Learn How To Buy Bitcoin

Are you intrigued by the buzz around Bitcoin but not sure where to start? You're not alone. With its surging popularity and promises of financial freedom, everyone from tech-savvy Gen Z and Millennials to seasoned investors are eager to get in on the action. In this blog post, we'll explore what all the hype is about and provide some tips for those looking to join the Bitcoin revolution. Get ready to dive into the world of cryptocurrency!

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Step-by-step guide to buying Bitcoin

If you're in a hurry!!!! Quick Guide To Buying Bitcoin
  1. Choose whether you want a cryptocurrency exchange or broker: Make sure you do your research, you'll want one that has a good reputation and top-notch security and, of course, has the cryptocurrency you want to buy. Coinbase is the best for beginners, CashApp is also good for beginners seeking Bitcoin, Gemini for rock-solid security and Binance for more advanced Crypto Investors.
  2. Set-up your Digital Wallet: We've used Coinbase as it is perfect for beginners, just follow the steps below.
  3. Fund your account: Depending on your country will depend on how you can fund the Wallet, normally different options are available i.e. Bank Transfer, SEPA transfer, PayPal (although PayPal is normally for payouts).
  4. Buy BitcoinCrypto: Search for BTC and buy your Bitcoin.

Image Credit: LiveCoinWatch – BTC 1LiveCoinWatch – BTC https://www.livecoinwatch.com/

Let's take a look at the factors that influence Bitcoin's value as well as how you can buy Bitcoin and find out what all the hype is about.

How Much is Bitcoin Worth?

Bitcoin is a decentralized digital currency, without a central bank or single administrator, that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries. Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain.

Bitcoin is unique in that there are a finite number of them

21 million

Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services. As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment (Microsoft, Burger King, KFC, Subway and more).

Understanding the Volatility of Cryptocurrencies

When it comes to cryptocurrencies, volatility is king. Prices can swing wildly up and down in the blink of an eye, making them incredibly risky investments. But for some investors, that volatility is precisely what makes cryptocurrencies so appealing.

Source: The Block – Crypto Market Data.2The Block – Crypto Market Data. https://www.theblock.co/data/crypto-markets/prices

If you're thinking of investing in cryptocurrencies, it's important to understand just how volatile they can be. Here's a look at some of the factors that contribute to cryptocurrency volatility:

  1. Lack of regulation: Cryptocurrencies are not subject to the same regulations as traditional currencies or assets. This lack of regulation creates an environment where prices can fluctuate wildly.
  2. Limited supply: There are only a limited number of cryptocurrencies in existence, which means that demand can outstrip supply and drive up prices.
  3. High level of speculation: Many people invest in cryptocurrencies simply because they think they will go up in value. This speculation drives up prices even further and creates even more volatility.
  4. Decentralized nature: Cryptocurrencies are not controlled by any central authority, which makes them very difficult to stabilize.
  5. Rapid adoption: As more and more people start using and investing in cryptocurrencies, their prices will continue to be volatile.

The historical price of Bitcoin can give us some insight into how volatile the currency really is. Let's take a look at the prices from the past few years:

In 2013, the price of 1 BTC was around $13 USD.

In 2014, the price of 1 BTC fell to around $310 USD.

In 2015, the price of 1 BTC rose again to around $500 USD.

In 2016, the price of 1 BTC fluctuated between $700 and $1,200 USD.

In 2017, the price of 1 BTC has reached over $3,000 USD!

In 2020, the price ranged from $10,000 down to $6,635

In 2021, the price went up to $29,000

In 2022, the price went up to $68,991 then back down to $18,00

In 2023, we are at $26, 150

As you can see, the prices have been all over the place. There is no telling where the prices will go in future years. However, one thing seems certain – Bitcoin is here to stay and its value will continue to rise over time!

The legal status of bitcoin varies substantially from country to country and is still undefined or changing in many of them. While some countries have explicitly allowed its use and trade, others have banned or restricted it. Regulations and bans that apply to bitcoin probably extend to similar cryptocurrency systems. Check your country to see if Bitcoin is legal.

Guide: Buying Crypto: Step-by-Step

Decide if you want to use a Crypto Exchange or Broker

There are a few things to consider when choosing a crypto exchange or broker. Both will let you buy crypto, although each has different pros and cons. There are more than 300 crypto exchanges and only you can decide which is best for you.

What is a Crypto Exchange?

A cryptocurrency exchange is a platform where users can buy and sell cryptocurrencies. Some exchanges also allow users to trade fiat currencies, such as US dollars, for cryptocurrencies. Cryptocurrency exchanges typically charge a fee for each transaction and have advanced charting tools which can be a little daunting for newbies.

Buy and sell crypto
Complex interfaces can confuse new users
Low fees
Advanced charting can be intimidating
Advanced charting tools

What is a Crypto Broker?

