How To Buy Bitcoin in 2021 for Beginners

Bitcoin is a nascent and fast-growing market. In April 2021, the value of the cryptocurrency market breached the $6 trillion mark. It’s no wonder that more and more people see its potential and want a piece of the action.

If you’re interested in buying Bitcoin, but don’t know where to start, we break down the process to make it easier and simpler.

#1. Get a Bitcoin Wallet

Bitcoin wallets are web-based services and physical hardware that can store Bitcoins. This is an important step if you want to store your newly purchased currency in a safe space. Think of wallets like bank accounts. You can use them to check your balance, send transfers, receive funds, and make withdrawals.

For example, one could transfer ETH to USD via a wallet.

There are different wallets to choose from. It’s best to do some research before deciding on one. Many hackers target Bitcoin wallets. To avoid becoming a victim, exercise caution and familiarize yourself with how Bitcoin wallets work so you don’t inadvertently end up with a compromised account.

These are different kinds of wallets:

●     Non-Custodial Wallets

Non-custodial wallets allow customers to have sole ownership. You can store your wallet’s data on your laptop or hard disk. They are harder for hackers to gain access to. However, these wallets are tough to install and have no backup.

●     Custodial Wallets

Custodial wallets are easy to set up but are owned by the customer and third-party companies. These are easily hacked.

●     Multi-Signature Bitcoin Wallets

Multi-signature bitcoin wallets have more than one owner which makes them safer. Any transaction that you perform with these wallets will need authorization from at least two of its members.

●     Paper Wallets and Physical Wallets

Paper and physical wallets rely on a private key and Bitcoin address which are generated by a website and printed on paper. If you lose either of these, you will not have access to your wallet. Since physical wallets are not connected to the internet, they are one of the safest storage options.

Choosing from a vast range of wallets can be confusing. To be on the safe side, check the reputation and reviews of the wallets before purchasing them.

#2. Choose a Platform for Exchange

After you have a wallet, you’ll need to look for a platform where you can trade Bitcoins. There are several services available to you. Here are the general types of exchanges that you can use to make Bitcoin transactions.

●     Broker Platforms

Brokers platforms have a fixed price for Bitcoins. Even if it’s more expensive, it’s popular because of its simplicity.

●     Trading Platforms

Trading platforms connect buyers with customers. Since the transactions happen on their platforms, they charge a nominal fee.

●     P2P Platforms

P2P platforms allow customers to communicate directly with buyers. Though they have multiple payment options and are available in many countries, they can be unsafe.

#3. Steps for Buying Bitcoin

Keep the following in mind as you go through the process of buying your first Bitcoin:

  1. Find out if the exchange of your choice is available in your country.
  2. Check what types of payments they accept.
  3. Carefully check for all the fees involved: transaction fees, deposit fees, withdrawal fees, etc.
  4. Choose a reputable exchange with adequate security protocols.
  5. Check the exchange rate and calculate the final cost including fees.

If it’s your first time buying Bitcoin, you may want to look into Zeply, a beginner-friendly platform that can be used to store and trade Bitcoin. They offer secure and lightning-fast transactions for users who are looking to buy, send, and withdraw from Bitcoin accounts.

They also have easy-to-follow walkthroughs and guides to help you learn about Bitcoin and how to use it.

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