Step-by-Step Guide to Buying Bitcoin for the First Time

Buy Bitcoin for the first time

Buy Bitcoin First Time

  1. Signup with an Exchange
  2. Deposit your fiat currency (your local nation’s currency like USD, EUR etc)
  3. Buy Bitcoin on the exchange

Find a Safe Bitcoin Exchange

Safe Bitcoin Vault

Kraken, Coinbase, and Binance are three of the largest and most popular cryptocurrency exchanges in the world. They are all considered safe and beginner-friendly, with various features and services that make them ideal for new investors.

Kraken is a San Francisco-based exchange that was founded in 2011. It is known for its strong security features, high liquidity, and wide range of trading options. Kraken offers over 200 cryptocurrencies and supports margin trading, futures trading, and staking.

Coinbase is another US-based exchange that was founded in 2012. It is known for its simple and user-friendly interface, which makes it a good choice for beginners. Coinbase offers a limited range of cryptocurrencies compared to Kraken and Binance, but it supports all the most popular ones.

Binance is a Chinese-founded exchange that was launched in 2017. It is the largest cryptocurrency exchange in the world by trading volume. Binance offers a wide range of cryptocurrencies and trading options, as well as margin trading, futures trading, and staking.

Why are Kraken, Coinbase, and Binance safe and beginner-friendly?

  • Security: All three exchanges have a good track record of security. They use various security measures, including two-factor authentication (2FA), cold storage, and regular security audits.
  • Regulation: Kraken and Coinbase are both regulated by the US Securities and Exchange Commission (SEC). Binance is not regulated in the US, but it is regulated in several other countries.
  • User-friendly interface: All three exchanges have relatively user-friendly interfaces, making them easy to use for beginners.
  • Educational resources: All three exchanges offer educational resources to help beginners learn about cryptocurrency and trading.

Which Bitcoin exchange is right for me?

The best exchange for you will depend on your individual needs and preferences. Coinbase is a good choice if you are a beginner because of its simple interface and educational resources. If you are looking for a broader range of cryptocurrencies and trading options, Kraken or Binance may be a better choice.

The global Bitcoin exchanges do not accept some countries

If you live in a country where you find it hard to sign up with any of the most trustworthy global Bitcoin exchanges, a Bitcoin peer-to-peer exchange might be a good solution to buy Bitcoin instead.




Fiat Deposit Methods to Buy Bitcoin

USD deposit to Bitcoin Bank

Bank Deposits

All three exchanges offer bank deposits as a fiat deposit method. This is the most common and reliable deposit method, but it can be slow, taking up to several business days to process. Bank deposits are also subject to fees, which vary depending on the exchange and the country where you are located. Sometimes are, SEPA and SWIFT bank transfers free.

Credit/Debit Card Deposits

All three exchanges also offer credit/debit card deposits. This is a faster deposit method than bank deposits but is also more expensive, with fees typically ranging from 2-5%. Credit/debit card deposits are also subject to daily and monthly limits. Compare exchanges with the lowest fees for credit/debit card deposits.

E-Wallet Deposits

Coinbase offers wallet deposits from PayPal. This is a fast and convenient deposit method but is also the most expensive, with fees typically ranging from 3-5%.

Transfer Times

Usually, this is true regarding fiat transfer times

Bank Deposits: It takes a few days but can go down to as low fees as free. Still, there are instant options like SEPA and more alternatives.

Credit/Debit card deposits: Usually instant but to a high transaction cost between 1.49-4%.

E-wallets: For some crypto exchanges, you might be able to use e-wallets like PayPal, Skrill, Wise, and more for deposits. The fees vary a lot but are usually more expensive than bank deposits.

Place a buy order for Bitcoin

Buy bitcoin and Place a buy order for Bitcoin

Once you have deposited fiat currency into your account, you can place a buy order for Bitcoin. This can be done by navigating to the exchange’s trading platform and entering the amount of Bitcoin you want to buy and the price you are willing to pay.

Wait for your order to be filled.

Once you have placed a buy order, you must wait for it to be filled. This can happen immediately or may take some time, depending on the market conditions.

Once your order is filled, your Bitcoin will be credited to your account.

Once your order is filled, your Bitcoin will be credited to your account. You can then withdraw it to a Bitcoin wallet or keep it on the exchange.

Here are some additional tips for buying Bitcoin on a crypto exchange:

  • Do your research and choose a reputable exchange.
  • Make sure to verify your identity before depositing any fiat currency.
  • Be aware of the fees charged by the exchange.
  • Start with a small amount of money until you are comfortable with the process. Dollar-cost averaging from fiat to Bitcoin.
  • Store your Bitcoin in a private wallet.