How To Buy Bitcoin (BTC)?
A common question you often see on social media from crypto beginners is “Where can I buy Bitcoin?” Well, you’ll be happy to hear it is actually quite a simple and straightforward process. Thanks to its massive popularity, you can now buy Bitcoin on most cryptocurrency exchanges, including Coinbase and Binance in 3 simple steps.
Step 1: Create an account on an exchange that supports Bitcoin (BTC)
First, you will need to open an account on a cryptocurrency exchange that supports Bitcoin (BTC).
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In order to sign up, you will need to enter some basic information, such as your email address, password, full name and, in some cases, you might also be asked for a phone number or address.
Note: On specific exchanges, you might need to complete a Know Your Customer (KYC) procedure in order to be able to purchase cryptocurrency. This is most commonly the case with licensed and regulated exchanges.
Step 2: Deposit funds into your account
Many cryptocurrency exchanges will allow you to purchase Bitcoin (BTC) with fiat currencies, such as EUR, USD, AUD and others. Furthermore, they will also provide you with multiple deposit methods through which you can fund your fiat account, such as credit and debit cards, ewallets or direct bank transfers.
Note: Some payment methods will have higher fees than others, such as credit card payments. Before funding your fiat account on your chosen exchange, make sure to do your due diligence to find out the fees involved with each payment method to avoid unnecessary costs.
Step 3: Buy Bitcoin (BTC)
This process is similar across almost every cryptocurrency exchange. All you have to do is find a navigation bar or a search bar, and search for Bitcoin (BTC) or Bitcoin (BTC) trading pairs. Look for the section that will allow you to buy Bitcoin (BTC), and enter the amount of the cryptocurrency that you want to spend for Bitcoin (BTC) or the amount of fiat currency that you want to spend towards buying Bitcoin (BTC). The exchange will then calculate the equivalent amount of Bitcoin (BTC) based on the current market rate.
Note: Make sure to always double-check your transaction details, such as the amount of Bitcoin (BTC) you will be buying as well as the total cost of the purchase before you end up confirming the transaction. Furthermore, many cryptocurrency exchanges will offer you their own proprietary software wallet where you will be storing your cryptocurrencies; however, you can create your own individual software wallet, or purchase a hardware wallet for the highest level of protection.
How to create a Binance account
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Step 1: Go to the Binance website.
Step 2: On the registration page, enter your email address, and create a password for your account.
Then, read and agree to the Terms of Service and click “Create Account”.
Note: Your password must be a combination of numbers and letters.
It should contain at least 8 characters, one UPPER CASE letter, and one number.
Step 3: Complete the Security Verification.
Step 4: The system will send a verification code to your email. The verification code is valid for 30 minutes. If you can’t find the email in your inbox, check your other mail folders as well, or click “Resend Email” to resend.
How to complete KYC (ID Verification) on Binance
Step 1: Log in to your Binance account and click “User Center” and then “Identification”.
Step 2: click “Start Now” to verify your account.
Step 3: Select your country of residence.
Ensure that your country of residence is consistent with your ID documents.
Step 5: Enter your personal information and click “Continue.”
You won’t be able to change it once confirmed.
Refer to the respective options offered for your country.
Step 7: Follow the instructions to upload photos of your document. Your photos should clearly show the full ID document.
Do not wear hats, glasses, or use filters, and make sure that the lighting is sufficient.
Once your application has been verified, you will receive an email notification.
How to buy cryptocurrency on Binance
Step 1: Log in to your Binance account and click “Buy Crypto” and then “Credit/Debit Card”.
Step 2: Here you can choose to buy crypto with different fiat currencies. Enter the fiat amount you want to spend and the system will automatically display the amount of crypto you can get. When you have selected the amount you wish to spend then press “Continue”.
Note: You might not be able to purchase every cryptocurrency directly using fiat, if you’re looking to purchase something that isn’t offered in the currency list on this page, then you will want to purchase USDT. We will then show you how to exchange that on the spot-market for the cryptocurrency that you want in the next section of this guide.
Step 3: Click “Add New Card”. Then enter your credit card details and your billing address.