A crypto trading broker also allows you to buy and sell cryptocurrency and normally has a simple interface, reducing the complexity with a friendly “look” and easier on the eye for newbies. Most platforms also allow you to trade other assets, such as stocks, commodities, and forex, however, fees are normally more expensive. 

Simplifies crypto charts
Higher fees compared to exchanges
Easy-to-use interface
Restrictions on moving crypto holdings
Tends to be easier for newbies
Check the small print for hidden costs

Other factors to consider before making your decision

Here are a few things to consider when choosing an exchange:

Geographical location: Some exchanges only operate in certain countries. Make sure the exchange you choose is available in your country.

Payment methods: Different exchanges accept different payment methods, such as credit/debit cards, bank transfers, or PayPal. Choose an exchange that accepts the payment method you want to use.

  • fees: exchanges typically charge fees for each transaction. These fees can vary greatly from one exchange to another, so be sure to compare before making your decision.

Security: When it comes to handling your money, security should be your top priority. Make sure the exchange you choose has implemented adequate security measures, such as 2-factor authentication and cold storage.

Top 4 Exchanges to Get Started with Bitcoin

Best for Beginners

Coinbase

Coinbase is one of the most popular cryptocurrency exchanges and allows you to buy and sell Bitcoin, Ethereum, Litecoin, and more. You can also use Coinbase to store your cryptocurrencies. Coinbase Global Inc. is listed on the NASDAQ exchange.

Founded: 2012

Crypto Wallet: Yes – Coinbase has its own crypto wallet.

Assets Available: over 3,000 crypto assets like Bitcoin and Ethereum, they also offer a Coinbase Visa debit card.

Location: Available in 100+ countries.

Security: High levels of security designed to protect users (two-factor authentication / cold storage – meaning assets kept offline making it impossible to hack and the Coinbase Vault).
Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Tax on profits may also apply.
Best for Bitcoin/ Stocks and Beginners

Cash App

Cash App is a peer-to-peer payment app that allows users to send and receive money with friends and family. The app also allows users to buy and sell Bitcoin. Cash App is a subsidiary of Square, Inc., a financial services, merchant services aggregator, and mobile payment company based in the United States.

Founded: 2018

Crypto Wallet: Yes

Assets Available: Bitcoin and traditional stocks

Location: U.S. and some features available in the UK

Security: PCI Data Security Standard (PCI-DSS) Level 1 compliant
Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Tax on profits may also apply.
Best for Social Trading

eToro

eToro is a leading social trading and investment platform and crypto broker with over 10 million registered users from more than 140 countries. The company offers a unique and innovative way to trade and invest in a variety of assets, including cryptocurrencies.

Founded: 2007

Crypto Wallet: Yes – eToro Money Crypto Wallet

Location: Available in 140+ countries.

Security: Levels of security designed to protect users (two-factor authentication).
Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Tax on profits may also apply.
Best for Experienced Investors

Binance

Binance is a cryptocurrency exchange that provides a platform for trading various cryptocurrencies. It’s relatively low in fees and offers wide range of cryptocurrencies.

Founded: 2017

Crypto Wallet: No

Assets Available: 150+

Location: 100+ countries

Security: Levels of security designed to protect users (two-factor authentication).
Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Tax on profits may also apply.

All Crypto Exchanges are listed on the CoinMarketCap. 3CoinMarketCap https://coinmarketcap.com/rankings/exchanges/

Guide: Set up your Digital Wallet

First up, what is a digital wallet? A Crypto wallet is essential if you want to trade crypto, it's a place where you can securely keep your crypto. There are many different options out there, the most popular being hosted wallets, other alternatives are non-custodial wallets, and hardware wallets. 

As Coinbase is perfect for beginners, we will use them as an example as they have their own Digital Wallet.

The whole process can be completed within a few clicks.

What you'll need before you get started:

  • Be at least 18 years old (they will check for proof)
  • government-issued photo ID 
  • A computer or smartphone connected to the internet
  • A phone number connected to your smartphone (Coinbase will send SMS text messages)
  • The latest version of your browser (we recommend Chrome), or the latest Coinbase App version. If you’re using the Coinbase app, make sure your phone’s operating system is up-to-date.

Account opening process: step-by-step

1. Create your account

Go to https://www.coinbase.com from a browser on your computer, or download and open the Coinbase app icon, small Coinbase app on Android or iOS to get started.

Note: We don’t recommend accessing Coinbase through a browser on your mobile device. 

  1. Click or tap Get started.
  2. You’ll be asked for the following information. Important: Enter accurate, up-to-date information to avoid any issues.
    • Legal full name (we’ll ask for proof)
    • Email address (use one that you have access to)
    • Password (memorize your password)
    • Your State (we’ll ask for proof)
  3. Read the User Agreement and Privacy Policy.
  4. Check the box and click Create account (computer) or tap SIGN UP (mobile) if you agree.
  5. Coinbase will send you a verification email to your registered email address.

