How to buy Bitcoin?
This is our how to buy Bitcoin guide!
To start buying Bitcoin, it’s necessary to sign-up to a trustworthy crypto exchange, buy Bitcoin via your bank, card or PayPal – and then select how to store your digital currency with a crypto wallet. Lets delve into each step one by one to help you get on your way.
1. Sign-up to a Crypto Exchange
Crypto exchanges are platforms that enable you to buy, sell and convert cryptocurrencies, like Bitcoin. Some of the most popular and established cryptocurrency exchanges, include Coinbase, eToro, Gemini and Currency.com.
You can find more high-quality crypto exchange, in our comprehensive list of crypto exchanges reviews. If you want to find the best crypto exchange fro you, read a few of our crypto exchange reviews.
Good crypto exchanges allow you to trading currencies fast, with real-time prices and charts giving you detailed information and tracking, 24/7.
All regulated crypto exchanges (we don’t recommend ones that are not regulated) will require you to sign up and do KYC (know your customer), in most cases, this is straight forward. You will need to provide a scan/photo of a passport or ID card along with a scan/photo of a utility bill.
Increasingly, digital on-boarding is used by exchanges, making the process faster. Trustworthy and regulated crypto exchanges will always require this process – so we highlight the importance of only using trusted platforms.
Whilst KYC might feel a bit invasive or tedious, know that KYC is for your own safety, primarily to ensure you are who you say you are, so that your crypto can remain safe.
2. Buy Bitcoin using Bank Transfer or Credit Card or Paypal
Once you’ve sign-up to a crypto exchange, you can buy Bitcoin using several payment methods – including bank transfers, credit cards and Paypal.
Registering and activating a secure crypto exchange account, requires a little patience because they must adhere to national, European, and international securities and trading legislation, meaning they must meet the required level of KYC (know your customers) process before you can gain functional access to your account
Buying Bitcoins via bank transfer
Many exchanges such as Coinbase enable you to deposit funds into your account, using a standard bank transfer, meaning you’ll need to enter your bank name, account number and sort code. You can then use the funds to buy Bitcoins or other other cryptocurrencies.
Buying Bitcoins via Credit/Debit cards
Most crypto exchanges support fiat deposits using a debit and/or credit card, such as Visa and Mastercard at Coinbase. Once funded, you can buy Bitcoin and other cryptos offered.
Buying Bitcoins via PayPal
Some cryptocurrency exchanges support deposits via PayPal. Once you’ve deposited from your e-wallet, you can use your funds to purchase Bitcoin and other digital currencies. Not all exchanges support PayPal.
Different crypto exchanges, offer a variety of deposit, payment and withdrawal methods. It’s worth ensuring that the platform you select, offers your preferred Bitcoin purchasing option.
3. Get a Bitcoin Wallet
When it comes to storing your Bitcoin, most exchanges will offer to store your crypto for you, however we highly recommend holding your own crypto in a crypto wallet, of which there are various kinds such as; app wallets, hardware wallets and desktop wallets. You can delve into Bitcoin wallets and choose the best option, with our comprehensive crypto wallet reviews.
Fundamentally, a crypto wallet acts like a completely independent bank account, safely storing your digital currency – while also giving you access to the spending and receiving Bitcoins and other cryptocurrencies (depending on the wallet selected).
We strongly advise you to consider using custodial hardware wallets such as Trezor Hardware and Ledger Nano S for storing Bitcoin, but our analysis will help you make the best pick for your needs.
If you’re seeking another source of expert Bitcoin wallets reviews and information, then Bitcoin.org guide is also recommended when it comes to choosing your wallet. When it comes to Bitcoin security, safely storing your password and key, away from your device, is very important; if you lose your data, you’ll also lose access to your Bitcoin wallet and funds inside (an estimated 20% of Bitcoin supply may have been lost, as a result of losing security data!).
4. Trade and Investing with Bitcoin
Bitcoin is a popular cryptocurrency with traders and investors, with swings in its value offering plenty of room for speculation, for both sort and long-term players. In 2020, the volatility in the wider economy, has (at the time of writing) seen Bitcoin price rise to well in excess of $11,000, with many analysts feeling it will now maintain its rise. Bitcoin’s highest price, to date, was $17,900 in December 2017, and many are now hoping that the coin’s value can rival or exceed this figure, in the next few years.
