How to Buy Bitcoin: A Step-by-Step Guide

Living on the internet, not controlled by any government, and money can be sent anywhere in seconds! Such is the power of Bitcoin, which sparked a financial revolution and continues to shake things up. But have you ever wondered How to Buy Bitcoin?

It can feel like stepping into a digital gold rush, wild and full of potential. But don’t worry, you don’t need to be a tech enthusiast or Wall Street pro to join the ride. This blog will help you buy Bitcoin confidently and clearly, outlining every step, from choosing a trading platform to safe storage for your Bitcoin. So read on and dive into the future of money!

Table of Contents

1) What is Bitcoin?

2) How to Buy Bitcoin in 4 Easy Steps?

3) Buying Bitcoin with a Credit Card

4) Where to Purchase Bitcoin (BTC)

5) Different Ways to Buy Bitcoin

6) Bitcoin Buying Strategies

7) How to Purchase Cryptocurrency Onchain via Crypto.com Pay

8) Conclusion

What is Bitcoin?

Bitcoin is a widely popular decentralised digital currency, often described as Cryptocurrency. It functions on a peer-to-peer network called the blockchain, which is a public distributed ledger for recording every transaction. Bitcoin transactions are verified by network nodes through Cryptography and recorded in the blockchain. Bitcoin's use cases include online purchases, international money transfers, and a store of value.

How to Buy Bitcoin in 4 Easy Steps?

If you are planning to buy Bitcoin, you’ll need to choose a Crypto exchange platform, go through the payment and Bitcoin purchase method, and ensure its safe storage. Let’s explore these steps in detail.

Choose a Crypto Exchange or Trading Platform

a) When picking exchanges, you must consider their diverse features, extensive Cryptocurrency listings, and convenience in buying, selling, and holding Crypto.

b) You must understand that Crypto exchanges can be centralised or decentralised.

c) Decentralised exchanges allow users to stay pseudo-anonymous and usually don't require personal details.

d) They are particularly beneficial for populations like refugees or individuals in countries lacking traditional banking infrastructure.

Connect a Payment Method

a) You must be prepared for identification processes similar to those of brokerage accounts.

b) You may need to provide ID verification (driver’s license, Social Security card) and financial details.

c) Link your exchange account directly to your bank, debit cards or credit cards.

d) Be cautious with credit card purchases because volatility with Cryptocurrency and high-interest charges could increase the purchase cost.

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Purchase Bitcoin

a) Always use Crypto exchanges that now mirror traditional brokerage platforms. They offer a variety of trading features and order types.

b) Most exchanges provide market and limit orders

c) Advanced platforms like Kraken include additional order types:

i) Stop-loss

ii) Stop-limit

iii) Take-profit

iv) Take-profit limit

v) Exchanges also provide paths to set up recurring investments.

Store Your Bitcoin Securely

a) You must store Cryptocurrency keys securely using Crypto wallets.

b) Prioritise cold wallets (non-internet-connected storage) to maintain direct control and improve security.

c) Although exchanges offer wallets, avoiding them for substantial or long-term holdings is advisable due to security concerns.

Buying Bitcoin with a Credit Card

Buying Bitcoin through a credit card is akin to using debit cards or bank transfer. But not all exchanges accept credit cards because of high processing fees and fraud risks. Extra charges can apply when using a credit card. You might pay additional processing fees from the exchange along with regular blockchain fees. Also, credit card companies usually treat Bitcoin purchases like cash advances, leading to high costs and interest rates.

Where to Purchase Bitcoin (BTC)?

Those interested in buying Bitcoin have many options to pick from when it comes to taking the first step. Consider the following options for yourself

Crypto Brokerages

Crypto brokerages simplify buying and selling Bitcoin by acting as intermediaries between you and the market. They're user-friendly and ideal for beginners but may charge higher fees than exchanges.

Centralised Exchanges (CEXs)

Centralised exchanges are managed by companies that facilitate Bitcoin trading. They offer fast transactions, customer support and advanced features but require user verification and control of your Crypto custody.

Decentralised Exchanges (DEXs)

Decentralised exchanges allow users to trade Bitcoin directly without any intermediaries. They offer better privacy and control over your funds. However, it may have limited features and require more technical knowledge to use safely.

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Different Ways to Buy Bitcoin

Now that we’ve covered the basics of buying Bitcoin, it’s time to dive deeper. Let’s explore the different methods and steps involved in the buying process more thoroughly.

