A Complete Guide on Where & How to Buy Bitcoin!!!
Do you know how promising and popular Bitcoin is? Bitcoin is the first and most accepted cryptocurrency in the world. Although it’s available in several exchanges at present, you have to be more aware while investing. Sometimes many scams happen that we see in the news. In this case, you must have a better understanding of how and where to buy Bitcoin before spending your dollar. The best places to buy Bitcoin can ensure your investment security.
Bitcoin is a virtual asset that is used for digital purchases. You can trade, buy-sell, or exchange it virtually. You can call it digital money or an innovative payment network. This currency is private, instant, and free from bank fees.
Bitcoin exchange is a platform or a digital marketplace where you can easily convert your currency into Bitcoin. For example, you can convert your U.S. dollars into Bitcoin in the Bitcoin exchange.
Several exchanges are available at present where you can get Bitcoin as well as other cryptocurrencies. You may confuse while looking for the investment as every exchange of Bitcoin has its own pricing policy.
Advanced Bitcoin users consider different crucial things like the types of exchanges, the security, the wallet, and so on. For instance, some exchanges have centralized systems, and some of them use decentralized systems.
However, you ought to choose the one specific type that you require.
Related: How to Buy and Sell Cryptocurrency?
Understanding the types of exchanges helps you to choose the best exchange.
The decentralized exchange has no central controlling system like the centralized exchange. Bitcoin works in the same manner as decentralized exchanges.
In this case, the server is spread out throughout the world. An individual controls that server, but there is no effect on the network if one computer turns off. The reason behind this is there are a lot of computers that continue running the network.
For example, decentralized exchanges are MDEX, Uniswap, PancakeSwap, etc. You can look here for more information.
This type of trading platform has no particular identification. Besides, it’s free to use.
A centralized exchange is the most familiar type of exchange. Several popular and reliable exchanges like Binance, Coinbase, Gemini, etc., are centralized exchanges.
For trading cryptocurrency, these exchanges offer a platform to crypto users. The centralized exchanges are private companies, and it needs authentic recognition and the registration process.
A centralized exchange is also known as the Know your client or know your customer rule. The liquidity, volumes, and trading activity are high in those centralized exchanges. This centralization system runs through one private server.
The entire system will be collapsed if the central server is interrupted. For the new users, centralized exchanges are the best choice. In this system, when you purchase cryptocurrency, that will remain in their custodial wallet.
Bitcoin is a well-known and widely recognized cryptocurrency. The Bitcoin exchanges work as a middleman or broker sometimes. However, it mainly connects the sellers and buyers. In the Bitcoin blockchain, the Bitcoin-based transactions are recorded.
A bitcoin wallet is used while buying Bitcoin. Sometimes, the transaction can be conducted on your behalf as well as not deliver Bitcoin to another digital wallet or external wallet.
In the United States, Bitcoin is considered legal. But the responsibility is yours to stay on the right side of the annual tax law.
It’s fun while buying Bitcoin or other cryptocurrencies. When you are deciding to buy the cryptocurrency, that means you are going to invest your money.
What makes you worried or confused? The security or privacy of your investment, your dream, or your pocket. In this case, the common question is how to buy Bitcoin or where to buy Bitcoin.
Although these are the most common queries, some people ask for several queries, including
Where to buy bitcoin with a Debit card, Credit card, Cash, USD, PayPal, Online, etc.
Yes, you are in the desired place to get the desired answer to all questions. Just follow these best 4 steps, which are explored in the following section.
- Best Crypto Exchange Overall: Binance
- Best For Privacy: Coinmama
- Best For Beginners: Bisq
- Best Decentralized Exchange: Coinbase
- Best For No Cost: Robinhood
After going through the below steps, your queries will be clarified. Let’s see what makes people feel comfortable investing.
1. Determine Where To Buy Bitcoin
Do you know there are two distinctive ways to buy Bitcoin?
Well, you can buy Bitcoin or other cryptocurrencies in any of the following ways.
- Cryptocurrency Exchanges
- Traditional Brokers
Some popular and best exchanges are explored in this section, and you can choose any one of them to buy your desired coin.
Binance Exchange was founded in 2017, which mainly focuses on altcoin trading. It has a lower fee system compared to other exchanges. Besides, it offers more advanced charting.
Binance is the largest exchange in the globe which has a huge number of cryptocurrencies. Binance provides discounts or offers. Besides, it charges a 0.1% fee for any cryptocurrencies which are available in this exchange.
Moreover, you will get discounts on the withdrawal fees. To say about the shortcomings of Binance exchange, only using cryptocurrency you can make purchases from here. Although Binance added a credit card option recently, it will charge an additional fee.
In the United States, you can grab this scope, but not all states. Some states are included in this system. For instance, New York is not supported by Binance US. Almost 22 states are excluded from this function.
Coinbase is another popular cryptocurrency exchange for the USA. The Bitcoin buyers can link their bank account in this exchange to buy Bitcoin. The other most popular cryptocurrencies like Etherium, Litecoin, etc., are available in this exchange.
Here, it charges 0.5%, and the fee is excluded. The fee can be different depending on the region and payment type. Moreover, it also depends on your transferred amount.
Coinbase is reputable, secured, and convenient to use. The trade fee is between $0.99 and $2.99. In this case, you may pay extra fees.