Step 4: Check the payment details and confirm your order within 1 minute. After 1 minute, the price and the amount of crypto you will get will be recalculated. You can click “Refresh” to see the latest market price. You will then be redirected to your bank’s OTP Transaction Page. Follow the on-screen instructions to verify the payment.
How to Conduct Spot Trading on Binance
Step 1: Log in to your Binance account.
Click on “Classic” under “Trade” on the top navigation bar.
Step 2: Search and enter the cryptocurrency you want to trade.
Step 3: Set buying/selling prices and buying/selling amount (or exchange total). Then click on “Buy”/”Sell”.
(Note: The percentages under the “Amount” box refer to percentages of the total account balance.)
Step 4: If you don’t want to set a manual price, you can place a “Market Order” to set the buying/selling price automatically.
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For more in-depth instructions, our ‘Absolute Beginner’s Guide To Cryptocurrency Investing‘ will take you through the process step-by step. In addition to providing instructions for sending and receiving your cryptocurrency.
And if you’re completely new to crypto our beginner, intermediate and advanced level articles will get you up to speed with everything you need to know about the cryptocurrency space starting out.
What is Bitcoin (BTC)?
On October 31, 2008, a person or group under the pseudonym Satoshi Nakamoto published a whitepaper titled “Bitcoin: A Peer-to-Peer Electronic Cash System”. A mailing list for cryptography was used to disseminate the whitepaper exactly one month after the investment firm Lehman Brothers filed for the greatest bankruptcy in the history of the United States and the government allowed a bailout of the industry in the amount of $700 billion.
A short time later, on January 3, 2009, the Bitcoin network went online, marking the beginning of a new system of decentralized digital money with no centralized authority (like a bank or other intermediary). Bitcoin can be transferred quickly and securely to anyone with a Bitcoin address (like an account) anywhere in the world, without needing permission or paying unnecessary fees.
In a nod to the economic environment at the time, the first transaction included a note referencing a prominent newspaper headline: “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks.”
The Bitcoin system uses BTC as its unit of currency, and the total number of BTC that will ever be produced is capped at 21 million. Each Bitcoin may be broken down into a total of 100 million satoshis, often known as sats. Satoshis are the lowest unit that can be used to describe a Bitcoin. Bitcoins function as electronic cash, making this procedure borderless on a global scale with a universal currency. In the same way that actual cash enables quick payment and settlement of a transaction, Bitcoins work in the same manner.
How Does Bitcoin Work?
In the same way as wallets are used to store currency, digital wallets are used to store Bitcoin. A Bitcoin wallet is similar to a bank account in that it may store money and provide the capacity to interact with other accounts (called addresses) in the peer-to-peer network. Bitcoin addresses are used to identify individual accounts. These addresses make it possible for cash to be transferred from one wallet to another in a manner that is analogous to the manner in which emails are sent from one address to another, but in a manner that is encrypted using a combination of public and private keys.
The address consisting of alphanumeric and numerical characters that you send out to receive Bitcoin is generated by hashing the public key. You may have signed for card transactions in the past, and the private key functions similarly to a password in that it enables you to approve transactions by digitally signing them. This prevents unauthorized access to money and serves as an additional layer of security. You should NEVER give anybody else access to your private key since it gives you control over all of the cash in your wallet address. You should take active measures to guarantee that your private key is never exposed, and keep in mind that, in contrast to the conventional banking system, the Bitcoin system is so secure that it would take billions of years to decipher a single address.
Users may access their Bitcoin wallets, input the public address of a recipient, and then the wallet will utilize the user’s private key digital signature to approve the transaction before broadcasting it to the network so it can be processed. At first, the transactions are checked and then stored in a queue known as the mempool in a pending state as they wait to have their legitimacy validated. The transactions are then included in a block of other transactions, which is verified about once every ten minutes, and the blockchain is formed by the combined existence of all of these blocks.
The significant advance made by Bitcoin was the elimination of the risk of double spending. This made it possible for users to send Bitcoins to one another directly, without the need for a middleman.
Imagine you are part of a group of unrelated people, and each of you has a ledger or notebook containing the balances and transactions for your Bitcoin address. A one-bitcoin transfer is made from the Bitcoin address of one of the strangers to the Bitcoin address of another. The remaining members of the group also keep track of that transaction. They then check the consistency of their ledgers by comparing them with one another.
