. But, spreads of 1% or more will need to be factored in. Nevertheless, perhaps the stand-out feature of Webull is that it allows you to invest from just $1 when buying Bitcoin. This is also the case with other cryptocurrencies available at Webull.  

Furthermore, when you open an account here, you can get started without needing to meet a minimum deposit. Webull is also a good option if you’re looking to invest money for your retirement, as several IRAs are supported. Finally – and providing you meet the standard $2,000 minimum balance requirement, Webull allows you to trade on margin.   

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

Should I Buy Bitcoin Now?

Bitcoin is often widely considered to be the best cryptocurrency to invest in. However, If you’re wondering whether to buy Bitcoin right now – your investment decision should be based on independent research. 

You need to consider that Bitcoin is extremely volatile, so you are likely to experience rapid pricing swings. The best way to counter this is to engage with a buy-and-hold strategy, which means that you will keep hold of your BTC tokens in the long run. In doing so, you can ride out the volatile waves that the cryptocurrency markets regularly encounter.  

Benefits of Buying Bitcoin

Before you learn the ropes of how to buy Bitcoin, you should consider whether or not this asset class is right for your portfolio goals. 

In the sections below, we discuss five key reasons why so many investors in the US and further afield are looking to gain exposure to Bitcoin.     

Huge Growth Since 2009

If you’re looking to buy Bitcoin today, then you are likely doing so because you hope to make significant returns on your investment. This is something that Bitcoin has achieved since it was launched in 2009. 

During its first few years, for instance, Bitcoin could be purchased at less than a dollar per token. Even in early 2017, this digital currency was trading at just $1,000. 

This means that had you invested in 2017 and held on until Bitcoin hit its all-time high of $69,000 in 2021, your money would have been worth almost 7,000% more.     

Limited Supply

All global currencies – whether it’s the US dollar, euro, or British pound, experience inflation. This is largely because of central bank monetary and fiscal policies, which result in so-called money printing. 

However, in the case of Bitcoin, its supply cannot be manipulated by any single person or authority. On the contrary, new Bitcoin is minted automatically every 10 minutes. 

This will continue to be the case until approximately 2140 – when the total supply will be capped to 21 million tokens. From an investment perspective, this means that you are purchasing an asset that in many ways, is not too dissimilar to gold. 

After all, both Bitcoin and gold have a fixed supply, and thus – they are both referred to as stores of value by many market commentators. 

Fast and Decentralized Transactions 

Although Bitcoin isn’t the most efficient blockchain network, cross-border transactions are still a lot faster than traditional payment methods. For instance, no matter where the sender and receiver are located, Bitcoin transactions take just 10 minutes to arrive. 

Moreover, fees typically amount to less than $5 per transaction. This is the case regardless of how much is being sent. 

Another major benefit of sending and receiving transactions via the Bitcoin network is that the system is entirely decentralized. Once again, this means that no person, authority, central bank, or government can control the network. 

Small Unit Purchases 

Another core benefit of buying Bitcoin is that the digital currency can be fractionalized. This means that you can buy just a small fraction of one Bitcoin unit. 

For example, if Bitcoin was priced at $40,000 and you decided to invest $40 – you would be purchasing 0.1% of one token. 

This is ideal for those looking to gain exposure to Bitcoin for the first time without risking large sums of money. This allows you to engage in a dollar-cost averaging strategy. 

Earn Interest

More and more platforms now offer crypto accounts for a wide variety of coins, including Bitcoin, allowing you to earn passively from your cryptos. If you’re looking for the best Bitcoin interest account, the crypto interest platform Aqru offers a variable interest rate on BTC deposits.

Methods of Buying Bitcoin

Once you have researched Bitcoin from top to bottom and made the decision to proceed with an investment, you then need to think about which payment method to opt for. 

Here are the best ways to buy Bitcoin in the US:

Buying Bitcoin With Paypal 

A selection of online brokers allow you to buy Bitcoin with Paypal. However, as Paypal has since entered the cryptocurrency market itself, you won’t have many platforms to choose from. 

Buy Bitcoin With Credit Card or Debit Card 

Some of the best cryptocurrency exchanges and brokers allow you to buy Bitcoin instantly with a credit/debit card. 

Although this is perhaps the most convenient payment method to choose from, credit/debit card transactions are known to be expensive. 

For example, we mentioned earlier that Coinbase and Binance charge 3.99% and 4.5% on credit/debit card payments. 

What is the Best Way to Buy Bitcoin?  

Regulated Brokers

It goes without saying that the safest way to buy Bitcoin online is through a regulated online broker. 

If you’re from the US, then your chosen Bitcoin broker should hold a license with the SEC and be a member of FINRA. 

When using a regulated broker, you won’t be able to buy Bitcoin anonymously. This is because the broker in question will need to comply with anti-money laundering regulations by verifying your identity. 

This can be achieved easily by uploading a copy of your government-issued ID. 

