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Detailed Guide on How to Buy Bitcoin in 2021 – BEST**

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Detailed Guide on How to Buy Bitcoin in 2021
Detailed Guide on How to Buy Bitcoin in 2021

If you are interested in buying Bitcoins but you have no idea about how to buy Bitcoin in 2021, then this guide is for you! Below, you are going to learn every detail about how to buy, sell and trade Bitcoins and every other coin available on the market.

A Quick Overview on How to Buy Bitcoin in 2021

Here is a step-by-step overview of the information we provide in this guide.

  • Getting a Bitcoin Wallet
  • Locating Your Bitcoin Address
  • Determining How Much You Are Going to Invest
  • Visiting Binance and providing your Bitcoin address and payment information for safe trades

Once you complete the above-mentioned operations, you will purchase your very first Bitcoins. Binance is one of the popular exchange platform providers in the cryptocurrency world, however, if you want, you can prefer any of the following options too.

The above-mentioned information is all you need to know to start investing in Bitcoin. However, this would not be enough for safe trades. This is why we have compiled some further information about how to buy Bitcoin in 2021 in the following. The following headings are some of the important topics, which we handled in this guide, and we believe sharing them here will provide you a better navigation in the guide.

  1. When Is the Best Time to Buy Bitcoins?
  2. Which Platforms Should You Prefer to Buy Bitcoins?
  3. Which Payment Methods Can You Prefer for Your Trades?
  4. Which Bitcoin Wallet Should You Prefer?
  5. How Much Should You Invest in Bitcoins?
  6. Alternative Bitcoin Buying Options You Can Consider
  7. Final Thoughts and Sources to Refer for Your Trades
  8. When Is the Best Time to Buy Bitcoins in 2021?

When Is the Best Time to Buy Bitcoins?

One of the common questions wondered by new investors is how they “can know when the best time is to buy Bitcoins”.

Just like in all investment tools, the answer to this question is not simple. Many factors can easily affect the answer such as your purpose for buying Bitcoin.

For instance, in case you are willing to trade Bitcoins and make a profit from buying and/or selling at low and high prices, there is no right or wrong time to do so. What matters is your experience and knowledge about the industry. Moreover, you need to know more about different techniques to be used in trading.

If you are not interested in short-term investments and looking for more rewarding and long-term investments, then you are interested in Bitcoin technology. In this regard, there are two different concepts that you need to know.

Buying Bitcoins Regardless of The Price

This is the most common concept, which long-term investors believe. Basically, this approach supports the idea of Bitcoin prices will go up in the long term. Therefore, there is no right or wrong time to make the buying decision.

Buying Bitcoins According to Their Dollar Cost Averaging Price

The Dollar Cost Averaging concept, which is also known as DCA, relies on the fluctuations in the exchange rates between cryptocurrencies and fiat currencies. You basically focus on buying Bitcoins in exchange for a certain balance of a fiat currency.

Depending on your investing strategy and your patience, you can pick any of the above-mentioned concepts and adapt them. However, in general, DCA is recommended for new investors since it is a medium-term investment concept that can be cut short when needed.

Which Platforms Should You Prefer to Buy Bitcoins?

Probably, this is the most challenging task for those who wonder how to buy Bitcoin in 2021. However, choosing the right Bitcoin exchange platform can easily affect the course of your investments. There are many things to consider while finding the best platform for yourself.

This is why we have gathered all these factors in the following. Things you may want to consider can include;

The Reputation of the Exchange Platform: After all, you are going to deposit your real money to the platform you are going to prefer. Therefore, you may want to prefer reputable platforms. You can check the overall experiences of their former users on the internet. It is recommended to avoid exchange platforms with plenty of complaints against them.

Buying Limits: If you are going to invest small, then you will not have to worry about this one. On the other hand, if you are going to start big or plan to increase your investments in the future, then buying limit is one of the factors to consider. In general, this information is shared in the FAQs section of the platforms.

Exchange Rates: Due to arbitrage, different couple of exchanges have different rates. In general, you will want to pay less rate for each exchange. Otherwise, you will need to give up on your profit or maximize your losses.

Fees: Each platform has different principles in terms of charging fees. In general, you will be charged for Bitcoin network fees, deposit fees, withdrawal fees, and transaction fees. It is advisable to check out all these fees before choosing the right platform for yourself.

