Planning to invest in Bitcoin?
Here you will get everything you need to know to make your first purchase through Bitcoin in easy ways. In the beginning, buying Bitcoin seems hard, but we are making it easy for you.
How to Buy Bitcoin | Step-by-Step
In 2021, the purchasing of Bitcoin has become much easier. Below we have explained in detail each step in the process.
What You Need Before Starting
Before starting this procedure practically, there are several items you should have ready your side like:
- Government-issued ID
- Pen and Paper
- Camera (for taking a selfie)
- Internet-connected computer
- Utility Bill (may not be needed)
Step One: Find an Exchange
When you start step obe, you should pay attention to several factors to consider especially in finding the best way to buy like bitcoin rejoin.
The most important thing to make sure of is that the exchange you want to use provides services in your country.
Most exchanges only serve in a few limited countries because each country has its laws the exchange must comply with. Some of the exchanges focused on the EU countries only. Others are just North America.
Secondly, you should investigate that the exchange also accepts your prior form of payment.
If you choose to pay with a credit card, for example, you’ll need to contact that particular exchange that allows that. It is also possible that you select to wire the exchange money or use something like apple pay. Only a few exchanges accept every form of payment, so it’s quite necessary to do a little research before signing up.
Step Two: Sign Up and Go Through KYC
Step number two is quite simpler and easy to follow.
Here at this point, you will create an account on the exchange you chose in step 1.
After doing this signing up procedure, you cannot move on until you go through the KYC (Know Your Customer) process. It’s not that difficult as its name suggests. It’s simple though since you already prepared your ID and other items.
You can find out the option somewhere on the website interface saying “verifying your account” or “getting verified”.It is a compulsory step as part of the sign-up process as well. You could ve be asked to take a picture of your government-issued ID. Or the exchange may also ask you for a selfie while you hold your ID. Some of the rqqSome even ask that you write the date and the name of the exchange on a piece of paper and hold that in the picture as well.
The average time needed for verification could take anywhere from 10 minutes to a week. This time duration depends on the exchange and how backed up verification staff are.
If you want to verify your account quickly, find out the exchange which offers verification services on the same day if you sign up. Coinmama is one of such exchanges.
Step Three: Choose a Payment Method
At this point when you are done with your account and completed KYC, you will need to set up your payment method.
Presently, you can find several players where you can connect your bank account to your exchange account securely.
Here at these exchanges, you can easily transfer fiat to the exchange using inexpensive ACH transfers. You can choose to use Paypal or apple pay or one of the many other payment processors out there. You can also use your credit or debit card.
Step Four: Buy Bitcoin
Now comes the step where you can eventually buy Bitcoin!
The length of this step depends on your exchange, this will happen in one of two ways.
- You can directly buy from the exchange itself
- You can buy Bitcoins from other users on the exchange
The first option is the best to pick.
Your chosen exchange will inform you about a price and you will pay it. That is that. Simple.
And if you decide to pick the second option where the exchange lets you trade with other users on the platform, things can get a little more complicated. This is the case, where sellers offer Bitcoin prices they are ready to accept. And Buyers offer to purchase Bitcoins at prices they are willing to accept.
You have the freedom either to accept a seller’s offer or create your offer as a buyer.
This could be explained as market and limit orders. In market orders, while moving about in the store you are to pay whatever price is on the tag. And in limit orders you while seeing the price of a thing on the price tag you start to bargain with the store owner over price.
Step Five: Withdraw Your Bitcoin
This is the final step. Now after buying Bitcoins it’s really good practice to withdraw them to a wallet you own.
Some exchanges do not allow their users to buy any Bitcoin until the users give them a withdrawal address anyway. If this happens, then you will have to complete this step at the end of Step four above since you can’t even make the order without doing this.
So you see that most exchanges just hold the Bitcoin for you after your purchase. And they will continue to do so indefinitely.