Some positive news with respect to Bitcoin Price is the fact that it broke the $10,000 barrier again, in 2020. There are indications that it may now hold its price, which currently sits well over $11,000 at this point in 2020. The uncertainty in the wider global economy, may be good news for crypto investors, but the potential risks and uncertainties also need taking into consideration.
About Bitcoin
Bitcoin was created: 2009, by an anonymous fellow who named himself ‘Satoshi Nakamoto’
Bitcoin (BTC) is considered to be the world’s leading cryptocurrency, in terms of its popularity, market cap, investor pull and long-term viability as a digital currency. This guide to buying Bitcoin will provide an insight into BTC and lead you step-by-step through the process of starting your Bitcoin journey.
What is Bitcoin?
Bitcoin (BTC) is a cryptocurrency that was created in 2009. The reported creator of the concept, is known as Satoshi Nakamoto. However, mystery surrounds the the founder’s real identity, which never been confirmed; Bitcoin could potentially have been created by any person, group, financial institution, or even a government. At the current time, Bitcoin is an extremely popular alternative investment and trading medium – along with being a developing currency that can be used to pay at an increasing number of brands, including Expedia and Xbox Live. In 2020, Bitcoin remains the world’s leading cryptocurrency, with its main competition, widely considered to be ETH and XRP. As governments and businesses around the world start seriously looking at digital currency platforms, Bitcoin is at a pivotal time in its history.
How many Bitcoin are there in circulation?
Bitcoin mining started in January 2009, with the first one million BTC mined in approximately 200 days. By mid-2020, an estimated 18.5 million Bitcoins had been mined, amounting to over 80% of the 21 million Bitcoins that will ever be released. Thanks to ‘Satoshi Nakamoto’s’ design, Bitcoin’s structure, means that it will gradually release fewer and fewer coins, over time, supporting the concept of a deflationary currency (in contrast to the fiat system that can print new currency).The remaining 2.5 million coins aren’t expected to be mined completely, for another 120 years.
The difference between Bitcoin and Bitcoin Cash?
Bitcoin Cash (BCH) is a completely separate currency to Bitcoin, having been created via a ‘hard fork’ in August 2017. This split occurred when some Bitcoin miners and developers favoured a different evolution, to the SegWit2x platform. BCH has a faster verification process, to support faster transactions and lower fees. However, the downside is larger block sizes that could be less secure than Bitcoin, coupled with the fact that BTC dominates the market as the most popular cryptocurrency and has the largest market cap. BCH may suffer from liquidity and real-world usability.
At the time of this review, BTC is priced at around $11,500, compared to BCH at approximately $300.
What has Bitcoin enabled for Blockchain?
In 2008, Satoshi Nakamoto released a white paper, called, Bitcoin: A Peer-to-Peer Electronic Cash System. In the paper, the concept of ‘An electronic payment system based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third party…’ was outlined.
The Bitcoin and blockchain concept was therefore born, enabling a system where ‘Transactions that are computationally impractical to reverse would protect sellers from fraud, and routine escrow mechanisms could easily be implemented to protect buyers’. The white paper also outlined how a ‘Purely (decentralised) peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution’.
As history has proven, the cryptocurrency blockchain platform outlined, means that Bitcoins can be used to buy merchandise anonymously and very securely. Furthermore, international payments are fast and economical, since Bitcoins are decentralised from any country or inhibitory regulations. As Bitcoin continues to gain traction, more businesses are predicted to embrace the concept, with zero credit card fees, being particularly attractive.
Advantages/Disadvantages of Bitcoin
As the world increasingly goes digital, the potential of cryptocurrency is very interesting to investors. However, given it was only released in 2009, Bitcoin still needs to evolve into a mainstream currency or commodity. This gives Bitcoin some potential pro’s and con’s as we head towards 2021 and beyond.
World’s leading cryptocurrency
Decentralised network
Peer-to-peer secure cryptography
Deflationary concept
Investment and trading potential
Not universally accepted as currency
Fluctuating prices & volatility
Potential competition with other coins
Uncertainty over the future of money