Payment Methods: Please note that there are no obligations about every exchange platform that will offer every payment option to you. Therefore, make sure that you pick the one that offers your preferred payment options.

Supported Countries: Just like the payment methods, not all exchange platforms offer their services worldwide. Make sure that you pick the one that offers services in your country.

Bitcoin Exchange Types You Need to Know

Another important topic that you need to consider while choosing the right exchange platform for yourself is the type of exchange you are planning to focus on. There are three types that you can prefer, and different exchange platforms focus on different types of exchanges.

P2P Platforms (Peer-to-Peer)

You can think of these platforms as free markets. Buyers and sellers can contact each other without any limitation and negotiate on the prices. The biggest downside of this exchange type is the lack of trust between the traders. Eventually, you are nothing but strangers to each other.

On the other hand, these platforms serve in many countries and offer more payment options. Some of the popular P2P exchange platforms include LocalBitcoins and Paxful.

Broker Platforms

As the name suggests, these platforms serve as a broker while you are trading. This means that they set the prices and you carry out your trades over these prices. Different platforms offer different pricing for each coin.

It will be worth noting that anyone thinking about how to buy Bitcoin in 2021 should start with these platforms. These platforms have a simple user interface and are relatively easier to get the concept. Therefore, they are the most popular one among the three options. Some popular broker platforms include Coinbase and Coinmama.

Trading Platforms

Bitcoin trading platforms can be considered as a combination of P2P and broker platforms. Prices are determined by individual sellers just like you, but you do not have direct communication with them. These platforms charge a small fee for each transaction in exchange for their services.

These platforms are also the cheapest option to buy Bitcoin in 2021. Some of them even offer services such as limit orders and stop losses. They are the best options for those who are planning to engage in short-term investments.

Some of the popular Bitcoin trading platforms include Bitstamp, Kraken, and BitMex.

Which Bitcoin Exchange Platform is the Best?

As we mentioned before, there are no right or wrong choices in platform selection. You need to consider the above-mentioned criteria and pick the one that will make you feel happy. Your sole goal is to make a profit and any platform that will help you to maximize your profits will be the best one for you.

Some may charge more but offer ease of use while some can be quite challenging to use but charges you less. This is a personal choice that you need to decide according to your taste and preferences.

Which Payment Methods Can You Prefer for Your Trades?

Payment methods are usually the most underestimated topics in Bitcoin trading. Besides how much you are going to invest, the method you are going to prefer while investing matters a lot. This is why we wanted to create this section for those who wonder how to buy Bitcoin in 2021.

Before providing detailed information on this topic, we would like to explain one of the most important concepts in Bitcoin trading, chargebacks, for those who have no idea about it.

What Are Chargebacks?

Important notice for how to buy Bitcoin in 2021, In the simplest definition, the chargeback is the concept that defines the return of the money to the buyer because he/she did not receive the service as it should. Chargebacks are carried out over certain types of payment options. Well, why do we explain this, and what is its relation to your investments?

Unfortunately, people with evil intentions can benefit from this service to get their money back with a false claim. When someone applies to his or her credit card provider and tells that the product or service does not deliver, the provider will refund the money to the credit card holder.

Let us explain this problem with an example:

You have 10 Bitcoins and I agreed with you to buy them for $45.000. You have provided your PayPal account and I transferred the money to you. Once you got the money, you kept your promise and transferred 10 Bitcoins to my wallet.

Everything is fine for now, right? However, 3 days later, you receive an email from PayPal, which states that $45.000 was refunded to the payer. You already transferred 10 Bitcoins to me and now you are forced to pay $45.000 back to me. How is this possible? Of course, with the chargeback.

After the transaction, I contacted PayPal and told them that I did not receive the product or service. Since the product or service here is Bitcoin and it is almost impossible for PayPal to verify the transfer, they immediately accept my chargeback claim.

Keep in mind that the screenshots of the transaction will not be accepted as evidence and there is no way to get your money or Bitcoins back. Therefore, you may want to avoid certain payment methods unless your transactions are guaranteed by certain exchange platforms.

Here are some of the popular payment methods that people who wonder how to buy Bitcoin in 2021 can consider in their trades.

