How To Buy Bitcoins If You’re A Noob
How To Buy Bitcoins If You’re A Noob
How To Buy Bitcoins If You’re A Noob, Are you planning to buy Bitcoin? Are you nervous about your first time Bitcoin purchasing? If yes, then we can help you out in order to know how to buy BTC in safe and secure manner. Bitcoin can be a great investment and lots of people are planning to buy it, here in this guide, we have mentioned all the tips to buy BTC.
There are two methods of buying BTC. Whether you can purchase it via exchange or from an individual, both methods are suitable and you should have to follow some tips while going for any of them.
Buy BTC from individuals:
You can buy BTC from individuals and you should be careful while doing it. First of all you need to verify the identity of the seller as it may reduce the chances or risks of being scammed. Some sellers want to remain anonymous but you should ask for identity verification. If you are a beginner, you should be well aware about the escrow service. You can try it to hold your money till seller sends you BTC. You can meet with the person in order to prevent any fraud. One thing that we will suggest you, you need not to use any irreversible payment method before getting your BTC. Purchasing BTC from an individual can be associated with lots of uncertainty so you should also look for other options.
Trading Platforms Vs Brokers:
You should also know the difference between trading platforms and brokers. Trading platforms are the sites that connect sellers and buyers automatically. You can purchase BTC from the sellers who have placed sell order on the site without ever communicating with them directly. You have to small fee to the trading platform for this service. Kraken or Bitstamp is the good example of trading platform. It can be less expensive way but you will not find it so much friendly. These sites also have some options like stop loss and limit orders that are quite confusing for beginners or inexperienced users. You can place an order by using trading platforms but your order may not be fulfilled immediately. It may be due to lack of sellers at the price you want to purchase.
You can avoid all these hassle associated with trading platform by using brokers which are the popular sites to simplify the process by allowing you to purchase coins via them at a predetermined cost. You will surely find it really very simple to buy BTC via broker sites, but it may be more expensive than trading platform. You can choose any of them what you find suitable, but you should always look for the reliable one. If you are looking to buy large amount of BTC, then you should look for specific and reputed exchanges that deal in all sorts of transactions.
Buy BTC from exchange:
There are lots of Bitcoin exchanges available and each has different set of rule, fees and payment methods. You should look for the right BTC exchange by taking all the factors into consideration. You can choose the best exchange available at your location. There are lots of things that you have to consider while choosing an exchange. First of all, you should look for whether the exchange accepts users from your location or not. There are various exchanges that do not accept customers from all across the globe.
The next thing that you should consider is the payment methods. You can check the payment methods that are accepted by the exchanges. There are lots of exchanges that accept all payment methods while other just accepts wire transfer. These payment methods allow you to request your money back like PayPal or credit cards that may be accompanies by high fee.
You should also look for how much you need to pay for your transactions. You should be aware of all kinds of fees including, deposit, transaction and withdrawal. Each fee is different and affects the total money amount that you get in the end. You should also be aware of exchange rate. You will find some exchanges have higher exchange rates so you should be aware of it. You should check this hiding fee in the form of exchange rate.
You should also be aware of buying limit that depends on method of payment that you choose and your identity verification level. If you want to purchase a large amount of BTC, then some exchanges will not permit it due to their low limits. You may choose any exchange to buy BTC but first you need to check the reputation of that exchange. It should be well known by people and community. It also supports the customers in very well manner. If there is large number of complaints against exchange, you should avoid going for it. Well you can get negative reviews for almost all exchanges but you should consider the content and volume of these reviews before choosing or rejecting any exchange.
You should know how much you want to spend on BTC and what exchange would be suitable for you. It may take some time but you should do in-depth research in order to find out a reputed company. Once you choose a reputed company you can sign up for the site of the exchange and go through the verification process during registration. Each exchange has its own KYC process and users may have to supply the exchange with some information such as residence proof, ID, income proof and much more. Once your registration process is done, you can buy BTC. Once you buy BTC you need to move to your personal BTC wallet.
You have to buy a wallet in order to hold your BTC. Wallets are the set of programs that can help you in sending/receiving BTC. These BTC wallets can generate your address that can serve as your personal address of receiving BTC. Any desktop or mobile wallet can be suitable for you if you are buying small amount of BTC but you should go for paper or hardware wallet for large amount of BTC.