Are you new to crypto?
Looking to purchase some Bitcoin but have no idea of how you can purchase them?
You need not fret, because that’s what we do here.
On contentsdeal, we provide tons of guides on how to do a lot of things by yourself.
It doesn’t matter if you are a total beginner or you have muddled on the web for some time because we’ll serve you right.
Alright, let’s go back into business.
In this article, I will share with you:
- What Bitcoin is?
- Why should you invest in Bitcoin?
- How to buy Bitcoin on Binance
- Some frequently asked questions and answers.
By the end of this article, you should have gathered some of the basic knowledge that you need for investing.
If you’re ready, then let’s dive in.
What is Bitcoin (BTC)?
Bitcoin is a cryptocurrency or crypto coin that has no central authority nor is it regulated by any sort of bank or exchange platform.
In other words, it is decentralized having no form of ownership.
Bitcoin was founded by Satoshi Nakamoto but ever since the establishment of Bitcoin, we have not heard anything concerning this anonymous founder.
Since then, Bitcoin has maintained its decentralized form
Though Bitcoin is decentralized, it has millions of computers that update records on it.
This leads us to “Blockchain”
You can imagine Blockchain as a series of records connected in blocks that are updated regularly
For example, you have one BTC and I have 5 BTC’s, if I transfer two Bitcoins to you, then I would have three Bitcoins remaining while you will also have three bitcoins.
Without an update in records, I can still boast of having 5 BTC because nobody will know that I transferred some of my Bitcoins
But because of the concept of blockchain, this is no longer possible.
From the moment I transferred some BTC to you, a ledger has been created between me and you which records the transaction between us.
So a Blockchain is a series of ledgers containing information of transactions which are connected in blocks to each other.
The transactions are updated continuously by computers spread around the world.
Take for example, Bitcoin has millions of computers around the world constantly cross-checking the transactions and balances and updating them, making sure that all information recorded is up to date.
A public ledger records all bitcoin transactions and copies are held on servers around the world.
Bitcoin is a digital currency and it is the largest cryptocurrency by market cap. Each Bitcoin is divided into 100 million satoshis just like in the case of cents and dollars.
Bitcoin is really a wonderful sort of technology because it brings freedom.
Freedom? Yeah
With the introduction of Bitcoin and other cryptocurrency, you don’t need anyone’s permission to use your money.
You have all the rights over your money; you can also transfer money to people all around the world without even involving a bank
One more Interesting thing about Bitcoin and other crypto is that the value does appreciate and so you can even make profit while having ownership of your money.
Why BTC?
I think if we should really talk about why Bitcoin is good, we will have a million reasons.
Bitcoin is the largest cryptocurrency by market cap, with a circulating supply of $19.05M, it has a market of $580.24B.
The fact that Bitcoin has maintained its position as the most popular cryptocurrency for many years is enough proof to show their worth.
Security
Everyday, we hear news of different tokens being hacked but since we have known about Bitcoin, we have not heard about matters relating to hacks in Bitcoin.
This is because before you can hack a cryptocurrency network, you must hack more than half of all the computers updating the transactions at once.
This is why hackers don’t target Bitcoin because it has millions of computers around the world constantly updating the ledgers.
Also Bitcoin has a lot of use cases, we’ll only talk about a few of them.
- Bitcoin is allowed on some online stores for purchasing goods.
Some stores only permit you to purchase some specific goods with Bitcoin while on some stores, you can buy anything with Bitcoin so far they sell it.
- While Bitcoin and some other currencies are allowed for flight on some airlines, the practice is still uncommon among major carriers.
Some airlines do accept crypto, such as alternative airlines, Latvia’s Air Baltic e.t.c
Compatibility
In terms of compatibility, Bitcoin ranks well and due to its popularity, you can swap your Bitcoin directly to over 300 different cryptocurrencies
You can also purchase a lot of crypto currencies directly using your Bitcoin.
Also Bitcoin can be traded with a lot of things, just like the way US dollar is popular in the fiat world, Bitcoin is also like a “US dollar” in the crypto world.
A guide on how to buy BTC on Binance?
There are various methods you could employ to purchase Bitcoin on Binance but in this article we will only discuss some of those methods.
The two methods we are going to discuss in this article is how to buy Bitcoin:
- i) Through a card
- ii) Through cash balance
If you are ready, then scroll down!
How to buy Bitcoin on Binance through a card
Before we proceed to the guide, I want to clear your mind of this.
Who is Binance?
If you’re wondering what Binance is then this part is for you.
Just like there are Banks to store your dollars, there are also crypto banks to store your digital assets.
And because Bitcoin and other crypto coins are digital currencies, they need a secure platform to store them.
So Binance (just like a bank) is an exchange platform to store your crypto coins.
And guess what?
Binance is the world’s largest crypto exchange platform with a daily trading volume of $76 Billion
They have one of the fastest and cheapest transaction rates amongst others.
Let’s proceed!
Step 1: Download the Binance app.