Cash

You are wondering how to buy bitcoin in cash app. Remember the famous Wu-Tang song C.R.E.A.M? Cash rules everything around me and it can literally rule everything. As you can guess buying Bitcoins with cash is the safest option, but it may not be the ideal way for the transaction.

Moreover, it also leads to security problems since you will be meeting with the person one-on-one in a physical location. Taking precautions may be a good idea since you do not know the opposite party.

Paxful is one of the exchange platforms which allow buyers and sellers to meet. Of course, distance can be a great setback for these traders.

Wire Transfers

This payment method is free from chargeback operation, but it has its own downsides too. In general, this is the most preferred method in peer-to-peer exchanges.

Due to the nature of these transfers, they required time and it may cause trust issues between the buyer and seller. If you are going to send the money abroad, the process can take up to 5 days as well. However, buying Bitcoins with wire transfer is a cheaper method when compared to the following methods.

PayPal or Skrill

Although PayPal and Skrill prohibit buying and selling Bitcoins through their services, there are methods to achieve this. PayPal and Skrill operate with the same logic, and they try to avoid such transactions due to disputes.

We have already discussed how to buy Bitcoin in 2021 with PayPal in one of our guides. Similarly, you can also learn how to buy Bitcoin with Skrill on our website.

Credit Cards or Debit Cards

If you are wondering how to buy bitcoin with a credit card, we kindly request you to read our article.

These two payment methods are the most preferred options due to their ease of use. You can buy Bitcoin in 2021 with credit cards on almost all exchange platforms including eToro, Cex.io, and Coinmama.

In order to prevent chargeback operations, most of these platforms will require you to verify your identity. It can be a challenging and expensive effort but once you are verified, you can safely carry out all your transaction and enjoy quick transfers.

Which Bitcoin Wallet Should You Prefer?

Since you know where and how to buy Bitcoin in 2021, it is time to learn how to keep them safe. Bitcoin wallets are not that much different than our traditional wallets which we keep in our pockets. The only difference is they can be a hardware or digital service.

Any Bitcoin you are going to buy through exchange platforms should be transferred to your own Bitcoin wallet. In this way, none one but you can access your assets without your permission. This offers full control over your investments.

Of course, you can keep your Bitcoins on the platform for future trades. However, this method bears a risk. Anyone who will hack the systems of the exchange platform can easily steal all your investment. Moreover, unexpected shutdown of the system may also lead to huge losses. Although this one is rare, it can still happen and there are examples of this in history.

The good news is there are many popular Bitcoin wallet alternatives you can prefer. It may be quite challenging to make a comparison between them but here are some of the popular alternatives you can consider:

  • Ledger
  • Trezor
  • Electrum
  • Edge

What Are Private Keys and Bitcoin Addresses?

There are two main elements that help your wallets to keep your assets safe and these are private keys and Bitcoin addresses. It is important to understand these as a part of the answer to how to buy Bitcoin in 2021.

Bitcoin Address: You can think of these addresses as your phone number or email. You need to provide this information so that people can send Bitcoins to you. It is a set of random letters and numbers, which usually start with 1 or 3. You do not need to keep it a secret and can share it publicly.

An example to Bitcoin Address is 1BvDMSEYstWeqtTFn5Aum44GFg7xJaVNN2.

Private Key: You can think of this as the pin code of your sim card or password of your email account. This information must be kept private since anyone who knows it can access your wallet. It is not recommended to keep this information on devices with an internet connection.

What Kind of Bitcoin Wallets Are There?

It will be worth noting that there are different Bitcoin wallet types you can prefer. Therefore, we wanted to share detailed information for each of them to provide you a better insight.

Custodial Wallets

This wallet type is the most commonly preferred one among beginners. Basically, these are wallets operated by third parties. Some exchange platforms and companies offer these services to provide convenience to traders.

Since you are a beginner, you may want to start with these wallets as they are quite easy to use. They are accessible through any device with an internet connection. Of course, storing your assets has its own drawbacks such as they can be hacked.

Since the control of your wallet will be in third parties, it is important for you to choose a reputable provider to prevent any unwanted accidents. Most of the available wallets on the market have already taken the required measures such as Two-Factor Authentication.

