Key Takeaways:
- Bitcoin purchases can be made through brokerages, exchanges, and peer-to-peer marketplaces.
- Common payment methods to buy Bitcoin (BTC) are bank transfers, credit/debit cards, and other cryptocurrencies.
- When trading in Bitcoin, buyers must determine the right strategy for their goals.
- Where to store purchased bitcoins must also be considered; cold and hot wallets each have their pros and cons.
- Staying up to date on industry developments and trends helps in making informed, safe decisions when participating in the cryptocurrency market.
Introduction
Bitcoin is a decentralised digital currency that can be sent directly from one person to another without needing a third-party intermediary. It’s powered by a network of miners who validate and secure transactions, and its transaction history is recorded on an immutable public ledger.
Cryptocurrency adoption has been accelerating year-on-year since the creation of Bitcoin in 2009. Of the over 580 million cryptocurrency owners globally (at the time of writing), almost 300 million are holders of the coin that started it all.
Learn more about how Bitcoin works.
Those interested in joining the Bitcoin community have several options when it comes to making their first purchase:
- Brokerages are an intermediary between buyers and sellers, providing an efficient platform for building a cryptocurrency portfolio. They often provide other financial services, such as interest-bearing accounts. The Crypto.com App is a brokerage trusted by over 80 million users and a great place for beginners to start their crypto journey.
- Centralised exchanges allow users to trade digital currencies with one another. They typically offer advanced features, such as leveraged or automated trading, for experienced cryptocurrency users or institutions.
- Decentralised exchanges let users buy and sell cryptocurrency without a third-party service provider, which means users are responsible for managing their private keys. Crypto.com DeFi Wallet is a non-custodial app where users can store and purchase digital assets, plus access decentralised apps (dapps).
For more about the differences between centralised and decentralised cryptocurrency platforms, read What Is a Crypto DEX?
How to Buy Bitcoin
The Crypto.com App supports over 250 popular cryptocurrencies, including Bitcoin (BTC), and users can start buying once the quick onboarding process is completed. After downloading the Crypto.com App, the first step is creating an account, which requires providing an email address and phone number, plus completing identity verification. This KYC process varies by jurisdiction, but usually involves submitting a valid form of identification.
Once the identity documents are verified, it’s time to decide on a payment method. The Crypto.com App supports fiat currencies, credit/debit cards, Apple Pay, Google Pay, and other cryptocurrencies, depending on the user’s region.
Buying Bitcoin via Bank Transfer
One of the most popular ways to buy Bitcoin in the Crypto.com App is by using fiat currency, as it lets users tap into the lowest fees. All users need to do is initiate a transfer from their bank account, and the funds will be received in their Fiat Wallet.
Once their Fiat Wallet is funded, users can then begin purchasing Bitcoin by following the steps below:
- Tap Buy on the Crypto.com App home screen.
- Select a cryptocurrency.
- Under Cash, select the relevant Fiat Wallet and tap Buy again.
- Review the transaction details and tap Continue.
- Confirm the transaction with a passcode or biometric verification.
Payment Methods: Buying Bitcoin With a Card
Buying Bitcoin with a credit or debit card is a convenient and fast way to build a portfolio. In the Crypto.com App, it takes only a few taps to add a card and complete the purchase:
- Tap Buy on the Crypto.com App home screen.
- Select a cryptocurrency.
- Under Cash, select Add Payment Method.
- Follow the on-screen instructions and add the card information. (A small amount of around US$0.10 will be temporarily held, but not charged, for up to seven days.) Once complete, return to the Buy screen.
- Select a cryptocurrency and the purchase amount.
- Under Cash, select the newly added card.
- Confirm the transaction with a passcode or biometric verification.
The perk of making card purchases in the Crypto.com App is that new users pay 0% credit/debit card fees in their first seven days after completing account registration.
Other Payment Methods
In addition to using a Fiat Wallet or credit/debit card, users can buy Bitcoin with Apple Pay, Google Pay, and other cryptocurrencies in the Crypto.com App.
Adding Apple Pay or Google Pay as a payment method is very similar to adding a credit or debit card:
- Tap Buy on the Crypto.com App home screen.
- Select a cryptocurrency.
- Under Cash, select Apple Pay or Google Pay, then tap Buy again.
- Review the transaction details and tap Continue.
- Confirm the transaction with a passcode or biometric verification.
As a medium of exchange, cryptocurrencies can always be traded with one another. Crypto.com App users are able to deposit Bitcoin from an external wallet and use it to purchase Bitcoin and over 250 other coins. Here’s how:
- Tap Buy on the Crypto.com App home screen.
- Select a cryptocurrency to buy.
- Under Crypto, select a cryptocurrency to sell and tap Buy again.
- Review the transaction details and tap Continue.
- Confirm the transaction with a passcode or biometric verification.
With several payment options, the Crypto.com App makes it easy for users to grow their holdings. Visit the Help Centre for comprehensive info on buying Bitcoin and other cryptocurrencies.
Buying Strategies
People buy Bitcoin for a variety of reasons. Some are attracted by its decentralised nature, where no entity can interfere with its supply. Others use Bitcoin to hedge against inflation and other market risks, or as a means to send money. One of the most prominent reasons is the potential to turn a profit.
