What should you know before buying Bitcoin?
If you are thinking about buying Bitcoin, you should familiarize yourself with the basic information about this cryptocurrency.
Bitcoin (BTC) is an open-source, decentralized payment platform based on blockchain technology, which was created by an anonymous programmer or group of individuals nicknamed Satoshi Nakamoto. Bitcoin was not the first cryptocurrency, although it is widely regarded as the most recognizable of the cryptocurrencies, which paved the path for other projects of its kind. The network was launched on January 3, 2009.
The goal of creating the first cryptocurrency was to create a digital currency that would be free of the drawbacks of fiat currencies. It was intended that Bitcoin would be completely independent of the influence of governments and private companies, and would provide the ability to conduct transactions without the need for intermediaries. As a result, unlike fiat currencies, Bitcoin does not rely on trust in a central issuer. In other words, it is a form of money that is not controlled by any state or financial institution, meaning that it is not subject to government control or regulation. Bitcoin uses a decentralized database distributed between nodes of a peer-to-peer network to store transactions and cryptography to ensure security.
The bitcoin network, based on the Proof-Of-Work algorithm, which relies on miners to perform energy-intensive calculations with dedicated equipment, which are called cryptocurrency digging. The maximum supply of bitcoin has been set at 21 million units of BTC, which means it is deflationary. According to estimates, all units will be mined by 2140. At that time, miners ensuring the operation of the network will subsist solely on users’ transaction fees.
Bitcoin is mainly used to make online payments, but can also be used as a form of investment.
Another important thing you should know before buying Bitcoin is that its price can be highly volatile. This means that it can both rise and fall significantly over a short period of time. Therefore, before buying Bitcoin, it is advisable to study the market carefully and do your own research on the market situation, so that you can make an informed investment decision.
Bitcoin is not regulated by any state or financial institution, and therefore there is no guarantee (e.g. in the form of the equivalent of the Bank Guarantee Fund) to protect users from losing their funds (e.g. due to a mistake, forgetting access data or a hacking attack). Therefore, before buying Bitcoin, you should consider where you can make a purchase in a relatively safe way.
Where to buy Bitcoin (BTC) in a safe way?
You can buy bitcoin on a cryptocurrency exchange in a safe way, provided you choose a suitable and proven platform that acts as a cryptocurrency exchange. Before buying Bitcoin on an exchange, you should carefully read its rules and regulations and reviews of other users to make sure that it is reliable and honest. In addition, you should pay attention to whether the exchange has the appropriate licenses and read a little about the security features that the exchange uses. Examples of centralized exchanges (CEX) with a well-established reputation in the market include ByBit and OKX.
ByBit – how to buy Bitcoin (BTC) on the ByBit exchange?
ByBit exchange is currently one of the most rapidly growing crypto-platforms available on the market. Caring for a good reputation, the exchange provides a high level of security. Funds are stored on cold wallets and a number of technological solutions aimed at maintaining appropriate security standards are used.
It is worth noting that on ByBit the process of registering an account is very simplified as there is no need to go through the KYC procedure. On the other hand, the process of buying cryptocurrency is very intuitive and should not cause any problem even for inexperienced users.
Registering an account on the ByBit exchange
To trade on the ByBit exchange, you first need to create an account. To do this, simply visit the exchange’s website bybit.com and click the yellow “Sign Up” button in the upper right corner. Then enter the address-email and password and wait for the confirmation code, which is sent in an email. Before trading on ByBit, it is important to properly secure your account by setting up additional authentication (e.g. with SMS or Google Authenticator 2FA application).
After successful registration, you can consider verifying your account by sending documents to prove your identity. We are talking about the KYC. procedure, which is commonly used by various financial institutions to confirm a customer’s identity. This type of verification process is necessary for many institutions because it increases security, but requires users to provide sensitive data. ByBit does not require verification through the KYC system for withdrawals of up to 2 BTC, which is an advantage for traders as they can trade while maintaining their privacy.
Deposit funds to the exchange
You can deposit funds to the ByBit exchange in 4 ways:
- One-Click Buy (credit card)
- P2P Trading
- Fiat Deposit
- Crypto Deposit
How to buy Bitcoin (BTC) with credit/debit card and One-Click Buy option on ByBit exchange?
