A Guide to Buying Bitcoin for The First Time

June 16, 2021
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Clare Louise
Posted in Tech
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Bitcoin is a fun way to invest. However, like all other investments, it comes with risks. Bitcoin investments may seem complex and challenging at the start. With the rise of exchanges and wallets and new ways to buy and sell cryptocurrency, purchasing Bitcoin has become much easier.

How to Buy Bitcoin

Without the aid of professionals like stockbrokers and traders, you can purchase Bitcoin through either P2P trading or using a debit or credit card. However, you must first follow certain steps.

Choosing where you purchase

Exchanges

Many exchanges allow users to buy bitcoin. However, their fee rates are dependent on the volume of bitcoin being traded with them, as well as the current price of bitcoin at the time you are buying. When choosing an exchange, pick one that has a high trading volume and whose prices don’t greatly differ from market rates.

When using exchanges and wallets that require KYC, you need to ensure that you have valid documents that have your credentials properly presented.

ATMs

And if you want to purchase by unconventional means, you can search for nearby ATMs that allow you to buy and deposit bitcoins near you. A lot of these ATMs also require identification.

Vendors and Brokers

You can also buy bitcoin from brokers and other vendors that advertise. This method isn’t always safe, so you need to ensure that you check and certify that the person is legitimate and will not scam you.

You can do this by reading their reviews, and if they have none, it is not advisable to buy from them.

Also, if you want to give someone cryptocurrency as a gift, research how to gift cryptocurrency with OSOM or any other method.

Choose your method of payment

When buying bitcoin, if you are using an exchange, you can purchase it through bank transfer, credit card payments, or P2P trade. These options are dependent on your location, or on the means of purchase you have.

When using methods like P2P, you must ensure that you safely check the rates to avoid being scammed. The P2P method also works when you are directly purchasing from brokers and vendors.

Choose your wallet or storage method

Although bitcoins blockchain cannot be hacked, wallets get compromised by cybercriminals and scammers. Having a wallet that you’ve researched and certified to ensure the proper and safe storage of your bitcoin assets is important.

You can use trusted wallet platforms and ensure that you don’t access unfamiliar links with them or even opt for a hardware wallet while keeping your catchphrase and encryption key backed up in a safe place.

Plan for your Asset

After your Bitcoin has been properly stored in your wallet, the next step is to make plans and start deciding what you want to do with it. You need to make short and long-term plans for your Bitcoin if you’re going to trade. Or ensure the wallet is safely stored if you’re holding long-term.

Remember that when you want to sign up on exchanges and wallets, you need to have identification and all the required information nearby so you can have an easy and smooth process.