How Can a Beginner Buy Bitcoin?
How Can a Beginner Buy Bitcoin? Pixabay

Wondering how you can buy Bitcoin? If so, here's a guide on how a beginner can buy Bitcoin through a crypto exchange.

Individuals and businesses use Bitcoin as a medium of exchange that uses a peer-to-peer without a central entity like a government or a bank. Despite Bitcoin's well-known volatility, it has become increasingly popular among today's investors and traders who want to profit from it.

But how do you buy Bitcoin as a beginner? While you can buy Bitcoin in several ways, using a reliable crypto exchange is the best option. Here's a beginners' guide on how to purchase Bitcoin.

Invest Where You Can Afford

First of all, bear in mind that Bitcoin's volatility makes it a risky asset. Therefore, it's good to avoid putting all your money into it. If you are unprepared to lose it all, you can't afford to put it into this risky asset. Essentially, keep any money that you will need in the next few years in a secure account to access it when you need it quickly. If you have a debt accruing an interest, pay it first. Bear in mind that you can lose all the money you invest in this crypto asset.

Get a Crypto Wallet

Getting a wallet is the first step toward investing in this digital asset. Once you buy a coin, you virtually reserve it there and a distributed, public ledger tracks all transactions with your wallet. Bitcoin enables you to own your money, and no one can take it away from you. And the only way to prove that you own Bitcoins is by having your digital wallet's private key.

Don't forget that you have many crypto wallets, including hot and cold wallets. A hot wallet is also known as software or online crypto wallet, and it's similar to mobile applications. This crypto wallet runs on devices such as computers with an internet connection. A hot wallet is convenient but at the same time risky because the internet connection exposes your laptop, phone, or any other device to hackers.

On the other hand, the cold wallet or a paper wallet is a device like a USB drive that you walk around with and doesn't connect to the internet. However, it's safer as it is offline, therefore, not vulnerable to hacking.

Register with a Bitcoin Exchange

An exchange is an online marketplace for digital currencies trading. It's where you can buy Bitcoins with fiat money or altcoins. Also, you can exchange Bitcoin for traditional currencies. Most Bitcoin investors use cryptocurrency exchanges that enable Bitcoin trades and conventional payment methods.

Essentially, these platforms act as intermediaries for Bitcoin traders and investors. If you want to invest in or trade Bitcoin, a platform like BitIQ might be ideal. This platform accepts different conventional payment methods. It's also easy to create a trading account with this crypto exchange. While you can find many crypto exchanges, choose one with improved security features.

Place Your Bitcoin Order

Upon registering with a crypto exchange, load your account with the fiat money you wish to spend on Bitcoin. The platform may require you to verify your identity and link your account with a payment method, such as a bank account.

After that, you can place your first Bitcoin order. Most platforms have an option for purchasing different cryptocurrencies using altcoins or fiat money. Choose the fiat money amount to spend on Bitcoin and proceed to check out. The amount of fiat money you will spend on Bitcoin will depend on its current market price and what you intend to spend. Confirm the transaction, and Bitcoins will appear in your crypto exchange account once the platform processes your transaction.

Parting Shot

Crypto exchanges make buying Bitcoin straightforward for beginners. Nevertheless, choose a reputable platform to buy this digital asset safely.