Bitcoin is the first and most dominant digital currency in the world in relation to market capitalization and market share. Today, it has become far easier to buy Bitcoin than it was a couple of years ago.
First, you don’t need to buy a full bitcoin (1BTC) as that would be pretty expensive (about $8,200 at the moment). A bitcoin can be divided all the way to a one hundred millionth which is the smallest unit also known as Satoshi.
Let me walk you through the steps and requirements you need to make your first Bitcoin purchase.
1. Get A Bitcoin Wallet
This more or less acts like a bank account. It is the secure place to store your Bitcoin. If you don’t have one yet, click here to learn more about the different types of Bitcoin wallets and then you can choose the most suitable for your use.
2. Find A Trusted Bitcoin Exchange or Broker
To choose the perfect bitcoin exchange platform or broker for your buying needs, you should take note of the following important factors:
- The reputation of the exchange or broker: It is essential you make some research about the exchange, know their track record and be sure they are trustworthy and you are not getting scammed.
- The trading limits: If you need to buy large amounts of Bitcoin, then you need to look out for the best bitcoin exchange platforms and brokers. Coinbase has high limits buying with your bank account. Coinmama, Binance and CEX have some of the highest limits buying with a credit card.
- Transaction speed and fees: Different payment methods with different speed and transaction fees. Your first Bitcoin purchase maybe time consuming due to the necessary verification procedures. Once everything is set up, subsequent purchases will be much faster.
3. Secure Your Wallet and Exchange Account
Now that you have a Bitcoin wallet and a bitcoin exchange account, it is important to use a 2-factor authentication on your accounts. This is an extra layer of security that guarantees no one can access your account without knowing your password and holding your phone.
4. Choose A Payment Method
There are several payment methods available on different exchange platforms including Cash deposit, Bank/Wire transfer, credit and debit card payments. Some brokers offer instant buys with Bank transfer and Credit/Debit card transactions. Take time to check them out and be sure they are operational in your country.
5. Fund Your Wallet
Now that you have a wallet, the right exchange and you are fully verified with your account secured, it is time to make your first purchase!
Enter the amount of money (or Bitcoin) you wish to buy and then the conversion will be automatically shown in your local currency. Double check your wallet address to be funded to be sure there is no error and then proceed to make payment.
Congratulations! You just bought your first Bitcoin. Your wallet will get funded instantly or in less than an hour depending on the exchange used and the confirmation speed.