The popularity of Bitcoin (BTC), the first cryptocurrency in the world, is constantly growing. More and more companies are including BTC in their financial portfolios, conducting services, transfers, and payments using the Bitcoin decentralized blockchain network first launched by Satoshi Nakamoto in 2009.
Since the appearance of Bitcoin and its revolutionary blockchain technology, apart from mining the digital currency with computational power, getting rewarded small amounts of BTC on faucets, or receiving their salary for freelance online work in BTC, people also have the option to simply buy the digital asset.
There are dozens of popular websites called cryptocurrency exchange platforms that are specialized in exchanging fiat currencies like USD or EUR for Bitcoins and vice versa. Also, since the crypto market has rapidly evolved from 2009, people can now buy, exchange and use thousands of various cryptocurrencies using these platforms, not only BTC. There are loads of popular altcoins like Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH) and others that can also be used for numerous purposes, just like Bitcoin.
How to Buy Bitcoin
Buying Bitcoin is a really simple process, whichever method you choose. For a beginner, it may seem complicated, but when you decide on the method you want to use, everything will be smooth and fast.
The financial appetites and possibilities can vary. There are users who want to buy a small amount of BTC and use it as payment for digital services; beginner crypto exchange enthusiasts that are trying to multiply their investment in different coins; all the way to corporations like Tesla that want to use BTC as a tool to gain massive profits. One of the lucrative aspects of the currency is the volatility of the price of Bitcoin, which can pay off handsomely if you already have some BTC and the value continues to rise. In that case, when you sell Bitcoin you can make some serious profits.
Whichever group you fit in, you first have to buy some BTC in order to use it for further financial endeavours. We are going to take a look at how the Bitcoin buying process works and what the minimum amount of BTC you can buy is.
Select a Crypto Exchange Platform
Essentially, you need to set up a couple of things so you can start buying BTC. You need to select a secure and trusted crypto exchange platform. It’s best to go with some of the most popular ones that have been around for some time, provide users with top quality services, and are secure and simple to use (like Coinbase, Binance or Kraken). Make sure to choose a platform that allows users to directly withdraw their crypto assets to their digital wallets, because some platforms don’t offer this option.
When you select an exchange platform, you just have to follow the relatively simple registration process so you can start using your account.
Connect a Payment Method to the Exchange Platform Account
Now that you have chosen an exchange platform, you need to connect a payment method to your account so you can invest fiat money that will allow you to buy some BTC. Exchange platforms generally require you to provide ID documents such as a government ID, social security number, or driver’s licence in order to confirm that you are a legitimate client. Some platforms may even require information about your current job and the source of your invested funds.
These steps are a necessary precaution for preventing money laundering and the abuse of crypto exchange sites. Once you finish the verification, you can connect a payment method to your account. The payment options are usually directly connecting your bank account to the crypto exchange, or you connecting it to your credit card or debit card. Some platforms also allow you to connect to a payment service such as PayPal.
Choose a Cryptocurrency Storage Option
Before you start buying BTC, you need to have a Bitcoin wallet in order to safely store your bitcoins. You can of course choose to store your assets directly on the exchange platform website itself, but it’s much more secure to have the funds moved to your own, personalized crypto wallet that only you have access to. In the event of a security breach of the exchange platform, your funds will be perfectly safe if you have them stored in your own wallet.
Start Buying BTC
After these three steps, you are all ready to start buying BTC, depending on your financial abilities and plans. Using an exchange platform is the most popular way of buying BTC but you can also use Bitcoin ATMs or peer-to-peer exchanges to buy crypto assets. In any case, what you have to decide is the amount you want to purchase. In some cases, it’s good to buy a very small amount of Bitcoin for your first transaction, to make sure your payment method, exchange account, and wallet are working together properly.
Minimum Amount of Bitcoin You Can Buy
If you want to buy the smallest possible amount of BTC for your first-time purchase, it’s important to know that theoretically, this amount is 0.00000001 BTC, denominated in satoshis, the smallest unit of Bitcoin. Each BTC has 100.000.000 satoshis and the smallest amount of satoshis you can buy on an exchange platform is generally defined by the platform’s policy itself. For instance, Coinbase requires you to buy at least 2 USD or EUR worth of Bitcoin as the minimum amount to place a purchase order using fiat money.
It is clear that you can buy a really low amount of BTC if you like, but it’s worth noting that such an investment can hardly pay out. However it is a good way of checking if you crypto buying set up works, so that you can invest more funds in the future.
You should definitely pay attention to the volatility of Bitcoin and decide on what is the minimum amount that you can invest in the currency without feeling bad if you lose the money. So the minimum amount is an individual category that depends largely on what you want to achieve and how much you are willing to invest, but it is always good to start out with smaller units of BTC and gradually build up your crypto asset portfolio.
A Few Words Before You Go…
The number of individuals and companies that want to be a part of the Bitcoin ecosystem is constantly rising and buying BTC is a skill that’s becoming increasingly important in the modern world of finance. These are some of the basic steps for buying your first BTC safely.