Bitcoin, the world's largest cryptocurrency by market value, continues to attract new investors. If you're new to the space, you might be wondering how to buy your first Bitcoin. This guide breaks down three common methods, compares their pros and cons, and walks you through the entire process step by step.
Understanding How to Buy Bitcoin
There are several ways to purchase Bitcoin, each with its own advantages and limitations. Here’s a quick comparison:
| Method | Pros | Cons |
|---|---|---|
| Local Exchange | Supports local currency, regulated, secure | Lower liquidity, potential price slippage |
| Global Exchange | High liquidity, lower fees, secure | May not support direct local currency deposits |
| Bitcoin ATM | Fast, cash-based, no bank account needed | High fees, poor exchange rates, limited regulation |
| Convenience Store | Accessible, cash payment available | High fees, low purchase limits |
| Bitcoin ETF | Accessible via stock brokerage, no private key management | Management fees, cannot withdraw actual Bitcoin |
| Credit Card | Quick transaction, suitable for urgent purchases | High fees (typically 2-5%), possible bank restrictions, unfavorable rates |
Three Recommended Ways to Buy Bitcoin
We’ll focus on the three most practical methods for beginners:
- Method 1: Buying USDT on a local exchange and transferring to a global exchange like Binance to buy Bitcoin.
- Method 2: Buying Bitcoin directly with local currency on a local exchange.
- Method 3: Using a credit card to buy Bitcoin directly on a global exchange.
Here’s a summary to help you decide:
| Method | Pros | Cons |
|---|---|---|
| Buy USDT locally → Transfer to global exchange | High liquidity, lower fees, access to more features | Requires using two platforms, involves transfer wait time |
| Buy Bitcoin directly on a local exchange | Simple, direct local currency purchase, regulated | Lower liquidity, higher fees |
| Use a credit card on a global exchange | Very fast, no transfer needed | Highest fees, bank restrictions, unfavorable rates |
Method 1: Using a Global Exchange (Recommended)
This is the most common method for obtaining Bitcoin with lower fees and better liquidity.
Step 1: Register and Fund a Local Exchange Account
- Sign up for a local, regulated exchange that supports your currency.
- Complete the identity verification process (KYC), which usually requires an ID and a phone number.
- Deposit your local currency into your exchange account via bank transfer.
✅ Why use a local exchange?
It provides a secure, regulated on-ramp for converting your local currency into cryptocurrency.
Step 2: Purchase USDT (Tether)
- Log in to your local exchange and navigate to the trading interface.
- Select the USDT/local currency trading pair (e.g., USDT/TWD).
- Place a market or limit order to buy USDT.
💡 Why buy USDT first?
USDT is a stablecoin pegged to the US dollar. Its price is far less volatile than Bitcoin's, making it a stable medium for transferring value between exchanges before you buy.
Step 3: Transfer USDT to a Global Exchange
- Log in to your account on a global exchange.
- Find your USDT deposit address. Be sure to select a network with low withdrawal fees (often Avalanche or TRON).
- Go back to your local exchange, initiate a USDT withdrawal, and paste the deposit address from the global exchange.
- Wait for the transfer to complete, which usually takes 5-10 minutes.
✅ Why transfer to a global exchange?
Global exchanges offer higher liquidity, meaning easier and cheaper trades, along with lower fees and more trading options.
👉 Explore a leading global exchange to get started
Step 4: Buy Bitcoin on the Global Exchange
- On the global exchange, go to the trading section and select the BTC/USDT pair.
- Choose a market order (to buy instantly at the current price) or a limit order (to set your desired price).
- Confirm the trade. Your Bitcoin will be credited to your exchange wallet.
💡 Market Order vs. Limit Order:
- Market Order: Best for beginners; executes immediately at the best available market price.
- Limit Order: For more experienced users; allows you to set a specific price you're willing to buy at.
Method 2: Buying Directly on a Local Exchange
This method is simpler and keeps all operations on one platform.
Step 1: Log In to Your Local Exchange
Ensure you have already registered and deposited local currency into your account.
Step 2: Buy Bitcoin
- In the trading section, find the Bitcoin/local currency pair (e.g., BTC/TWD).
- Enter the amount you want to buy and execute a market or limit order.
- Once the order is filled, the Bitcoin will appear in your exchange wallet.
💡 Who is this for?
Ideal for those who prefer a straightforward process using their local currency and want to avoid transferring assets between platforms.
