Bitcoin can be overwhelming for individuals, especially for individuals who are unsure where they should begin. There are a few options which beginners are able to purchase Bitcoin from. So, where should a beginner buy Bitcoin?
To purchase Bitcoin, a beginner must go through an exchange to do so. This is a platform that can be used to sell and purchase Bitcoin. Many of these platforms exist to allow beginners to join the world of buying and selling Bitcoin. These include Binance, Kucoin, Gate.io, and others.
First purchasing Bitcoin can be something that is stressful for individuals who are unfamiliar with cryptocurrencies. There are many different platforms to be considered before an individual decides where they begin buying and selling Bitcoin. After conducting research pertaining to how to begin purchasing Bitcoin, the following information has been compiled to help beginners.
What is Bitcoin?
Bitcoin is a form of digital currency that can be bought and sold. Bitcoin is a form of cryptocurrency which means that new units of this currency are created or generated through a series of different math equations and coding. Some forms of cryptocurrency, like Dogecoin, also have physical objects as well as online coding. Bitcoin and other forms of digital currency operate independently of a central bank or governing power.
These types of currencies rely heavily on a type of technology called a blockchain, which is a kind of ledger that keeps track of every transaction and trade where the currency is used. The whole concept behind blockchains is that it is supposed to reduce the likelihood of forgery and other types of financial crimes and inflation. Each currency has a unique blockchain. Accessing each kind of currency requires going through a platform that monitors each of these currencies and their related blockchains.
While some of these platforms are beginner-friendly, not all of them are easy for beginners to understand. As with most kinds of investments, there are many different aspects and factors that people should gain a general understanding of. For example, there are about 16,000 types of cryptocurrencies on the market. Bitcoin is the largest and has the most money invested, with about 900 billion dollars in profit.
Yet, there is no large data source or place people can go to receive information about cryptocurrency. Each business, including Bitcoin, has its own rules and coding attached. This can lead to a large learning curve. The good news is that there are many different resources that people can reach out to in order to learn more about cryptocurrency and investing.
Some good places to start include binance.US, other credible sources for financial investment education like college-level courses or professionals, and even specified financial advisors. For people who enjoy being a part of a community and learning in real-time with people of similar backgrounds and interests, there is an entire Reddit page that exists to help individuals learn.
People will share their opinions on which platforms for purchasing and selling Bitcoin are the best and other lessons they have learned. People can even submit questions and get answers back quickly. This forum can help many individuals learn the various aspects required for these individuals to be successful in the Bitcoin world. All of these sources are good places to look for information regarding the specifics of different cryptocurrencies and the market.
How do Cryptocurrency Exchanges Work?
Cryptocurrency exchanges act as an intermediary between individuals selling Bitcoin and individuals interested in purchasing Bitcoin. Typically, cryptocurrency exchanges are privately owned platforms that provide individuals with the opportunity to interact with others interested in exchanging Bitcoin.
There are a few different types of cryptocurrency exchange platforms, however, the majority of these work similarly. This allows individuals interested in Bitcoin to be able to use these various platforms without needing to learn a lot more information pertaining to a specific platform and its methods.
These exchanges do most of the work for individuals who are interested in purchasing Bitcoin. The exchange will help match investors who want to buy Bitcoin with individuals looking to sell their Bitcoins. This allows individuals to join the Bitcoin world with ease.
Another nice aspect of exchange platforms is that they work 24 hours a day, seven days a week. This means that exchanges can happen very quickly, and people can make profits quite quickly. They can also lose money quickly if they are uneducated or unwise with their investments. This means it is important that potential beginning Bitcoin investors should choose platforms that best help them learn the system with the least amount of financial risk.
Why Should Beginners Use Binance?
There are a few reasons why beginners decide to use Binance when starting to buy and sell Bitcoin. Binance is one of the biggest exchange platforms that exist. This often is an encouraging factor that helps beginners feel okay placing confidence in this platform.
Click here to become a member the world's largest bitcoin exchange Binance.
Another factor that makes Binance appealing is that it has a very small minimum needed to maintain an account. People only need to invest 15 dollars to be able to start investing with Binance. Professionals in this industry also describe this platform as being incredibly easy for beginners to navigate and use. It is also easily customizable and has access to a variety of cryptocurrencies, so people only need to make one account.
Binance also tracks each currency in real-time, so people can see how the value of a currency is going up and down by the day. This can be especially useful for investors who prefer to make investments and sell them for profit quickly. Binance also has the ability to accept payments in most currencies through most major methods, which opens up a lot of doors for people globally. Investors can even place without issue.
This means that an owner of a currency can place an order for that currency once it reaches past the defined stop point. If the currency is worth more than the stop point, the system will automatically order some of the currency or investment until the price is higher than the limit point. This can help people buy when they are able to see a profit coming and sell before the worth of currency dips. There are a few risks involved, including the fact that these orders are only fulfilled during business hours and can have a variety of results.
Probably the biggest bonus of Binance is the fact that no tools or charts are inaccessible for beginners or basic accounts. They do not play favorites and only have certain options available for people who pay into the program. People can instantly use all the tools they want without issue.
This platform puts a lot of effort into ensuring that its users are being put first. This is done by having a lot of precautions in place to ensure that its user’s information remains safe and secure. This also includes having regulators to ensure the platform is working as smoothly as the high standards this company has. Binance was created in order to help provide individuals with the freedom that accompanies being able to make their own decisions, especially when it comes to financial matters.
There are different boards to ensure that various countries are being represented in the board meetings Binance is hosting. This ensures that users of this platform of being defended when corporate decisions are being made. The only big issue that Binance has is that people in the United States are unable to use it and there is no government regulation. Many investors still consider Binance safe and trustworthy but having some form of regulation can bring people peace of mind.
Why Should Beginners Use KuCoin?
KuCoin is another platform people can use to invest in Bitcoin. There are a variety of reasons why this platform is a good option for beginners. It is free to make an account and there are minimal fees that are comparable to Binance. This platform only works with 200 types of cryptocurrencies, so people are much more likely to be able to learn and specify in a type of currency.
This platform also allows people to buy cryptocurrency with regular currencies like the United States Dollar and most national currencies. People are also able to use services like Fast Buy Services or Debit and Credit Cards. Many people also appreciate the formatting because it is easy to figure out.
KuCoin is also a platform that allows people to buy stakes in the company, so people can have investments that are more volatile and more stable from the same place. There is also an app available for people who want to have easy access to the account and watch their investments more closely.
The main disadvantages are the fact that people cannot convert a person’s investment into currency like the United States dollar. This platform is also not the best choice for United States citizens. People should also be aware that this platform had 280 million dollars worth of assets lost in 2020 due to someone hacking the system. There haven’t been any instances reported since then.
Why Should Beginners Use Gate.io?
Gate.io is one of the oldest platforms and has some legitimacy in cryptocurrency investments. It was started in 2013 in China and is a leader in many ways. They are the first to have started using programs like IEO, margin trading, margin lending, and margin borrowing. This program is also one of the most secure platforms available. This program is not recommended for beginners because the interface is a little cluttered and it can be hard to find specific functions. It also has a higher fee and doesn’t support fiat currency deposits. Another issue is that it is hard to learn about the company and the people who work for Gate.io. This can cause some suspicion.
For people who do decide to use Gate.io, there are some benefits to the system. Besides being incredibly secure and one of the leaders in crypto, they also have a 24-hour-a-day, seven-days-a-week live support chat that people can utilize. This can be especially useful for beginners to the platform or Bitcoin. People can get their questions answered a lot more effectively and efficiently than other platforms will.
Other Beginner-Friendly Cryptocurrency Exchanges
There are three platforms that people enjoy using as beginners: eToro, Luno, and Changelly. eToro is one of the top-rated platforms for cryptocurrencies for beginners because it has some regulations and a large infrastructure. eToro was started in 2006, two years before Bitcoin took off in popularity. It is regulated by the Financial Conduct Authority and Cyprus Securities Exchange Commission. The regulation allows people to invest more safely. People from the United States can use this platform. It even allows people to start deposits with programs like PayPal.
Luno is also a great choice for beginners because it is regulated by the FCA and also has a mobile app. People find this platform really easy to use and incredibly secure. Changelly is also highly acclaimed for beginner use because it does all of the hard computing and basically works as an intermediary between an investor and a business. People who want to buy Bitcoin just select how many coins they want to buy, and the system will search for the best price. This is a relaxed program for people who are looking for less of a time commitment.
Other Useful Information for Bitcoin Beginners
Bitcoin beginners should be aware that investing in cryptocurrency is a high-risk investment. The volatility of the market makes it so that many people will lose the majority of their investment on the turn of a dime. People need to be willing to put only what they can afford to lose in the system. People should also be willing to spend time researching currencies and trends in the market. This will protect people against reckless purchases or sales.
When deciding to invest in Bitcoin, it is important to consider finding ways to learn as much as possible about the currency and market as possible. This enables potential investors to feel confident and comfortable making crypto investments. We wish you the best of luck in your Bitcoin-buying endeavors!