Bitcoin (BTC) may have become popular ten years ago when Satoshi Nakamoto published the whitepaper. This led to the introduction of Bitcoin in particular, and cryptocurrencies in general.
Ten years later, many cryptocurrency enthusiasts are still looking for ways to buy Bitcoin. You are not late to the party, because Bitcoin and cryptocurrencies have come to stay. If you follow cryptocurrency news, you will know that this is true.
In this guide, we will cover the 5 steps you can take now to own a Bitcoin. Even if you can’t afford 1 BTC, the tutorial will help you acquire any amount you have.
Before you buy Bitcoin
Bitcoin, just like every cryptocurrency, is a subject of discussion. While some analysts think the bubble will burst soon, others think the volatility of the coin is impressive.
Either way, you want to stay safe and manage your investments in Bitcoin. Here are a couple of things to have in mind:
- Ensure that your country doesn’t restrict Bitcoin trading so you won’t have problems with the authorities.
- Get your documents, including an international passport, or a government-issued ID. This will be used for the Know Your Customer (KYC) or verification process.
- Be ready to invest only the amount you can afford to lose.
Now, let us talk about the steps to acquiring Bitcoin.
Choose an exchange
You need to buy Bitcoin from a cryptocurrency broker or an exchange. Always carry out independent research to be sure the exchange is worth using.
Some of the cryptocurrency exchanges you may want to use are:
The cryptocurrency exchange is the most important element in the cryptocurrency trading process.
Your security is also paramount when using these exchanges. To that end, follow these steps to find the best exchange to buy or trade Bitcoin:
- Find out if the cryptocurrency exchange is available to your location. This is because some cryptocurrency exchanges restrict traders from some locations, including the United States.
- Check the historical security breaches on the exchange. Find out if some of the traders have lost their funds without any reason. Or if the exchange has been hacked in the past. The more recurring these breaches are, the higher the chance they would happen again.
- Navigate the exchange and see if the interface is user-friendly.
Set up and verify your account
Once the exchange selection is done, proceed to sign up for an account. You will be required to sign up with an email address, your name, and your telephone number. You can also create your unique password to protect your account.
Usually, you will receive an email from the exchange you want to use. Follow the instructions in the email to verify your account.
After then, submit the required documents (an international passport or a government-issued ID) to pass the KYC process.
Again, be sure that your country allows cryptocurrency trading. If it does, you can add money to your new account on the exchange via debit cards. You can also use bank transfers.
If the option is not available, consider using Peer-to-Peer on the exchange. This means paying the merchant or Bitcoin seller on the exchange in your local currency and getting the equivalent in BTC.
Place your order
There are two ways to buy Bitcoin on a cryptocurrency exchange. The first option is called the Limit Order. In this case, you are placing a bid for Bitcoin at a certain price. Let’s assume that Bitcoin is currently trading at $45,000. You can place your Limit Order at $40,000. Once the price of Bitcoin hits that value, it will be filled and your order will be executed.
You can also use the second option, which is called the Market Order. Here, you want to buy Bitcoin at the current price.
Secure your Bitcoin
It is one thing to buy Bitcoin. It is another to secure it. Asides from the volatility of the crypto market, coins can also be stolen.
For example, hackers can gain illegal access to an exchange, thereby, putting your Bitcoin at risk.
The general rule is to have a separate wallet that you can control. This is where you can store your Bitcoin without being exposed to hacks.
Besides, holding your Bitcoin in an external wallet is important, especially in a bear market when you may be tempted to sell. It also helps you to Hold on to Dear Life (HODL), when you know that the value of BTC will still be bullish.
Buying or investing in Bitcoin is one of the best investments you can make. The key to succeeding in Bitcoin investment is to Do Your Own Research (DYOR) to be sure the market is bullish.
Don’t forget to HODL your BTC, especially when the Fundamental Analysis (F.A.) and Technical Analysis (T.A.) predict an upward movement.
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