The transaction is considered legitimate if all of the ledgers provide the same results. It is possible that one of the strangers is attempting to mislead the group by spending money they do not have, or re-spending the same money, which is referred to as “the double-spend dilemma.” If one of the strangers’ ledgers is different, however, this person may be doing so. This difficulty is handled with Bitcoin because the other strangers in the group just disregard the ledger that does not match, which causes the transaction to be rejected, and then they go on to the next one.
Now, picture this set of ledgers operating on a decentralized network that spans the whole planet; this is how the Bitcoin technology works. Every computer node on the Bitcoin network has its own copy of the Bitcoin ledger, which is a public ledger that records all Bitcoin transactions anonymously and publicly. Ledgers are constantly compared to one another to ensure that they are consistent, and a permanent record of past transactions is kept to demonstrate which addresses own what amount of Bitcoin. Transactions between total strangers may now take place anywhere in the globe, without the need for an expensive middleman, thanks to the blockchain technology behind Bitcoin.
Who Are The Founders of Bitcoin?
Bitcoin is credited with delivering the first successful cryptocurrency, yet this accomplishment did not come about quickly. It was the culmination of decades of innovation in cryptography and cypherpunk history dating back to the 1970s. These advancements included foundational initiatives like as B-money, Bit Gold, eCash, and HashCash.
Then, in 2006, an individual or group going by the name Satoshi Nakamoto, which is still a pseudonym to this day, started building the code for this new digital payment system, which culminated in the publishing of the whitepaper in 2008 and the debut of the network in 2009. Numerous well-known cryptographers, including Hal Finney, Nick Szabo, Wei Dai, and Adam Back, have been suggested as possible contenders for the role of Satoshi, however each of these individuals has categorically refuted the allegations.
Before giving up management of the Bitcoin source code repository in the middle of 2010, Satoshi continued to work on Bitcoin in conjunction with other developers until that point. Before abandoning the Bitcoin project entirely in 2011, Satoshi contributed to the archiving of emails and forum postings that discussed the future of the cryptocurrency. There are now hundreds of developers contributing to Bitcoin, which has millions of users as its community.
What Makes Bitcoin Unique?
A significant technical achievement that was more than 10 times more advanced than what came before it, Bitcoin is a zero-to-one invention that made peer-to-peer digital money genuinely viable for the first time. Bitcoin is a zero-to-one innovation. With Bitcoin, more innovation is always conceivable, and it sometimes results in a “fork” of the bitcoin code. This “fork” makes it possible for a whole new cryptocurrency to be established, which is based on Bitcoin but can never really be Bitcoin.
Because it does not have a centralized figurehead or organization, Bitcoin does not have a single point of failure. This results in a system that is truly decentralized, with software that enables anyone to have control over their own money and verify the authenticity and scarcity of the bitcoins they receive in a trustless manner.
The Lindy Effect of Bitcoin’s lifespan demonstrates its capacity to endure, even in a harsh environment consisting of contentious hard forks and official restrictions. This demonstrates that Bitcoin is antifragile. The network effect of Bitcoin, when combined with the trust and familiarity that comes with the brand, encourages more people to consider it a store of value, which, in turn, encourages more participants to get involved, and so on and so forth, leading to an increase in utility from an expanding user base.
What Gives Bitcoin Value?
Bitcoin has a number of additional features that, when combined with its decentralization and network effects, contribute to the increase in the value of the cryptocurrency.
The fact that there will only ever be 21 million bitcoins in circulation ensures that they will always be scarcer than traditional commodities. This stands in stark contrast to the inflationary fiat currencies with which we are more familiar, which can be printed at the whim of a central authority, thereby lowering their value. The supply is also fungible, meaning that each individual unit has the same value and can be exchanged with any other. This is in contrast to the practice of coin clipping or the watering down of the quality of metal coins in the past.
Bitcoin, much like gold, is a very durable currency that may be used for extended periods. Bitcoin, in contrast to gold, is divisible into 100 million pieces each BTC and has the feature of mobility, which enables it to be transferred quickly and easily over both distance and time.
In conclusion, bitcoin benefits from the expanding acceptance that comes with its growing worth. This enables it to function as a means of exchange and a store of wealth, and it is accepted at thousands of companies across the globe. A value that grows exponentially with each additional implementation.
