How To Buy Bitcoin For Beginners
Bitcoin stays within the top positions today and keeps being the most widely used cryptocurrency to invest in. Due to rapidly rising prices, all traders and regular people are interested in investing in bitcoin, finding the best bitcoin exchange, and being informed of bitcoin price live. Having become the most well-known and secure type of currency (not least because of the blockchain that stands behind it) Bitcoin spreads its power through the top industries and financial structures. People use it both for private and corporate purposes as it is now accepted all over the world. Before you start any transactions, first you need to learn the best place to buy bitcoin, how to buy BTC with real money and how to securely store it.
There are just a few rules to get bitcoin for newbies, but once you are ready to proceed, first you need to learn several technical issues to make your first successful trade. In this detailed guide, we will teach you how to choose the right type of wallet depending on your needs; give you some information about the top exchanges you may find on the market today, and finally describe how to buy bitcoin with a card, PayPal, cash, and other methods. When you finish this article, you will not have any questions regarding:
Best methods to buy bitcoin
How to safeguard your property with the top wallets
How to buy BTC in the safest way
We made deep research on every wallet type and exchange. Before putting the best of them in our guide we filtered out any and all bad quality exchanges.
Best Bitcoin Wallets
The only reason anyone wants to invest in bitcoin is to have secure and comprehensive control over your funds. Instead of safety deposit boxes in banks, you become your own personal banker. Since you have ownership over the funds, you have to know to store them well. A wallet means a security software that keeps all the public and private keys dealing with a blockchain so that users could buy, sell, or store coins online.
In the list we made, you will see the most widely used wallets nowadays.
Web and mobile wallets
Online/electronic wallets are those you can access from your browser. Visit the website of a particular service, create an account, and receive a private key. There are lots of various services that offer various features, for example, some may synchronize with your iOS or Android app, and enable you to use your wallet from any place where you can get wi-fi. Most of the e-wallets like Coinbase are free, simple solutions, that support several cryptocurrencies like bitcoin, bitcoin cash, ethereum, ethereum classic, USD coin, XRP, stellar, zcash, 0x, litecoin, and numerous tokens.
A lot like web, mobile wallets help people get to their money from any place where they can get the internet. They should be strongly protected so that no one could receive the information about your keys and log in to your private account. It is a good sign if the service uses double verification. Some online wallets work on exchanges and depend on their situation.
There are also so-called Desktop wallets. Download the software on your device, and keep all the keys there offline. Taking into account that they are not stored on the online server, these kinds of wallets are much more secure. They don’t depend on other companies and are more difficult to get hacked. However, Desktop wallets are also linked to the internet, which makes them exposed to malicious attacks. If you trade small amounts of coins and use it for your private purposes, this will be a great and convenient solution.
A hardware Bitcoin wallet both a popular and still an interesting solution that keeps the keys secured on your hard disc. It considered to be one of the safest ways of storing any amount of coins. So far there has not occurred any kind of theft. It is much better than paper wallets, that are not so protected and at some point are downloaded as software. Hardware wallets are protected from computer viruses and the coins on your device cannot be moved out in plaintext.
Different hardware wallets obtain additional security layers. Some wallets use screens. It means that they can be used to validate and show essential wallet information. For example, a screen is sometimes used to produce a recovery line and to submit portion of coins and address of the transaction you want to make. So it all depends on the hardware you are using. As long as it is produced by a reliable manufacturer, your bitcoin will be protected from hacks.
A paper wallet is basically a doc that has your personal key and a private electronic address for getting Bitcoin. It allows you to buy, sell coins and finally keep them safe in that address. They usually look like a QR-code. A user can scan it with the mobile device and then log in and make a transaction. Some companies offer the services to produce tamper-resistant bitcoin wallets, both a front and backside of it. They place all private details inside (like keys and QR), then fold it up and tape it shut. For extra safety, they also offer to seal the wallets with a hologram sticker.
One of the obvious advantages of paper wallets is that sensitive information is kept offline. So you don't have to think about hackers, viruses, etc. Still, you have to take into account several issues. First of all, go to the private room, it's best to do at home when you are alone inside the locked room. To make sure that your computer is not spied, don't use the hardware at work. Before you generate the keys, make sure that you are offline. For this, use a website code that runs offline. Then, when you finish the abovementioned steps, connect your printer to the web, and print out the code. Finally, use some protective material to cover the doc with a key. Some people use plastic bags, while others laminate it and put in the deposit box in the bank.
Where To Buy BTC: Top 6 Reliable Exchanges
Selecting the best bitcoin exchange depends largely on the number of coins you want to buy and the way you want to pay for them. For example, if you have to purchase a large number of bitcoins, say over 10, then skip the small players and go to big brokers.
According to the owners of the exchange, at Bitstamp, security is the most important thing. Bitstamp focuses on the user of accounts, sensitive information, and balances, and the maintenance in general. Bitstamp employs best practices and uses the best security technologies. For example, Bitstamp has utilized multi-sig technology to the hot wallet, where they put 2% of crypto funds, and the rest is safely kept offline, in cold storage systems.
