It would seem it is impossible to talk about any finance-related topic without hearing about Bitcoin or other Cryptocurrencies… And with good reason. Crypto has opened the doors to financial freedom for millions of people.
When it comes to personal finance, I truly believe crypto has the potential to improve your personal finances. In fact, you should read this article if you want to know why crypto personal finance is the latest craze.
If you are reading this, it means you have an internet connection and a smart device. That’s everything you need to start using cryptocurrency as an investment opportunity!
There are many ways in which you can buy crypto, with major apps like Paypal, Venmo, and Skrill adding their own features. However, when it comes to harvesting all the potential of crypto, crypto exchanges continue to be essential. Not only will they allow you to buy Bitcoin at a better rate but also with more payment methods.
If you are interested in knowing what Bitcoin is, why you should consider buying it, and how to buy Bitcoin using a crypto exchange… Keep reading as I will explain all of it in this article.
What is Bitcoin? What You Should Know About The Hottest Cryptocurrency
Bitcoin is the cryptocurrency that started the financial revolution of the 21st century. A digital form of cash, Bitcoin doesn’t require a centralized authority to issue or regulate it. Whereas fiat currency (e.x. USD, GBP, EUR) is backed by a central bank that answers to a government, Bitcoin depends on thousands of users around the world.
This decentralized model also relies on cryptography and other technologies to provide the currency with high levels of security. As Bitcoin is run by the community, it is also extremely transparent while also providing pseudo-anonymity to its users.
Bitcoin was created by an unknown figure only known as “Satoshi Nakamoto”, who proposed it in 2008. After collaborating with the development of the cryptocurrency, he eventually disappeared and left the project to the community.
Bitcoin is not only resistant to manipulation, decentralized, and censorship-resistant, but it also is permissionless. No matter who you are: If you have internet access, you can use it. This has made it an important tool against authoritarian governments, international sanctions, and other types of censorship.
Why Should You Consider Buying Bitcoin
Just like fiat currency, Bitcoin’s value can fluctuate depending on different factors. This makes it a viable investment commodity just like precious metals or foreign currency. While some people choose to use Bitcoin as a payment method, most investors hold it with the hope it will increase in value.
You need to be careful when investing in Bitcoin (or anything else, for that matter). Any type of investment means that you have the chance to generate gains, but you can also incur losses. For this reason, it is essential to take your time to do your research and understand what you are investing in. If you need some tips, we have a bunch of articles in our crypto section.
Let’s talk about some of the elements that contribute to Bitcoin’s value:
● Scarcity: Unlike fiat currency, there is a limited supply of Bitcoin. While new bitcoins are created at all times, this process will stop once there are 21 million of them. The rate at which bitcoins are generated is also dependent on demand for the coin, which means the currency is not too sensitive to inflation.
● Durability: As Bitcoin is entirely digital, the currency can be used over and over without losing its usability.
● Portability: Bitcoin only requires internet access and a device for you to interact with it, making it usable on a global scale and the most portable currency out there.
● Divisibility: Whereas the US dollar can only be divided by 100 (1 cent), Bitcoin can be divided by up to 100 million. This unit is called a Satoshi and provides a lot of flexibility to the currency.
● Acceptability: While not as widely accepted as fiat currencies (yet), Bitcoin is the most widely accepted cryptocurrency. Companies like Microsoft, Subway, AT&T, the Dallas Mavericks, Quiznos, and more all accept Bitcoin!
As Bitcoin becomes more widely accepted and popular, its value will tend to increase over time. With the coin still being in its early stages, it is still early for those wanting to take advantage of the opportunity. You’re still early!
How To Buy Bitcoin The Easy Way
So, you have done your research and you are ready to buy Bitcoin. However, if you are new to the world of crypto you might not know how to do this. Worry not, it is getting easier to buy Bitcoin, which makes it more accessible than ever.
In this article, I will be talking about how to use a crypto exchange to buy crypto using a debit or credit card. However, be aware that there are several ways to do so. If you would like to know more about other methods and cryptocurrencies, make sure to check our crypto category. turbowallet.com/crypto/
Step 1: Get a Crypto Wallet
Bitcoin might not be physical but it still needs to be stored. This is achieved by using what is known as a “crypto wallet”. These are software or physical devices that will keep your Bitcoin stored by using a “private key”. Without a crypto wallet, you can’t interact with your crypto at all.