The first thing you need to do as a beginner is to download the Binance app. After downloading the Binance app, create an account.
To create an account, you need a valid gmail (or mobile number) and a password.
Make sure that your password is strong and unique, having a combination of letters, numbers and symbols.
NOTE: Having a strong password does not mean that it should be too hard to remember, it only implies that you should make it less obvious.
Step 2: Log in to your account
After creating an account, log in to the account with your Gmail and password.
Complete the identity verification by providing your personal information (like age, photo e.t.c)
Step 3: Click on the “buy” button
To click on the buy button, first click on the trade button.
The trade button is the center button at the bottom of the page.
Click on it, then on buy.
Choose the coin you want to buy (Bitcoin for example) and enter the fiat amount of the coin that you wish to purchase (E.g $15) according to your native currency.
Click continue
Step 4: Choose your payment method
After clicking on “continue” , you will be taken to the payment page where you’ll choose your payment method.
In this case, click “Visa/mastercard” since you are buying with a credit/debit card. Click “continue“
Follow the instructions and fill in your card information to add your card as a payment option
Click continue and your card will be added.
Step 5: Review the payment details
Check the details of the transaction once again to be sure you have punched the right amount, then confirm the transaction.
Step 6: Re-confirm
After confirming the transaction, you will be redirected to your bank’s OTP transaction page. Follow the instructions on the screen to verify the payment.
Immediately after you confirm the transaction, your Bitcoins will appear in your wallet.
You can use this guide to buy other coins as well
NOTE: You have only one minute to confirm the transaction. After the one minute elapses, you will have to refresh the page again to buy at the current price.
Surprised?
Actually the price of crypto is refreshed every 4s on Binance because of the volatility of crypto.
How to buy Bitcoin on Binance through cash balance?
Below is a guide on how you can buy Bitcoin on Binance through your cash balance:
Step 1: Open the Binance app
Open the Binance app or website and enter your login details.
I suppose you already have an account, if you don’t, read the first guide above to open an account.
Step 2: Click on “buy/sell”
On the app, click on the center button, then on buy while on the website click on the buy/sell button located at the top-left section of the page.
Step 3: Enter the amount
Click on the coin (e.g BTC) that you want to buy.
Punch in the amount of fiat that you want to spend and the system will automatically display the amount of Bitcoin that you can get. Click continue.
Step 4: Click “cash balance”
Click on cash balance then on continue.
NOTE: If you don’t have sufficient funds in your cash balance, you’ll be redirected to the deposit page where you will deposit more.
Step 5: Confirm the purchase
After clicking on continue, review the payment details.
Confirm the purchase under one minute or else the amount of Bitcoin you can get will be recalculated based on the current market price.
If the time elapses, click on refresh so that you can buy at the current market price.
Note: This guide can also be used to buy other cryptocurrency on Binance.
FAQS
What are Fiat currencies?
Maybe you are wondering what fiat currencies mean.
Fiat currencies are physical currencies i.e printed by the government e.g coins, US dollars.
Unlike crypto currency, their value is dependent on the state of the economy of a country.
How much is one Bitcoin?
One Bitcoin is valued at $30,506.23 which is due to the +4.51% change in price.
With a circulating supply of $19.05 million, Bitcoin has a market cap of $581.25B.
Note: This information may not be accurate by the time you are reading this article.
So you can check Binance price chart and news to know the current price.
What is the highest price Bitcoin has ever reached?
Currently, the price of one BTC is $30, 506.23
That reminds me of the time when Bitcoin (BTC) reached its highest price of over $68,789.63 in November 2021 after starting the year at just $30,000.
The crypto industry as a whole grew to a total market cap of more than $2 trillion.
How many Bitcoins are lost everyday?
A cryptocurrency analyst, Timothy Peterson claims that 1,500 bitcoins are lost each day.
Which implies that only 14 million BTC will ever circulate.
The estimate does not agree with Markets.bitcoin.com which placed their own estimate at 18.5 million coins.
How many Bitcoins are mined daily?
With each bitcoin block taking 10 minutes to mine, 144 blocks are mined each day.
And there are 6.25 bitcoins per block, multiplying it we have 144 x 6.25 which gives us 900.
This means that at the current rate, 900 BTC is available in rewards every day.
What is p2p trading?
P2P trading is an acronym that means peer-to-peer trading.
It’s a type of trading that does not involve a third party that is no intermediary. It is a direct transaction between two users of a particular exchange platform.
Is P2P trading safe?
P2P trading which stands for peer-to-peer trading is a method of trading in which users of an exchange platform transact between themselves.
P2P trading is not very safe on a lot of platforms as you can imagine.
But this statement is not true for all platforms. For example, on Binance, P2p trading is safe.
This is possible because Binance uses a system that does not release a user’s funds until the user confirms that he has received the payment.
Also, Binance does not charge any transaction fee for p2p trading so it is really a good option for those people using Binance.
DISCLAIMER: No information on this site should be perceived as investing advice.
No matter what you should always make sure to invest what you can afford to lose