To buy Bitcoin using a credit/debit card on ByBit, all you need to do is follow a few simple steps:
- Click Buy Crypto – > One-Click Buy in the upper left corner of the ByBit website.
- Select the currency in which you want to pay for your Bitcoin purchase, then choose the payment method – credit card and click Add Card.
- Enter your basic credit card information, as well as: email address, name, credit card number, expiration date and CVC code. Finally, click the Continue button.
- Next, if everything matches, click Pay and then Confirm.
- Once your payment is verified, you can check the final status of your purchase by clicking -> View asset.
A detailed description of buying Bitcoin with a credit card and the One-Click Buy option is described here: https://www.bybit.com/en-US/help-center/bybitHC_Article?id=000001570&language=en_US
The screenshot below shows the purchase of BTC for 100 PLN using a credit card.
How to buy Bitcoin (BTC) using P2P Trading on the ByBit exchange?
Another option for buying Bitcoin on ByBit is P2P Trading. Here are some steps you need to follow on the ByBit platform:
- Click the “Buy Crypto” button on the ByBit website.
- Make your currency selection, and then enter your login.
- Select a specific offer to buy Bitcoin at a given price, and then click the “Buy” button.
- Enter the amount you want to spend on the BTC purchase, and then press “Buy.” Next, you will receive a summary of the transaction to proceed to finalize the transaction when you press the “Go to Pay” button.
- Your bank account must match the name you registered on ByBit.
- Once you have completed the formalities and made your payment selection, you can click the Payment Completed button.
- To check the status of your BTC purchase, you can go to the Orders tab.
The above purchase process using P2P Trading is described in detail here: www.bybit.com/en-US/help-center/bybitHC_Article?language=en_US&id=000001446
The screenshot below shows the possibility of buying BTC on the P2P marketplace
How to buy Bitcoin (BTC) using fiat currencies on the ByBit exchange?
To deposit funds using fiat currencies, go to the Fiat Deposit tab at bybit.com/fiat/trade/deposit/home. Then enter the amount and select the currency.
The available currencies are RUB, TRY, BRL, ARS, EUR and GBP. It is not possible to deposit PLN.
Then simply select SEPA Transfer as the Payment Method. The transfer time is about 1-3 business days.
The screenshot below shows the purchase of €100, which can then be converted into BTC cryptocurrency on the spot market.
How to buy Bitcoin (BTC) with a cryptocurrency deposit on the ByBit exchange
To make a deposit from your cryptocurrency wallet, select the “Assets” tab in the upper right corner. Then go to “Spot Account” and click “Deposit” in the line corresponding to the cryptocurrency in question. Moving on, you will need to select a network (e.g. ERC20, TRC20 or OMNI) and copy the address of the wallet to which the funds should be transferred (this can be done simply with the copy-paste option or by scanning the QR code displayed).
BTC trading on the ByBit exchange
After successfully registering an account and depositing funds, all you have to do is select “Trade” in the menu, then “Spot Trading” and choose the BTC/USDT currency pair (or another if you want to buy Bitcoin in another currency). Then, on the right side of the screen, you will have to enter the amount of Bitcoin you want to buy and the price at which you want to purchase the funds. Once the order is placed, it will be processed.
OKX – how to buy Bitcoin (BTC) on the OKX exchange?
OKX isone of the largest cryptocurrency exchanges in the world. As a large exchange that processes transactions worth billions of dollars, OKX makes security a top priority. The exchange employs multi-layered security measures to protect funds and information from cyber criminals. The suite of security measures employed includes offline wallets, emergency backups, 2FA, anti-phishing codes, withdrawal passwords and many other technological solutions to enhance security.
Registering an account on the OKX exchange
To create an account on the OKEx exchange, go to okx.com, select the “Register” or “Register here” button at the top right of the website. Then in the form, enter your phone number or email address to register your account. When asked for a code in the referral code option, enter ‘free200zl’, as in the graphic below. Then accept the consents and terms and conditions. Fill in all the required fields and select ‘Register’ again. You will then receive a code that will be attached to an email or SMS (depending on the method you choose). After approving your account with the generated code, you will be redirected to your newly created profile.
