Bitcoin cryptocurrency – the first, known and sought after for more than a dozen years. Due to the fact that this cryptocurrency has shown a clearly positive dynamic in recent months, many users have seen positive investment opportunities for themselves. In this article, our editors will explain how to buy Bitcoin in cryptocurrency exchange. This can be done in different ways – more obvious and relatively rare.
Main steps
First, let's look at the General Tips – the main steps that include obtaining Bitcoin on a cryptocurrency exchange:
- Select an exchange that meets parameters such as supported withdrawal methods, fees, security measures, and reputation.
- Registering an account is a standard procedure that raises no questions.
- Identity Verification. This is almost always a mandatory step if you plan to transact with fiat funds.
- Deposit. Fund your account with fiat currencies or stablecoins, depending on the broker’s support and your personal preferences.
- Buy Bitcoin using one of the methods listed below.
After that you can withdraw BTC to an external portfolio where the coins will be stored more securely or left temporarily in an exchange account to be used in future trading operations.
Getting started with the exchange. Verification
Examples of popular exchanges de bitcoins:
All of these sites have roughly the same functionality, but slightly different terms of service, so it’s best to research several platforms and learn more about them before making a choice. Not all brokers accept fiat currency (reals, dollars), so take this factor into consideration.
According to CoinMarketCap statistics, there are over 370 cryptocurrency exchanges with a total daily trading volume of $129 billion. Not all of these platforms are truly reliable and can provide high-quality protection of funds. Therefore, it is very important to choose a reliable exchange. It is recommended to opt for a well-known option, even if other lesser-known ones offer supposedly more favorable conditions.
Verification is a KYC (Know Your Customer) check. This means that in order to perform certain operations, the user must provide information about himself: full name, date of birth, place of residence, selfie. And only after verification by moderators, which takes 1-2 days, will the full range of broker functions be available, including trading with fiat currencies.
Buy Bitcoin by creating a trade order
If your priority is the profitability of the transaction and not its speed, then this option is the most suitable. It allows you to buy BTC at the best possible price, as well as with a low commission. The procedure is as follows:
- Go through the registration and verification procedures.
- Find the desired currency you want to buy, for example, in the list of currencies in the exchange wallet and click on the button responsible for replenishment.
- Select a deposit method. The most commonly supported ones are bank cards, payeer AdvCash, Perfect Money or other payment systems.
- Indicate the amount you wish to allocate to purchase BTC and confirm the transaction.
- Go to the trading terminal and select the desired trading pair (for example, BTC/Real – this means bitcoin to reais). Or simplify it even more – click “Trade” on Bitcoin in your wallet and select a trading pair from the available ones.
- Proceed to create a purchase order. Orders can be limit and market (these are the main types). A market order allows you to buy cryptocurrency instantly, but at a less favorable price. Limit also gives you the opportunity to specify the desired price. Such an order will wait for execution until an opposite market order appears at this price.
After the transaction is completed, the bitcoins will be credited to the balance, from where they can be withdrawn if desired.
How to buy Bitcoin directly from a user (P2P)
Some cryptocurrency exchanges (in person Binance) include a section with peer-to-peer trading. About Binance P2P Verified users can buy cryptocurrencies directly from other users without transferring fiat money to the exchange. Here’s how to do it:
- Complete registration and verification.
- Go to “Buy Cryptocurrency” -> “P2P Trading” section.
- Using filters, select the following parameters: cryptocurrency for purchase (in our case, it is Bitcoin) and fiat currency for payment. If you wish, you can also set other restrictions – payment methods, transaction amount.
- Look at the available offers. Choose the obvious path, paying attention to the seller's rating and the number of successful transactions.
- Click the “Buy” button.
- Contact the seller via chat to learn the details of the trust transfer and other details.
- Confirm the creation of the transaction, transfer the trust in the required amount according to the data provided. Click on the button confirming the payment process.
When the counterparty receives your payment on the card/electronic payment system, confirm and the bitcoins will be transferred to your exchange account.
Quickly buy BTC on the exchange using a card
The quick card purchase feature is very convenient if you do not intend to trade Bitcoin, but want to invest exclusively through a one-time purchase and do not care much about higher fees. Almost all major brokers offer this option today. The transaction is easy to complete; all you need to do is:
- Go to the section called “Buy cryptocurrency”, select the option to buy with a card.
- Specify the fiat currency in which the payment will be made.
- Select Bitcoin as the currency to purchase.
- Select the “New Card” option if you have not yet purchased from this broker.
- Click “Buy BTC”.
- Going to the payment provider's website, provide all the necessary information about the payer and the card.
- Confirm the transaction.
The purchased bitcoins will be transferred to the exchange wallet within 10 to 20 minutes.
What are the fees on the Serpent exchange?
Exchange commission rates depend on many factors – the replenishment method, the performance of the individual account. The commission for Depositing with a bank card is usually fixed and amounts to 1-3%. There are no peer-to-peer trading fees on Binance P2P.
With trading fees, things are a bit more complicated. There is a substantial fee, but it can be significantly reduced if you reach a certain trading volume or have an exchange cryptocurrency in your account. Examples of fee structures for some brokers:
Binance
EXMO
Where to Store Bitcoin After Purchase
It is not recommended to leave cryptocurrencies, especially in large amounts, in an exchange account for a long time. Of course, popular exchanges are very protected, entire departments are dedicated to cybersecurity, but hackers are always improving. Therefore, there is a possibility of hacking and theft of assets. It makes more sense to withdraw money to an external cryptocurrency portfolio. Today there are many options, including:
According to a 2020 survey, hardware wallets are the most secure. Using them ensures the security of funds by almost 100%.
Frequently asked questions
Conclusion
As you can see, making your first purchase in the cryptocurrency space is not that difficult. Whichever method you choose to buy Bitcoin on an exchange, it involves only a few steps. However, it is important to be careful with each step, and also to pay maximum attention to the storage of the purchased cryptocurrency. If you later want to sell your coins, you can use the same methods available on the most popular cryptocurrency exchanges for this purpose. Alternative buying/selling methods include exchanges, bots no Telegram, cryptocurrency wallets, EPS, crypto ATM. But exchanges lead among them in terms of demand and convenience.