How to Buy Bitcoins and Start Trading Profitably
(Invest in Bitcoins Today)
Buying Bitcoin is often the first step that investors take into the world of cryptocurrency — and right now, more investors may be looking to take that step: After a lengthy price slump, Bitcoin hit new record highs in March 2024.
But buying even a more mainstream cryptocurrency like Bitcoin can feel like an unfamiliar landscape for someone used to traditional financial products. The good news: There are many ways to buy Bitcoin and other cryptocurrencies.
How to buy bitcoin (BTC) in 4 steps
You can purchase bitcoin from cryptocurrency exchanges. Many offer dozens of cryptocurrency choices, while others simply have Bitcoin and a few alternatives. They carry a variety of different fees and consumer protections, so do your diligence before choosing.
Step 1: Choosing a crypto exchange
To buy bitcoin (BTC), or any cryptocurrency, a crypto exchange, where buyers and sellers meet to exchange their pounds sterling for the crypto coin of their choosing, is required.
There are hundreds of exchanges out there, but some beginners may want to opt for one that is intended to balance ease of use with low fees and high security. Cryptocurrency exchanges where you can purchase bitcoin include Paxful, Binance, Gemini, Kraken, Coinbase and Crypto.com.
Step 2: Decide on a payment option
After choosing an exchange, you will have to fund their account before they can begin investing in bitcoin. Depending on the exchange, you can fund your account through bank transfers from a current or savings account, mobile money, bank transfers, or a cryptocurrency wallet.
Step 3: Place an order
Once the account is funded, you can place your first order to buy bitcoin. Depending on the platform you’re using, you may be able to purchase it by tapping a button, or you may have to enter bitcoin’s ticker symbol (BTC). You’ll then have to input the amount you want to invest.
Step 4: Spend or select a safe storage option
Many crypto exchanges have an integrated bitcoin wallet. Bitcoin can function either as an investment or a medium of exchange. So you can either spend it, trade it or hold it. If you’re spending Bitcoin, there are a handful of retailers and digital services that allow you to use crypto as payment.
If you’re investing, it’s good to think about what kind of investor you want to be. Investors who day trade — a risky investment strategy that involves frequent buying and selling — try to buy Bitcoin low and sell it if and when its value moves higher.
But if you see a future for Bitcoin as a digital currency, perhaps your investment plan is to buy and hold for the long haul.
Buying Bitcoins from Binance
- Log in to your Binance account and click Buy Crypto on the homepage.
- You can buy crypto with different fiat currencies (dollar, euro, pound, shilling, etc). Enter the fiat amount you want to spend and the system will automatically display the amount of crypto you can get.
- Depending on your country/region, you’ll see different payment options. Click the box under Pay With to select a preferred payment method.
- Check the payment details and fees. You have 1 minute to confirm your order at the current price. After 1 minute, your order will be recalculated based on the current market price. You can click Refresh to see the new order amount.
- Store or use your Bitcoin in Binance. Now that you bought your crypto, you can store it in your personal crypto wallet or simply hold it in your Binance account.
Key points to consider when buying bitcoins
The three key points to consider when buying bitcoins are:
- Payment method
- Platform/venue used
- Bitcoin destination
Payment methods range from credit card to bank transfer, mobile wallets, payment app (PayPal, Apple Pay, Google Pay, Samsung Pay, etc.), face-to-face with cash, and even barter. Each payment method carries tradeoffs in terms of convenience, privacy, and associated fees.
Platforms/venues for buying bitcoin include digital wallet providers, centralized spot exchanges, OTC desks (private ‘Over-The-Counter’ exchange services used primarily by high-net-worth individuals), peer-to-peer marketplaces, and even payment apps like Skrill or PayPal.
Bitcoin destination: As for where your bitcoin goes after you buy it, the options are: (i) Into a Bitcoin wallet you control (ie. a ‘self-custodial’ wallet like the Bitcoin.com Wallet), (ii) Into a Bitcoin wallet someone else controls (eg. a centralized cryptocurrency exchange or a payment app like PayPal).
Interested in other alternative investments? Learn how to trade Forex.
Additional Resources to explore
- How to store the Bitcoin you buy
- Best bitcoin platforms and exchanges