First created in 2009, Bitcoin is the original cryptocurrency – meaning it has no tangible tender such as notes or coins. In the last decade or so, the value of Bitcoin or BTC has rapidly increased – and so has the amount of people buying, selling and holding the digital-only, peer-to-peer currency.
There are several reasons why you may want to buy Bitcoin in 2022: The cryptocurrency’s rapid growth means it can be a solid long-term investment, while many are drawn to its decentralized ethos – and lately an increasing amount see the potential for a quick but risky profit. Whatever your reasons, this page will show you how to quickly and safely buy Bitcoin.
Choosing a crypto exchange
The most common way to get Bitcoin is to purchase it on a crypto exchange, but it’s also possible to mine it, or receive it from an individual – provided you’ve got a compatible crypto wallet. However, if you’re just starting out in the world of Bitcoin and cryptocurrency, buying BTC via a crypto exchange is by far the easiest method.
Simply put, a crypto exchange is a place where buyers and sellers are able to trade in cryptocurrencies such as Bitcoin, Ethereum and many others. Cryptocurrency is an ever-growing industry and that means there are now hundreds of exchanges to choose from – as well as thousands of coins to trade on them. When choosing a crypto exchange, there are a few key things you’ll want to consider:
- The fees – You’ll be charged for the process of buying or selling Bitcoin or other crypto currencies – usually a small percentage of the overall transaction. If you’re holding cryptocurrency, higher fees won’t have a huge impact, but if you’re buying and selling frequently they’ll add up. Fees also come into play when transferring currency to your crypto exchange account.
- The security – The best cryptocurrency exchanges boast higher levels of security, and will often guarantee your currency in the event of a system failure or hack.
- A wallet – Bitcoin and other cryptocurrencies are stored in a virtual wallet – slightly similar to a bank account. Some crypto exchanges provide you with a wallet to store your currency when you join, while others require you to provide your own.
- Variety – While Bitcoin is by far the most popular cryptocurrency in 2022, other lesser known cryptocurrencies such as Ethereum, Solana, Polkadot, Cordano and to name a few may also pique your interest. To save you moving between crypto exchanges in the future, it’s worth checking out the other cryptocurrencies available to trade on each exchange.
Once you’ve picked a crypto exchange, you’ll need to register and even provide proof of your identity. After you’ve been verified, it’s time to load it up with fiat, or conventional currency. Most crypto exchanges allow you to send money from your main account via bank transfer, but there are usually other options too; from PayPal to credit card. If you’ve already got cryptocurrency to trade, you can even connect an existing cryptocurrency wallet.
It’s important to remember that crypto exchanges usually charge a fee when moving money over, and it’ll often depend on the method of transfer. For example, some crypto exchanges will charge nothing when adding currency via bank transfer, but may charge a % of every PayPal transaction.
Once you’ve loaded up currency to your crypto exchange account, you’re ready to buy Bitcoin. To purchase Bitcoin, you’ll simply need to either search for Bitcoin or BTC and then either enter the amount you wish to buy – or the amount of fiat or conventional currency you wish to trade to Bitcoin. Chances are you’ll be doing the latter; the price of a single Bitcoin is currently around $42,000 – so you’ll be likely buying a fraction of one Bitcoin.
Once the order has gone through, you’ll be able to buy more, sell it straight back, or simply hold it for a longer-term investment.