⚠ Important Considerations:
- Lower liquidity can lead to price slippage, especially on larger orders.
- Trading fees are often higher than on global exchanges.
Method 3: Buying Bitcoin with a Credit Card
This is the fastest method, but it comes with higher costs.
Step 1: Log In to a Global Exchange
Access your account on a global exchange that supports credit card purchases.
Step 2: Find the "Buy Crypto" Option
Navigate to the service menu, often labeled "Buy Crypto" or "Buy with Card."
Step 3: Enter Purchase Details
Select Bitcoin (BTC) as the asset and enter the amount you wish to purchase.
Step 4: Select Your Payment Method
Choose a credit/debit card option (Visa, Mastercard, or sometimes Apple Pay). You may need to add and verify your card.
Step 5: Confirm and Authenticate the Transaction
Review the transaction details, including the total cost and all fees. Confirm the purchase and complete any required bank authentication (e.g., an OTP code).
Step 6: Receive Your Bitcoin
After confirmation, the Bitcoin will be instantly deposited into your exchange wallet.
⚠ Credit Card Caveats:
This method is incredibly convenient but expensive. Expect processing fees of 2-5%, and the exchange rate offered is often less favorable than the spot market rate.
How to Store Your Bitcoin
Where you keep your Bitcoin is crucial for security. You have three main options:
1. On an Exchange (Best for Active Trading)
Keeping crypto on an exchange is convenient if you trade frequently or participate in exchange-based earning programs.
✅ Pros: Easy access for trading.
⚠ Cons: Not your keys, not your coins. Your assets are at risk if the exchange is hacked or faces insolvency.
2. In a Hot Wallet (You Control the Keys)
A hot wallet is a software wallet connected to the internet (e.g., Trust Wallet, MetaMask). You hold the private keys, giving you full control.
✅ Pros: You have custody of your assets.
🔒 Security Tips:
- Back up your seed phrase and store it securely offline—never on your phone or computer.
- Never click on suspicious links to avoid phishing scams.
- Be cautious with approvals for decentralized apps (DApps).
3. In a Cold Wallet (Safest for Long-Term Storage)
A cold wallet is a hardware device that stores your crypto offline, making it immune to online hacking attempts. This is the most secure option for long-term holders.
✅ Pros: Maximum security for your investment.
Popular cold wallet brands include Ledger, Trezor, and CoolWallet.
👉 Discover secure storage solutions for your assets
Frequently Asked Questions (FAQ)
What is the cheapest way to buy Bitcoin?
The most cost-effective method is usually buying USDT on a local exchange and then transferring it to a global exchange to purchase Bitcoin. This combines the ease of local currency deposits with the low fees and high liquidity of a global platform.
Is it safe to buy Bitcoin with a credit card?
While it is generally safe from a technical standpoint, it is expensive. Banks often treat these purchases as cash advances, which incur high fees and interest rates. The exchange rates provided are also typically worse than market rates.
How much Bitcoin should a beginner buy?
Only invest what you are willing to lose. Cryptocurrency is volatile. A good strategy is to start small using Dollar-Cost Averaging (DCA)—investing a fixed amount of money at regular intervals, regardless of the price.
What is USDT (Tether)?
USDT is a "stablecoin," a type of cryptocurrency designed to maintain a stable value by being pegged to a fiat currency, like the US dollar. It is widely used as a digital dollar for trading and transferring value between exchanges.
Can I buy a fraction of a Bitcoin?
Absolutely. Bitcoin is divisible up to 8 decimal places. The smallest unit, called a Satoshi, is 0.00000001 BTC. You can buy any amount, such as $50 or $100 worth.
How long does it take to transfer Bitcoin?
Bitcoin network transaction times vary based on network congestion and the fee paid. Transfers between exchange accounts can be near-instant if using internal systems, but on-chain transactions can take from 10 minutes to over an hour.
Conclusion
The best method for buying Bitcoin depends on your priorities:
- For lowest fees and best prices: Use Method 1 (Buy USDT locally, transfer to a global exchange).
- For simplicity: Use Method 2 (Buy directly on a local exchange).
- For speed over cost: Use Method 3 (Credit card purchase).
For most beginners, Method 1 offers the best balance of cost, security, and flexibility. Remember to move your Bitcoin to a private wallet if you plan on holding it long-term. Welcome to the world of Bitcoin!