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Choose a Crypto Exchange
If you are interested in investing in the digital world of Bitcoin, then you will need to find the first place where all buyers and sellers meet to buy coins in exchange for dollars. Those places are called a crypto exchange.
It is interesting to note that there are thousands of exchanges out there, and it can be confusing for a beginner to know where to go first. However, as a newbie, you must look for one that provides you maximum security and a balance of ease of use. Furthermore, you need an exchange that does not charge you a lot of fees.
There are many famous exchanges online, and it is better that you do some research before you choose one for yourself. Furthermore, there are a few more things you must ensure when choosing an exchange. First, make sure that your exchange has a Bitcoin wallet built into the platform, and if it does not contain one, you will need to get your own.
Note that there are some giant crypto trading platforms; however, at times, those platforms do not allow you to withdraw your coins and keep rotating them on other platforms. In case you are looking to keep your coins in a different wallet, you will be required to sell your holdings and buy them again from a different exchange.
- Choose Your Own Payment Option
If you are still wondering how to buy Bitcoin, then the most important thing to do before buying is add funds to your account before you purchase any Bitcoins. If your account balance is zero, you will not be able to make any digital purchases. Now that you have chosen an exchange, it might allow you to transfer your funds from your existing bank accounts or other payment methods, including a cryptocurrency wallet or your credit card or debit card.
However, it is important to note that some crypto platforms charge a very high fee for each transaction. For example, there are platforms that do not charge an electronic transfer fee if you do the transfer through your bank account. However, the same platform may charge you an exuberant fee amounting to as high as $20 on wire transfers. Hence, if you plan to use a different payment channel, you must learn how much the platform charges for a transactional fee.
It would help if you learned how much each platform charges for their fee because it directly affects how much money you can invest and how much money you can earn and grow. The better option that makes sense to most crypto investors is electronic bank transfers rather than other conventional methods.
Furthermore, if you are using a credit card to purchase Bitcoins, it will be deemed a cash advance that might attract an interest rate.
- Place the Order
Once you see that your account is fully funded through your electronic transfer, it is the right time for you to place your very first order as a beginner for Bitcoin. It now depends on the kind of platform you are using to purchase the cryptocurrency, but your purchase is only a tap away.
Once you tap the option, it will navigate you to enter your Bitcoin's ticker symbol (BTC). When you see it, you will have to add in the amount you are looking to invest in the cryptocurrency.
Once the transaction is finished, you are now going to be the owner of a portion of the Bitcoin. This is because if you want to own the entire Bitcoin, you will need to purchase it for a much higher value. Hence, if the Bitcoin's current price is $20,000, you need to invest $20,000 in money value to purchase one single Bitcoin; however, if you invest only $2,000, then you will get a percentage of the Bitcoin.
- Find a Safe Storage Space
Crypto exchanges have an inbuilt wallet that will allow you to store your Bitcoins; however, some people do not feel comfortable keeping their Bitcoins there as they can get hacked. Hence, some exchanges give insurance to reimburse the client if such things happen. Still, they are also storing Bitcoins in offline Bitcoin wallets of the person's choice.
Conclusion
If you are looking to buy Bitcoin, you should follow the right protocol, especially if you are a beginner. This will ensure that you invest in only the right type of exchanges and keep your assets free from hacking.
Published: 06/17/2022