How to buy bitcoin for the first timePosted on: November 10, 2017, by : Dan Muresan
Even if you haven’t been in the cryptocurrency world for a long time, you can get on board in just a few easy steps. That’s why bitcoin, just like many other cryptocurrencies, is so easy to use, and also more valuable.
There are two ways you can buy your first bitcoins:
1. Buy Bitcoin from someone else
If you have a friend who own bitcoin, you can ask him to sell you a few bitcoins, even a fraction of one bitcoin. Fractions (small amounts) of a bitcoin are called satoshi. For example, if you want to buy 0.00004895 bitcoins, you can say you bought 4895 satoshi. One bitcoin (BTC) is divided until the 8th decimal place. Each unit of bitcoin, or 0.00000001 bitcoin, is one satoshi, the smallest unit of bitcoin.
So the easiest way of buying BTC is to find someone trustful who can sell it to you (beware of scammers). You have to make sure you have a wallet with a private key that only you know, and BTC can be sent to your wallet address. If you don’t know what a wallet is, I have another post explaining the basics about wallets. Basically it can be an application that you can install on your phone, laptop, computer, or tablet, or one that you can access through the browser. And if you don’t know anyone who can sell you BTC, then the next option is for you.
2. Buy BTC using an exchange
There are many exchanges from which you can buy bitcoin. Many of them are strange or have high fees, or are not trustworthy. But the number of legitimate ones is rising. The easiest way is to use Bitstamp, a safe exchange audited by one of the big four audinting firms from the world. That says a lot about safety, and as you know, one of my main concerns in the crypto world is the safety of our trades.
So here are the steps that you have to follow:
- Create an account. You can do that here.
- Then you have to make a deposit via SEPA, wire transfer or some other deposit method from your bank account.
- After your funds arrive, you will have fiat (cash) in you account and you can go and buy bitcoins.
- In order to do so, you have to go at the trade section. There you can place an instant buy order (in this case you will automatically buy bitcoins at lowest price available at that time on the market). And you can also place a limit order, but in this case you will have to set a fixed price that you want to pay in order to buy bitcoins. This second option is useful in case you think there will be a price drop and you want to buy at a fixed price at the moment.
There are other good exchanges that you can use. You have to search for the one that you think is best for your needs. On a good exchange will offer safety and also the lowest fees. Keep in mind that some exchanges don’t accept fiat money (USD, EUR). So in order to trade there you need to transfer cryptocurrencies from a wallet or another exchange. Such an example is Bittrex, a very good exchange, where you can trade almost any pair you want, but not with fiat.
Now you own bitcoin, so congratulations!
You have officially entered in the crypto world and it’s a good thing you did so. Because, as I said it many times before, it’s an amazing opportunity and the one who don’t invest are going to regret it later. Money as we know it so far will disappear. It might not happen now, or in the next years, but it will happen. Those who will not buy cryptocurrency will have a major disadvantage in the future.