How to Buy Bitcoin and Other Cryptocurrencies [Scam Free Tips]

Learn how to buy Bitcoin and other cryptocurrencies safely using exchanges, apps, and P2P platforms. Follow these scam-free tips to start investing securely

Buying Bitcoin is often the first step for many investors exploring cryptocurrency. Right now, more people seem interested in taking that step. To get started, Bitcoin investors need a cryptocurrency exchange account, a reliable internet connection, and a digital wallet to store their Bitcoin securely. The platform must follow Know Your customer (KYC) rules, and personal identification documents are also required.

There are four common ways to buy cryptocurrency: using wallet apps, brokerages, crypto exchanges, or P2P marketplace.

“Cryptocurrency is a unit of measure, a digital token that can be sent from one person to another but cannot be copied,” says Charles Allen, CEO of BTCS, Inc.

Should I Buy Bitcoin Now?

Yes but your concern should be based on long term financial prospects. However, No one can predict if Bitcoin’s price will keep rising. So it is advised that you invest only what you can afford to lose. If you decide to invest, consider diversifying your portfolio. You might also explore options like Bitcoin ETFs.

How To Buy Cryptocurrency [Step By Step Guide]

Step 1: Select a Crypto Trading Platform

Cryptocurrency exchanges are a popular choice because they offer various features and a wide range of coins for trading. These platforms let users buy, sell, hold, and even transfer crypto to an online wallet for added security.

Exchanges are divided into two categories: centralized and decentralized. Decentralized exchanges allow users to stay semi-anonymous and often don’t require personal details. This can be helpful for those in regions with limited banking systems by giving them access to the global market.

Centralized exchanges, like Coinbase, Paxful, Bybit, and Binance, are common. They follow regulations requiring users to submit identification. These platforms offer Bitcoin, various altcoins, and fiat exchange options.

Step 2: Link Your Exchange to a Payment Method

Most exchanges require personal identification to set up an account. This may include uploading a driver’s license, Social Security number, or information about your job and source of income. The process is similar to creating a standard brokerage account.

You can connect your bank account or link your card to fund your account. But keep in mind that crypto’s price swings and could increase your overall costs.

Step 3: Place Your Order

Crypto exchanges now offer features similar to traditional stock brokerages. You can choose between different order types, such as market, limit, or stop-loss orders, depending on your investment strategy.

Many exchanges also allow recurring purchases. This helps investors spread out their investments using the dollar-cost averaging method.

Step 4: Secure Your Crypto

A cryptocurrency wallet stores the keys to your digital assets. Moving your crypto keys to a cold wallet (not connected to the internet) gives you full control and better security. While exchanges offer wallets, they aren’t ideal for holding large amounts or long-term investments. A separate wallet ensures your assets stay safe.

4 Ways of Buying Cryptocurrency

1. Crypto Exchange

2.  Wallet apps 

3.  Brokerages 

4.  P2P platforms.

Crypto Exchange

A crypto exchange is a channel that allow people trade cryptocurrency. You can swap one crypto for another, or exchange fiat currency like the U.S. dollar for crypto and vice versa. Prices are determine based on the current market rates.

Each exchange has its own rules for buying, selling, and trading. Some popular options include Binance, Paxful, Crypto.com, and Coinbase.

Wallet apps 

Apps like PayPal, Venmo, and Cash App allow users to buy Bitcoin directly. You can also store, send, and sell Bitcoin using these apps. It’s a simple option if you’re already familiar with their interfaces.

Brokerages

Some traditional brokerage platforms also offer cryptocurrency. These brokers don’t typically provide as many crypto options as dedicated exchanges.

Using a traditional broker lets you diversify your portfolio. You can also use it to invest in stocks, bonds, mutual funds, ETFs, and some digital coins all in one place.

Peer-to-Peer (P2P) Marketplaces

P2P marketplaces are platforms where people can trade cryptocurrency directly with one another. These platforms use smart contracts to ensure secure transactions.

One advantage of P2P marketplaces is that users don’t need to share their private keys, unlike on centralized exchanges. Since these platforms don’t hold user funds, they are less likely to attract hackers. They have lower fees compared to centralized exchanges. Some examples of the p2p platforms are Bybit, openpeer, zapit etc.

How to Buy Bitcoin on Cash App

1. Open the Cash App and tap the Money tab on the home screen.
2. Select the Bitcoin tile.
3. Tap Buy.
4. Choose a preset amount or tap tghe space provided to enter a custom amount.
5. Confirm the purchase by entering your PIN or using Touch ID, then tap Confirm.

How to Buy Bitcoin on Binance

1. Create an Account

Visit Binance’s website and click Register. Fill in your login details (email & password), Agree to the terms and click Create Account.

2. Verify Your Account

Complete Binance’s verification process, which may require uploading ID like a passport or driver’s license.

3. Deposit Funds

After verification, log in and go to the Wallet tab. Select Fiat and Spot, choose your currency (e.g., USD or EUR), and follow the instructions to fund your wallet via bank transfer or credit/debit card.

4. Access the Trading Platform

Once funded, go to the Binance homepage and click Trade. Choose Classic or Advanced trading views based on your preference.

5. Select a Cryptocurrency

Use the search bar on the trading platform to find the cryptocurrency you want to buy (e.g., BTC for Bitcoin). Click it to open its trading page.

6. Place a Buy Order

On the trading page, select an order type (e.g., Market to buy at the current price). Enter the amount you want to buy and click Buy.

7. Review and Confirm

Double-check all details, including price and fees. If they are all correct, click Confirm to finalize your purchase.

8. Check Your Balances

Go to the Wallet tab, select Fiat and Spot, and review your holdings and their value.

How to Buy Bitcoin on Venmo

1. Open the app and tap the Crypto tab at the bottom of the screen (look for the icon).
2. Browse cryptocurrency prices and select the one you want. Tap it to view its price graph and press Buy.
3. Verify your identity if you haven’t already. Submit documents like your ID, home address, and Social Security number as needed, and accept Venmo’s cryptocurrency terms.
4. Enter the amount for your purchase and tap Review. Confirm the amount and note any applicable fees.
5. Select your payment method (debit card, linked bank account, or Venmo balance).
6. Tap Buy to complete the purchase. Venmo updates the values of coin every few seconds, so the value shown at the time of purchase is the amount you’ll receive.

Conclusion

Buying Bitcoin or other cryptocurrencies safely requires careful planning and the right tools. Choosing any of the four methods( crypto exchange, wallet app, brokerage, or P2P marketplace) of buying cryptocurrency is okay but understanding each option ensures a smoother and more secure experience. 

Also you should endeavour to verify your identity, secure your assets in a reliable and wallet, and invest only the amount you can afford to forgone. With the steps and tips given in this article, you can buy bitcoin and othercryptocurrency using any of the methods comfortably.