This guide will show you how to buy Bitcoin and where to buy Bitcoin. With a few simple steps in order, we’ll have your purchase of Bitcoin all done!
What is Bitcoin?
Bitcoin is a decentralized cryptocurrency originally described in a 2008 whitepaper by a person, or group of people, using the alias Satoshi Nakamoto. It was launched soon after, in January 2009.
Bitcoin is a peer-to-peer online currency, meaning that all transactions happen directly between equal, independent network participants, without the need for any intermediary to permit or facilitate them. Bitcoin was created, according to Nakamoto’s own words, to allow “online payments to be sent directly from one party to another without going through a financial institution.”
Some concepts for a similar type of decentralized electronic currency precede BTC, but Bitcoin holds the distinction of being the first-ever cryptocurrency to come into actual use.
How to Buy Bitcoin (BTC)
Step 1: Register on a Crypto Exchange Platform
The first step is to create an account on the most commonly used crypto exchange platforms provided below. It is recommended to sign up on both Coinbase and Binance so that you can pick the one that best suits your purpose. You will be walked through the process of registration, and verification of your identity. Once verified, the exchange platform allows you to buy, sell, swap, and store a variety of coins, usually either Bitcoin (BTC) or Ethereum (ETH).
Coinbase is one of the most trusted cryptocurrency exchanges that allow users to buy and sell cryptocurrencies. Coinbase users have surpassed 56 million users as of this writing, and it is the first crypto exchange to go public. You will receive a $10 bonus when you create an account for the first time and buy up to $100 worth of cryptocurrency.
To create a Coinbase account, you must be at least 18 years of age and have an email address. Click on “Sign Up” and fill in your information, make sure to sign up using a valid email and a strong password.
You will get a confirmation email to the address you provided with instructions on how to activate your account. Open it and click on the link provided to activate your account. You will be required to set up 2-step verification (2FA) to add an extra layer of protection for your funds and to help keep your account safe from bad actors.
The next step is to verify your identity using a government-issued ID. This means you’ll need to upload an official photo identification card such as a driving license or passport. This step is important because of the laws in place right now in the US, UK, and EU. However, the KYC process has been streamlined and automated. You can now complete the whole thing in under 15 minutes!
Binance is one of the major cryptocurrency exchanges that allow users to buy and sell cryptocurrencies. Many people use it to convert their fiat currency into crypto for investment purposes or because they want additional security for their digital coins.
To create a Binance account, you must be at least 18 years of age and have an email address. Click on “Register” and fill in your information, make sure to sign up using a valid email and a strong password.
You will get a confirmation email to the address you provided with instructions on how to activate your account. Open it and copy the activation code into the box provided. You will be required to secure your account with 2-factor authentication (2FA) to add an extra layer of protection for your funds from hackers.
The next step is to verify your identity using a government-issued ID. This means you’ll need to upload an official photo identification card such as a driving license or passport. This step is important because of the laws in place right now in the US, UK, and EU. However, the KYC process has been streamlined and automated. You can now complete the whole thing in under 15 minutes!
Step 2: Buy BTC/ETH using fiat currency
Once your KYC process has been completed, the next step is to load up your account with fiat using either a Credit/Debit card or via Bank Transfer. Depending on your country of residence you will be provided with the list of supported fiat currencies available to you. Type the name of your fiat currency in the search bar or scroll through the list to select your local fiat currency. Enter the amount of fiat money you would like to spend, select which cryptocurrency will be used for this transaction, in this case, we will be selecting BTC/ETH then choose to add a new card or use an existing card in your account for payment and tap “Buy”.
When everything looks good just confirm at the bottom of the screen and make sure all charges have gone through properly before closing the page. Congratulations, your transaction is complete and you’ve just made your first crypto purchase. Go ahead, share the excitement with your friends on Twitter below.
Step 3: Register on an Altcoin Exchange
This step is required because BTC is not available on major exchanges. You will need to
register on an altcoin exchange that allows you to trade these altcoins (alternative coins). There are several altcoin exchanges where you can buy BTC.
The same process as above is required to create an account on any of these altcoin exchanges however, you do not need to go through the stage of KYC. This stage can not be skipped until you are ready to withdraw your BTC for fiat. Choose from any of the listed exchanges below to get started.
Apart from the altcoin exchanges above, there are several other exchanges that you can
signup on to buy and trade Bitcoin. These exchanges are ranked among the top 10 exchanges according to the Coingecko website. They have millions of users and process billions of transactions per day. It is advisable to have an account on each of these exchanges so that you can have the opportunity to trade your Bitcoin when it eventually gets listed on them.
Kucoin
Kucoin boasts itself to be the top exchange platform in globalization deployment. As of the time of writing it has accumulated a total number of 750 million trades worldwide and processed a total of 370 billion accumulated transaction volume in USD. It is a place for safe and rapid Bitcoin purchases providing multiple order types for all kinds of risk appetites and every new user can claim a welcome gift on signup.