A crypto wallet will be automatically created once you sign up for a crypto exchange. However, there are many reasons why you might want to get a different wallet. Not only will it provide you with added security but also with extra features to increase the benefits of your newly acquired Bitcoin.
Centralized crypto exchanges are extremely attractive to hackers and also depend on a single company. In theory, this makes them especially risky when compared to other wallets. Using a trustworthy wallet will ensure no one but you have access to your keys.
The two main types of crypto wallets are hardware and software wallets. Hardware wallets provide the most security by far but do come at a cost as you have to purchase the device. This option is recommended if you plan on holding large amounts of cryptocurrency.
Software wallets on the other hand are typically free however they do provide slightly less security as there is a risk that your device can be hacked (computer, phone etc.). Fear not though, this option is still very safe. Software wallets are recommended if you are holding smaller amounts of cryptocurrency.
Some of the most popular Bitcoin wallets I can recommend to you are the following:
|Wallet Name||Type of Wallet||URL|
|Trust Wallet||Software Wallet||https://trustwallet.com/|
Download/purchase your preferred wallet and make sure to safely store the passphrase you will be given during the setup process. This key phrase will allow you to regain access to your account if you lose access to your wallet.
Keep it somewhere safe and private as anyone with access to it will have access to your Bitcoin! And again… make sure not to lose it.
Step 2: Create a Crypto Exchange Account
Now that you have a wallet to store your Bitcoin once you buy it is time to create a crypto exchange account to buy it in the first place.
There are many popular exchanges like Coinbase, Gemini, and Kraken. However, in this guide, I will be telling you how to buy Bitcoin using Binance, one of the most popular and secure exchanges.
Feel free to use other crypto exchanges as the process should be pretty similar. However, make sure to do your research before using an exchange you are not familiar with.
Let’s start: Head to Binance, fill in the required information and choose the “create account” option. The instructions will be pretty straightforward and simple, so they won’t be too hard to follow.
Step 3: Verify Your Identity
To comply with regulations, your new account is likely to have certain limitations. To be able to fully operate with it, you will need to verify your identity.
In Binance, you can do this by clicking on the profile icon in the main menu bar. You should now see an “Identity Verification” option, which will allow you to complete 3 verification levels. I recommend doing the advanced verification to ensure all restrictions are lifted.
Step 4: Buy Bitcoin Using Debit/Credit Card
Now that your account has been created and verified, you can use Binance to buy Bitcoin with your Debit/Credit card.
You can do this by opening the Binance app or website. Locate the “Buy Crypto” button, click on it, and then choose the “Credit/Debit Card” option. Now, it is just a matter of filling in how much Bitcoin you want to buy. This can be either by deciding on a certain Bitcoin amount or its fiat equivalent before clicking continue.
You will now be required to add your card information by clicking on “Add new card”. Fill the form as you would with any other platform, and then next. Fill in your billing information and then on “Add card”.
Finally, click on “Continue”. The payment will be processed and your Bitcoin will be added to your crypto wallet. You are now the owner of some Bitcoin!
Step 5: Transfer Bitcoin To Your Wallet
I hope you have chosen to transfer your Bitcoin to your crypto wallet now that you have bought it. To do this, locate and click on the “Wallet” button located in the app or site’s main menu, and then on the “withdraw” option, you will find next to “BTC”.
Enter the address of the crypto wallet you want to transfer your Bitcoin to. To get this address, click on the “deposit” or “receive” option in your wallet. You will be given a string of characters similar to “1BvBMSEYstWetqTFn5Au4m4GFg7xJaNVN2D3K”.
Fill in the form with the amount of Bitcoin you want to have transferred, the network will be selected automatically. Now it is just a matter of clicking on “Withdraw”, entering the verification codes you will receive via email and SMS, and waiting for your Bitcoin to be transferred to your wallet. That’s it!
Buying Bitcoin is not the easiest or more intuitive of processes when you are a beginner. However, this will change as you become more familiar with the interfaces and the process. Keep in mind you only need to get a wallet or create a Binance account once!
Congratulations on taking the first step on your Bitcoin journey! You will find that as long as you do your research, cryptocurrencies will prove an incredible tool to improve your personal finances.
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