The interface is extremely simple, and it has very high liquidity. On the other hand, it has some cons, like high fees, improper wallet keys controlling system, and fewer altcoin trading facilities.
Do you know how popular Coinmama is? It is one of the best exchanges for purchasing Bitcoin as it offers instant Bitcoin with several payment options.
You will get instant order delivery and the most important part of this exchange that it provides a quick account setup system and several funding options.
But sometimes, you can feel its fee structure is complex. Besides, you need to pay additional fees like 5% as it gives instant delivery scope. Moreover, Coinmama doesn’t support ACH bank transfers.
Bisq is a well-known exchange where you can get different cryptocurrencies, especially Bitcoin. It is a decentralized peer-to-peer network system that helps to improve privacy.
It is an open-source app where you can buy and sell Bitcoin. You don’t have to complete a registration process.
Bisq supports a plethora of payment systems like Chase QuickPay, Zelle, bank transfers, Western Union, etc. The trade fees range from 0.05% to 0.70%. This range can be varied as it depends on how you pay.
Bisq is the best for those who have a minimum level of experience in cryptocurrency. The main feature of Bisq is that it is a high privacy decentralized exchange. It is often not ideal for active traders as the transactions are slower and trading volumes lower.
If you require an exchange that is commission-free Bitcoin trades, Robinhood is the best choice for you. The main advantage of Robinhood is there is no commission to buy or sell Bitcoin.
If you have some experience with investing in the stock market, it will be easier to buy cryptocurrency from Robinhood.
Robinhood stock investment account can be used alongside your Robinhood crypto account, although it’s technically separate. For Bitcoin buyers, Robinhood can be a perfect choice.
On the other hand, this exchange’s limitation is that it has a limited number of currencies. Moreover, there is no option to withdraw Bitcoin to a crypto wallet.
2. Choose Your Wallet
Do you know there are two types of digital wallets are existed? Well, Hot wallet and a cold wallet are two kinds of wallet that you must choose carefully while storing your Bitcoin.
A cold wallet is the most secure wallet compared to a Hot wallet. Here you have to go through extra security steps. It is a small and encrypted portable device that enables you to carry and download your Bitcoin.
Around $100 can be the cost of a cold wallet as it is secured. Cold wallet providers like-
Trezor: Trezor provides key size or small wallets that range between $80 to $170.
Ledger Nano: In this case, the range from $60 to $120, and it is developed like a thumb drive.
A strong password and two-factor authentication system are mandatory while creating your digital wallet account.
- Hot Wallet
The hot wallet is faster. The transactions of this wallet are generally faster than cold wallets. You can join any trading exchange that will offer you a free bitcoin hot wallet. In this wallet, what you purchase will be stored automatically.
The hot wallet providers provide a wide range of wallets, including-
Electrum: In your laptop or desktop computer, it allows you to store your bitcoin.
Coinbase: It is also the best Bitcoin exchange out there. Coinbase also offers free online hot wallets.
Blockchain: Blockchain is also an online hot wallet like Coinbase. But it’s not an exchange like Coinbase. It is considered a less attractive target for hackers.
Mycelium: Android or iPhone users can use this hot wallet. It is a mobile-only Bitcoin wallet.
The easiest part is the investment after choosing the desired and best wallet. It is very difficult to choose the right exchange. But once you choose the most secure one, you can go for the best wallet.
In this phase, you should decide how much Bitcoin you want to purchase. The trading symbol of Bitcoin is BTC or XBT. It can be bought and sold for fractional shares. But your initial investment could be lower.
4. Asset Management
If you are going to invest, then you can follow the idea of day trading. What is the idea of day trading?
It suggests you buy Bitcoin at first, and then when its value gets higher, you can sell it. But if you are capable of evaluating the future market, your decision can be different.
In this case, you can buy Bitcoin and hold it for the long haul. You should also have knowledge about the complex tax situation. Besides, how to mine Bitcoin is a crucial thing that you ought to know.
Is Buying Bitcoin Safe?
Buying from a renowned and vetted exchange is always safe and secure. Before making a purchase, you should research, and the decision should be fruitful as it’s all about your money.
There are so many traditional investments but compared to them, Bitcoin investment is safer.
Bitcoin is valuable if you are searching for a decentralized system. One thing you must remember, it has no insurance or guarantee on what you are buying. And the value can frequently fluctuate.
What makes you nervous and upset while purchasing the desired coin? It’s obvious that you might face a dilemma while thinking about Bitcoin purchases.
Let me suggest one thing that is not from me, what the experienced crypto exchange users or Bitcoin users are thinking.
There are a plethora of crypto exchanges available at present. Here, the best of best are enlisted depending on several criteria like customer review, history of exchanges, and the fees they charge individually.
You can make your choice in your own way. It’s not a big deal, but the deal is what the advanced and proactive crypto users are assuming.
The answer to this above query is not specific, but you should have the ability to grab the best one. You can look at the advanced cryptocurrency trading software if you are really interested and want to predict the future market.
Well, at the end of the day, one question that may arise in your mind, should I buy Bitcoin?
Stop here!!! And go through the article again to find your desired place. Bitcoin is an incredibly volatile and speculative buy.
However, it is less risky to pick the established and renowned companies’ stocks than investing in Bitcoin.
Would you like to read: How to Build Your Own Bitcoin Exchange Website?