The first cryptocurrency to be ever created was Bitcoin. In the Bitcoin whitepaper that was created in 2009, $BTC was described as electronic cash, a peer-to-peer version of cash. Due to the popularity of $BTC, when it comes to purchasing cryptocurrencies, $BTC is usually the first crypto that comes to the mind of investors.
However, people who are just beginning their journey into the world of cryptocurrencies may find it initially challenging to purchase Bitcoin as the concept of buying cryptocurrency may be strange to them. Most questions new investors asked when investing in $BTC is; “How to buy Bitcoin?” or “Where to buy Bitcoin?”. There are different answers to these questions, which can be either through an exchange, P2P platforms, or using a $BTC ATM. Well, this article will help to provide you with explanations of how one can use any of the listed ways to buy $BTC.
Buying Through Exchanges
Exchanges are usually centralized platforms that are created for multipurpose tasks such as; buying and selling cryptocurrencies, spot and futures trading, crypto news, etc. Examples are; Binance, Kucoin, Bybit, Okx, etc.
The greatest option for beginners appears to be exchanged. The greatest option for beginners when buying cryptocurrencies appears to be the use of exchanges. This is because there are easy to set up, affordable, and secure. Many of them provide a variety of payment methods so that buyers of Bitcoins can select between using fiat money and other cryptocurrencies. In the case of new investors, the ability to buy $BTC using fiat currency is extremely helpful since it streamlines the onboarding procedure.
One of the important things about using a crypto exchange to purchase $BTC is that it contained different payment ways such as; bank transfer, use of credit/debit cards, etc. As a result of these payment options, buying $BTC and other cryptocurrencies on this platform can be done without stress and convenience, especially for newbies.
The different cryptocurrency exchange has their own KYC (Know Your Customer) requirements and different regulations placed on anti-money laundry regulations. Most of these exchanges are user-friendly interfaces and easy onboarding processes for beginners.
Let’s consider the fundamental procedures you can follow to buy $BTC using Binance as an example. There is a fiat gateway option payment option to buy $BTC, $ETH, and USDT with major fiat currency.
- Log into your verified Binance account. Click on deposit on the homepage to make your purchase.
- Select the preferred currency from the drop-down menu and input the amount of $BTC that you want to buy.
- Select your preferred payment method which can be either cash deposit, use of Visa or debit card, or wire transfer.
- Confirm your transaction details by reviewing the amount of $BTC you intended to buy and await it to get into your crypto wallet. It is usually deposited in the funding wallet.
The procedures for buying $BTC using this method are very simple and don’t require any special technical knowledge or expertise to initiate the transaction of buying $BTC. Binance and other cryptocurrency exchanges such as kucoin, bybit, etc provide services like this.
Through Peer-To-Peer (P2P) Platforms
Most often, those who are new to cryptocurrencies begin their journeys on centralized exchanges that are merely intermediaries. However, you can also buy Bitcoin straight from other Bitcoin holders. Examples are; Binance P2P, Paxful, Kucoin P2P, etc.
The peculiar thing here is that you buy $BTC from an individual rather than a centralized exchange. The function of the centralized exchange is to link buyers and sellers. The initial stage of a P2P network involves creating and authenticating your account just like in centralized exchanges.
Users must look for offers on the P2P platform to choose a trading partner that offers the best price and have a good payment option. You just need to open a trade with the $BTC seller if a suitable alternative is located. Once the transaction is agreed upon, the buyer transfers the amount supposed to buy in fiat currency and the seller sends the $BTC to the buyer’s account. After that, the buyer receives unlocked $BTC. On P2P buying of $BTC, there is no intermediary during the transaction.
Using Of Bitcoin ATM
This kind of machine resembles that of a normal ATM but allows users to physically purchase $BTC using fiat currency. Some Bitcoin ATMs allow you to buy and sell $BTC for cash. This approach is particularly helpful for people who have a hard time adjusting to technological advancement and favor more conventional forms of payment. $BTC ATMs are another perk because of the speedy transactions, also there are no third parties in the process of the transaction and fraud is relatively low. Below are the steps involved in how to buy $BTC;
- Select your preferred language and click on the “start” button
- From the lists of coins listed out for you, select $BTC
- Enter the amount of $BTC you desired to buy
- Input your phone number and on your ATM input the code that will be sent to your phone number.
- If the ATM does not provide a $BTC address, enter your $BTC address. Be cautious in inputting the address to avoid mistakes.
- The $BTC will be deposited into your wallet address immediately when you insert your cash kept for the purchase into the ATM.
To easily identify the location of an ATM in your city, you can visit Coin ATM Radar.
If you don’t know where to start, buying your first $BTC and discovering an appropriate wallet could be difficult. The options discussed in this article ought to give the fundamental principles you need to get started. Well, you might encounter different options as your experience increases to eventually figure out what best suit your plan.