To register on OKX, you must provide a scan or photo of a valid ID. This will be verified by the KYC procedure, which is commonly used on many exchanges. Verification confirmation time can range from a few hours to several days.
Deposit funds to the exchange
You can deposit funds to the exchange in 3 ways:
- A) Credit/debit card (e.g. Visa or Mastercard)
- B) P2P trading
- C) Payment via a third-party operator (e.g. Simplex or Banax)
How to buy Bitconia (BTC) with a credit card on the OKX exchange?
To buy cryptocurrencies with a debit or credit card on OKX, just select the “Buy Crypto” button and finally click the “Buy with card” section.
The procedure of buying BTC on OKX with your debit card, can be closed in a few steps:
- Go to the main page of the cryptocurrency exchange.
- Click the “Buy Crypto” button.
- Select the card payment option – that is, “Buy with card”.
- Choose the type of card you want to use: MasterCard, Visa, other (e.g. Revolut).
- Finalize the transaction by specifying the number of BTC you want to buy, as well as the payment currency.
The process of buying Bitcoin on ByBit is described in detail here: www.okx.com/learn/how-to-buy-crypto-with-a-credit-card-on-okx
The screenshot below shows the purchase of BTC for 100 PLN with a credit card.
How to buy Bitcoin (BTC) using P2P trading on the OKX exchange?
To buy Bitcoin via P2P trading on OKX, you need to go to okx.com/p2p-markets/. Then you need to find an offer that meets your needs on the trading platform. After placing your order, pay for your purchase by selecting the appropriate payment method (e.g., bank transfer), and then complete the transaction according to the on-screen instructions.
The process of buying Bitcoin on OKX via P2P trading is described in detail here: www.okx.com/support/hc/en-us/articles/4410346223245-How-to-buy-crypto-on-OKX-P2P-Trading-
How to buy Bitcoin (BTC) using payments handled by a third-party operator (such as Simplex or Banax) on the OKX exchange?
Another way to buy Bitcoin on the OKX platform is to use third-party operators such as Simplex or Banaxa.
The purchase can be made in the following steps:
- Create an account on OKX with KYC verification.
- Enter your phone number and email address.
- Select “Buy cryptocurrency” in the menu and click “Third party payment”.
- Choose which cryptocurrency you want to buy (e.g. BTC) and in which currency you are going to make the order (e.g. PLN).
- Check the current offers for buying cryptocurrencies – these are only available for certain payment types.
Remember that before finalizing the transaction, you need to check the purchase limits of the specific third-party provider, as well as check the payment processing time. A third-party payment provider usually settles payments in up to 30 minutes. With some providers, you may receive the cryptocurrency immediately after the payment is credited.
Buying Bitcoin on OKX via third-party providers is detailed here: www.okx.ada.support/api/articles/633665c2084d3fcdaf447411/?chatter_token=7ad95483-c046-403f-a4ed-7ccb37eabefa
The screenshot below shows the purchase of BTC for 200 PLN using the third-party operator Simplex.
BTC trading on the OKX exchange
After successfully registering an account and depositing funds, you can buy BTC on the trading market. To carry out standard sports transactions, select the “Trade” tab and then “Spot”. This takes the user to the trading terminal and tools for trading on the classic spot market. Then, on the left side of the screen or in the upper left corner, you can select the appropriate currency pair (e.g. BTC/USDT). Then, in the appropriate fields, all you have to do is enter how much BTC you want to buy and follow the on-screen instructions.
What are other ways to buy Bitcoin (BTC)?
Cryptocurrencies can also be bought outside of centralized exchanges. Decentralized exchanges (DEX), cryptocurrency exchanges, bitomates and P2P services are all alternatives.
Decentralized cryptocurrency exchange
Decentralized exchanges (DEX) allow cryptocurrencies to be exchanged without an intermediary. Transactions are carried out directly between cryptocurrency wallets on the blockchain. Most DEXs use the ethereum blockchain.
