How to Buy Bitcoin on Different Exchanges

The word bitcoin has been a bit of a buzz for years, and one may wonder why it exists and what it is about. Everyone wants to buy Bitcoin online, which is arguably the most significant revolution the finance and technology world has seen recently. Bitcoin has been proven to possess the characteristics of money, ensure privacy, and offer freedom through decentralization, making it the best place to buy bitcoin instantly for those looking to enter the cryptocurrency market. Since its creation, Bitcoin has seen a worldwide adoption that has driven its value from ordering a pizza with 32,000 bitcoins to 1 bitcoin peaking at $75,830. 

Due to its popularity and reliability as a store of value, the El Salvador government has part of its treasury in Bitcoin. In January 2024, the SEC approved the Bitcoin spot ETF. Bitcoin and blockchain, in general, may be a lot to get started with; however, this article aims to walk you through the fundamentals and make onboarding a rather straightforward process. You will learn about different crypto exchanges and the best crypto trading platform to buy Bitcoin safely.

Top Crypto Trading Platforms 

There are more than 500 crypto exchanges. Some of the best places to buy bitcoin are Binance, Coinbase, Crypto.com, and Kraken. It is important to research so you know the best crypto trading platform for you to be able to buy bitcoin instantly safely.

Getting Involved with Bitcoin and Cryptocurrency Exchanges

In 2009, Bitcoin was created, and it caused a little stir. It was formed by Satoshi Nakamoto and was set to disrupt the entire financial landscape. Bitcoin is unique in that no person or government controls how it works. The technology that powers Bitcoin is called the Blockchain. Blockchain, a digitally distributed, decentralized, public ledger across networks, is different and better because it is very transparent and secure.

Cryptocurrency Exchanges

You cannot buy Bitcoin without using a crypto exchange, and finding the best place to buy bitcoin is essential for a seamless trading experience.

They are not all the same, as different exchanges offer features and services that the others do not have all in a bid to stand out and have the most regular uses.

Types of Crypto Exchanges 

There are two types of crypto exchanges, they are: 

• Centralized Exchanges: A centralized exchange, or CEX in short, is one run by companies, and they have some form of authority over users using such exchanges. This means users must consent to some regulatory protocols like KYC to use them. Coinbase, Binance, and Kraken are top-rated centralized exchanges that people often use. 

• Decentralized Exchanges: Decentralized exchanges (DEX) are slightly different from centralized exchanges because transactions on those exchanges are directly peer-to-peer, and no blockchain companies serve as intermediaries. Although DEXs like Uniswap and PancakeSwap can be complicated for beginners to understand and use, they are widely used, especially by individuals who have been in the industry for a long to swap, sell, and buy Bitcoin safely.

This article mainly discusses centralized exchanges and their use because they are the best options for beginners. More than 500 exchanges are currently operating. 

For a deeper dive into the tools and platforms that can help you optimize your crypto trading strategy, explore our guides on:

• Best Day Trading Crypto Exchanges: 2024 Guide
• Top Crypto Exchanges for Beginners 2024
• Top 10 Decentralized Exchanges (DEXs) 2024: Guide & Comparison
• Best High-Volume Crypto Exchanges in 2024
• Crypto Margin Trading Exchanges 2024: Securely Boost Your Crypto Gains
• Best Crypto Staking Exchanges 2024: Maximize Your APY Rewards Today
  

Choosing the Best Crypto Trading Platform Length

Factors to Consider When Choosing a Crypto Trading Platform

Some of the factors include: 

• Security Features: Security comes to mind as the first point when dealing in cryptocurrencies, especially when identifying the best place to buy bitcoin. People own bitcoin for investment purposes or just as a means of storage. Making sure that your chosen crypto platform has security measures like two-factor authentication using apps like Google Authenticator is a smart choice. Other good security measures include strong encryption and cold storage.

• Fees: Different platforms have varying fee structures. Some platforms charge per transaction, and others collect a percentage of the trade amount. Finding a platform that allows you to buy bitcoin instantly and meets your individual criteria will be a great option.

• User Interface (UI): This is another important factor when choosing a crypto platform to buy bitcoin online, especially for newbies. Crypto exchanges with an excellent user interface will be easy to understand and navigate. CEXs, in general, are known to have better UI than DEXs.