If you are going to prefer these wallets, we highly recommend you benefiting from such security measures. A private and one-time password will be generated for each time you will be accessing your wallet. However, anyone who gets your phone or email can easily hack your account.

Non-Custodial Wallets

Unlike custodial wallets, you are the only owner of your wallet when you prefer non-custodial wallets. This means that you are going to keep your Bitcoins. There are different types of wallets on the market and one of them is the Bitcoin Core wallet, which is the pioneer in the industry.

These wallets provide better security since you can keep them away from the internet. However, you will be solely responsible for these measures.

They need to be linked to your smart devices such as your mobile phone or computer. The only downside of these wallets is you need to access these devices to access your wallet.

It will be worth noting that the installation of these wallets may be challenging for some. Moreover, you have the risk of losing all your assets when you forget the private key of your wallet.

Multi-Signature Bitcoin Wallets

Multi-signature Bitcoin wallets, which are also known as multisig wallets are joint wallets that have more than one owner. The only way to access these wallets is by getting the permission of every owner.

In general, such wallets are preferred by companies If you and your family are trying to learn how to buy Bitcoin in 2021 and plan to invest in this cryptocurrency, you can prefer these wallets too. You can also set different rules for the access and transactions for these wallets.

Let’s assume that your wallet has 5 owners. You can set a rule to access the wallet whenever at least three owners give permission. You can still set a rule to send Bitcoins from your wallet only five of the owners give permission.

As you can guess, these wallets are more secure than the above-mentioned alternatives. Depending on the rules you are going to set, you will not have to worry about any owner forgetting his or her private key.

Electrum wallets support this feature, and you can even create two keys for yourself for extra security and prevention for any lost private keys.

Paper Wallets

We have already mentioned that your Bitcoin address consists of numbers and letters, so your private key too. When you print this information on a piece of paper, you can easily create your own paper wallet.

Physical Wallets

Paper wallets can also be considered in this group, but we are referring to hardware wallets in this section. You can benefit from hardware to keep your Bitcoins safe, and we believe this is the most secure way for you.

As long as you do not connect your hardware wallets to the internet and run them malware-free computers, you have nothing to worry about in terms of your security. Some popular brands you can prefer in this regard are Ledger and Trezor.

Which Is the Best Bitcoin Wallet for You?

Just like how to buy Bitcoin in 2021 question, the answer to this question is not simple. You need to consider different aspects to determine the best option for yourself. It is important the remember that you can always get rid of your current wallet and try a new one.

Here are some of the factors that you may want to consider while choosing the best Bitcoin wallet for yourself:

Your Worries About the Security of Your Wallet

The first and most important factor that you need to consider is your worries. Are you worried about someone will steal your Bitcoins? Do you want to take extra measures to make sure that your Bitcoins are safe?

The answer to these questions can narrow the list for you. Moreover, you can also choose wallets such as Wasabi or Samourai Wallets, which offer extra privacy and anonymity for the holders.

Ease of Use

Another important factor that you may want to consider is ease of use. Factors such as accessing your wallet, the interface, sending and receiving Bitcoins can affect your choice. While some wallets are quite user-friendly, you may really hate some.

The Size of Your Investment

If you are going to invest a little, then there is nothing to worry about since your loss will be minimal even in the worst scenario.

On the other hand, if you are planning to invest huge amounts, then you need to prefer high-security wallets such as hardware wallets and multi-signature wallets. They can help you to minimize the risks for your assets.

How Often Will You Use Your Wallet?

Another important question to ask yourself is the frequency of use. If you are going to trade all day and night, then we can recommend quick and easy-to-use wallets, which you can access through your computers or smartphones. Some of these products include Edge and Ledger Nano X.

If you are not going to use your wallet too often, then choosing paper or hardware wallets may be the best option for you. You can keep them in any secret area until next use and provide extra security for your assets.

How Much Should You Invest in Bitcoins?

Besides how to buy Bitcoin in 2021, you need to ask yourself how much you are planning to invest in too. This will determine the future of your trades as well as your investment strategy.

Just like in all investment tools, Bitcoin also bears high risks and high rewards. We recommend not investing huge amounts that can change the course of your lives in case you lose them in the worst scenario. Moreover, since you are a beginner, starting small will always be a good idea until you fully understand how the market works.

