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Home Page > Articles > How to buy bitcoin for a newbie in 2021?

How to buy bitcoin for a newbie in 2021?

Interest in digital assets is increasing every month. The proliferation of payments, services and applications based on blockchain technology can no longer be stopped. State banks, politicians, economists, large fintech companies are working to ensure that the use of BTC tokens and other cryptocurrencies, on the one hand, does not harm the traditional banking sector, on the other hand, it brings as much benefit as possible from the introduction of modern tools.

Many analysts agree that 2021-2022 will be the last opportunity to purchase bitcoin inexpensively, after which the prices for cryptocurrency will become simply unattainable for ordinary citizens. At the time of this writing, the cost of Bitcoin is $ 47000, forecasts until the end of 2021 are $ 100-130 thousand.

Of course, there are a lot of people who want to invest in bitcoin. There are already thousands of people who have made a fortune from their humble investment attempts.

What a beginner needs to know before buying Bitcoin.

  • The coin is 12 years old;
  • The maximum possible offer is 21,000,000 coins; at the moment, 18,790,000 BTC have already been mined. This makes this token the most scarce commodity on the planet.
  • These digital assets are mined using mining – performing certain calculations according to an algorithm that constantly changes the complexity depending on the coins already mined. The last token will be mined in 2140.
  • In the first 5 years, the price of the asset increased from $ 0.001 to $ 1000.
  • More than 70 million owners of this cryptocurrency are registered in the world, a year ago it was 50 million people. Analysts say more than 1 billion people will have cryptocurrency wallets by 2030.
  • The author of the first cryptocurrency is Satoshi Nakamoto, at the moment it is not known who this person is, and whether it could be a group of developers, what were they guided by when creating this technology. Satoshi’s last trail is December 12, 2010.
  • The main value lies in the principle of operation – coins exist in an open network, where the chains of all transactions are tracked. This eliminates the possibility of data tampering and reliably protects savings.

Before buying bitcoin in 2021, I recommend that you understand the technology and assess all the risks. At the moment, the technology has already been tested, it is used by large companies, banks and even government agencies. But there is still a risk of losing your savings due to unpredictable events. Invest only those amounts that will not affect your well-being in any way in the event of a depreciation of BTC.

How to buy bitcoin right now?

There is no single place for buying and selling bitcoin, since the entire system of operation of this payment system is decentralized. There is no single earner or vendor. At the moment, the exchange principle is as follows: miners use their equipment to generate (find, extract) bitcoins to their wallets. Then they put them up for sale through any other platforms in order to cover their costs, buy new equipment, and fix a profit. Exchanges are platforms where you can buy or sell various digital assets, including in trading pairs with the dollar, euro and other cryptocurrencies. The most common pair is BTC / Tether (BTC / USDT). Tether is a stablecoin, which is essentially a cryptocurrency pegged to a real currency (dollar).

A Bitcoin address is a unique string of numbers, analogous to a bank account, it is also called a “public key”. Accordingly, in order to purchase bitcoin, you must have your own wallet, where BTC will come after the exchange is completed.

It is important to understand that when you buy and store your savings on exchanges, they, in fact, do not belong to you, since it is the site, exchange or application that is responsible for the security. There have already been cases when exchanges were hacked, counterfeited during a phishing attack by hackers, or simply the owners of exchangers disappeared with their clients’ money.

Where to store Bitcoin?

Here are several ways to store your savings in BTC:

  1. on the exchange (easy to exchange, there is infrastructure, convenient monitoring);
  2. hardware wallets (devices where your BTC wallet is stored under protection, access to which occurs by a pin code or fingerprint);
  3. “Cold wallets” – this means that you physically (on a piece of paper or in a file) store only a public address and 12 words of a seed phrase, which you can use to restore your wallet at any time. You cannot make exchanges until you restore access to your savings online, but no one can ever steal the accumulated coins from you.

It is better for beginners to store their savings directly on the exchanges. It is convenient, it does not take a lot of time to organize payments, if necessary, you can almost instantly sell bitcoins or transfer them to a cold wallet. Therefore, it is important to choose a reliable international platform with a reputation that invests a lot of money in security.

The largest platforms at the moment are Binance, Coinbase Exchange, FTX, KuCoin, Huobi Global, Kraken, Gate.io. These are companies with a multi-billion dollar turnover, developed infrastructure, linking bank cards and with a large list of trading pairs for cryptocurrency trading. You can use any one, taking into account the access to it in your region, the size of the commissions and the methods of user identification.

How to register on the Binance exchange read here.

How can you buy bitcoin on the Binance exchange?