Use Crypto Signals

Ever wondered how to buy BTC using crypto signals? Crypto signals are trading ideas sent out by advanced crypto investors that tell you whether you should buy or sell a specific crypto at a specific price and time.

The best crypto signals are based on a variety of metrics, such as trending news, technical and fundamental analysis, bullish and bearish markets, and investor sentiment.

Bitcoin Exchange   

The vast majority of Bitcoin platforms operate as a cryptocurrency exchange. In simple terms, this means that the exchange in question operates as a middleman between buyers and sellers. 

For example, let’s suppose that you want to buy Bitcoin with US dollars. For this transaction to occur at a cryptocurrency exchange, a user would need to sell their BTC tokens to you in exchange for USD.   

In turn, your chosen Bitcoin exchange would charge a commission once the trade has been executed. The key problem with Bitcoin exchanges is that many platforms are unregulated.

While this might appeal to those seeking to buy Bitcoin in an anonymous manner, you can never be quite sure that your money and digital tokens are safe. 

Moreover, unregulated Bitcoin exchanges will often only allow you to deposit funds in cryptocurrency – meaning that you won’t be able to use a debit/credit card or perform a bank transfer.

Decentralized Exchange (DEX)    

Although the vast majority of Bitcoin trading goes through centralized exchanges and brokers, it is also worth making reference to the rise of decentralized exchanges (DEXs). In a nutshell, these platforms allow you to buy Bitcoin directly from a seller without going through a third party. 

The key issue with decentralized exchanges is that they are not regulated. Moreover, trading volumes at DEXs are still very low in comparison to traditional exchanges and brokers. As such, this means that liquidity levels are often insufficient to facilitate trades.    

When to Buy Bitcoin 

Still wondering if it’s too late to buy Bitcoin ? Well rather than attempting to time the market, it’s best to consider dollar-cost averaging your investments. 

In its most basic form, this means committing to an investment schedule of regular, smaller purchases. For example, you might consider buying $300 worth of Bitcoin at the end of each month. Or, $75 worth of Bitcoin every week. 

Here’s a quick example to help clear the mist:

• In month 1, you buy $300 worth of Bitcoin at a token price of $40,000
• In month 2, you buy $300 worth of Bitcoin at a token price of $50,000
• In month 3, you buy $300 worth of Bitcoin at a token price of $30,000
• In month 4, you buy $300 worth of Bitcoin at a token price of $30,000

Across your four monthly investments of $300, you now have an average purchase price of $37,500. The good thing about dollar-cost averaging is that you are following the broader market sentiment over the course of time. 

That is, when Bitcoin goes through a downward trend, you will be reducing the average cost of your investment portfolio through cheaper purchases. On the other hand, when Bitcoin is going through an upward trend, you will be investing when prices are on the rise. 

Buying the BTC Dip

Buying BTC through the dip is the way that some investors look to time the market.

More specifically, you might consider buying Bitcoin during a downward trend with the view of paying a lower cost price. 

However – and much like in the traditional stock markets, history suggests that dollar-cost averaging is a lot more effective from a profit perspective than that of constantly buying the dip. 

This is because when Bitcoin goes through a prolonged upward trend, you are potentially missing out. After all, you likely will not make another purchase until the price drops again. 

Things to Consider When Buying Bitcoin

There are many things you should be wary of when buying cryptocurrency. We’ll look at four of the most important factors.

Be Wary of Fees 

In order to buy Bitcoin in the US safely, you need to have a firm understanding of what fees you are paying. This is because some methods of buying Bitcoin can be costly. 

The most important fees to look for include:

• Commission: This is the fee charged by brokers and exchanges when you both buy and sell Bitcoin. This is usually a percentage 
• Spread: This is the most difficult fee to assess, and it considers the mark-up between the buy and sell price offered by your chosen platform.
• Debit/Credit Cards: If you decide to buy Bitcoin with a debit/credit card, then expect to pay between 3-5% with your chosen broker.  

Another thing to know is that you should avoid cryptocurrency ATMs – of which there are many thousands scattered across the US. This is because on average, you will be charged between 10-20%. 

Moreover, this fee often isn’t advertised. Instead, the fee is quoted in terms of the total amount of BTC that you will get. 

For example, if the actual market price is $40,000 and the Bitcoin ATM charges a 20% fee, you are effectively paying $48,000 per token. And as such, you would need Bitcoin to increase by 20% just to break even. 

Storage  

Once you have completed your Bitcoin purchase, you then need to decide how you intend on storing your tokens. In many cases, other than the odd exception – such as Coinmama, you will have the option of leaving your BTC tokens on the platform that you made the purchase from. 

This can be a safe and convenient option if you are using a regulated and trusted broker like Coinbase. However, if you leave your tokens on an unlicensed platform, then you are putting your funds at risk. 

