A Beginners Guide on How to buy Bitcoin for the First Time

What is BTC


If you want to buy Bitcoin, you probably know something about its success over the past decade or so. Many experts believe Bitcoin’s price will continue to rocket upwards and become a globally recognized and accepted currency. 

By learning about Bitcoin, how it works and its short, medium, and long-term goals, you will have a better idea of whether it is worth investing in. It is also worth learning some golden rules of Bitcoin trading, such as the importance of technical and fundamental indicators. You can then start exploring your trading options, as you can do much more than simply “buy Bitcoin”. Finally, you will need to find a reputable trading site packed full of features, functionality, and resources to help you trade Bitcoin effectively. 

What is Bitcoin?

Bitcoin was started in January 2009 by an individual or group which called itself “Satoshi Nakamoto”, and it follows the plan, or “white paper”, created by this founder(s). Bitcoin is a digital currency, which is not owned or controlled by any central authority or administration. A bank would manage and update all its client’s transactions on a private “ledger”. Bitcoin uses a public ledger that is transparent and controlled by its users. 

Bitcoin can do maintain a public ledger through its blockchain technology. In essence, transactions occur over a peer-to-peer network which is then verified by “nodes” (computers on the Bitcoin network) using cryptography. New Bitcoins are created through a process known as mining. Mining is a reward system for keeping the network functioning properly by creating new “blocks” (a set of transaction records) added to the blockchain. Mining has caused controversy due to a large amount of electricity it requires – about the same as Argentina! 

Should You Invest In Bitcoin?

Should you invest in BTC

The future of Bitcoin is one of the most debated questions globally. Views on Bitcoin vary from being “a boom-and-bust pyramid scheme” to “the tip of the iceberg on a revolution which will end the inherent corruption of the banking system”. Only time will tell the exact nature and utility of Bitcoin in our society, but its success is undeniable from a financial perspective. Bitcoin’s price has gone from less than a cent in 2009 to an all-time high approaching $70,000 in November 2021. You may or may not believe in the inherent value of Bitcoin as a form of digital money, but its real-world value is something that any trader should take seriously. 

Five Tips For Trading Bitcoin

  1. Have a plan 

Whether you’re trading Bitcoin, stocks, commodities, ETFs or anything else, you should always make sure you have a plan – and stick to it! The temptation, of course, is to follow your emotions which may work once or twice, but when you are trading over a long period, a careful, systematic, and detached approach usually wins out. Counterintuitively, when you are tempted to be greedy or fearful, you should generally act in the exact opposite way, or else you will find yourself forever buying high and selling low. Having a plan which you can adapt over time to create a formula for profitability will save you from the pitfalls of emotional trading. 

2. Use technical and fundamental indicators 

Knowing when and how much Bitcoin to buy does not have to be based on rumours or guesswork. There are two main areas to look at when you are gathering facts and data relating to the future price movements of Bitcoin (or any other security).  

The first place to look at is fundamental indicators, which are all market and world news relating to Bitcoin. Although you should try to avoid “buying the rumour” (when the news has arrived, it is generally too late to profit from it), it is still essential to know as much as you can about Bitcoin and how it fits into the broader context of the marketplace. 

The second way to understand Bitcoin’s future price is by looking at technical indicators. Technical indicators are different mathematical approaches to find patterns in price data that elucidate characteristics such as trend, volatility, and momentum. Traders can use this information to build a likely picture of Bitcoin’s future price.    

3. Set a stop-loss and take-profit 

No strategy or trading plan is complete without risk control. Some of the best tools for risk mitigation are stop-loss and take-profit orders. Essentially, these automated commands stop trades after a certain amount of loss has accrued or profit assumed.  

4. You don’t just have to buy 

 If you are stuck in a bear market or think there is one coming, you don’t have to wait for the next bull market to start again. Bear markets can be just as profitable as bull markets! You can short Bitcoin, which means bet against it. If the price of Bitcoin goes down, you will profit in the same way as creating a long bet when the price goes up. Depending on how confident you are in Bitcoin’s price rise or drop, you could get leverage on your trade by setting up a CFD (“contract for difference”). The amount you can leverage will vary from broker to broker. 

5. Take the pressure off 

There is no need to rush into any trade. If you don’t think the time is quite right, then hold off. You may also not feel you have built up enough trading experience. In which case, you could try “paper trading“, which is when you write down all the trades you are making (without using any real money) and see how you go. Alternatively, you could use a virtual money trading account. Don’t just ask yourself, “am I good enough?” and then quit if you make a loss. Adapt your trading plan according to what is working and what is not. You’ll be able to create a killer trading plan without risking a cent! 

How Do You Buy Bitcoin?

When Bitcoin first made waves in the financial sector in 2008, it was nearly impossible to buy Bitcoin. The first Bitcoin enthusiasts needed to buy via the Mt Gox exchange. The purchase road was often paved with complicated hurdles, including high transaction fees, gift cards, or mining it themselves.  

Today, many exchanges let you deposit fiat currency in exchange for Bitcoin. The process has become much more straightforward – incomparable to the early days. That said, it is worth doing ample research before you plunge into crypto assets on just any exchange. Compare features and rates and find a broker which ticks all the right boxes for your particular needs. Also, bear in mind that should you purchase a significant amount of Bitcoin (or any cryptocurrency), it is worth moving your crypto assets to a secure “wallet” (online or offline storage). The safest way to keep your Bitcoin is in an offline or “cold” wallet, ideally downloaded onto separate physical hardware.  

Where Can I Buy Bitcoin?

As mentioned above, there are now several exchanges and other sites which offer Bitcoin. If you wish to trade Bitcoin and capitalize on the frequent price changes of the cryptocurrency market, then a brokerage platform is what you need.  

For example, here at TradeOr, we offer cryptocurrency trading alongside access to Forex, stocks, indices, and more. You can trade with derivatives like CFDs, and we offer leveraged trading with margins up to 500:1. Moreover, access to tools such as charting software TradingView ensures TradeOr clients are armed with the best technical analysis to make their trades. Sign up for our newsletter to make sure you stay abreast of all the latest market data.  



What is Bitcoin?

Bitcoin is a form of digital money that uses a decentralized network to facilitate peer-to-peer transactions without going through a third party such as a central bank. According to the original whitepaper, Bitcoin is an "electronic payment system based on cryptographic proof instead of trust.

How can a beginner buy Bitcoin?

Once a time-consuming and complicated process, purchasing Bitcoin is now easier than ever. There are several ways you can buy Bitcoin. You can use PayPal, find a Bitcoin ATM and exchange fiat money for BTC. Some crypto exchanges or brokers let you buy crypto, including BTC.

What are the benefits of Bitcoin?

There are many advantages of Bitcoin. Traders can leverage Bitcoin's volatility to secure high returns as a short-term asset to trade or a long-term investment. The limited total supply keeps the value dipping beyond a certain level. Also, the cryptography used to facilitate transactions is highly secure. The idea behind many cryptocurrencies, including Bitcoin, is to put wealth control in the owner's hands and limit government oversight, regulation, and manipulation. 

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