The use of decentralized exchanges is not likely to be a recommended solution for people who are new to cryptocurrencies, as it requires some knowledge of how to operate exchanges of this type (among other things, it is necessary to connect a wallet such as MetaMask) . In addition, the person using this method must remember that he is responsible for the security of the funds he keeps on his wallet.
As a rule, compared to centralized exchanges DEX users To buy Bitcoin without going through the KYC verification process, you can use exchanges that do not require this. An example is ByBit, which for withdrawals of less than 2 BTC does not require identity verification. However, it’s important to note that more and more exchanges require verification, so it’s worth checking the website of your chosen exchange to see if it requires verification. Another way to buy BTC without verification is to use exchange offices that treat transactions up to a certain amount, and have less ability to expect help from the exchange in case of any problems. Examples of decentralized exchanges include PancakeSwap and Uniswap.
Cryptocurrency exchange offices
Another way to buy and sell cryptocurrencies is to use exchange offices. Some bureaux de change operate on the principle of online platforms and some offer to buy at a physical point quite like a regular exchange office for exchanging cash. An example of a popular exchange office operating in Poland is Kanga.
The distinction between a cantor and an exchange can be described in simple terms in that an exchange is usually more complex than a cryptocurrency exchange. Trading on an exchange is done through automation, while operations at cryptocurrency exchange offices resemble traditional exchange offices where fiat currencies are sold. Thanks to exchange offices, one can choose a traditional bank transfer to buy Bitcoin or visit an exchange office and pay cash for cryptocurrency. This gives a great sense of security and is very convenient for some people. An additional advantage, is that in some exchange offices up to a certain amount is not required to go through the KYC procedure. At the same time, it is worth noting that using exchange offices also has its downsides because it involves higher fees compared to buying cryptocurrencies on regular exchanges.
Bitomats are devices that look similar to traditional ATMs, but instead of delivering banknotes, they allow you to buy or sell cryptocurrencies. Interestingly, there are many such devices in Poland.
This is thanks to the fact that there are a number of operators in Poland, among them Shitcoins.club, FlyingAtom and ATM Egera.
Bitomats offer similar advantages and disadvantages to exchange offices – the ability to purchase cryptocurrencies safely, without having to go through KYC (up to a certain transaction amount). Their additional advantage is that they are available around the clock. However, compared to exchanges, using this method of buying cryptocurrencies may incur higher fees (usually a few percent commission, sometimes you still have to pay transaction fees in addition).
The next way to buy cryptocurrencies is to use escrow services offered by P2P sites. In this case, the service acts as a trusted intermediary between the buyer and seller. Examples of such services are LocalBitcoins and Paxful. Experienced users are able to find bargains in the form of offers to sell cryptocurrencies at very favorable prices. It should be noted, however, that the use of services of this type requires the user to make a bit more effort compared to a quick purchase of Bitcoin on an exchange or at a currency exchange.
How to buy bitcoin (BTC) without verification?
To buy Bitcoin without going through the KYC verification process, you can use exchanges that do not have such a requirement. An example is ByBit, which does not require identity verification for withdrawals under 2 BTC. However, it’s important to note that more and more exchanges require verification, so it’s worth checking the information on the website of your chosen exchange. Another way to buy BTC without verification is to use exchange offices or bit machines, which treat transactions up to a certain amount as a bargain.
Where to keep bitcoin (BTC) after purchase?
By design, cryptocurrency exchanges are designed for buying and trading cryptocurrencies. For security reasons, they are not recommended for permanent storage of assets. Nevertheless, many users keep their long-term funds on exchanges. Although this is possible, the generally accepted suggestion is that so-called cold wallets based on blockchain technology should be used for long-term storage of cryptocurrencies.
Remember that a cryptocurrency wallet is not the same as an account on a cryptocurrency exchange. There are two types of wallets in which you can store cryptocurrencies: hot wallets, which have constant access to the Internet, and cold wallets – applications that do not require a network connection. It is recommended to use cold wallets because they reduce the risk of losing funds through hacker attacks, which cannot be ignored in the cryptocurrency industry.