In this respect, you can receive assistance from your friends who are experienced in the finance industry. They can guide you about the basics of investments. Although Bitcoin is a digital currency, it is still a currency and part of a real economy.

How Much Does 1 Bitcoin Cost in 2021?

As of August 2021, the price of 1 Bitcoin is $45.677.

This is not a fixed price, and it varies according to the supply and demand on the market. As we mentioned in the previous heading, Bitcoin is also subjected to the basics of the economy. If more and more people will start to demand this currency, its price will increase or vice versa.

Is It Possible to Buy Bitcoin in Decimals?

Of course, you can buy less than a Bitcoin. Otherwise, the majority of the traders would not be able to keep trading Bitcoin.

In fact, you can buy Bitcoin in 2021 up to 8 decimals. This allows traders to buy one-hundredth of Bitcoin too. Different decimals are named with different terms and the smallest one, i.e., 8 decimal Bitcoin (0.00000001) is called Satoshi.

Is Anything Changes When You Buy Bitcoins Worth of Grands?

Of course, the amount you are going to invest affects the course of the transactions. If you are planning to buy large amounts of Bitcoin, you can look for over-the-counter services, which are also known as OTC. These services are offered by particular brokers and exchange platforms.

Alternative Bitcoin Buying Options You Can Consider

Bitcoin is a very versatile currency and those who wonder how to buy Bitcoin in 2021 can enjoy this versatility in their buying decisions. Besides the above-mentioned methods to buy Bitcoin, there are two other methods that you may want to consider.

Buying from Other Traders

This is the true nature of the trade. If someone has Bitcoins to sell and another one is looking for a way to buy them, they will eventually meet and trade. Maybe one of your friends is interested in Bitcoin and you are going to buy from him. Whoever the opposite party will be, you need to be careful.

If you meet a person online, then it is a great idea to verify the identity of the seller. This will help you to reduce the risks. Of course, you cannot force people who want to remain anonymous to reveal their identities.

You can also consider benefiting from escrow services. These services serve as a middleman between two parties and ensure a secure trade.

Another option is meeting with the opposite party and benefit from the power of the cash. Remember the C.R.E.A.M? In case you do not want to carry cash with you, then you need to be a lot more careful when using services such as wire transfer. These services are irreversible, and you need to make sure that you receive Bitcoins before sending the money. In general, you want to complete two or three confirmations before every trade.

Person-to-person trading includes lots of uncertainty and risks. Therefore, we do not recommend this method while they are many solutions available on the internet. Moreover, this method is quite time-consuming too.

Bitcoin ATMs

No need to think about how to buy Bitcoin in 2021. Bitcoin ATMs are not available in all countries. However, if they are available in your area, you can use these machines to buy or sell Bitcoins. Not all ATMs support both trades too.

You can buy Bitcoin in exchange for real currency such as Euro and Dollar. The process is quite easy and quick and therefore many people prefer this method due to this and their anonymity.

One thing that you need to consider is the charged commission fee. These machines are offered by private companies, and they make money through these trades. You will not want to pay extra or astronomic fees for a trade that you can easily carry out through other means.

Final Thoughts and Sources to Refer for Your Future Trades

If you have reached this area, this means that you now know the basics of Bitcoin and how to buy Bitcoin in 2021. Keep in mind that we also share plenty of other sources that will be useful in your trades.

We would like to emphasize some important points that you need to consider in your future trades. We do not recommend keeping your assets on exchange platforms. Legally, you will not be the owner of these assets, but the exchange platform does. Therefore, it will be better for you to get a wallet before you start trading.

Whether risky or not, take responsibility for your assets. Otherwise, you may lose all of them in case the systems of the exchange platforms are hacked. Or simply they can declare bankrupt. Both examples are available in history. You can check for Bitfinex, BTC-e, and MT.Gox examples.

After each trade, you can transfer your coins to your wallet by providing the Bitcoin address. This is the best and most secure way to guarantee the security of your coins.

Sources to Refer for Your Future Trades

Now you know how to buy Bitcoin in 2021, it is time to expand your knowledge on the topic and learn more. We have some amazing guides that will provide great convenience and a better understanding of your future trades.

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