How to buy bitcoins - instructions for beginners
How to buy bitcoins - instructions for beginning investors. Where to buy Bitcoin - the main ways to buy cryptocurrency, their advantages and disadvantages.
Welcome, friends! Today we will talk about buying bitcoins. This article will be especially interesting for novice traders and investors, but perhaps it will find something useful and experienced players. In this article, you will learn where to buy bitcoins, what are the ways to buy cryptocurrency , which ones are the pitfalls, and how you can 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 newbie?
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 friends who exchange a few dollars for the currency you need.
For moderate amounts, you can visit a foreign exchange office, for example, at banks or international airports. It is convenient to exchange currency there, but they charge high commissions. But if you want to exchange huge amounts, for example, thousands of dollars, and do not want to pay high fees, you need to register an account on the currency exchange. All this applies to bitcoins.
You can buy bitcoins on the spot, from your friends or from people who have bitcoins in your area. This method is preferable if you buy less bitcoins. If you want to buy relatively more bitcoins, you can buy them in online exchangers.
But if you want to make purchases in huge volumes, you can get them on large cryptocurrency exchanges. It is important to remember that whenever you buy bitcoins, you buy them from someone who already owns them. Bitcoins are not sold directly, and the cryptocurrency exchange does not issue them. Therefore, no one person or the exchange sets the BTC rate. It is determined jointly with those who buy and sell bitcoins daily.
There are many options when it comes to buying bitcoins. For example, currently in most countries of the world there are about 5,000 Bitcoin-ATMs. BTC, being the most popular cryptocurrency, has many buying 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 us consider these cryptocurrency purchase methods in more detail.
See also list of the most reliable brokers .
Three basic 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. Exchange is quick and easy. You can pay by credit card or electronic money. But, like all services of intermediaries, online exchangers charge for their services. Charges range from 1% to 10%, which is quite a lot, but you have to pay for high speed.
To avoid fraudsters, be sure to check online for reviews of these services and try to find out if they have a good reputation in the cryptocurrency community before you make purchasing decisions. Many of these exchangers work only in limited regions, so some of them may not be available to you.
The advantages of online exchangers:
- high exchange rate;
- easy to use;
- A large selection of payment instruments.
Disadvantages of online exchangers:
- high commissions.
2. Buying cryptocurrency through exchanges
The most effective way to buy bitcoins is to buy them directly on any cryptocurrency exchange. These exchanges directly link 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 beginner. However, huge volumes of purchases and sales of bitcoins occur on these cryptocurrency exchanges. Consequently, these exchanges usually offer the best prices for buying bitcoins. In addition, buying directly through the exchange, you minimize the number of parties involved in a large purchase, which reduces the risk of problem transactions.
For large purchases of bitcoins (more than 5000 dollars) it is recommended to do this directly with a cryptocurrency exchange, and not in other ways. Using the exchange is also the right choice for very small purchases, if you have the time and interest to find out how cryptocurrency exchange works. Moreover, you can buy on the exchanges those cryptocurrencies that are not in exchangers. The main cryptocurrency exchanges where you can buy bitcoins include Binance , Coinbase, Kraken, Poloniex, etc.
Advantages of cryptocurrency exchanges:
- a huge selection of cryptocurrency;
- the most favorable exchange rates for cryptocurrency;
- low commissions.
Disadvantages of cryptocurrency exchanges:
- slow cryptocurrency exchange rate;
- the difficulty of depositing and withdrawing funds (we will look at how to withdraw money from the exchange in the next article).
3. Buying Bitcoins from Individuals
The most risky way to buy bitcoins is to buy them directly from private individuals. Cryptocurrency exchange between people is not safe, but many Bitcoiners believe that buying from person to person is the wave of the future. More and more people want a more decentralized world in which huge corporations are a thing of the past, because 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, cheapest and fastest way to buy bitcoins.
The Finnish company LocalBitcoins, which allows you to meet people in your area and buy bitcoins from them in your national currency, has taken a huge step towards this. You can meet them in person or pay online. Follow the link https://localbitcoins.com , register and participate in cryptocurrency exchange. Please note that the site does not work in all countries, the reason is the attempt of some countries to stop the spread of cryptocurrency in their territory. To access the site, you can use a VPN service or mirrors that can be easily found on the Internet.
The advantages of buying bitcoins from private individuals:
- you can buy Bitcoin below the market price;
- low commissions;
- high exchange rate.
Disadvantages of buying Bitcoins from private individuals:
- high risks.
See also what are bitcoin brokers .
We looked at the most popular ways you can buy bitcoins. Convenience, security and privacy - these are the main things you should keep in mind when buying bitcoins or any other cryptocurrency. With the advent of modern technology, the process of buying Bitcoins becomes more convenient and practical. Whatever way of buying cryptocurrency you choose, always pay attention to commissions, prices and possible exchange risks. Successful purchases to you!
Read also the article “What are CFD contracts?” .