How Many Bitcoin (BTC) Coins Are in Circulation?
The total supply of bitcoin is limited by its software to a maximum of 21 million BTC. Because there was no pre-mining of bitcoin, there was no creation or distribution of bitcoins before it was made accessible to the general public.
Mining is a process that allows for the gradual addition of new bitcoins to the network. During mining, specific mining nodes on the Bitcoin network are rewarded for providing the computational power necessary to process pending transactions into blocks that are then successfully added to the blockchain.
The incentive for miners was initially set at 50 bitcoins each block when Bitcoin was first introduced; however, this reward has since been lowered, and it is estimated that it will take until about the year 2140 for all 21 million BTC to be mined. Distribution is front-loaded, which means that there are around 18.6 million bitcoins in circulation at the moment despite the fact that the reward will gradually decrease over time.
The process by which the miner block rewards are gradually decreased over time is known as the Bitcoin halving, sometimes spelled halvening. The reward for mining a block is lowered by half every 210,000 blocks, which occurs about once every four years. This means that the amount of newly created bitcoins that are contributed to the network each day is reduced by half. The most recent Bitcoin halving event, which was also the third in Bitcoin’s existence, took place on May 11, 2020, and resulted in a reduction of the block reward from 12.5 bitcoins per block to 6.25 bitcoins per block. The subsequent halving is presently projected to take place in March of 2024. Again, this set monetary policy and predictable inflation timetable stand in sharp contrast to the practices of other central banks across the globe and the intervening role that central banks have traditionally played.
Following the completion of the 32nd halving, which is anticipated to occur in the year 2140, the reward will decrease from 0.00000001 BTC to nothing. After that point, no further bitcoins will be produced, and the maximum available supply of 21 million BTC will have been exhausted. At that time, Bitcoin miners will have to rely only on the transaction fees generated by the network in order to be compensated for the processing power they have generated.
Following a Bitcoin halving event, the price of Bitcoin has a tendency to rise, since this phenomenon is traditionally accompanied by a reduction in the number of newly created Bitcoin (not surprising given the mechanics of supply and demand). Even though there are a number of other supply dynamics in the market and the impact of future halvenings may be mitigated due to the fact that the drop in new BTC supply will be less, it seems to have been a driver of the three primary bitcoin market cycles thus far.
Other Technical Data
The Bitcoin Core software is administered by full nodes on the Bitcoin network. These nodes enforce the rules and decide which improvements will be implemented in the future. These computer nodes store an immutable record of previous transactions and address balances, completely verify all Bitcoin transactions and blocks, and transmit that data to other full nodes so that pending transactions may be distributed over the network as rapidly as possible.
Running a complete node requires very simple computer equipment in addition to downloading the Bitcoin Core software for free. However, anybody can accomplish this. It is recommended that nodes be constructed using dedicated hardware, such as a Raspberry Pi controlling high-end graphics cards, or by utilizing a cloud computing service. This is done for both security reasons and to avoid using up the necessary processing power and memory on your primary computer. Nodes should run continuously around the clock. The truly decentralized nature of the network is enabled by the global spread of these nodes, with each participant holding and distributing the same copy of the transaction record and rejecting malicious behavior across a network that is at least 10,000 nodes strong. This ensures that the network is not vulnerable to a single point of failure.
Light nodes, which link to full nodes, contribute further to the decentralization of the network. Despite the fact that they just store the most recent part of the Bitcoin blockchain rather than a complete copy, they are nevertheless considered valid. Even if the number of independent nodes is growing over time, in practice many users will opt to rely on nodes maintained by other parties such as exchanges and wallet providers. This is despite the fact that the number of independent nodes is rising.
How Is The Bitcoin Network Secured?
Mining is the process of expending processing resources in order to safeguard transactions from conflict and introduce new Bitcoins into the system. Mining is what provides security for the Bitcoin network. Bitcoin mining makes use of a consensus process known as Proof-of-Work, which is based on the SHA-256 hashing algorithm.
Miners make use of specialized computers known as mining nodes. In exchange for block rewards and transaction fees, they are motivated to supply the processing power necessary to protect the network by creating blocks of verified transactions and adding them to the Bitcoin blockchain.
