An Easy-To-Understand Explanation For Beginners On How To Start And Buy Bitcoin!
We think there are a lot of people who are worried about the level of price movement but are attracted to the amount of profit they can aim for.
Bitcoin, which has grown tenfold in a short period of time, is certainly interesting. However, if you do not understand “how to buy bitcoin” then you can not trade or profit.
Therefore, in this article, we will present how to buy and get started with Bitcoin in an easy-to-understand way for “kids”.
Let’s use this article as a textbook to learn how to buy Bitcoin!
Bitcoin will be bought and sold mainly through “exchangers”. An exchange stock is like a securities company. Exchangers are famous for “Binance” and “Coinbase”. Our idea is that many have heard the name.
Now, let’s get together with the exchange company to understand “how to buy bitcoin”!
Bitcoin can be easily bought in the following 5 steps. It’s easy to think that investing is a tedious process, but Bitcoin is so simple that you can buy it fast on the same day!
If you want to buy Bitcoin, you need to trade with an exchange company that has excellent specifications and is easy to use even for beginners.
Thus, in this chapter, we will present the way to choose a suitable exchange company for bitcoin transactions. Even if you are a first-time trader, you can find a good exchange by checking the following 5 points!
But, we prepared the check items and thought it was not friendly in the end, so we also prepared a “special comparison table of exchange companies”.
There are a few things to keep in mind when buying Bitcoin. That is, there are two trading methods for virtual currency exchange companies, the “exchange method” and the “sales office method”.
You can’t tell the difference just by listening.
Transactions between users of the exchange company. There is a board and it is the same procedure as stock trading.
A transaction is completed when “traders who want to buy” and “traders who want to sell” are available at a fixed price for bitcoin (virtual currency). For example, if “people want to buy for 5 million dollars” and “people want to sell for 5 million dollars” then the transaction will be completed.
A feature of the exchange method is that it is higher than the sales office method in terms of “commission (cost)”.
Buy or sell virtual currencies with the exchange at the asking price.
There is a price difference called spread and it is the same method as FX. In the sales office system, since the exchange company acts as an intermediary between the virtual currency market and the customer, the selling price and purchase price are usually set at a disadvantage of about 1 to 5%.
So, even if the price of Bitcoin (virtual currency) increases by the same amount, the sales office will get “less profit” than the exchange.
Therefore, if you are new to Bitcoin, we strongly recommend that you buy using the exchange method. ..
Once you have decided to exchange to buy Bitcoin, apply to open an account.
To apply, fill out an exchange company’s application form and submit the required documents such as a driving license and passport.
● Bank account (when depositing legal tender)
Applications can be made not only from a computer but also from a smartphone or tab red. Also, all you have to do is take a picture of your driver’s license and other documents with your smartphone camera and upload them to the application form so that you can complete all the applications online.
When you apply to open an account on the Virtual Currency Exchange, if there is no error in the content submitted, documents such as postcards for verification of identity will be sent within 3 days to 1 week.
Upon receipt, the exchange will confirm receipt or enter the serial code provided in the document to activate the account and start trading.
Once you have your account, deposit your local currency like the dollar, or pound to buy Bitcoin.
There are three ways to deposit funds into an exchange company account.
Of these, it is recommended to use online banking. Since it is done online, there is no need to go out and there is no charge for depositing at ATMs or convenience stores.
If you do not have a specific reason, you can save coins by depositing using online banking!
With all the preparations up to this point, you can finally buy Bitcoin.
Let’s talk about Binance, whose purchase screen is easy to understand as an example.
There are four ways to buy Binance coins.
If you are buying Bitcoin for the first time, it is better to make a physical transaction. Because “leverage trading”, which allows you to trade more than your own funds, is risky.
Here, let’s answer the question “How much bitcoin (BTC) can you buy?”, Which is often asked by those who started cryptocurrency.
Bitcoin’s lowest trading unit is 0.00000001 BTC (8 decimal places). This is called 1 Satoshi.
However, the minimum trading unit varies depending on the exchange. In the Coinbase physical transaction mentioned above, you can order from 0.0001 BTC.
It is $ 50 while Bitcoin is, 500.00. You can buy from 0.01 BTC on almost all exchanges, so don’t worry if you have about 1/100 of the funds to buy 1 bitcoin.
For example, if 1 bitcoin is $1 million, you can buy it by converting it into your local currency. There are many exchanges where you can buy from 100 or less and you can invest a small amount from a stock investment or FX.
2017 is said to be the first year of cryptocurrencies, and a full-scale cryptocurrency boom began in April of the same year.
Bitcoin doubles from 770 dollars to 50 thousand dollars.
Ethereum is 180 times from 700 dollars to 1800 dollars!
Ripple has increased 400 times from 1 dollar to 5 dollars.
Bitcoin fell to 35k dollars in 2018, but after that, purchases by institutional investors and super-famous companies listed on NASDAQ hit a record high in December 2020, and 7 million in the following four months.
Time is of the essence for investing not only in virtual currencies but also in stock investing and FX. And in order not to miss the time, it is important to gather information every day and be ready to invest. In other words, it is a preparation in advance.
“Now is not the time to buy Bitcoin, so let’s do it again” Why not open an account or check the news in advance and prepare to invest?
When the right investment opportunity comes, you may be able to invest and make an immediate profit.
Opening a cryptocurrency account usually takes a few days, so it’s a good idea to prepare in advance.
Originally published at https://blockchain101.famecoin.ai.