A Comprehensive Guide on How to Buy Bitcoin

The cryptocurrency revolution is here, and everyone wants to be a part of it. But how to get started? Surely this complicated, ground breaking blockchain technology is difficult to grasp, never mind to be a part of.

It is easier than ever before to buy Bitcoin, trade Bitcoin, and be a part of the revolutionary wave of digital currency. Anyone, even someone that is unfamiliar with cryptocurrency entirely, can learn how to buy Bitcoin is just a few minutes. This guide will explain what Bitcoin is, how it came to be, and how it stands apart from other cryptos. The guide will also explain how to buy Bitcoin quickly and easily.

What is Bitcoin?

Most have heard of Bitcoin (BTC,) but might not be that familiar with what it actually is. Essentially Bitcoin is a virtual currency that can be used to buy and trade, much like a fiat currency. However, Bitcoin is not controlled by a single person or organisation, making it separate from traditionally designed currencies. Essentially Bitcoin is separate from banks, governments and corporations, hence why the currency is referred to as decentralised.

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4.9/5

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4.8/5

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4.6/5

Excellent

TESTED & VERIFIED

At its core Bitcoin is rewarded to so-called miners that work on the blockchain. Blockchain is the digital network system that encompasses the currency and handles all transactions and activity. A vast, disconnected group is required to process the blockchain information, hence why miners are needed. Miners are rewarded with Bitcoin. However, Bitcoin can also be purchased and traded, acting as a currency.

As far as Bitcoin’s origins are concerned, the crypto was founded in 2009. It isn’t clear which person, or group of persons introduced the idea, but what is known is that an entity called Satoshi Nakamoto put the concept forward. From humble beginnings Bitcoin quickly became a revolution. Many cryptos have since followed, but Bitcoin was the first, introducing the world to the essential blockchain system.

How to Mine Bitcoin

A trader can buy Bitcoin, or they can attempt to mine Bitcoin. As said, miners are required to operate the blockchain, and are therefore an essential part of the network. Initially when the blockchain first launched virtually anyone could participate in minding, using even just a single personal computer. However as the popularity of Bitcoin increased a number a large, dedicated groups have been established. It is far more difficult to earn Bitcoin as a miner than it once was, although it is still technically possible.

Anyone wanting to be a miner and participate will require powerful computer hardware, or even a farm of powerful hardware, as well as the necessary software. Needless to say, mining Bitcoin is now a full time job for many dedicated individuals and organisations.

How Long Does it Take to Mine?

A blockchain is validated roughly every 10 minutes, with a Bitcoin payout of 6.25 BTC generated. To be more precise this means that 1 BTC is generated every 100 seconds. However, a single mining system will not earn 1 BTC for every 100 second of work. Multiple systems work on a block simultaneously, and there is no telling which computer will get a payout, or if it will get a payout at all.

Depending on the computer resources used, and depending on how many dedicated computers in a farm, most dedicated miners expect to make 1 BTC perhaps every 30 days.

Rating

5/5

Excellent

TESTED & VERIFIED

Rating

4.9/5

Excellent

TESTED & VERIFIED

Rating

4.8/5

Excellent

TESTED & VERIFIED

Rating

4.7/5

Excellent

TESTED & VERIFIED

Rating

4.6/5

Excellent

TESTED & VERIFIED

How to Buy Bitcoin

A trader can buy Bitcoin using an online exchange or broker in just a few steps. It is also possible to trade for Bitcoin with other cryptocurrency. Let’s first look at how to buy using a fiat currency.

Step 1 - Set Up a Wallet

Bitcoin needs to be stored once it has been purchased, so the first step is to sign up for a digital wallet. It is possible to use a physical electronic wallet, but let’s assume that a digital wallet is being used. A number of digital wallet services exist, and signing up takes just a few moments. A few basic details will be requested, after which the wallet will immediately become available.

Step 2 - Sign Up at an Exchange or Broker

An exchange or broker must then be chosen. There are numerous platforms to choose from, all with their own pros and cos. In the case of buying with fiat currency the outlet will be regulated, which in turn means that the Know Your Customer (KYC) process will have to be completed. KYC will require validated identification, so it is advisable to have this information ready before hand.

Step 3 - Make a Deposit

Once KYC has been completed and the account becomes active a deposit must be made. This can be done by heading to the deposits section of the exchange, indicating the desired amount, and confirming. Fiat deposits can be made with PayPal, credit card, debit card, Apple Pay or Google Pay.

Step 4 - Buy Bitcoin

To buy Bitcoin a trader can either select how much crypto they would like to purchase, or how much fiat currency they would like to spend. Either way the process will be simple, taking just a few moments. Once the purchase is made the Bitcoin must then be withdrawn to the previously activated storage wallet.

Crypto to Crypto Trading

You can trade for Bitcoin with another crypto, or trade Bitcoin for other cryptos. Either way, this can be done at a number of exchanges. Some crypto exchanges will be regulated, while others won’t. If dealing with an unregulated exchange the transactions can be done anonymously, meaning that it will not be necessary to complete the KYC process in order to sign up.

Step 1 - Make a Deposit

If a new account is being used it will be necessary to deposit crypto into the account. This can be done by heading to the deposits section and indicating which crypto will be transferred, which in turn will generate an address. The address then acts as the necessary information to make the transfer.