• Trading Pairs: Trading pairs or cryptocurrency pairs are assets that can be traded for each other on a crypto exchange. Some popular trading pairs are BTC/USDT, BTC/USD and BTC/FDUSD. When choosing a platform, it is important to specifically check for a platform that offers the cryptocurrencies you want to trade in. The major exchanges such as Binance and Coinbase have a lot of trading pairs which gives you more options to trade your favourite pairs.

• Customer Support: There can always be problems when trading on crypto exchanges, be it problems caused by you or the one caused by the platform itself. Having reliable customer support that resolves issues quickly is very valuable. Keeping an eye out for exchanges with responsive customer support that have multiple channels of availability, such as live chat, phone calls, and emails, is another critical factor to consider when choosing a crypto exchange to buy bitcoin with a credit card.

For more insights on how to navigate the crypto world, explore our detailed guides on:

• How to Buy Bitcoin on Different Exchanges
• Comparing Fees: Finding the Low Fee Crypto Exchange
• An Introduction to Altcoins and Where to Trade Them
• How to Buy and Sell Bitcoin Safely
• Advanced Crypto Trading Tools 
• How to Trade Bitcoin: Tips and Strategies
• Secure Your Crypto 2024: Top Crypto Exchange Security Tips
• How to Trade Crypto Anonymously in 2024: The Ultimate Guide for Beginners
• How to Avoid Crypto Exchange Scams in 2024: The Only Guide You Need
  
  

Setting Up Your Account and KYC

Setting Up the Account

To get started on the best place to buy bitcoin, setting up a personal account is the next step, which can be a lengthy process with many important information and steps. This can be a lengthy process with many important information and steps. For most platforms, creating the account would be fairly easy, as shown in the following steps:

• To create an account, the first step is to sign up. This is done by clicking the Sign-up button found on most websites’ landing pages. Here you would be told to input an email address and create a Strong password.

• Once the first step has been submitted, a link is sent to verify your email. You will then be prompted to submit your name, date of birth and address which must tally with a government-issued ID.

KYC Verification 

This is very important as most cryptocurrency exchange platforms require this information to comply with regulations and data protection. Here, you’re asked to verify your identity and submit a picture and proof of address.

One popular platform for cryptocurrency exchange is Binance. KYC verification on Binance includes the following steps

• Log in to your account either via the website or on the application.
• Open the verification tab at the top right corner of the screen and select ‘Identification’.
• Three different verification options are available to pick the most ideal option.
• Enter personal information, including Full name, address, date of birth, and phone number.
• Upload a government-issued identification such as an international passport or driver’s license to validate your identity.
• Once completed, click the submit button and wait for it to be verified.  

Security Measures

Finally, you should use the security measures usually in place to protect your account.

• Two-factor authentication: Setting up 2FA to add extra security to your account is essential. Using authenticator apps such as Google Authenticator will work fine. 

• Withdrawal Whitelist: Some platforms allow you to create a list of wallet addresses that can be withdrawn into. This means that any transactions to an account/wallet not on that list will not be successful. 

By following these, your account will be set up successfully and securely and you’re ready to buy bitcoin online.

Depositing Funds

Methods of Depositing Funds

Following your account creation, you are required to deposit funds to buy Bitcoin. This can be done in various ways. These methods are readily available on most of the best exchange platforms and can be used according to preference. These are the most widely used ones:

Bank Transfer: This is transferring to the personalized wallet provided by the exchange from your bank. Transfers may take a longer time to be received into the wallet but it is very secure.

Credit/Debit Card: This process uses credit/debit card details, making it easy to buy bitcoin with a credit card. Extra charges may be involved in this process, and your card details can be compromised if the platform is vulnerable to security threats.

The third most commonly used method is the cryptocurrency-to-exchange wallet transfer. This process is swift and economical.

Steps on Depositing Funds

Once a method has been chosen, you follow these steps to deposit funds in the account: 

• Log into your account to the deposit section and choose your preferred option.
• Provide the required details for the transfer.
• Confirm the deposit and wait for it to be displayed in your account. The time this takes varies depending on the method used. 

