Since its inception in 2009, Bitcoin (BTC) has been the forerunner in cryptocurrency and has paved the way for a whole new method of financing. But how do you get started with buying Bitcoin and get your digital wallet going? Today, let’s answer some of the essential questions about how to buy Bitcoin.
How Much Does It Cost to Buy Bitcoin (BTC)?
The price of Bitcoin is famously and incredibly unpredictable, with rocketing highs and plummeting lows. For example, in 2011, 1 BTC traded for 1 USD. However, just six years later, the price had jumped to 1290 USD, and in 2021 the price of 1 BTC soared to over 66,000 USD.
Although the price of Bitcoin is constantly changing, you’re able to check the price on any site that allows you to purchase Bitcoin, meaning that you’re able to check the value of the cryptocurrency at any given time.
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Ways You Can Buy Bitcoin
Purchasing Bitcoin must be done by either exchanging your other cryptocurrency into Bitcoin or if you’re starting, using standard currency to purchase the online financial asset. It’s important to remember that when buying Bitcoin, most providers allow you to purchase partial coins (i.e., you don’t have to purchase a whole Bitcoin).
How to Buy Bitcoin on PayPal
Buying Bitcoin on PayPal is incredibly easy. If you have access to the internet and a device that can use PayPal, you should be able to purchase Bitcoin.
- Set up your PayPal account. Follow the directions on the site to complete a PayPal account.
- Enter your PayPal account and select ‘Crypto.’ Then, log in to your account and select ‘Crypto’ to show you what cryptocurrencies are available and their prices.
- Select ‘Bitcoin’ and then ‘buy.’ Choose Bitcoin or any other cryptocurrency you want to buy.
- Choose your quantity and payment method. Then, choose the specifications for your purchase.
- Confirm your purchase by clicking ‘buy now.’ Finally, complete your purchase to receive your Bitcoin and confirm the transaction.
How to Buy Bitcoin with a Debit or Credit Card
Using a debit card or credit card to buy Bitcoin is slightly more complicated. You must first confirm your bank details with a given platform where you can securely access a cryptocurrency exchange to buy, sell, and exchange cryptocurrencies. After you’ve set up an account and registered your bank account details on the site, you should be able to follow the directions on the platform you have chosen to purchase and sell Bitcoin or any other cryptocurrencies available.
How to Buy Bitcoin with a Bank Account
Using a bank account is very similar to using a debit or credit card. First, you have to create an account with a digital wallet and Bitcoin trading platform and verify your details. Then, you should be directed by the site as to how to purchase Bitcoin or any other cryptocurrency using a bank transfer from your account.
4 Steps to Buy Bitcoin
But how do you actually go about purchasing Bitcoin? Before you set out, it’s important to research what options are available and which one works for Bitcoin or any other cryptocurrency you want to purchase. Not all exchanges are equal, so identifying one that’s safe and has the options you want is crucial. Let’s run through the exact steps required to purchase Bitcoin using a digital exchange.
1. Choose a Crypto Exchange
First, choose a Bitcoin exchange, a site or digital platform where you’re able to buy or sell cryptocurrency. Nowadays, several competitors offer similar crypto trading services, which allows you a broad range of options for where you want to trade crypto.
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2. Add a Payment Method to Your Account
Once you’ve chosen an exchange, you have to create an account and add your bank account details or another valid payment method to the digital exchange. This is so that you have access to the funds you need to purchase the digital currency.
3. Order Bitcoin
Next, you have to purchase Bitcoin via the exchange’s digital currency system. This step requires inputting exactly how much you’re looking to spend on your cryptocurrency and what coin you want to buy before ordering. It’s also important to check the price and conversion rate from your currency into Bitcoin so that you know exactly how much of the digital currency you’ll receive.
4. Store Your Bitcoin Safely
After purchase, your Bitcoin can be stored in a cryptocurrency wallet of your choice (many crypto exchanges also offer crypto wallets). When storing your Bitcoin, it’s important to ensure the safety of your digital assets. Therefore, you should do some research to determine how safe your wallet is before deciding where to store your cryptocurrencies.
Other Ways to Use Your Bitcoin
There are other ways you can use your Bitcoin nowadays; it doesn’t just have to sit in your digital wallet like cash under your bed.
For example, you can earn interest off your crypto if you choose to store it in a crypto wallet that offers this reward to users. By simply staking crypto in your wallet, you will start earning interest. How much you can earn will depend on what cryptocurrencies you choose to stake and how long for, as well as if you decide to lock in a rate by committing to keep your crypto for longer or choose a flexible rate to have more flexibility to withdraw your assets.
Another good example of how to use Bitcoin is a crypto loan. Some platforms offer crypto loans, allowing you to borrow cash or stablecoins using your Bitcoin as collateral to secure the loan. This is faster than a traditional loan and does not require a credit check, and you could borrow as much as little as $50 up to $2M, with APR starting at 0% if you meet specific requirements.
As you can see, there are other ways you can do to maximize the potential of your digital assets if you choose the right solution for you as a crypto investor.
Earn Interest from Bitcoin
As mentioned above, you can earn interest off your Bitcoin and other cryptocurrencies. Some platforms allow you to start earning interest on crypto by simply staking it. They will pay the interest you have earned daily directly back into your account and charge you no withdrawal fees if you want flexible access to your assets. And if you want to access a higher interest rate to earn more, you can get a fixed term and store your crypto for a more extended period of time.
Borrow Using Your Bitcoin as Collateral
You can also use your Bitcoin as collateral for a loan and secure it using your Bitcoin (or other crypto coins) as collateral. This loan works similarly to traditional loans; you receive cash or stable coins, which you must repay with interest.
