How to buy bitcoins - instructions for beginners

Welcome, friends! Today we will talk about buying bitcoins. This article will be especially interesting for novice traders and investors, but it is possible that experienced players will also find something useful in it. In this article, you will learn where to buy bitcoins, what are the ways to buy cryptocurrencies, which of them are fraught with pitfalls, and how to get around them, as well as how to buy Bitcoin cheap and at the same time protect yourself from possible risks.

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How to buy bitcoin for a beginner?

Buying bitcoins is similar to buying any other type of Fiat currency. There are many ways in which you can exchange US dollars for euros or Japanese yen. For small amounts of cash, you may find acquaintances who will exchange a few dollars for the currency you need.

For moderate amounts, you can visit a foreign exchange office, for example, in banks or international airports. It is convenient to exchange currency there, but they charge high fees. But if you want to exchange huge amounts, such as thousands of dollars, and don't want to pay high fees, you need to register an account on a currency exchange. All this applies to bitcoins.

You can buy bitcoins locally, from your friends, or from people who hold bitcoins in your area. This method is preferable if you buy bitcoins in smaller quantities. If you want to buy relatively more bitcoins, you can buy them in online exchanges.

But if you want to make purchases in huge volumes, you can get them on major cryptocurrency exchanges. It is important to remember that whenever you buy bitcoins, you are buyingtake them from someone who already owns them. Bitcoins are not sold directly, and they are not issued by a cryptocurrency exchange. Therefore, no one person or does not set the exchange rate of BTC. It is determined jointly with those who buy and sell bitcoins on a daily basis.

There are many options when it comes to buying bitcoins. For example, there are currently about 5,000 bitcoin ATMs in most countries of the world. BTC, being the most popular cryptocurrency, has many purchase options. But as for other less popular cryptocurrencies, it is not so easy to buy them. You can buy cryptocurrency using cryptocurrency exchanges, investment projects, online exchangers, etc. Let's take a closer look at these ways to buy cryptocurrency.

See also the list of the most reliable brokers.

Three main ways to buy bitcoins

1. Buying bitcoins through online exchangers

The easiest way is to buy bitcoins through online exchangers. These are intermediary companies that make money by helping people easily buy bitcoins and other cryptocurrencies with minimal difficulty. The exchange is quick and easy. You can pay with a Bank card or electronic money. But, like all intermediary services, online exchangers charge for their services. Fees range from 1% to 10%, which is quite a lot, but you have to pay for high speed.

To avoid scammers, be sure to check online reviews of these services and try to find out if they have a good reputation in the cryptocurrency community before making purchase decisions. Many of these exchanges only work in limited regions, so some of them may not be available to you.

Advantages of online exchangers:

• high exchange rate;
• ease of use;
• large selection of payment toolsthe first one.

Disadvantages of online exchangers:

• high commission.

2. Buying cryptocurrency through exchanges

The most effective way to buy bitcoins is to buy them directly on any cryptocurrency exchange. These exchanges directly connect buyers and sellers of bitcoins using an advanced cryptocurrency exchange system.

These exchanges are a bit complicated, and the buying process can be confusing for a novice. However, there are huge volumes of bitcoin purchases and sales on these cryptocurrency exchanges. Consequently, these exchanges usually offer the best prices for buying bitcoins. In addition, by buying directly through the exchange, you minimize the number of parties involved in a large purchase, which reduces the risk of problematic transactions.

For large purchases of bitcoins (more than $ 5,000), it is recommended to do this directly with the cryptocurrency exchange, and not by other means. Using an exchange is also the right choice for very small purchases, if you have the time and interest to learn how a cryptocurrency exchange works. Moreover, you can buy cryptocurrencies on exchanges that are not available in exchanges. Major cryptocurrency exchanges where you can buy bitcoins include Binance, Coinbase, Kraken, Poloniex, etc.

Advantages of cryptocurrency exchanges:

• huge selection of cryptocurrencies;
• the most profitable cryptocurrency exchange rates;
• low commission.

Disadvantages of cryptocurrency exchanges:

• the slow rate of exchange of cryptocurrency;
• the complexity of depositing and withdrawing funds (we will discuss how it is profitable to withdraw money from the exchange in the next article).

3. Buying bitcoins from individuals

The riskiest way to buy bitcoins is by pokdrop them directly from individuals. The exchange of cryptocurrency between people is not secure, but many bitcoiners believe that person – to-person purchases are the wave of the future. More and more people want a more decentralized world in which huge corporations are a thing of the past, as modern technologies allow many processes to be carried out directly between people without intermediaries. It is possible that in the near future, face-to-face exchanges will become the most efficient, cheap and fast way to buy bitcoins.

A huge step towards this has been made by the Finnish company LocalBitcoins, which allows you to meet people in your region and buy bitcoins from them in your national currency. You can meet them in person or pay online. Follow the link https://localbitcoins.com, register and participate in the exchange of cryptocurrencies. Please note that the site does not work in all countries, the reason for this is the attempt of some countries to stop the spread of cryptocurrency on their territory. To access the site,you can use a VPN service or mirrors that can be easily found on the Internet.

Advantages of buying bitcoins from individuals:

• you can buy bitcoin below the market price;
• low commission;
• high exchange rate.

Disadvantages of buying bitcoins from individuals:

• high risk.

See also what are the brokers with bitcoin trading.

Conclusions

We have reviewed the most popular ways you can buy bitcoins. Convenience, security, and privacy are the main things you should keep in mind when buying bitcoins or any other cryptocurrency. With the advent of modern technologies, the process of buying bitcoins becomes more convenient and practical. No matter what method of buying cryptocurrency you choose, it is always aboutpay attention to commissions, prices, and possible exchange risks. Successful to you of purchases!

Read also the article " what are CFD contracts?».