Since Bitcoin continues to rise in popularity, many new traders and investors are eyeing buying Bitcoin. However, it can be complex to understand how to buy Bitcoin, especially for beginners. There are various factors you’ll still need to consider and lessons to learn first.

Once you’ve fully understood how Bitcoin works, its properties, risks, and others, you can now start buying for trading or investment purposes. Here is a guide to help you in buying BTC:

1.    Choose an Exchange or Broker

Decide where you want to buy BTC. It can be an exchange or a broker. A crypto exchange is a trading platform where you can directly buy and sell BTC and other cryptocurrencies. A trusted exchange you can try, for example, is Changelly.

Meanwhile, a broker is a person that acts as a middleman between you and an exchange. You can transact with a broker, and they will interact with exchanges in your stead. Aside from your preferences, both have their own pros and cons you should weigh.

2.    Create and Verify Your Account

After choosing, register to open your account. Make sure to verify your account by providing the necessary and required information and documents. You can’t skip the verification process and have to wait for it to finish. Otherwise, you won’t be able to do any further activities like buying.

3.    Deposit Funds

Once fully verified, deposit funds to your account. You can do this by linking your bank accounts, credit and debit cards, and e-wallet accounts like Neteller, Paypal, etc. Your payment option may vary depending on the broker or exchange you chose. Know the transaction fees for your preferred deposit method. Remember to deposit only the amount you intend to invest and what you can risk losing in case you plan to trade.

4.    Place an Order

To make your BTC purchase, you now have to place an order. You can decide on how much or how many coins you want to buy based on your funds. In most exchanges and brokers, you need to insert the symbol for the crypto instead of the whole name when placing an order. In this sense, you put BTC for Bitcoin. A tip: it’s best if you stay within your budget or limit when buying, especially if it’s your first time doing so.

5.    Select a Storage Method

Once you’ve received your Bitcoin, plan on how you’ll manage or store your asset. Since some crypto exchanges aren’t backed up by protections like the Federal Deposit Insurance Corp. (FDIC), there are risks for hacking and theft. However, they rarely happen, so you can keep them on your exchange platform.

If you want another option, you can always transfer your BTC to a crypto or BTC wallet. Although, this may be hard if you deal with a broker. Wallets safely store BTC and other cryptocurrencies. There are two kinds of wallets you can choose from: cold or hot wallets. A cold wallet is an offline wallet, while a hot wallet is online and runs on internet-connected devices.

Conclusion

Once you’ve learned how to purchase for the first time, buying on further occasions will be easier. Make sure you understand how to fulfill each step to avoid any mishaps. Your buying experience will mostly depend on the exchange or broker you choose, how many you want to buy, and what storage you prefer. Choose and decide wisely.

Disclaimer

Comments expressed here do not reflect the opinions of vanguard newspapers or any employee thereof.