Buying Your First Bitcoin— Different Ways to Buy Your First Bitcoin
- thomas johns
- Jan 24, 2022
- 4 min read
Bitcoin has been gaining attention in the media for quite a bit, with more and more people getting interested in learning more about this technology.
The hype is understandable, as it is achieving so many things that no one would have imagined decades ago. Many people think cryptocurrencies will change how we handle money in huge ways, and we may argue that it already has!
So, whether you want to try it out for yourself or you are just looking to help someone out, in this guide you will find the easiest, cheapest, and most reliable ways to get going with Bitcoin investing ASAP.
We understand that buying even a twentieth part of BTC can be a big investment, so let us discuss some of the ways you can achieve this. Given how high the bitcoin price has climbed, time is of the essence so let’s stop delaying the topic at hand.
Buying Your First Bitcoin Should be Easy?
Buying cryptocurrency in the past used to be a complex topic. As no specialized platforms existed, investors would be forced to trust other investors to acquire. P2P, classified ads, and similar platforms were the law of the land.
Fortunately, this has changed in recent years. Let’s see how you can buy Bitcoin easily.
Digital Payment Platforms
Even if you never bought crypto, you may own an account at Paypal, Venmo, or Cash App, as these are well-established companies that offer a lot of different services.
At this time, these platforms are possibly the easiest way to acquire Bitcoins for a beginner, they offer limited options compared to exchanges, especially for moving funds from one place to another.
When using these platforms, you can expect to pay fees between $0.5 and 2.3% of the transactions. This makes them extremely competitive in addition to being convenient. The main drawback is that these platforms are still in their early crypto stages.
Crypto Exchange
Buying right away from an exchange is probably the most popular way to start buying Bitcoin. It is the way most of us started, after all. This means you will find a lot of resources to facilitate the journey.
Setting up an account is often a seamless and quick process. Payment methods may vary but you will usually find an exchange that suits your needs in this regard.
Among several advantages exchanges have, many of them also allow you to put your coins to work in different ways! Therefore generating passive income that will push you closer to your saving goals.
Unfortunately, depending on the exchange you choose to use, the interface and trading method can be overwhelming for new traders. This is especially true when it comes to fees as there are “maker” and “taker” fees, with them even changing depending on the coin in some cases.
Now that we've cleared that up, let's lay down some of the oldest players in the game, who have been trusted by thousands and millions of users:
Coinbase - While having rather high fees, the website is very user friendly and the service is secure and well established
Binance.us - Low fees, does not support a lot of cryptocurrencies
CEX.IO - Accessible fees, supports many different cryptocurrencies
Gemini - Fees are higher than many competitors. Easy to use, available in all of the US
Kraken - Very secure service and full of options, although it may be slightly intimidating for new users
One of the additional downsides here is that transactions surpassing $5000 maybe have to be done through wire transfer, as bank transfers or paying through card risk might get your account canceled.
Bitcoin ATMs
Once you got the basics of cryptocurrencies figured out, you can use cash to buy BTC if you happen to have one of these ATMs close to you. Fortunately, more and more of these are installed each year so this is an option you may find useful in the near future.
We recommend holding on until you are comfortable with the way crypto wallets and fees work as this can be confusing when it comes to Bitcoin ATMs. That being said, using them is as easy as choosing how much you want to buy, scanning your wallet’s QR, inserting cash, and waiting!
Financing Through Bitinow
This is one of our favorites! What Bitinow has to offer is getting you through the process of buying an entire BTC after paying for a 3 to 5-year plan. You pay monthly while it holds your crypto, and get your bitcoin after the plan ends. As such, it works more as an investment method.
While this might sound like a reliable option, you should keep in mind that bitcoin prices are highly volatile, and tying yourself to a contract of this type can be risky business. Getting involved in this sort of deal means Bitinow will have some of your money at all times. This is money you could use in different ways to gain passive income.
That being said, if you are looking to invest in crypto in the long term this is one of the best ways to do so. Considering that BTC’s value has more than doubled over the past year, we recommend this type of investment as the platform offers several payment plans and is extremely easy to use.
Conclusion
The crypto world has more variety than ever and as such, we had to limit ourselves to the most trustable and most straightforward services. No matter which of these options you choose, you will find they are safe and easy to use.
Always keep in mind that investing in crypto can be challenging and uncertain at times, but don't let that discourage you if you are interested. This technology has proven sustainable and practical throughout the years… And will surely continue to do so!
Sources:
https://help.coinbase.com/en/coinbase/trading-and-funding/pricing-and-fees/fees
https://time.com/nextadvisor/investing/cryptocurrency/how-to-buy-crypto-with-paypal/
https://www.nasdaq.com/articles/venmo-is-letting-users-convert-cash-back-to-bitcoin-for-free-2021-08-10
https://cash.app/help/us/en-us/3103-bitcoin-fees