Beginner’s guide to Buying their first Bitcoin
Bitcoin, the first and most popular cryptocurrency, is the darling of most investors and enthusiasts in the crypto space. The price of Bitcoin today is swaying around $66,853, dated May 19, 2024. This is neither all-time high nor rock bottom. It went on a roller coaster, to an all-time high of $68,789 in November 2021, and an all-time low of $16,291 in December 2021. However, analysts opine that reasonably high cryptocurrency prices might be pushed up through enhanced usage of cryptocurrencies and blockchain technologies. All in all, the high prices of Bitcoin could be very attractive, but the huge swings and the volatility should be well noted before investing.
Let’s get down to business.
Where and how do you exactly purchase Bitcoins?
You will need an exchange for any form of cryptocurrency obtained, including Bitcoin—a place where buyers and sellers can come together in such an obsessive effort to exchange dollars for digital coins. Binance is a very popular exchange that is known for digital asset variety and aggressive pricing.
Following is a step-to-step guide on how to buy Bitcoins using Binance:
Create a Binance Login and Account:
- On the website: https://www.binance.com
- Click on “Register” at the top right of the screen.
- Enter your email address and select a strong password.
- You might be asked to enter a Referral Code at this stage.
- Agree to the Binance Terms of Service, and do any other needed verification.
Complete Identity Verification:
For you to enjoy all of Binance’s great features, like buying Bitcoin with fiat currency—meaning government-issued money such as USD or EUR—you have to identify yourself. This typically only involves submitting your government-issued photo ID (passport or driver’s license) and a selfie for facial recognition. Then the process of verification follows.
Deposit Funds in Your Binance Account:
After verification, you shall now fund your Binance account, ready to buy Bitcoins. There are several funding options on Binance depending on the location:
- Bank Transfer: This is an account-to-account bank transfer to Binance. Processing may take from instantly up to days, depending on the bank.
- Credit/Debit Card: More convenience, more risk; with credit card payments for crypto, the fees will be considerably higher. However, please have a look at Binance’s Fees page for the most recent rates.
- Peer-to-Peer (P2P) Trading: Binance has also included a provision for a P2P marketplace from where you can buy Bitcoins directly from other users with different means of payment.
Purchase of Bitcoins on Binance
- On the Binance landing page, there is the “Buy Crypto” section.
- For the currency to be paid, select from the drop-down menus, for example, USD, EUR, etc., and the place of “BTC” in this example.
- Choose your favorite payment method—for instance, a credit card or cash balance.
- Enter the amount in fiat currency you would like to transfer or the number of Bitcoins you want to buy.
- Review the number of Bitcoins to be received and the number of fees if there should be any.
- Confirm the transaction.
Make Your Bitcoin Safe
While Binance offers a built-in wallet for its customers to hold their bitcoins, for eventual further security and assurance, ideally, you should consider transferring your own bitcoins to a personal wallet in which you have control. This will give you great control over the private key and avoid the hassle of exchange hacks.
This will get you oriented in Binance and ensure that you purchase your first Bitcoin.
Why Do People Buy Bitcoin?
This paper describes the two major reasons why investment in Bitcoin is worth the while, enclosing several reasons people choose the investment:
- Scarcity: There are only 21 million Bitcoins that will ever exist, unlike the printing of traditional money. Hence, it’s scarce and valuable. It is by this decentralized nature that it is immune to inflation and any sort of government control.
How Much to Put in Bitcoin?
According to experts, due to high volatility in Bitcoin, one should consider investing 5% of the investment there. A lot of price fluctuation occurs in the coin, and sometimes it could remain worthless in a few moments. Holding it to a very small percent would be very important, since diversification of the portfolio makes your investment sweet to other cryptocurrencies in very small amounts. Remember that the crypto-markets are dynamic in nature. Before thinking about any investment, it is important to stay up to date with the latest market trends and do your own research. You might also want to start with a test investment to get accustomed to the buying mechanics before committing to larger sums.
By following these steps, you can navigate Binance and successfully purchase your first Bitcoin.
