Are you looking forward to buying bitcoins? Bitcoin price decline had made the crypto a good buy. The digital currency will bring a massive turn in 2019. The current value of BTC is $3,486.28 which was around $6K back in 2017.
There has been a global venture investment in blockchain and adjacent startups. So, if you’re thinking to invest in Bitcoin for the first time and looking for simple ways to buy it, this tutorial guide is for you.
There are a lot of websites out there that allow users to buy Bitcoin. The only difference is the payment modes that are supported by the websites. Also, the countries in which the sites allow buying bitcoins online.
Before you jump into the tutorial, let’s discuss the payment modes that you can use while purchasing bitcoins.
You can buy bitcoins with the following payment modes:
- Credit Card/Debit Card.
- Bank Transfer.
1. Credit Card/Debit Card
Buying bitcoins using a credit card or debit card is the easiest way. Both are the least recommended payment modes of all.
Payment done through the cards comparatively posses higher transaction fee. Also, for buying bitcoins using a debit or credit card, you will have to provide your details which can be a bummer especially if you are buying from a place where purchasing or holding bitcoins are illegal.
Coinbase, CEX.io, BitPanda, and Coinmama are some of the trusted websites that allow users to buy bitcoins using a credit/debit card.
2. Bank Transfer
Bank transfer is the best mode of payment for purchasing bitcoins online. The main benefit of paying via bank transfer is that you can buy bitcoins in massive amounts. Whereas, buying bitcoins using credit/debit card has certain purchase restrictions.
Bank transfer also has the least transaction fee of all. However, you have to provide personal details when paying through bank transfer.
Another small inconvenience is that bank transfer transactions can take up to five working days and your bitcoins get credited after the transaction is done.
Coinbase, Bitpanda, Gemini, Kraken, and Bitstamp are some of the recommended websites to buy bitcoins through bank transfer.
How To Buy Bitcoin Online in 2019?
Now that you know the payment modes, below are the steps you need to follow to buy Bitcoin online.
Step 1: Create a Bitcoin Wallet
First of all, create a Bitcoin wallet to store your purchase. Though many websites that allow users to buy Bitcoin have their digital wallet, you should always create your Bitcoin wallet.
There are two types of Bitcoin wallets:
Hot Wallets: These are online-based virtual wallets convenient to store a small amount of Bitcoin. Jaxx is one of the most used hot Bitcoin wallets.
For the sake of this tutorial, we are using the same wallet as an example. You are free to try any other Bitcoin wallets though.
Below are the steps to set up the Jaxx Bitcoin wallet:
- First of all, download and install the Jaxx Bitcoin wallet application for Android from here and iOS from here.
- Launch the application on your device.
- From the list of digital currencies, select “Bitcoin”. You can also use the Jaxx wallet to store other digital coins as well.
- Now, click on “New Wallet” option.
- Click on the “Yes, Backup Wallet” option. A unique 12-word recovery phrase gets displayed. Store this phrase properly and do not share it with anyone as the phrase gives direct access to your Bitcoin wallet.
- Now, click on “Settings” option and then click on “Setup Security Pin”.
- Set up a strong security pin for your wallet. You can use this pin to confirm payments that you do use the wallet.
The backup phrase and the security pin are not the same. The backup phrase is what you will need to access your Bitcoin wallet on another device. Whereas, the security PIN confirms payments that you process using your wallet.
Cold Wallets: These are hardware-based physical wallets without an internet connection. Bitcoin owners have to manually download and save their Bitcoin wallet address into the hardware wallet.
Hardware wallets are highly safe to store bitcoins safely. Trezor, Ledger Nano S, and KeepKey are some popular cold Bitcoin wallets.
Step 2: Find an Exchange to buy Bitcoin and Register
Finding the right exchange is very important while purchasing Bitcoin. Even though there are a lot of exchanges out there that allow users to buy Bitcoin, but not all exchange work in other countries.
For example, the BitPanda exchange is only available for buyers from European countries. But, Coinmama exchange is accessible from anywhere in the world.
You should also check if the exchange of your choice accepts your preferred mode of payment. Some exchanges only offer the option to pay either via credit/debit card or bank transfer.
Once you find your preferred exchange to buy bitcoins, you will have to create an account and register to the exchange. Most platforms require users to create an account before allowing them to buy bitcoins.
Step 3: Purchase bitcoins and transfer them to your Bitcoin wallet
After creating an account on the exchange of your choice, log in to your account and purchase bitcoins of your desired amount.
After the acquisition, your bitcoins either get transfers to the wallet within the exchange, or you will have to provide your Bitcoin wallet details to transfer your bitcoins to your wallet.
Even if the bitcoins get transferred to the wallet within the exchange never forget to keep it safe in your Bitcoin wallet.
Final Words
We hope you find this article helpful and purchase Bitcoins easily. In case, if you have any doubts regarding buying Bitcoin online, do leave a comment below and we will help you out.