How to buy Bitcoin in 2024? Review the 4 most important different methods
Today’s topic is How to Buy Your First Bitcoin If you have followed our previous articles, you are probably somewhat of a Bitcoin expert by now but nothing will teach you more about Bitcoin and how it works than getting first-hand experience with a live Bitcoin transaction by purchasing a small amount of… Bitcoin, you will probably learn more than reading the entire article.
Tips Before Buying Bitcoin
Now you have to ask yourself a very important question, how much money do you intend to invest in Bitcoin? Bitcoin is a very risky asset, which means that you should never buy any amount that you cannot afford to lose, it is important to think this through if this is your first time buying Bitcoins, choose an amount that will not affect you financially if the currency declines. Bitcoin to zero.
In general, we tend to be overly optimistic when we invest and forget that the very real possibility of downside is that our rule of thumb is to never invest more than five percent of our disposable income or total wealth.
Keep in mind that you can always buy less than one bitcoin and one bitcoin can be divided into eight decimal points, meaning you can buy half. A Bitcoin, a quarter of a Bitcoin, or even a hundredth of a Bitcoin.
You must have a Bitcoin wallet
Before you can buy Bitcoins you will go if you need a wallet to hold them, and if you are completely new to Bitcoin here is a summary of Bitcoin wallets. They are programs that help you send and receive Bitcoin. They create your own Bitcoin address which acts as your address. To receive bitcoins.
If you are buying small amounts of Bitcoin, you can use any reliable software wallet, it can be a mobile wallet a Bitcoin wallet, or a desktop wallet it doesn’t matter for large amounts of Bitcoin though you will want to use hardware wallets or paper wallets only, these The wallets are not connected to the internet and therefore eliminate the possibility of someone stealing your funds unless they already hold your physical wallet.
Choosing a Bitcoin exchange
Of course, the amount you will spend on Bitcoins will lead you to your next step, Choosing an Exchange is hard work, each exchange has different rules, accepted payment methods, and fees along with other factors that need to be taken into consideration.
The first thing you will want to check is that the exchange accepts users from your country and not all exchanges except customers from around the world. The second thing you will need to check is the payment methods that the exchange accepts. Some exchanges accept a wide range of payment methods and others accept transfer payment methods. Only banking that allows the buyer to request their money back such as credit cards or PayPal usually comes with higher fees.
This is because the seller bears the risk of you canceling the payment after you get your coins. On the other hand, payment methods that can do this are not reversible such as bank transfers which are usually cheaper. The third thing you want to check is the amount you will need to pay in fees for your transactions.
There are 4 types of fees:
Deposit fees
Transaction fees
Withdrawal fees
Exchange rate fees
Each is different and can affect the total amount of money you will ultimately receive.
You should be aware of the exchange rate
The fourth thing you want to be aware of is the exchange rate, some exchanges have low fees but their exchange rates are higher compared to the competition and this means the fees are hiding in the exchange rate.
Know your buy limit on the Bitcoin exchange
Your purchase limit will depend on your payment method and the level of verification of your identity. If you are looking to buy a large amount of Bitcoin, some exchanges will not allow this due to their low limits. Finally, you will need to check the reputation of the exchange:
Is it known in the community how good support is if you get lost in the process?
Have there been a large number of complaints against the stock exchange?
Is customer service always available?
Keep in mind that no exchange is free of negative reviews but it is important to consider the volume and content of those reviews.
The difference between Bitcoin trading platforms and brokers
One important distinction to make is the difference between trading platforms and brokers. Trading platforms are sites that automatically connect buyers and sellers. This means that you buy from people who have placed sell orders on the site without contacting them directly. The platform usually charges a small fee for the service of making transactions on trading platforms such as Bitstamp or Kraken, and it is usually the cheapest way To get bitcoins, but it is often not very user-friendly trading.
The platforms have options like limit and stop loss orders which can confuse an inexperienced user also when placing an order it may not be executed immediately due to a lack of sellers at the price you want to buy To avoid hassles you can use a broker Brokers are sites that simplify the process by Allowing you to purchase coins through them at a pre-determined price.