Miners utilize their processing capacity to compete with one another in order to create blocks by successfully completing tough mathematical computations. The difficulty of these calculations is changeable and is automatically controlled by the software that underpins Bitcoin. This process is referred as as the difficulty adjustment, and it involves increasing or decreasing the complexity of the computations every 2016 blocks (roughly two weeks), depending on the total processing capacity that is deployed on the network at that particular moment.
When a miner has successfully completed the most recent computation, it is equivalent to winning the network lottery in order to create the next block. They then publish the outcome as evidence and include any recently added legitimate pending transactions in a new block that is published to the Bitcoin network. This information is sent out to all of the nodes in the network so that they may validate not just the solution, which is the proof of work, but also the transactions that are contained in the block. The problem may be tough to solve, but once it has been solved, any node may easily validate the answer.
When a block is solved, the transactions that it contains will appear as having one confirmation on the network. These transactions will also be viewable on wallet applications and block explorers. The confirmation level increases with each subsequent block that comes after it. When a transaction has received six confirmations, it is generally accepted as being permanently confirmed. In the event that two chains include contradictory information, the nodes that make up the Bitcoin network will accept the one that has the longer and more laborious chain as the authentic and legitimate one.
For an even more in-depth overview of Bitcoin visit our “What Is Bitcoin?” guide.
Official website: https://bitcoin.org/
Best cryptocurrency wallet for Bitcoin (BTC)
There are plenty of different crypto wallets available. The best one for you depends on your general trading habits and which provides the most security in your situation. There are two main types of wallets: hot storage wallets (digital) and cold storage or hardware wallets (physical). Both have their pros and cons, and there is not necessarily a right or wrong answer when it comes to figuring out which crypto wallet is best for you.
HOW DO I DECIDE WHICH cryptocurrency WALLET TO USE for Bitcoin (BTC)?
Deciding which type of wallet to use depends on a variety of factors, including:
- How often you trade. In general, hot wallets are better for more active cryptocurrency traders. Quick login ability means you are only a few clicks and taps away from buying and selling crypto. Cold wallets are better suited for those looking to make less frequent trades.
- What you want to trade. As mentioned earlier, not all wallets support all types of cryptocurrencies. However, some of the best crypto wallets have the power to trade hundreds of different currencies, providing more of a one-size-fits-all experience.
- Your peace of mind. For those worried about hacking, having a physical cold wallet stored in a safe deposit box at the bank or somewhere at home, provides the safest, most secure option. Others might be confident in their ability to keep their hot wallets secure.
- How much it costs. It is important to investigate the costs associated with each wallet. Many hot wallets will be free to set up. Meanwhile, cold wallets, like any piece of hardware, will cost money to purchase.
- What it can do. While the basics of each cryptocurrency wallet are the same, additional features can help set them apart. This is especially true of hot wallets, many of which come with advanced reporting features, insights into the crypto market, the ability to convert cryptocurrencies and more. Security features can also be a good differentiator.
For a more in-depth overview of cryptocurrency wallets visit our “Cryptocurrency Wallets Explained” guide.
If you’re going to be dealing in larger volumes of crypto, investing in cold storage might prove advantageous.
Most widespead examples of this being the Ledger Nano and the Trezor.
Ledger manufactures cold storage wallets designed for users who want increased security. Their wallets are a physical device that connects to your computer. Only when the device is connected can you send your cryptocurrency from it. Ledger offers a variety of products, such as the Ledger Nano S and the Ledger Nano X (a bluetooth connected hardware wallet).
Trezor is a pioneering hardware wallet company. The combination of world-class security with an intuitive interface and compatibility with other desktop wallets, makes it ideal for beginners and experts alike. The company has gained a lot of the Bitcoin community’s respect over the years. Trezor offers two main models – The Trezor One and Trezor Model T (which has a built in touch screen).
Bitcoin (BTC) Price & Charts
- Market Capitalization And Daily Trading Volume
- Current Market Price Of Every Cryptocurrency Relative To USD (And Some Local Currencies)
- Circulating And Total Supply
- Historical Charts With Prices Relative To USD, Bitcoin (BTC), And Ethereum (ETH).