How To Buy Bitcoin Through An Exchange?

by | Jan 2, 2020 | Financial Services

It is possible to purchase Bitcoin through a peer-to-peer transaction, but this is typically reserved for those who are familiar with the process and understand the volatility of the Bitcoin market. Most people new to the cryptocurrency use a trusted exchange and learn how to buy Bitcoin through this process.

Make sure the exchange selected allows for the type of payment you want to use to make the purchase. They should also provide information on how to buy Bitcoin through their exchange, as there are differences and limitations that vary between the different exchanges.

Select the Amount

Know the limits of the exchange for the purchase, and also be aware of how much you wish to invest at the time of your purchase. The exchange should provide an instant conversion calculator that allows the buyer to put in the amount of Bitcoin they want (the fraction of a Bitcoin) and the corresponding value required to make the purchase.

Like any type of trade, the exchange allows the buyer to determine the market rate for the purchase. This is called a buy or market order and is the most common option for people learning how to buy Bitcoin. There is also the option on many exchanges to set a limit order. This allows the buyer to specify the amount of Bitcoin to purchase if the price and amount match what the buyer has pre-determined.

One the purchase is completed, which is typically in seconds or minutes, the purchase is transferred to the buyer’s exchange wallet. The buyer can then transfer any amount to his or her digital wallet off of the exchange.

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