For instance, in 2021 alone, it was estimated that over $4 billion worth of digital assets were stolen from both centralized and decentralized exchanges. 

Bitcoin Wallet Security   

Although keeping your Bitcoin tokens at a regulated broker like Coinbase is perhaps the best storage option, some of you might prefer to retain 100% control over your digital assets. If this is the case, then you might look to withdraw your tokens to a private crypto wallet. 

Regardless of which wallet type you opt for (mobile, desktop, etc.), you will need to ensure that you follow a set of safety protocols. This includes creating a strong password/PIN and ensuring that you keep your private keys written down on a piece of paper somewhere safe. 

Keep Stakes Sensible    

Another tip to ensure you buy Bitcoin safely is to be sensible with your investment stakes. Put simply this means never investing more than you can afford to lose. 

In order to do this, you will need to use a broker that supports small minimum deposits and low investments.

How to Buy Bitcoin Online – Tutorial    

Here is a step-by-step process of buying bitcoin on Coinbase:  

Step 1: Open an Account 

First, you need to register an account with Coinbase. This requires entering some basic information about who you are – such as your name, date of birth, and nationality.

You also need to enter and verify your email address and cell phone number.

Step 2: Upload ID 

Once again, in using a regulated online broker like Coinbase, you will have access to deposits and withdrawals in US dollars. 

However, this also means that you need to upload a copy of your government-issued ID. Once you upload a clear copy of your document, Coinbase should be able to verify it straightaway.    

Step 3: Deposit Funds 

You can now make a deposit into your Coinbase account – with the broker supporting plenty of payment methods. This includes everything from debit/credit cards and ACH to Paypal and bank wires.

Step 4: Search for BTC 

In the search bar – which is located at the top of the screen, enter ‘BTC.’ When you see Bitcoin appear below the search bar, which in the image above, you can click on the ‘Trade’ button.  

Step 5: Buy Bitcoin 

And finally, you will now need to place a buy order so that Coinbase knows you wish to invest in Bitcoin. For this part of the process, you simply need to specify your total stake.

Can You Buy Bitcoin Without ID?    

We mentioned earlier that by using a regulated broker to buy Bitcoin online, you will need to go through an identity verification process by uploading a copy of your government-issued ID.  

This is also the case with unregulated exchanges that accept deposits in the form of US dollars. With that said, many cryptocurrency exchanges allow you to trade anonymously. The only caveat here is that you will need to deposit funds with cryptocurrency. 

This means that in order to buy Bitcoin with no verification documents, you would need to fund your account with another digital asset like Ethereum. Then, you would need to swap your ETH tokens for BTC.  

A Bitcoin Contender

Bitcoin ETF Token – ERC-20 Token Offers High Staking Yields, Can Be a Potential Alternative to Bitcoin 

While Bitcoin has emerged as the largest cryptocurrency in the last 15 years, we believe that Bitcoin ETF Token ($BTCETF) could be a potential alternative to the asset. 

This ERC-20 token has just been launched on presale and has raised more than $220K in a few days. The growth potential could make it a more valuable investment than Bitcoin. Furthermore, unlike Bitcoin, the Bitcoin ETF Token provides passive income through its staking mechanism. 

From a total supply of 2.1 billion tokens – 25% will be allocated through staking rewards. These rewards will be paid out as Bitcoin ETF Token meets 5 milestones. Most of these milestones are linked with the pending approval of a Bitcoin ETF (Exchange-Traded Fund). 

As each milestone is approved, Bitcoin ETF Token will offer staking rewards and will burn 5% of its token supply. The milestones include: 

• The approval of the first Bitcoin ETF 
• The first Bitcoin ETF gets released
• Bitcoin ETF crosses $1 billion in assets under management
• $BTC reaches a price of $100K per token
• $BTCETF reaches a $100 million market cap 

Thus, 25% of the token supply will be burned as each of these milestones are achieved. Currently, Bitcoin ETF Token is allocating 40% of its 2.1 billion token supply through the presale. At press time, $BTCETF is priced at $0.005 per token. By the tenth and final round, the price will increase by 36% to $0.0068 per token. 

While purchasing $BTCETF, investors can click the ‘Buy and Stake’ option on the presale website to directly stake their holdings. Stay tuned for more project updates by going through the Bitcoin ETF Token whitepaper and joining the Telegram channel. 

Conclusion  

As we wrap up our article on how to buy Bitcoin, we hope it’s clear now that while there are various ways to make your purchase, the key is finding what suits you best. It’s important to choose a method that not only feels secure but also one you’re comfortable using. Whether you’re a beginner or an experienced buyer, always prioritize safety and clarity.

And, of course, we have also walked you through the process of how to buy Bitcoin via regulated broker Coinbase in a super-safe and secure way. At Coinbase, you can use a debit/credit card, e-wallet bank transfer to pay for your BTC investment.

Crypto assets are a highly volatile unregulated investment product. No UK or EU investor protection.

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