Step 1 – Choose the Right Bitcoin Exchange/Trader
An exchange is a platform that facilitates buying and selling of different cryptocurrencies. There are a number cryptocurrency exchanges on the web with Coinbase, Binance and Kucoin among the top. You need to look at different factors before you choose a certain exchange.
Some exchanges are more trustworthy as compared to the others in terms of convenience, reliability, and speed of trade. If you’re just starting out, Coinbase is a safe bet. You can also check out different comparison sites to see the key differences between crypto exchanges.
Step 2 – Get a Wallet
Wallet is a storage medium that is used to store bitcoins. It can both be physical and digital. Just like exchanges, wallets come with a variety of different features in terms of security, reliability and convenience. Exchanges have built-in wallets in your trading account which are perfectly fine to store your bitcoin in.
Two of the most popular digital wallets include Exodus and Mycelium. You can also get cold storage or physical wallet such as the Ledger Nano S. In case your exchange crashes or is bogged down due to a lot of traffic, you’ll still have access to your bitcoins.
Step 3 – Take Required Precautionary Steps
Although cryptocurrency market has come a long with increasing focus on maintaining highest security standards, you are still out there all by yourself. This is why you need to take all the steps to ensure your financial investment doesn’t become a victim of carelessness or malicious attempts.
• Make a dedicated email ID to sign up on a cryptocurrency exchange and use a strong password
• Scan all your devices including PC, laptop, tablet and smartphone to find any vulnerabilities or viruses that may become a backdoor for a cyber-criminal to access your device
• Sign up on the exchange using a strong and unique password and activate two factor authentication
• Use a digital or cold wallet to store your bitcoins
Step 4 – Select a Payment Method
Bitcoin exchanges accept a number of payment modes including wire transfer, credit/debit cards, and more. PayPal, however, isn’t supported by almost all exchanges due to some technical reasons. It’s important to pick the right payment mode to ensure your transactions are affordable and quickly processed. This is something you need to look into when choosing a bitcoin exchange.
Take a look at what payment modes an exchange offers and what kind of fee they’re charging on a variety of payment options. Sometimes credit/debit card can prove to be quite expensive.
Step 5 – Buy Bitcoin and Store in the Wallet
Once you’ve made the right calls and completed your preparations, it’s time to actually purchase the currency. Every exchange will deliver you the information regarding the currency rate as well as how much discount you can get on volume. It should also be kept in mind that bitcoin price is volatile and it can change quite rapidly.
If you are just starting out, it’s better to begin with small quantity so you can familiarize yourself with the procedure to gain some experience. All you have to do is put the amount of bitcoin you want to buy and hit the buy button. The exchange will buy it for you at the best rate available in that moment. You can also place a limit order which enables you to specify the quantity you want to buy at a certain price. This way your trade will only go through if bitcoin is available at your specified price.
Once you have acquired bitcoin, transfer them to your digital or cold wallet to ensure secure storage. It’s that easy to buy bitcoin!