How to Buy Bitcoin – The Best Ways to Buy BTC in 2022.
Our new beginner's guide explains the best way to buy Bitcoin online in 4 simple steps. So where is the best place to get BTC in 2022? Read on to find out.
Despite recently celebrating its tenth anniversary, buying Bitcoin can still be a challenge for the average retail investor. With many shady exchanges, services, and sellers around, users need to know that they are purchasing their Bitcoin from a trustworthy source. We have to put together this guide to help you avoid these bad actors and ensure you only do business with a trustworthy, reliable service.
This guide is for anyone and everyone looking to get started in the sometimes-confusing world of cryptocurrency buying and trading.
How to buy Bitcoin in 2022 – The complete beginner’s guide.
Our detailed walkthrough will help new investors learn how to buy and store the world’s most popular cryptocurrency, Bitcoin.
Step 1: Choose a Bitcoin exchange:
Step 2: Deposit cash Step 3: Exchange cash for Bitcoin Step 4: Withdraw your Bitcoin to a hardware wallet:
Created in 2008 by the mysterious Satoshi Nakamoto, Bitcoin (ticker symbol: BTC) was the first blockchain and cryptocurrency ever to be deployed successfully and has largely remained dominant in terms of both market capitalization and volume for the entirety of its trading history.
During its lifetime, Bitcoin saw dizzying heights of around $20,000 in December 2017, buy bitcoin now trading at just under $7000. It’s little wonder then, that it still captivates the minds of investors, with some industry experts even predicting it could reach highs of $250,000, prompting people to continue to invest speculatively.
Bitcoin price history chart – Source: CoinMarketCap.
But despite Bitcoin’s long history, for many uninitiated retail investors, the process of buying Bitcoin still eludes them.
Fiat to Bitcoin conversions, wallet addresses, private keys, network fees, and exchange platforms – to the seasoned cryptocurrency enthusiast, these processes may all seem second nature, but to newcomers in the crypto-space, the complexity involved in buying your first Bitcoin can be overwhelming, and sometimes off-putting.
The continued adoption of cryptocurrency relies on its usability and ease of access. That’s why we’ve written this guide, to walk you through the most crucial steps of buying, exchanging and storing your Bitcoin.
These steps include:
Purchasing Bitcoin with fiat currency on major exchanges Purchasing Bitcoin peer-to-peer Bitcoin ATM’s Deciding when to purchase Bitcoin Storing your BTC in a secure hardware wallet.
There are multiple ways to buy Bitcoin, and some are easier and crypto more secure than others. We’re going to explore in detail how you can buy Bitcoin from a trusted exchange, such as Kraken or Coinbase (see our full Coinbase review here) using a debit card or bank transfer; and also, look at the process of buying Bitcoin via a peer-to-peer (p2p) marketplace, such as LocalBitcoins.com.
This is a good time to point out that even though we talk about buying ‘Bitcoin,’ you don’t have to buy a whole coin. Bitcoin is divisible to 8 decimal places, so whether you’ve got $10,000 or $100 to invest, you can own some BTC
We’re also going to give you the pros and cons of buying via a trusted exchange versus other methods of acquiring your first Bitcoin and break down the steps involved in buying BTC from Coinbase.
Buying Bitcoin begins with an exchange which offers the option to buy BTC for ‘fiat’ money. The term ‘Fiat’ is used within financial circles, and commonly in the cryptocurrency sector, to denote government backed and issued currency, such as USD, GBP or JPY.
Unless your wages are paid in another form of cryptocurrency, buying Bitcoin will almost always begin with a fiat payment.
There are multiple exchanges where you can purchase Bitcoin, but some are easier, safer, and more secure than others. Below is a list of the best cryptocurrency exchanges which let you purchase BTC with traditional fiat currency.
While all exchanges have different requirements, the average process you will go through to register and buy Bitcoin through one of these exchanges is as follows:
Register for an account with the exchange, providing a registered address in an eligible jurisdiction.
Provide your payment details, or some way to fund purchases in your account, for example, a debit card or linked bank account for wire transfers. Some card issuers will not allow the purchase of cryptocurrency on credit cards.
Verify your email and phone number – this step is usually required to begin trading on most exchanges.
Perform know your customer (KYC) and anti-money laundering (AML) checks. To deposit, withdraw, or buy any significant amount of Bitcoin, the majority of exchange providers will require you to verify your identity. This usually includes uploading a copy of photographic ID, proof of address (i.e., a recent utility bill) and sometimes, a selfie with the date on it.
Note: Sometimes, exchange automatic verification may fail, and crypto in this case, you will need to contact the exchange to be manually whitelisted. After passing these steps, your daily withdrawal and purchase limits will be significantly increased.
The majority of newcomers to crypto will purchase Bitcoin through one of the five exchanges listed above, and BNB one which has remained highly popular and easy to use for beginners is Coinbase, which we’re going to use here as a reference.
Once you’ve set up your accounts, linked a payment method, and been approved, here are the steps involved in buying Bitcoin using the Coinbase web version:
Step 1: Login to Coinbase.com, and take a look at the assets on offer. Note that Bitcoin Cash is a fundamentally different cryptocurrency to Bitcoin, though it’s still available in the Coinbase asset list – make sure you’re buying the right one. You can also view your assets on this page.
Step 2: Select Bitcoin from the list of assets below the chart. You will now see a simplified trading chart, and the current price of 1 BTC in your native currency, and some historical price data. If it looks like Bitcoin has just made a massive leap in price, it might be worth waiting for it to ‘retrace,’ but we’ll get to this later. On the right-hand side, crypto enter how much in fiat currency you want to buy, and select a payment method, and click ‘buy.’
Step 3: The exchange will now ask you to confirm your payment method and your buy amount. Make sure everything is correct – once you’ve bought BTC via an exchange app there are no refunds. You will have to sell at the market rate, and you will lose funds to fees and market movement. Also, note the fees you will pay on this transaction. Once you’re sure, click ‘Buy now.’
Step 4: Usually, the transaction will now be double checked and approved by your bank. Often, if it’s the first time you’ve purchased digital currency, you may have to confirm the transaction with the bank. If everything processes correctly, you should see a screen like below.
Now, your Bitcoin should be available in your Coinbase wallet! Congratulations, you have successfully purchased your first Bitcoin!
For beginners, we recommend using one of the trusted exchanges listed above, as if a problem arises, there will be someone on hand to help out. Coinbase has good Bitcoin custody solutions (storage of your BTC), along with insurance for all the crypto that they hold online, but there are other solutions. Read on to find out more.
There are a number of well-known and well-respected exchanges to buy Bitcoin on. We have already explored Coinbase, which is one of the best exchanges to buy Bitcoin directly with fiat, such as USD or GBP. But where else can you buy crypto with fiat currency?