2. Verify your email

  1. Select Verify Email Address in the email you received from Coinbase.com. This email will be from no-reply@coinbase.com.  
  2. Clicking the link in the email will take you back to Coinbase.com. 
  3. You’ll need to sign back in using the email and password you recently entered to complete the email verification process.

3. Verify your phone number

  1. Sign in to Coinbase. You’ll be prompted to add a phone number.
  2. Select your country.
  3. Enter the mobile number.
  4. Click Send Code (computer) or tap Continue (mobile).
  5. Enter the seven-digit code Coinbase texted to your phone number on file.
  6. Click Submit or tap Continue.

If you did not receive the code, select Resend-SMS.

4. Add your personal information

  1. Enter the information shown on your valid government-issued photo ID—you’ll need to submit a photo of this ID later.
    • First Name
    • Last Name
    • Date of Birth
    • Address
  2. You’ll also need to answer the following questions:
    • What do you use Coinbase for?
    • What is your source of funds?
    • Current Occupation
    • Employer
    • Last 4 digits of SSN
  3. Select Continue to finish the process.

5. Verify your identity

  1. Sign in to your Coinbase account.
  2. Complete ID verification.

Recommended: Set up a 2-step verification app (TOTP) to help protect against unauthorized account access.

Choose your country below to learn which payment methods are available in your country. 

For more information on all the services available in Coinbase supported countries, please visit our Supported Countries page.

You're now ready to go!

Guide: Fund your wallet

Next, you will need to deposit some funds into your newly created wallet. This can be done via bank transfer, credit/debit card, or even PayPal in some cases.

Guide: Buy Crypto

Now you have your wallet you are ready to start buying Crypto!

Choosing the Best Cryptocurrency to Buy

When it comes to investing in cryptocurrency, there are a lot of options to choose from. So, how do you know which one is the best to buy?

Here are a few things to keep in mind when choosing the best cryptocurrency to buy:

  1. Market capitalization (take a look at which coins are the highest right now and the curve of their value).
  2. Supply of coins (check whether they have a limited supply, how many coins are in circulation and how many it's possible to mine).
  3. Trading volume (how many coins have been sold).
  4. Price volatility (how risky is the potential investing).
  5. White Papers (White Papers are details about the coin: utilities, purpose and the technology behind it, this is very important to access the legitimacy of the coin).

Good websites to see what's hot and what's not!

Crypto News

Coindoo

DC Forecasts

CoinMarketCap

Learn how to buy Bitcoin: The Bottom Line

Cryptocurrencies have become increasingly popular over the last decade, and many people are trying to understand how much Bitcoin is worth. As with any investment, there is always a risk of volatility which could affect the value of Bitcoin. However, with careful research and monitoring of market trends, you can make informed decisions on when to buy and sell your cryptocurrency investments. At the end of the day, it's important to remember that understanding how much Bitcoin is worth requires knowledge about its history as well as an appreciation for the risks involved in this volatile but potentially lucrative asset class.

Risk Disclaimer

need to rewite There is a very high degree of risk involved in trading securities. With respect to margin-based foreign exchange trading, off-exchange derivatives, and cryptocurrencies, there is considerable exposure to risk, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or related instrument. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable, or that they will not result in losses.

Why Trust Us?

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At ForexBrokers.com, our reviews  and their products and services are based on our collected data as well as the observations and qualified opinions of our expert researchers. Each year we publish tens of thousands of words of research and detailed guides, and we monitor dozens of international regulator agencies (read more about how we calculate Trust Score).

Our research team conducts thorough testing on a wide range of features, products, services, and tools (collecting and validating thousands of data points in the process). We test all available trading platforms for each broker – whether they are proprietary or come from third-party providers – and evaluate them based on a host of data-driven variables.

We also take an in-depth look at each broker’s commissions and fees, such as bid/ask spreads – including the average spread data for some of the most popular forex currency pairs. We research other trading costs, such as inactivity or custody fees, minimum deposit requirements, VIP rebates and/or discounts, and a range of other important fee-based data points.

Some of the other important research categories that are factored into our testing include mobile trading accessibility and capability, availability of market research and educational content, and each broker’s overall Trust Score.

Read our full explanation and accounting of our research and testing process to learn more about how we test

Sources & References

  • 1
    LiveCoinWatch – BTC https://www.livecoinwatch.com/
  • 2
    The Block – Crypto Market Data. https://www.theblock.co/data/crypto-markets/prices
  • 3
    CoinMarketCap https://coinmarketcap.com/rankings/exchanges/
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