Using the Bitcoin.com Wallet App

The Bitcoin.com Wallet app is self-custodial. This means you're always completely controlling your Bitcoin and other Cryptocurrencies. Here's the process for buying Bitcoin using the wallet app:

a) Go to the Bitcoin.com Wallet app on your device.

b) Select Bitcoin (BTC) and tap on the "Buy" button.

c) Follow the on-screen instructions to opt for your preferred wallet for depositing. The Bitcoin.com Wallet consists of separate wallets for each digital asset we support (e.g., BTC, BCH, etc.).

d) You can make as many individual wallets as you want.

e) You may be asked to verify your identity if this is your first purchase.

f) Once complete, your purchase will proceed.

Purchasing from the Bitcoin.com Website

You can purchase Bitcoin on the Bitcoin.com website using a credit/debit card or payment services like Apple Pay and Google Pay. When buying, you must provide a Bitcoin address to receive your coins. Here’s how to do it:

a) Go to the "Buy Bitcoin" page.

b) Select Bitcoin (BTC) as your Cryptocurrency.

c) Choose your preferred currency (like USD) and enter the amount you want to spend.

d) Click the "Buy" button to proceed.

e) Input your Bitcoin wallet address, which is where your purchased Bitcoin will be sent. You can send it directly to your Bitcoin.com Wallet, for example.

f) Finalise your purchase by entering the payment information and confirming the transaction.

Buying Through a Centralised Cryptocurrency Exchange

When you buy Bitcoin on an exchange, it’s held there by default. To fully control it, transfer it to a self-custodial wallet like the Bitcoin.com Wallet. Note that withdrawal delays and fees may apply. Here are the steps:

a) Sign up on the chosen exchange by entering the required details.

b) Verify your account by uploading the identification documents.

c) Add the funds to your account using a bank transfer or debit/credit card.

d) Submit a buy order for Bitcoin by selecting your preferred amount and price.

e) Once the order is completed, the Bitcoin will appear in your exchange wallet.

Using a Peer-to-Peer Trading Platform

Most peer-to-peer (P2P) Bitcoin exchanges feature a reputation system that tracks and displays users' trading histories. When buying on a P2P exchange, it's advisable to select sellers with strong reputations. You can follow the following steps:

a) Browse listings based on payment method, amount, seller’s location, and reputation.

b) Start a trade, which places the seller’s Bitcoin in escrow for security.

c) Pay the agreed amount using the chosen method, this could even involve meeting the seller and paying in cash.

d) Once the seller confirms receiving your payment, the Bitcoin is released from escrow to your wallet.

e) Sometimes, the Bitcoin goes directly to your personal wallet. Other times, it’s first sent to your P2P platform wallet (usually a custodial web wallet), and you’ll need to transfer it to a wallet you control. This final transfer may come with a fee, which is how most P2P platforms make money.

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Bitcoin Buying Strategies

There are many strategies on how and when to buy Bitcoin. Let's explore the two most important ones

Buying at the Best Price

a) Traders use this strategy to buy Bitcoin at its lowest price by timing the market.

b) Many Crypto platforms provide automated tools, so users don’t need to monitor prices constantly.

c) This is especially useful since Cryptocurrency markets operate 24/7.

d) Bitcoin can be automatically bought or sold when market conditions match the set price. This helps traders enjoy profit without actively tracking prices.

Dollar-cost Averaging

a) If the buyer's goal is to Hold on for Dear Life (HODL), the exact entry price may be less critical.

b) Buying a large lump sum at once can be risky due to market volatility.

c) To reduce the impact of price swings, buyers can use the Dollar Cost Averaging (DCA) strategy.

d) DCA involves buying smaller amounts of Bitcoin regularly over time. This helps smooth out price fluctuations.

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How to Purchase Cryptocurrency Onchain via Crypto.com Pay

Follow the steps below to make a purchase:

a) Tap Buy on the Crypto.com Onchain home screen.

b) Choose the token to purchase out of over 1,000 available choices.

c) Confirm that the checkout is via Crypto.com Pay.

d) Select the preferred blockchain and input the amount to purchase.

e) Once you are ready, tap Next.

f) You'll be redirected to Crypto.com Pay to review and complete the transaction.

Conclusion

Buying Bitcoin doesn’t have to be a challenge. It’s simply about taking the right steps with the right tools. From choosing an exchange or trading platform to securing your wallet, the steps outlined in this blog will help you begin your Crypto journey. It's about embracing the future of finance, one Bitcoin at a time.

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