How to buy bitcoin on a cryptocurrency exchange: The main buying methods and procedures

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Bitcoin cryptocurrency is the very first, known and demanded for twelve years already. Due to the fact that in recent months this cryptocurrency has shown a clear positive trend, many users have seen positive investment opportunities for themselves. In this article, the Btcnewsweb.com editors will tell you how to buy bitcoin on the cryptocurrency exchange. This can be done in different ways, both more obvious and relatively rare.

Main steps

First, let’s look at the general instructions – the key steps that include the purchase of bitcoin on a crypto exchange:

  1. Choosing an exchange that is suitable for parameters such as supported withdrawal methods, fees, security measures, and reputation.
  2. Registering an account is a standard procedure that does not raise questions.
  3. Identity verification. This is a mandatory measure almost always if you plan to make transactions with fiat funds.
  4. Deposit. Funding an account in fiat or stablecoins, depending on what the exchange supports and your personal preference.
  5. Buying Bitcoin in one of the following ways.

After that, you can withdraw BTC to an external wallet, where the coins will be stored more securely, or temporarily leave it on the exchange account to be used for further trading operations.

Getting started with the exchange. Verification

Examples of popular bitcoin exchanges:

All of these sites have roughly the same functionality, but slightly different terms of service, so it’s best to research multiple platforms and learn more about them before making a choice. Not all exchanges accept fiat money (rubles, dollars), so consider this factor.

According to CoinMarketCap statistics, there are over 370 crypto exchanges with a total daily trading volume of $ 129 billion. Not all of these platforms are really reliable and can provide high-quality funds protection. Therefore, it is very important to choose a reliable exchange. It is advisable to dwell on some well-known option, even if little-known ones offer supposedly more favorable conditions.

Verification is a KYC (Know Your Customer) check. This means that in order to perform certain operations, the user needs to provide information about himself: full name, date of birth, place of residence, selfie. And only after verification by moderators, which takes 1-2 days, the full range of exchange functions will open, including actions with fiat currencies.

Buying bitcoin by creating a trade order

Buying bitcoin on a crypto exchange by creating a trade order

If the priority for you is the profitability of the deal, and not its speed, then this option is most suitable. It allows you to buy BTC at the best possible price, as well as with a low commission. The procedure is as follows:

  1. Complete the registration and verification procedures.
  2. Find in the list of currencies in the exchange wallet the desired currency for which you want to buy, for example, the ruble, and click the button responsible for the replenishment.
  3. Choose a method of depositing funds. Most often, bank cards, Payeer, AdvCash, sometimes Qiwi, Perfect Money or other payment systems are supported.
  4. Indicate the amount that you are ready to allocate for the purchase of BTC and confirm the operation.
  5. Go to the trading terminal and select the desired trading pair (for example, BTC / RUB means bitcoin to rubles). Or to make it even easier – click “Trade” in the bitcoin wallet and select a trading pair from the available ones.
  6. Go to creating a buy order. There are limit and market orders (these are the main types). A market order allows you to buy cryptocurrency instantly, but at a less favorable price. The limit also allows you to specify the desired price. Such an order will wait for execution until a counter market order appears at this price.

After the transaction, bitcoins will be credited to the balance, from where they can be withdrawn if desired.

How to buy Bitcoin directly from a user (P2P)

Buy Bitcoin through a p2p exchange

Some crypto exchanges (notably Binance) include a peer-to-peer trading section. On Binance P2P, verified users can buy cryptocurrency directly from other users without entering fiat on the exchange. How to do it:

  • Pass registration and verification.
  • Go to the section “Buy cryptocurrency” -> “p2p trade”.
  • Using the filters, select the following parameters: cryptocurrency for purchase (in our case, it is Bitcoin) and fiat currency for payment. If you wish, you can also set other restrictions – payment methods, transaction amount.
  • View available offers. Choose the right one, paying attention to the seller’s rating, the number of his successful transactions.
  • Press the “Buy” button.
  • By contacting the seller in the chat, find out the details for the transfer of fiat and other nuances.
  • Confirm the creation of a deal, transfer fiat in the required amount according to the issued details. Press the button confirming the fact of payment.

When the counterparty receives your payment to the card / electronic payment system, then confirm it, and the bitcoins will be transferred to your exchange account.

Read also: best p2p exchanges to buy bitcoin.

Quick purchase of BTC on the exchange from the card

Quick purchase of BTC on the exchange from the card

The quick card purchase feature is very convenient if you are not going to trade bitcoin, but just want to invest through a one-time purchase, and you are not too worried about higher fees. Almost all major exchanges provide such an opportunity today. It is easy to perform the operation, for this you need:

  • Go to the section called “Buy cryptocurrency”, select the option to purchase from a card.
  • Specify the fiat currency in which the payment will be made.
  • Select bitcoin as the purchased currency.
  • Select the “New card” option if you have not bought on this exchange yet.
  • Click “Buy BTC”.
  • Going to the website of the payment provider, specify all the required information about the payer and the card.
  • Confirm the transaction.

The purchased bitcoins will be transferred to the exchange wallet within 10-20 minutes.

What fees does the exchange charge

Exchange commission fees depend on many factors – the method of replenishment, individual account indicators. The commission for replenishment from a bank card is usually fixed and amounts to 1-3%. There are no peer-to-peer trading fees on Binance P2P.

Trading commissions are a little more complicated. There is a basic level, but it can be significantly reduced if you reach a certain trading volume or have an exchange token on your account. Examples of commission structures for some exchanges:

Binance

Trading commissions on the Binance exchange

EXMO

Trading commissions on the EXMO exchange

FTX

FTX Trading Commissions

See also: How to Reduce Fees on Binance.

Where to store bitcoin after purchase

It is not recommended to leave cryptocurrency on the exchange account for a long time, especially in large amounts. Of course, popular exchanges are well protected, entire departments are engaged in cybersecurity, however, hackers are constantly improving. So the likelihood of hacking and theft of assets is present. It is wiser to withdraw money to an external cryptocurrency wallet. Today there are a lot of options, including:

According to a 2020 study, the safest bitcoin software wallets are Bitcoin Core, Green, Electrum, Blue Wallet, Wasabi, Samourai. Their use almost 100% guarantees the safety of funds.

Conclusion

As you can see, making your first purchase in the crypto space is not that difficult. Whichever method you choose to buy bitcoin on the exchange involves just a few steps. However, it is important to be careful at each of the stages, as well as to pay maximum attention to the storage of the purchased cryptocurrency. If you later want to sell your coins, then for this purpose you can use the same methods available on most well-known crypto exchanges. Alternative methods of buying / selling include exchangers, Telegram bots, crypto wallets, EPS, cryptomats. But exchanges are leading among them in terms of demand and convenience.

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