Gate.io
Gate.io protects your funds with both centralized and decentralized methods. It is also the first exchange to invest millions in security and law funds to add extra protection for your assets. As an established exchange with cutting-edge technology, Gate.io offers an efficient and convenient trading system as well as an instant deposit and withdrawal service. For 8 years, Gate.io has been operating stably and reliably. With their constant exploration of innovative technologies, they strive to offer you the best trading experience. As one of the earliest and largest cryptocurrency exchanges, Gate.io always complies strictly with regulations and has never allowed for market manipulation. They are continuously committed to being open, transparent, and cooperative. The majority of the altcoins that exist today can be found on their platform.
Step 4: Deposit BTC/ETH to Altcoin Exchange
After registering an account, you will then proceed to send the BTC/ETH you earlier bought from the major crypto exchange to the new altcoin exchange. Go to your wallet and click on “Deposit”, select either BTC or ETH depending on which one you bought earlier. You will be given a deposit address. Copy this address to the clipboard and go back to your major exchange account that holds your BTC/ETH.
On your major exchange wallet, choose BTC or ETH and click on “Withdraw”. You will have to paste the address you copied initially and enter the amount you want to withdraw. Make sure you cross-check the address to be sure it is the correct one as cryptocurrencies sent to the wrong address cannot be retrieved once sent. Wait for a minimum of 30 minutes for the transaction to complete on the blockchain. If everything goes on smoothly, you should now see your BTC/ETH in your altcoin exchange wallet.
Step 5: Swap BTC/ETH for Bitcoin
The final step is to swap the BTC/ETH you deposited from Step 4 above for Bitcoin. You will have the equivalent amount of Bitcoin in your wallet after the swap has taken place. From your altcoin account, go to your wallet and search for Bitcoin, it will be listed against BTC/ETH trading pairs. Choose the one that best suits your purpose, enter the amount you wish to buy, and click on “Buy BTC”. Congratulations you are now a proud hodler of Bitcoin. You can therefore now choose to store it in a hardware wallet in other to prevent hackers from stealing your coins.
Store Bitcoin securely in hardware wallets
If you plan to hold Bitcoin for a long time, it is advisable to store your coins outside any crypto exchange and into a hardware wallet. The Ledger Nano S and X are hardware wallets that provide the highest level of security for different cryptocurrencies. The devices keep private keys separate from any computer or phone, so your funds can’t be hacked or stolen by malware. They also have a screen to easily confirm transactions on their apps, which is great if you’re not very familiar with cryptocurrency technology.
If you want to take full advantage of all the security features offered by these devices, it’s important to set up two-factor authentication (2FA). This provides even more protection against hackers because they would need 2FA codes in addition to physical access to your device to get into your account.
Key Features of The Ledger Nano S and Ledger Nano X
- Ledgers are easy to use, with a screen for confirming transactions on their apps. It’s also
possible to set up two-factor authentication (or “two-factor verification”), which is great if you’re not very familiar with cryptocurrency technology because then they would need your code in addition to physical access to the device. This is a great technology to use if you want to be sure that no one can access your account without your permission.
- Ledgers have a screen, which is very convenient because you don’t need an external computer or mobile phone to confirm transactions on their apps. It should also be mentioned that cryptocurrencies stored on the Ledger devices are held offline and can’t be hacked. This is important because it’s so easy to hack an online account nowadays, so Ledgers offer a much higher level of security than many other storage methods.
- The apps for the Ledger Nano X show you everything in real-time with clear prices and charts, which make them great for monitoring your crypto assets.
- The Ledger Nano S is a more affordable option, but it has the same security.
- One downside of both devices is that they are not as easy to use for newcomers because it takes some time before you get used to them and start using them without an instruction manual. This can be frustrating if you’re in a rush.
Recommended tools for trading Bitcoin
Celsius
Celsius is the first and only platform that rewards you for your crypto, lets you borrow cash on interest (at the lowest rates), and gives you up to 17% yield on your savings. It is a decentralized lending platform that allows users to earn interest on their crypto assets and combines some of your favorite things: an app, financial products everyone needs – like earning interest- and rewards for saving! And the best part: all of this is based on blockchain technology.
When you deposit your crypto assets on Celsius, the platform issues you a crypto asset-backed loan in USD. The money from this loan gets deposited into your bank account and can be cashed out via an ATM. New users get a $40 bonus on their first $400 deposit in crypto assets.
Frequently Asked Questions
How do I buy Bitcoin with cash?
Can I earn free BTC online?
Yes. There are a number of ways you can earn crypto online including BTC from earning interest with Celsius to getting cashback for spending your crypto using a Blockfi rewards credit card.