Step 2 - Make a Trade

Trading is then possible. The exchange will offer a table that indicates which crypto is being traded, and what the desire crypto is, in this case Bitcoin. Anyone can trade Bitcoin in the same way, getting whichever currency is desired.

Step 3 - Withdraw Bitcoin

Again, any crypto acquired should always be withdrawn to a wallet for safe storage.

What are the Fees?

Now that we know how to buy Bitcoin let’s consider some of the other details. What are the fees for buying and trading Bitcoin? The fees depend on the platform used, as well as the currency used. Crypto fees are exceptionally low, but if a third party is involved, such as a traditional bank, the fees may be higher. Hence, if buying with a fiat currency the bank will impose its own fees. If crypto to crypto trading is used the fees will generally be dramatically less.

Investing and Speculating

Many buy Bitcoin to use, given that it is an extremely versatile and flexible currency. However others will trade Bitcoin, explicitly with the intention of making a profit. Interestingly, dedicated exchanges weren’t very popular in the early days of the currency. A few key platforms existed, but didn’t see any real competition until 2017. It was then that Bitcoin saw its first big surge, with the value passing the $1,000 mark. Speculation was that the price would continue to climb, perhaps beyond even the $10,000 mark.

It was then that traders realised that a profit could be made. If Bitcoin is purchased at a value of $1,000 it can be sold later at a higher price, assuming that value increases. This speculative trading is the same seen in the fiat marketplace.

Hence, it need not be said that profit can be made if a trader chooses to trade Bitcoin. But the prospect does come with significant risk. Simply put; predicting the price fluctuations of a cryptocurrency is very tricky.

 For example in March 2022 Bitcoin value stood at an impressive $47,454. In November 2022 it was trading at $15,731. As to whether the price will return to previous highs is unknown, with prediction being the only answer as to what will happen next.

This is the nature of the trading game.

Risks of Cryptocurrency Investing

It is technically possible for anyone to trade Bitcoin, and even possible for them to make a great deal of money. But this sort of speculative trading should only be approached with due caution. Knowing how to buy Bitcoin is one thing, knowing how to make a profit trading it something else entirely.

In November 2021 Bitcoin reached an all-time peak of $68,990, meaning that someone who had purchased at $1,000 would have seen enormous profits. It’s very tempting to imagine that an investment will pay off big, but no one knows for sure. Hence there are inherent risks involved in trading, with the potential to lose a great deal of money. Bitcoin is, by its nature, still very unstable.

Bitcoin Regulation

Blockchain and cryptocurrency are new technologies, hence there are currently no established regulations. There have been calls for regulations to be created, but these sorts of complicated processes take time. Regulations would, of course, make the crypto-sphere safer. Regulations, by their design, keep out illegal activity. But, as of 2022, there is still no word on when, or if, regulatory framework will be hashed out.

President Biden has declared that he intends on stamping out the illegal use of Bitcoin. He has, however, also made it clear that he does not intend on interfering with economically beneficial crypto trading. So as it stands, although the US government is aware that illegal crypto usage exists, efforts thus far have been focused on foreign illegal entities. Illegal crypto has been recovered from criminal networks, and questionable exchanges have been shut down, but law abiding traders have certainly not been harassed.

Calls have also been heard urging the US government to create a central bank digital currency (CBDC.) As to what this is, and how exactly it would work, no one yet knows. But CBDC does seem like a step in right direction of make Bitcoin safer, and more widely accessible than ever before.

Is Bitcoin a Smart Investment?

Saying that Bitcoin is a smart investment to buy Bitcoin is highly debatable. The answer very much depends on the individual, what that individual hopes to achieve, and what that individual’s expectations are. If someone invests in cryptocurrency hoping to get rich quick they are taking the wrong approach. The possibility does exist to make a great deal of money, but the risks involved cannot be ignored.

It is best to tackle cryptocurrency investment smartly, not putting all the proverbial eggs into a single basket. As with all speculative trading investments should be spread around, ensuring that if some investments go bad others still exist. Multiple baskets create a buffer, ensuring that it is less likely that all prospects are lost at the same time.

With that being said, anyone wanting to buy Bitcoin should consider the situation seriously, consult a financial expert, and learn how financial markets work.

Final Thoughts

Bitcoin is without question the biggest and most popular cryptocurrency in circulation. It had humble beginnings, established as a way to avoid having to trade within an established system, but landed up being much more. After launch Bitcoin achieved success that few even dreamed of, defying the expectations of even those that created it. To put it bluntly; Bitcoin took the world by storm. There is, after all, a reason that when most think of cryptocurrency, they think of Bitcoin.

Many have predicted that Bitcoin will surge to a value of $100,000 by 2025. This prediction may be optimistic, but even if it is optimistic the currency still has a bright future. That Bitcoin isn’t going anywhere is something that virtually everyone agrees on. 

The bottom line is that the spearhead of the cryptocurrency revolution is growing fast, even its value does tend to be erratic. If it will be valued at $100,000 in 2025 isn’t known, but that prediction also certainly isn’t impossible.

It only makes sense that a trader have the biggest crypto in the world as part of their portfolio. As to how much they decide to invest is up to them.

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