With bitcoin at an all-time high of $22K, more people are wondering if they should buy some BTC. However, buying crypto isn’t like going to the store and picking some coins off the shelf. It takes a little online navigation to get started.
Luckily, once you figure out the basics, you can start buying bitcoin in no time.
So, if you are one of the many people wanting to know how to buy bitcoin follow these 5 simple steps.
Table of Contents
Steps to Buy Bitcoin
- Find a platform to buy bitcoin
- Register, verify, and secure your account
- Choose a payment method
- Buy bitcoin and store it in a wallet
- Use your bitcoin
How to Choose a Bitcoin Exchange or Trading Website
Picking the best cryptocurrency exchange or website to buy bitcoin is your most difficult task. This is because there are so many.
This task also depends on your country of residence and your preferred payment method. So, let’s go over the features to look for when choosing a bitcoin buyer and list several of the most popular and trusted platforms.
Does the crypto exchange or platform offer the following?
- Ways to buy bitcoin with a credit/debit card and/or bank account
- Security features like 2FA (two-factor-authentication)
- Fast processing times to buy, sell, trade, and withdrawal BTC
- An app to check your bitcoin price on the go
- A secure wallet to keep your BTC safe
- Support your current country
These are just a few characteristics to consider when choosing a crypto platform to buy bitcoin.
Popular Crypto Platforms
You will find that most of these crypto platforms contain the desirable features above. They do, however, only serve certain parts of the world.
Register, Verify, and Secure Your Account
No matter what crypto platform that you choose you will need to make an account to buy bitcoin.
You can usually use your email or phone number to register. In some cases, like when you learn how to buy bitcoin on Coinbase, you will need to submit a KYC (Know Your Customer) information report to verify your identity.
You might also need to verify your bank account with test deposits.
Next, you want to secure your account by enabling 2FA, Google authenticator, or a pin code to log in to your account. Securing your account can also increase your purchasing, trading, and selling limits as well.
Choosing a Payment Method
The way that you buy bitcoin will affect how fast you receive it as well as how quickly you can trade or withdrawal your BTC.
Let’s go over the basic ways to buy bitcoin.
How to Buy Bitcoin with a Credit Card
One of the most popular ways to buy bitcoin is by using a credit card. This method is fast and secure since major credit cards have fraud protection.
With a credit card you will have your bitcoin available within minutes and in most cases can trade or sell your BTC without a waiting period.
Once you acquire some BTC, you can sign up for a Bitcoin Debit Card to make using your crypto even easier.
How to Buy Bitcoin with PayPal
Coinbase started allowing PayPal withdrawals in 2018, which made it convenient to get your BTC without waiting for long bank transfers or paying a fee to get it instantly through your card.
Then this year PayPal launched their crypto buying option for U.S. citizens. If you already have a PayPal account there is an option to buy bitcoin using your existing payment methods after accepting their terms and conditions.
How to Buy Bitcoin with Cash
Believe it or not, there are ways to buy bitcoin with cash.
One of those ways is to find a bitcoin ATM near you. Then you can insert cash into the ATM and use their platform to transfer it to your wallet address (see below.)
Another way to use cash to buy bitcoin is to use a bitcoin platform like LocalBitcoins. Find a seller near you or in your region by using the site’s rating system. Once you find a reputable dealer then you will deposit cash into their bank account. The BTC is held in escrow until the cash clears and the BTC is received.
Purchasing Bitcoin and Choosing a Bitcoin Wallet
Now that you have your Coinbase account or have registered with other crypto exchange platforms and picked a payment method, it’s time to actually buy bitcoin.
Most platforms—other than more complex cryptocurrency exchanges—are straight forward.
You can choose a buy order for a certain price or instantly purchase a market order that is set to the current price of BTC.
Either way, once you click “buy bitcoin” your order will be placed on the blockchain. You can check your buy order status on the platform under the orders tab. You can also check your bitcoin transactions on the blockchain at blockchain.com.
Once you have your bitcoin, you want to send it to a crypto wallet to keep it safe. When your bitcoin is left on an exchange it is vulnerable if the exchange gets hacked.
There are many different kinds of bitcoin wallets the main difference being offline and online. Offline is obviously safer yet less convenient.
The most accessible way to hold your Bitcoin securely is on a Bitcoin Wallet App. These platforms allow you to spend your bitcoin and monitor your gains anywhere.
Popular Bitcoin Wallets
You can browse this list of bitcoin wallets, however, there are quite a few to see. Below is a list of the most popular offline (hardware) and online (website or app) crypto wallets to make things simple for you.
|Online (website or app)||Offline (hardware)|
|Bitcoin Core Wallet||Trezor|
|Exodus||Cool Wallet S|
Choose the best wallet for your budget, security preference, and supported coins—if you have altcoins (coins other than BTC) to store.
Use Your Bitcoin
You now have your bitcoin secured in a cryptocurrency wallet or on an exchange if you plan to buy altcoins. So what do you do now?
Firstly, you can keep your BTC in the exchange to trade it for other coins and create a cryptocurrency portfolio.
But, if you just want to hold bitcoin for now you can simply transfer it to your wallet using the “receive” address.
Once in your wallet, you can hold onto BTC as an investment. Be sure to check the price of bitcoin often just in case you can sell some or all of it for a major profit.
Secondly, you can spend your bitcoin just like any other money, except this time your “wallet” is virtual.
How to Buy Bitcoin Wisely
Now that you know how to buy bitcoin you should also be aware of when to buy bitcoin. Even though the bitcoin price is skyrocketing today it could plummet tomorrow. That is why it’s important to realize that buying cryptocurrency still involves risk.
Only buy what you can afford to lose and learn more about cryptocurrency to become a smart investor and possibly a crypto trader.