Safety Tips when Depositing Funds

Some safety tips you should take note of when depositing funds with crypto exchanges include: 

• Make sure the imputed details are correct when you buy bitcoin with a credit card to avoid any errors in the transaction process.
• Monitor your account to make sure your balances are correct.

Buying Bitcoin

How to buy Bitcoin

It’s time to purchase Bitcoin after the money is successfully deposited into your account. Exchanges vary in how they handle this. Limit orders and market orders are the two primary methods to do this. 

Market Orders

A market order is an immediate purchase of Bitcoin at the going rate. Take these actions to accomplish this: 

• Go to the “Buy” section after logging into your account. 
• After choosing the market order option, indicate how much Bitcoin you wish to buy. 
• Ultimately, you check the information and validate your transaction. After that, the Bitcoin will be instantly credited to your account. 

Limit Orders

You can place a limit order by deciding on the price you wish to pay for Bitcoin. Only when the market price hits the price you specified will this order be fulfilled. To carry this out: 

• Go to the “Buy” area after logging into your account.
• Choose the limit order option and enter the price you wish to buy the Bitcoin at. 
• Once you place the transaction, the buy order will be fulfilled as soon as the market price meets your selected amount. 

The premium versions of the websites of the best bitcoin exchanges offer additional features. The free version is usually sufficient for any tasks required by beginners or first-timers. You can buy Bitcoin securely and participate by understanding the differences between market and limit orders and using the features available on these sites.

Storing Bitcoin Safely

Crypto exchanges have secure wallets as a feature and this is where the cryptocurrency initially stays. Logging into your account grants you access to the value that was stored there. If the password to the account is forgotten, then you simply have to produce the passkey and access is back. 

Types of Bitcoin Wallets

There are two types of wallets where you can keep your digital currency. They are: 

• Hot Wallets are wallets that have access to the internet so that means they are accessible anywhere in the world. It also means that the chances of getting hacked are much higher. Some good examples of this are Coinbase Wallet and Metamask. 

• Cold Wallets are wallets that are off the internet. They are an amazing form of security because it requires access to the storage location to get into the value stored there. A problem with cold wallets is that if you forget the password and lose the passkey, the contents are gone and cannot be recovered. Ledger Nano F and Trezor are some of the best cold wallets. 

By knowing the wallets and situations where they should be used, the pros and cons of each, you will know the best options for storing your Bitcoin.

Conclusion

Learning how to buy Bitcoin is significant because it holds value well. It is essential to choose the right platform for engaging in the process. Every step in the process, from choosing the best crypto trading platform to setting up your account to buying bitcoin safely and storing it, has been discussed in this article. Each step is equally important, and using all the information given will put you in good stead to buy and trade bitcoin securely. Happy trading!

FAQ

What is the best crypto exchange for beginners to buy Bitcoin?

For beginners, centralized exchanges (CEX) like Coinbase, Binance, and Kraken are recommended due to their user-friendly interfaces, robust security features, and comprehensive customer support.

How do I ensure the security of my Bitcoin on an exchange?

To ensure the security of your Bitcoin, enable two-factor authentication (2FA) using an app like Google Authenticator, use strong encryption methods, and consider utilizing cold storage for large amounts of Bitcoin. Additionally, be cautious of phishing attempts and regularly monitor your account for suspicious activity.

What are the different methods to deposit funds into a crypto exchange?

You can deposit funds into a crypto exchange using various methods such as bank transfers, credit/debit cards, or transferring cryptocurrency from another wallet. Each method has its own processing time and fees, so choose the one that best fits your needs.

What is the difference between market and limit orders when buying Bitcoin?

A market order buys Bitcoin immediately at the current market price, while a limit order allows you to set a specific price at which you want to buy Bitcoin. The limit order will only be executed when the market price reaches your specified price.

What are the different types of Bitcoin wallets, and which should I use?

There are two main types of Bitcoin wallets: hot and cold. Hot wallets, like Coinbase Wallet and Metamask, are connected to the internet and are more convenient but less secure. Cold wallets, like Ledger Nano F and Trezor, are offline and provide higher security but are less convenient. Use hot wallets for daily transactions and cold wallets for long-term storage of large amounts of Bitcoin.