Two-factor authentication is required for all the users at Bitstamp since it provides additional security of their account. Also, all withdrawals need to be confirmed by email, before the funds can be cashed out from the Bitstamp account.
A transaction fee of Bitstamp is considerably less compared to its competitors. It is simple and even not tech-savvy users will understand it. Bitstamp fees change depending on your payment method and your location.
More than 3 million traders are using around the world. Bitstamp allows both debit and credit cards and the website never experienced long trading shutdowns. So we can say that it is completely safe as compared to another bitcoin marketplace.
Bitstamp is one of the safest ways to buy and sell bitcoins.
Here are some of the main reasons why you should use Bitstamp:
Currently, Bitstamp is the oldest bitcoin exchange online opened in 2011
They have large volumes are available to making big trades
Extremely popular in Europe for SEPA deposits or withdraws
Euro trading available
Bitstamp exchange is regulated by the CSSF (Commission de Surveillance du Secteur Financier)
Bittrex is one of the pioneers in the American crypto market that puts safety in the first place. This platform is highly popular for a stable and convenient experience, as well as moderate fees. The exchange can boast of the highest security standards and the fact that it has never been hacked.
Bittrex works only with dollar transactions, however, if you cannot use this currency, you still can use stablecoins, altcoins as a currency to buy BTC, ETH, and USD.
Among the downsides, you want to consider are quite a slow customer support service, and suspended user accounts.
Binance is a Chinese broker that is now used worldwide for its crypto exchange services.
This platform has basic and advanced accounts that differ in terms of technical analysis and bitcoin price live. This includes the charts that are constantly updated for you. Binance offers simple navigation and straightforward trading. To start, you can use any pairs between BTC, ETH, BNB, and USDT. First, you have to deposit some funds, then choose the desired coins from the list. Now you can either add the amount of the coins you wish to buy or choose pre-selected parameters – 25%, 50%, 75% or 100%.
Today, Binance has an average fee of 0.1% on each trade. Sometimes you can get a discount if you pay via the Binance token. So far I could not find the lower fees on any other exchange.
The Coinbase exchange initially started as both a cryptocurrency wallet and exchange. But with time, it stopped prioritizing the wallet side of its functioning and chose to work mainly as a cryptocurrency exchange.
Today, Coinbase is primarily considered to be one of the best brokers and exchanges. With a significant backing and insurance on their behalf, that gives them substantial credibility, and security of user accounts.
In comparison to the most popular exchanges, Robinhood will offer many more Cryptocurrencies and low charge fees. However, it looks like there is a lot more friction in terms of withdrawing coins, as it requires a lot of verification. Robinhood works under strict government conditions and requires almost all existing financial documentation that currently exists in the US. They asking for SSN, or the taxpayer number as well as passport, and verified home address.
I cannot help mentioning that Robinhood can offer endless options of coins, tokens, and currencies – BTC, ETH, BCH, LTC, DOGE, EXR, QTUM, and many more.
You can buy and sell coins via iOS, Android app, as well as web. Finally, for young investors, this will be a great way to get financial benefits from investing in this new area since they don't need to create a new account in a no-name platform.
Coinmama is in the crypto business for a quite long time. And I could say they’re doing it right. It’s stable, reliable, and trusted. This is also most reputed for its smoothness with quick customer service, Very less struggle during the verification process. All in all, this platform is for those wants to buy Bitcoins/Etherium quickly and securely without any hurt to user privacy. Coinmama accepts credit or debit cards. What's great, it provides customers with an opportunity to buy bitcoins with PayPal, which means that one can always make a chargeback if needed.
Basic Steps To Use A Credit Card to Buy Bitcoin
Credit & debit cards are still the top methods users select to buy their first coins. And usually, these methods are also offered by the top exchanges. However, professional traders usually skip this method because of the high fees and ID requirements.
You can pay for Bitcoins with cards on the following platforms: Coinbase, Coinmama, Robinhood, etc.
Just follow these steps:
Visit any of the above-mentioned brokers.
Enter how much you will buy or sell.
Verify your ID.
Add your account address.
Add the card number, name, CVV code.
Wait for the coins to come to your wallet.
How To Buy BTC With PayPal Account
To buy or sell Bitcoin with your PayPal account you should do the following:
Make sure that your PayPal account is valid in your country. First, you should find the list of countries where PayPal operates.
Create an account on the reliable platform.
Select the cryptocurrency you will buy.
Look through the listing options that accept PayPal.
Check the buyer's or seller's rating, read the reviews.
Send an offer.
Pay with PayPal to the address given to you.
Wait for the transaction to be confirmed.
Receive your Bitcoin or release them from the escrow if you want to sell them.
How To Send Cash When You Buy Bitcoins
Find the seller who works with cash.
Add the portion of bitcoins and send an offer.
Get the number of the seller's account.
Put cash into the account.
Send a receipt to show that you made payment.
Get bitcoins on your account.