When trading Bitcoin, buyers need to consider their objectives carefully. In doing so, they can determine the right strategy for their purchases.
If the objective is trading, the buyer should aim for a low entry price — or the price of Bitcoin when the purchase is made — relative to the exit price, or the price of Bitcoin when it is sold. Simply, it’s the strategy of buying low and selling high. It requires ‘timing the market’ to buy at the lowest possible price, which can be risky, as no one can predict how the market will move. This is where trading tools come in.
Buying at the Lowest Price
The Target Price feature in the Crypto.com App allows users to place Buy and Sell Orders for Bitcoin when it hits a set price. They can buy Bitcoin at their preferred lower price and later sell it at a higher price automatically without having to track its price movements. This is extremely helpful since — let’s not forget — cryptocurrency trades 24 hours a day, seven days a week.
Dollar Cost Averaging
If the buyer is looking to HODL, then the entry price does not matter as much. But buying a lump sum of any asset can be risky. To minimise the risk of price fluctuations, buyers can consider adopting the Dollar Cost Averaging (DCA) strategy, which involves purchasing smaller amounts of Bitcoin at regular intervals over time.
The Recurring Buy feature in the Crypto.com App lets users do just that. They can buy as little as US$15 of Bitcoin and 160-plus other coins each time.
How to Store Crypto
Another decision to make when buying Bitcoin is how it will be stored. Cold wallets are physical, offline devices that hold the private keys used to access the cryptocurrency. They are not vulnerable to software attacks but may not be suitable for beginners. Learn more about the pros and cons of hardware wallets and how to choose the right one here.
Hot wallets are connected to the internet, making the user’s cryptocurrency more accessible on a daily basis, whether for spending or trading. Security, regulatory compliance, and privacy should be top of mind when deciding on a hot wallet, like the Crypto.com App, the industry leader in security.
Crypto.com is the first cryptocurrency company in the world to obtain several independently assessed certifications. The company has also released its Proof of Reserves (PoR), which is a way to ensure that a platform holds enough assets to cover all of its client balances. The PoR was conducted and certified by an independent auditor to ensure the integrity and anonymity of the entire process. Crypto.com’s users can view the PoR report and verify their funds here.
Keeping Bitcoin Safe
Users can also take additional measures to further enhance the security of their accounts. Here are some best practices:
- Set up two-factor authentication (2FA) and an Anti-Phishing Code.
- Do not share passwords and authentication codes with anyone. Crypto.com will never ask for this information.
- Always make sure to visit official Crypto.com websites and social media accounts.
- Be aware that phishing can happen via any communication channel, including email, SMS, and voice calls.
- ‘Pig butchering’ and ‘rug pulls’ are two common crypto scams. Learn more about them here.
- Report any suspicious communications to the Customer Support Team at [email protected].
How to Sell Bitcoin
After buying Bitcoin, Crypto.com App users always have the option to sell it for other cryptocurrencies or fiat currencies. Here’s how to sell one cryptocurrency to buy another:
- Tap Sell on the Crypto.com App home screen.
- Select a cryptocurrency to sell.
- Under Crypto, select a cryptocurrency to buy and tap Sell again.
- Review the transaction details and tap Continue.
- Confirm the transaction with a passcode or biometric verification.
The process of selling cryptocurrency for fiat currency varies by jurisdiction but will largely require these steps:
- Tap Sell on the Crypto.com App home screen.
- Select a cryptocurrency to be converted to fiat.
- Under Cash, enter the amount to be converted to fiat.
- Review the transaction details and tap Continue.
- Confirm the transaction with a passcode or biometric verification.
For detailed guides on how to sell Bitcoin and other cryptocurrencies to buy fiat, visit the Help Centre.
The Crypto.com Visa Card offers a rewarding way for users to spend their cryptocurrencies if they prefer not to sell them. Holders can enjoy up to 5% back on spending and many other perks, including Spotify and Netflix subscription rebates, airport lounge access, and zero annual fees, depending on card tier. Everything there is to know about this popular crypto-linked card can be found here.
Final Words — Buying Bitcoin for the First Time
Buying Bitcoin for the first time is an exciting process. Before proceeding, it’s crucial to consider the risks and conduct extensive research. Staying up to date on industry developments and trends aids in making informed decisions when participating in the cryptocurrency market. Additionally, following news outlets and regulatory changes gives insight into how prices might be affected.
Due Diligence and Do Your Own Research
All examples listed in this article are for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial, cybersecurity, or other advice. Nothing contained herein shall constitute a solicitation, recommendation, endorsement, or offer by Crypto.com to invest, buy, or sell any coins, tokens, or other crypto assets. Returns on the buying and selling of crypto assets may be subject to tax, including capital gains tax, in your jurisdiction. Any descriptions of Crypto.com products or features are merely for illustrative purposes and do not constitute an endorsement, invitation, or solicitation.
Past performance is not a guarantee or predictor of future performance. The value of crypto assets can increase or decrease, and you could lose all or a substantial amount of your purchase price. When assessing a crypto asset, it’s essential for you to do your research and due diligence to make the best possible judgement, as any purchases shall be your sole responsibility.
