In this post you will learn how to buy bitcoin.
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How to invest in Bitcoin step by step
Step 1. Register in a Crypto exchange to buy Bitcoin
The first step you need to make is to create an account in a Crypto exchange so you can use your USD, EUR, GBP, or any other fiat currency for Bitcoin. There are many crypto exchanges, but it is very important that you chose the right one. There are two factors that you need to consider: Security and Low commission fees. On one hand, you need an exchange that is secure and a warranty that your funds will be always available. On the other hand, it is also important that the exchange charges you a low fee when you buy bitcoin.
Because of these two factors, my personal recommendation is to use Binance, which is the #1 crypto exchange in the market. You can create an account right now and enjoy your first Free Deposit.
Step 2. Deposit fiat money to buy BUSD
¿BUSD? ¿What is that? BUSD is a stable coin. It basically allows you to buy and sell Bitcoins saving a lot of money on commission fees. This is because BUSD has more liquidity in the Binance exchange than other stable coins, and it will be always worth 1$. So I recommend you to always buy crypto using stable coins, and never use your real USD or EUR because of the high commission fees.
Step 3. Buy Bitcoin with BUSD
Once you have the BUSD tokens in your Binance wallet, it’s time to buy some Bitcoins! For that, you should go to Markets and search for the Bitcoin token. Click on it.
Once you click on the Bitcoin token, you will access the trading app. In there, you can see all the last purchase prices of Bitcoin and the historical chart. You have also some tools that help you to estimate the future price of bitcoin (but we will leave this for another post). Here you should focus on the “Buy BTC” button, where you have to indicate the max price that you will pay for Bitcoin, the number of Bitcoins that you will get, and the BUSD that you will spend on the operation.
In this screenshot, you can see that I have settled up a maximum price of 19402.14 BUSD per BTC and that I will invest 1000 BUSD. This operation will result in an increase of 0.05154 BTC in my wallet.
Step 4. Move your Bitcoins to Metamask
Now we would like to move our Bitcoins to our Metamask wallet. Why? Becasue we are going to take advantage of the full Bitcoin potential (you will thank me later, I promise). First, you need to create a Metamask wallet and install the Metamask extension in your browser.
You can download and install Metamask form their official page https://metamask.io/.
After installing Metamask in your browser, you will need to set up an account. It is pretty straight forward, but there is one thing that you really need to take care of: Your seed phrase. Your seed phrase is composed by 12 words that you can use in the case you want to restore the password of your wallet. So it is the “backup” that you have in the case that everything goes wrong. I recommend you to store your seed phrase in a secure place, using a capsule like this one https://shop.ledger.com/products/cryptosteel-capsule-solo this will protect your seed phrase from extreme conditions like fire and water.
Once we have settled up Metamask, we can say that you have your own decentralized wallet! The difference between storing your bitcoins here and in Binance, is that you are the solo owner of your crypto, that means that no government, entity or organization can take your crypto unless you give them access. Also, the good thing about Metamask, is that you don’t follow any KYC process, that means that the ownership of your bitcoins is anonymous.
So the next step is to move your Bitcoins from Binance to Metamask. For that, we will access to the withdraw section in Binance.
We will select Bitcoin as the crypto we want to withdraw and the BSC (Binance Smart Chain Network). This means that we will “store” our Bitcoins in the BSC network, which offer some advantages like cheaper and faster transactions and access to dApps (decentralized applications). And this is something amazing from the crypto world, and is that you can earn an interest yield if you stake your bitcoins. What? yes, that’s right, you can put your bitcoins to work and earn yield while sleeping without selling your bitcoins. I will explain it to you later.
Next, you have to the BSC network to Metamask from settings:
And add this info:
Now you have to copy your Metamask Address:
And paste it into Binance:
Finally, we select the amount we want to withdraw, press withdraw, and we are good to go! It may take some minutes until we see our bitcoins in our Metamask wallet.
Step 5. Earn passive income with your bitcoins
This step is the key if you want to earn between 5% and 10% more per year. Also, if you want to sell your Bitcoins in any point, it will be easier and cheaper if you do it though a DEX (Decentralized Exchange). A DEX is a platform that let’s you buy and sell crypto without limits through a platform that is decentralized, that means that you are not keeping your bitcoins in their platform, but in your wallet. This type of platforms are what is going to be the web3 revolution, and it is insanely crazy.
One of the best DEX I recommend is Biswap. This one offers the cheapest exchange rates and multiple ways of staking your crypto. You can access to Biswap from this link:
Once you are in the webpage, you have to press into “Connect Wallet”:
You can sell your Bitcoin using this platform by an stablecoin like BUSD or USDT or even another crypto like ETH, ADA… You just need to enter in the trade section.
Ok, that is nice, but how do I earn passive income with my bitcoins? For doing that, we will use the Farms. A Pool Farm is a smart contract that let’s you to stake a pair of two different crypto and earn a yield from every transaction that is done in the platform.
Step 6. Store your Bitcoin in a Hard Wallet
Another advantage of using metamask, is that you can connect your Hard Wallet and keep your crypto even more secure. For that, I recommend you to buy the ledger nano S: