Participating in something new can be fun and exciting. However, the new commitments also involve a lot of study, and the same thing happens to enter the world of digital currencies. When people think of buying bitcoin, they do not realize that it is not a complete unit, but that it is divisible and you can buy a small amount of bitcoin.
A typical question that beginners usually ask us is: How do I make my first investment in bitcoin? Many people tend to believe that in order to acquire BTC it is necessary to buy whole units. That is a very common misconception. For newbies in the cryptocurrency community, we have good news: You can buy any fraction of a single bitcoin!
The smallest unit of Bitcoin is called a “satoshi”. It represents one hundred millionth of a bitcoin (0.00000001 BTC), and is named in honor of the anonymous creator of Bitcoin, Satoshi Nakamoto. These smaller units set the stage for acquiring small fractions of bitcoin, which means that you can buy extremely small quantities.
In our tutorial, we will use the Bit2me bitcoin buy and sell platform, one of the best known in Spain and with a great track record. If you want to know why, visit the section Where to buy Bitcoin? where we will explain all the details to choose the appropriate bitcoin buying platform
2. Create your user profile
Required for security issues. You will need to:
- Name and surname
- Date of birth
- Type of account: Personnel or company
- Identification document
- ID or passport photograph
- Profile Photography
2. Open your bitcoin wallet
First of all, the first thing is to create an account. As an example, creating an account in Bit2Me gives you instant right to a free bitcoin wallet. To activate it, once your profile is created:
- Click in the upper right corner, on the “wallet” icon
- Click on the + symbol to create a wallet and choose the cryptocurrency you want. In this case bitcoin
- Ready! You already have your bitcoin wallet
3. Start buying bitcoins
Now that you have your account and your digital wallet, you can proceed to look for offers that suit your needs. To start, click on the “Buy bitcoin” That you will see on the Bit2me homepage.
1. Indicate the cryptocurrency you want to buy:
In Bit2me you can buy cryptocurrencies. Therefore, always remember to choose the one you want. In our case Bitcoin.
2. Choose your payment method:
Keep in mind that these forms of payment affect the price of your transaction. Bank transfers and other usual forms of payment are usually cheaper than other less frequent ones. But they may take longer to complete than other modalities such as card payment. Check out the “know more” buttons, so you have all the clear information, depending on the payment method you choose.
- bank transfers
- cash deposits, through Tikebit
- Credit / Debit Card
- Balance of your purse
3. Indicate the amount of bitcoin you want to buy:
Enter the amount of bitcoin you would like to buy. When you buy small amounts of bitcoin, it is important to always keep in mind the minimum transaction amount. On this Bitcoin platform, the lowest amount of bitcoin that can be purchased is € 20, depending on the payment method you choose.
4. Select where you want to receive your BTC
- Your Bit2Me wallet
- External address of another cryptocurrency
5. Before clicking Buy:
Once you have filled out the form, don’t forget to check all the details. If your terms are good and you feel satisfied with the offer, you can click on “Buy”.
6. Add the data with which you want to pay:
Clicking on “Buy” opens a window depending on the payment method you have chosen. In this example, it is the bank card. Fill in your details and press “pay”.
4. Congratulations, you have managed to buy bitcoin!
After the transaction, you can leave comments for the provider. The supplier’s reputation appears in green with a plus sign (+). If the transaction has not experienced any problems, you can give the supplier a good score in your comments. Otherwise, you can choose between a neutral or negative score.
Simple? Now is the time to put it into practice. Create an account in Bit2me and start today to buy and sell bitcoins!
Where to buy Bitcoin? 6 factors to consider
At the moment you decide to buy Bitcoins, there are several factors that you should consider. Therefore, it is important that you choose your platform well for your purchase to be successful. Therefore, it is important that they meet certain quality factors.
In that sense it is normal that you feel distrust when buying Bitcoin for the first time. Therefore, I will explain in detail all the factors you should evaluate before making your first purchase.
1. Traditional vs. exchange platforms peer exchange platforms
To better understand these two options, let’s start with the traditional cryptocurrency exchange platforms. These are companies or centralized entities that collect orders to buy or sell cryptocurrencies from investors and then look for a correspondence between them. These transactions match you with a partner and facilitate the secure transfer of your cryptocurrency or fiat currency to bitcoin and vice versa.
On the other hand, peer exchange platforms (P2P) do not operate with the intervention of a third party. Although there is still a need for an order, P2P platforms match people who have issued those orders instead of matching orders first. If you do not find offers that are satisfactory, you have the option of creating your own “purchase order”.
These platforms connect the buyer with the seller, so that they can interact directly, while the escrow service guarantees the security of the BTC. Third-party intermediaries will only intervene if a dispute arises. Apart from this, there is no other human intervention in the transaction.
Buying bitcoin and other cryptocurrencies is much more expensive on traditional platforms than on P2P platforms. Prices are usually set in dollars or euros, and the use of other fiat currencies is usually accompanied by the payment of a commission.
Some platforms charge up to 6% commission for each purchase. The charges on P2P platforms, on the other hand, vary depending on each provider, payment method and the platform itself.
Another thing that should be taken into account is the minimum purchase amount. In some Traditional platforms, the minimum amount that can be purchased is 100 dollars or euros. On P2P platforms, you can set the amount yourself or open a transaction for the amount you wish to pay. It can vary from small amounts such as 1 USD, 10 USD or 50 USD to larger ones.
As for operating commissions, traditional platforms tend to be more expensive as they are managed by people who receive a payment for processing transactions. Instead, P2P platforms work with pre-programmed software that does not require any human intervention.
As traditional platforms are managed and regulated by people, they are also more likely to have stricter compliance restrictions, as their turnover is greater and more sensitive to anti-money laundering (AML) legislation. acronym in English). Meanwhile, P2P platforms are not subject to any central authority, which makes them invulnerable to government interference.
2. Countries accepted to buy Bitcoin
Each platform is available for certain countries. Therefore, when choosing the Exchange where you are going to buy Bitcoins, you must take this factor into account.
In this sense, in Latin America the countries with the largest number of bitcoin exchange platforms in service are Argentina, Brazil, Chile and Mexico. On the other hand, the ones with fewer Exchange options are in Venezuela, Bolivia, Paraguay, and Nicaragua.
Therefore, this factor is vitally important, you should know what services work in your country. That way you can evaluate them better. And remember, if they work with your local currency, much better.
It is important to note that, although you can join an Exchange from your country, you may not have access to all the functions later. Before doing any operation with which you have chosen, verify that you have access to all its functions.
3. Accepted payment methods to buy Bitcoins
This is another of the fundamental factors that you should consider when buying Bitcoin. And, according to the payment method accepted by the platform it can be made easy or difficult for you. The best thing is that before choosing the Exchange where you are going to buy your first Bitcoins, check that they work with some payment method that you handle.
On the other hand, remember that each payment method works with different commissions. In this sense, it always locates the Exchange that accepts a payment method such as Skrill or Neteller, since they have a low commission rate.
4. Review the commission that manages the chosen platform
This factor is as important as the previous one, and that is, commissions vary between one Exchange and another. Remember that these will charge you commission when you buy or sell cryptocurrencies. And it is charged only, when the purchase or sale is effective. In addition, they also charge for making withdrawals from your account to send to another Exchange. But in this case, the commission depends on the type of Cryptocurrency. For example, for transactions with Bitcoin the commission is one of the highest.
Therefore, it is important that before joining the Exchange you review the total commission amount on your page. It will depend on how much money you must invest to buy Bitcoin.
5. Exchange rate or rate
In addition to everything already mentioned, the exchange rate is another important factor when buying Bitcoin. And, not all Exchange handle the same exchange rate. Since, being such a competitive market, you can find very varied rates.
Remember that the exchange rate is the difference between one currency and another. That is, it is what you must deliver to get the other currency. Therefore, the lower the exchange rate for Bitcoin, the more you will get.
6. Bitcoin Allowed Purchase Limit
Another important factor to see before choosing the Exchange where you are going to buy your Bitcoin. And, some of these intermediaries have limits on purchase operations. That is why if you want to buy large quantities, you must verify if the chosen platform allows you to do so.
On the other hand, you can also have this limit in the payment method you choose. If it is with a debit or credit card, your card may have a daily purchase limit. In that case, it is best to use an online bitcoin wallet. And always choose the Exchange that gives more flexibility to the purchase of Bitcoin.