It is one of the largest companies with full support for users from the CIS. It has been operating since 2017. It has one of the lowest trading fees – 0.1%. Transactions are fast. The support service is well established. There is support for the Trust Wallet crypto wallet.

The easiest way is “Buy with Fiat Balance”. You indicate how much BTC you need to buy, or how much in dollars you are ready to buy cryptocurrencies. Next, there will be a choice of payment methods, depending on the card you connected or the bank used.

Most cards support SettlePay (Visa / MC).

Please note that the service takes a commission for replenishment, it is different for different currencies. You can immediately connect a dollar card and buy bitcoin for dollars from a credit card.

How else can you buy Bitcoin?

Continuing the topic of crypto exchanges, there are several more ways to buy BTC:

  • Set up regular or one-time purchases with a credit or debit card. In this case, the money will be debited directly from the card linked to Binance, and the purchased cryptocurrency is immediately credited to your spot account.
  • P2P trading is not suitable for beginners, since this is work with third-party services for which the exchange does not bear any responsibility. Simply put, you place an order on terms that suit you, and the seller sends you BTC directly. Advantages – low price, low commissions, disadvantages – there is a risk of losing all the money or receiving incomplete cryptocurrency.
  • Buying cryptocurrencies through Binance Third Party Partners. At the moment it is Simplex.com, which is a separate platform and owned by a third party. Binance is not responsible for any loss or damage while using the service.
  • Buying with the “Classic Trade” tool. Here you can set a limit order, an amount in a trading pair that is convenient for you. Money is debited from the fiat balance, or replenished directly from the card.

Ways to buy bitcoin not through stock exchanges

  1. Purchase through a crypto wallet (for example, Trust Wallet) – most programs support cryptocurrency trading and can be linked to your bank account. Pros: reliable, safe, bitcoins immediately go to your bitcoin wallet, and are not stored on the exchange (as is the case with Binance). Cons: difficult to sell quickly, does not support trading;
  2. Buying for cash from friends, acquaintances, relatives is a risky operation, but it has a place to be. In this case, you will pay the required amount in cash, and the bitcoin seller will transfer the equivalent in BTC to your wallet. Pros: purchase for cash from a verified place, stage-by-stage payment options are possible. Cons: the risk of an incorrect transaction, loss of money due to the unreliability of the seller.
  3. Exchange of any other cryptocurrency for bitcoin can also be considered a form of purchase. Exchangers work with the dollar and almost all other cryptocurrencies. Important! Be careful when choosing third-party currency exchange services. Pros: a huge selection of trading pairs, a wide range of conditions where you can choose the most profitable. Cons: the risk of transferring money to fraudsters, loss of money due to errors in transactions.
    You can find reliable cryptocurrency exchangers here.
  4. Buying on investment sites, for example, Robinhood – in most cases, you cannot withdraw bitcoins on such services or replenish the balance with previously purchased coins. Pros: large investment companies, reliable reputation. Cons: you cannot withdraw BTC, use other cryptocurrencies.
  5. Purchase at self-service terminals – in some countries, cryptomats are installed that allow you to buy bitcoin for cash or Visa, Mastercard. The principle of their work is different, in most cases the client receives a “coupon” with a new wallet in bitcoins in his hands, or enters his data to complete a transaction. Plus: it is convenient to buy with cash. Cons: not every country or city has such terminals.

Conclusion

The infrastructure of cryptocurrencies is expanding daily. In the near future, bank cards will appear that will be tied to bitcoin, various financial and investment services, simplified purchase, sale, exchange of cryptocurrencies. This industry is new, all sites provide their customers with detailed instructions for buying BTC. You just need to spend time and figure it out.

How to buy bitcoin for a beginner?

Binance is one of the largest exchanges in the world where it is easiest to buy bitcoin.

On which exchange is it better to buy Bitcoin?

The largest platforms at the moment are Binance, Coinbase Exchange, FTX, KuCoin, Huobi Global, Kraken, Gate.io. These are companies with a multi-billion dollar turnover, developed infrastructure, linking bank cards and with a large list of trading pairs for cryptocurrency trading. You can use any one, taking into account the access to it in your region, the size of the commissions and the methods of user identification.

Where is the best place to store Bitcoin?

Here are several ways to store your savings in BTC:

  1. on the exchange (easy to exchange, there is infrastructure, convenient monitoring);
  2. hardware wallets (devices where your BTC wallet is stored under protection, access to which occurs by a pin code or fingerprint);
  3. “Cold wallets” – this means that you physically (on a piece of paper or in a file) store only a public address and 12 words of a seed phrase, which you can use to restore your wallet at any time.

Disclaimer: This article is not investment advice. Assess the risks yourself before making any investment decisions.

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