Investment tycoons who criticized Bitcoin (BTC) a few years ago have had a shift in their opinion about BTC. Many are even trying to compensate for the lost early investment opportunities by making huge investments in Bitcoin now.
The likes of PayPal and other major financial institutions have already taken their first step. The flow of huge institutional capital into Bitcoin is now driving the price of Bitcoin to new highs.
Many believe that 2021 will be the biggest year for Bitcoin investors so far. If you’re new to the Bitcoin world but find it interesting, we’re here to help you take your first step into Bitcoin investment.
In this article, we’ve outlined the simplest way for you to buy Bitcoin and start investing in it.
Summary for Fast Readers
— Consider your preferences such as payment methods, location, withdrawal currency, etc. to pick a cryptocurrency exchange that can make buying BTC as simple for you as possible.
— Deposit either fiat or cryptocurrency funds into your exchange account to buy BTC. Or directly pay with your debit or credit card and have BTC instantly funded to your account.
— Either hold your BTC for the long-term or trade BTC for regular short-term profits.
Step by Step Guide to Buy Bitcoin (BTC)
Step 1: Find a Suitable Platform to Buy Bitcoin (BTC)
Buying or investing in Bitcoin (BTC) will only be convenient for you if you choose the right platform for yourself. There are hundreds of cryptocurrency exchanges out there, but not every exchange may be the right fit for you. To make sure you can easily buy BTC, here are some factors you must consider while choosing a cryptocurrency exchange:
- Security: Security is the biggest concern for Bitcoin investors. With cryptocurrency exchange hacks happening all the time, you should look for exchanges with the best security measures. You should also consider researching how they plan to compensate for the loss of their users in case of a hack or theft.
- Liquidity: If only you choose an exchange that does not have high volumes of cryptocurrency trades, you may not get the desired buy or sell rates instantly. It is always more convenient to buy Bitcoin on exchanges that have high trading volume, a.k.a. liquidity.
- Currency: As Bitcoin is the first cryptocurrency and also the most popular one, almost every cryptocurrency exchange supports the buying and selling of BTC. You should look for cryptocurrency exchanges that support either your local currency or a cryptocurrency that you’d prefer to trade for BTC. We have explained this in more detail in the last step of our guide to buy Bitcoin.
- Region: The easiest way to buy Bitcoin is by using your local currency. So, your best bet is to find a cryptocurrency exchange that meets the above requirements and also provides services specific to your region. If you can find a recognized exchange developed and operated in your country, that can solve the problem.
- Withdrawal: When you buy Bitcoin, you may also someday want to either withdraw it to another wallet or sell it and transfer the funds to your bank account. For that, you need to find an exchange that supports your preferred withdrawal type. Some exchanges support both crypto and fiat withdrawals while others only support either of the two. Be careful as to whether your exchange supports withdrawal in your preferred crypto or fiat currencies.
- Legality: You can be on the safe side if you buy Bitcoin from a regulated exchange. In the case of regulated exchanges, there’s a lower chance of exchange owners defrauding investors. Even in the case of a hack or theft of such an exchange, there’s a better chance of claiming back your funds.
Step 2: Sign Up on the Exchange
After you check all the boxes to choose the right exchange for yourself, you will need to sign up on the exchange. To do that, most exchanges require you to enter your email address and password. Following that, you will also be requested to complete the KYC process by uploading your personal information such as phone number, identity and address proof, etc. The exchange may take between a few minutes to about two or three days to approve your account and allow you to buy or invest in Bitcoin (BTC) and other cryptocurrencies.
Step 3: Fund Your Wallet to Buy Bitcoin (BTC)
As soon as the exchange approves your account, you can add either fiat or cryptocurrency funds to your wallet, depending on your preference. If you choose a crypto-to-crypto exchange, you will only be able to deposit cryptocurrencies. But, as we said earlier, if you’re a first-time crypto investor, you should always choose a fiat-to-crypto exchange so that you can use your local currency to buy Bitcoin.
Step 4: Make Your First Ever Bitcoin (BTC) Investment
After adding crypto or fiat funds to your accoun, you can go to the trading portal of the cryptocurrency exchange and look for the appropriate pair. For example, if you deposited USD, look for the BTC/USD pair. In case you prefer to buy BTC with another cryptocurrency, say Ether (ETH) or Tether(USDT), find the BTC/ETH or BTC/USDT trading pair. After you’ve found the right pair, you can simply add the details such as the amount of BTC you want to buy and the price at which you want to buy it and send the order to the exchange.
The exchange will automatically find the right match for your trade and process it. Once processed, you will have BTC funded into your exchange wallet.
Alternatively, if your exchange supports Visa and Mastercard payments, you can also instantly buy BTC by making a card payment. This process is as simple as shopping on your favorite eCommerce store.
FAQs About Buying and Investing in Bitcoin (BTC)
Can I buy $100 worth of Bitcoin?
Bitcoins (BTC) are divisible into extremely small amounts. You can easily buy BTC worth $100 or less on almost all cryptocurrency exchanges around the world.
What is the minimum investment in Bitcoin?
While the smallest unit of Bitcoin is 1 satoshi, which equals 0.00000001 BTC or $0.000023 (at the rate of $23,000 per BTC), cryptocurrency exchanges allow a minimum investment of $5 or $10. This means you can start investing in BTC with a very small amount.
What is the safest way to buy Bitcoin?
The safest way to buy BTC is to buy it through a non-custodial cryptocurrency wallet. However, you can also buy BTC on trusted cryptocurrency exchanges that use adequate security measures.
Does a Bitcoin stock exist?
There’s nothing such as a Bitcoin stock. But if you want to invest in BTC without holding Bitcoins, you can invest in BTC derivatives such as futures and options.
Is it legal to buy Bitcoins?
Cryptocurrency regulations vary from country to country. Before you buy or invest in Bitcoin, conduct your research to ensure whether or not Bitcoin is legal in your region.
Is Bitcoin a good investment?
Bitcoin investment comes with its set of risks, but it has proven extremely beneficial for long-term investors. When it launched in 2009, it had near negligible value. Only 11 years later, in December 2020, its value is around $23,000.
Can I make money with Bitcoin?
Investing in Bitcoin has brought huge returns in the long term. But it also has its own set of risks. You should always do your research when investing in digital currencies like Bitcoin.
Bitcoin has become immensely popular among both retail and institutional investors. While institutional investors were skeptical of Bitcoin investments, they have started stepping up their Bitcoin game. If you too want to buy or invest in Bitcoin, you can do so by simply following the steps outlined in our guide above. To reiterate, all you need to do is find a cryptocurrency exchange that is suitable for your region and other requirements, create an account on it, and buy BTC.