September 17 (PR): So, you’ve done your research on cryptocurrencies, saw that bitcoin is the best cryptocurrency for you, read about bitcoin and its value, and now it’s time to make your first bitcoin purchase.
Now, you just have to figure out how to buy bitcoin safely. You don’t want to fall into a trap and end up giving your money to a scammer. This article aims to provide you with the necessary information on how to buy bitcoins safely!
Buy with a prepaid card
Prepaid cards, also known as pay-as-you-go or everyday cards, can be used in a similar way to debit and credit cards to pay for products and services. However, there are significant distinctions between prepaid cards and credit or debit cards that contribute to the former being used more for everyday activities than the latter.
In recent years, people have started to use prepaid card to buy BTC and has gained popularity among various investors. Prepaid cards generally incur higher costs at cryptocurrency exchanges than other payment methods; however, prepaid cards offer a number of significant benefits that other payment methods do not:
? Unlike bank transfers, you can buy bitcoins instantly with a prepaid card,
? It is a more practical and open way to buy cryptocurrencies,
? The risk of getting into debt is reduced because you can only use the money that is on your card,
? As a result, it is a safer approach to buying BTC as it reveals less information about you.
? Even if your prepaid card is compromised, the money can only be used; your bank accounts are safe.
Buy with a credit card
When paying by credit card, the buyer may be required to pay additional processing fees on top of the transaction fees the exchange has already paid. Credit card companies consider purchases made with bitcoins as cash advances, and as a result, raise interest rates and surcharges on cash advances.
Buying with PayPal
PayPal allows you to buy bitcoins in two ways: by transferring funds from your credit or debit card to your PayPal account or by using the balance you have in your account to finance the purchase of cryptocurrencies.
If you buy bitcoin directly through PayPal, the company makes money from the cryptocurrency spread, which is the difference between the market price of bitcoin and the price of bitcoin when converted to its native currency. Additionally, the company charges a transaction fee on each and every purchase. These charges are based on a percentage of the total purchase cost.
One of the downsides of buying crypto through PayPal is that an investor cannot transfer the crypto outside the payment processor platform to an external crypto wallet or personal wallet. Also, only a small number of online merchants and exchanges allow the use of the payment processor to purchase payments.
Steps taken to buy Bitcoin
1. Choose between an exchange or a broker
exchanges they often have low fees, but they tend to have more complicated user interfaces, a wide variety of transaction types, and sophisticated performance charts, which can be intimidating for novice cryptocurrency investors.
However, ease of use comes at a cost, as beginner options charge much more than it would cost to buy the same cryptocurrency using each site’s standard trading interface. You should probably make an effort to study enough to be able to use conventional trading platforms before you make your first bitcoin purchase, or not long after. This will help you save money.
cryptocurrency brokersOffering user-friendly interfaces and managing all essential interactions with exchanges on your behalf, they greatly simplify the process of buying cryptocurrencies. Some of them charge higher fees than exchanges.
Others will claim to be “free” but benefit from you in one of two ways: they will sell big brokerages or finance the details of what you and other traders are buying and selling, or they will not execute your trade. The best price of the market.
You should be careful when dealing with brokers even though their usefulness cannot be denied because there may be restrictions on your ability to get your bitcoin holdings off the platform.
At first glance, this may not seem like a big deal, but experienced cryptocurrency investors often keep their money in a digital wallet for added security. Some users choose physical bitcoin wallets that are not connected to the internet as an added measure of security.
2. Link your exchange to a payment option
You can connect to your prepaid card, debit card or PayPal account. To complete this step, you may be asked to verify your identity by submitting a photo of your ID card or a photo of yourself.
This is done to verify that the information you have submitted matches your official documents.
3. Place an order
Cryptocurrency exchanges have progressed to the point where they mimic the same level of features as their stock brokerage equivalents. Cryptocurrency exchanges generally provide a wide variety of order types and investment opportunities. Nearly all cryptocurrency exchanges provide clients with the ability to market, limit, and stop loss orderswith the exception of a few.
4. Safely store your Bitcoin
Wallets can be used to store digital assets in a more secure way, and Bitcoin and other cryptocurrencies are examples of such wallets. Keeping cryptocurrency off of an exchange and in a personal wallet gives investors more control over the private key of their funds than using an exchange. Although an exchange wallet is available, it is not recommended to use it to store large amounts of cryptocurrencies or for an extended period of time.
Alternative ways to buy Bitcoin
Bitcoin ATMs perform the same function as traditional in-person Bitcoin exchanges. People can buy bitcoins by putting cash into a machine and then use that money to buy bitcoins, which are then sent to customers’ online wallets. Recently, there has been an increase in demand for Bitcoin ATMs around the world.
Bitcoin purchases made through an ATM incur not one but two fees: the first is a purchase cost and the second is a conversion fee to convert local cash to bitcoin. Both of these costs are relatively high compared to other available options.
There are certain peer-to-peer (P2P) exchange systems that offer users a more direct connection with each other.
P2P exchanges do not provide users with the same level of anonymity as decentralized exchanges, but they do give consumers the opportunity to compare prices and find the best possible deal. Many of these exchanges also include rating systems, giving users the ability to evaluate potential trading partners before making any kind of transaction with them.
There are several ways to buy bitcoins safely, either using the more traditional methods like prepaid cards and PayPal, or using alternative modes like bitcoin ATMs. Some people might have a false narrative about buying bitcoins and you might see it as a shady business but if you choose the right methods then you have nothing to worry about!
Make sure you follow the instructions carefully so you don’t get stuck in one step and finish the process sooner!