Bitcoin has become a household name, with almost everyone in the digital world aware of its existence. While it reached an all-time high (ATH) of nearly $69,000 in November 2021, it’s currently trading below that peak. Although Bitcoin experienced several rallies throughout 2023, it hasn’t managed to surpass its previous record.
Despite this, Bitcoin has witnessed a surge in popularity and interest this year. Institutional investors are increasingly embracing it, and mainstream awareness continues to grow.
This guide will help you navigate the world of Bitcoin and discover convenient and profitable ways to buy it.
Bitcoin is the world’s first decentralized digital cryptocurrency created by Satoshi Nakamoto in 2009, which uses peer-to-peer technologies to operate with no central authority or banks. The original Bitcoin whitepaper by Satoshi Nakamoto referred to the currency as “BTC” to distinguish it from other cryptocurrencies that might emerge in the future.
Over time, BTC became the standard abbreviation for Bitcoin, used in exchanges, wallets, and other cryptocurrency platforms.
Bitcoin has spawned a vast ecosystem of related cryptocurrencies. Here are some of the most prominent:
- Bitcoin Cash (BCH): A hard fork of Bitcoin, aiming for faster transaction speeds and lower fees.
- Bitcoin SV (BSV): Another hard fork of Bitcoin, with a focus on scaling and returning to the original Bitcoin vision.
- Litecoin (LTC): Often referred to as “silver to Bitcoin’s gold,” Litecoin is a faster and cheaper alternative to Bitcoin.
- Dogecoin (DOGE): Initially created as a meme coin, Dogecoin gained significant popularity and is known for its strong community.
- Bitcoin Core (BTC): The original Bitcoin implementation, which is used by most Bitcoin nodes.
These are just a few examples. The Bitcoin ecosystem is constantly evolving, with new altcoins emerging frequently. Many of these alternative cryptocurrencies build upon Bitcoin’s technology or aim to address specific challenges it faces.
But BTC remain the largest cryptocurrency by market capitalization, making it the most *valuable* coin in the world.
What is BTC? Key Features
Bitcoin relies on blockchain technology, which creates a secure and transparent record of all transactions. It’s a peer-to-peer network, meaning transactions happen directly between users without intermediaries. It is not controlled by any government or financial institution, making it a truly independent digital currency.
- Peer-to-Peer: Transactions are direct, eliminating the need for third parties.
- Ease of Use: Setting up a Bitcoin wallet is quick and straightforward.
- Anonymity & Transparency: Transactions are anonymous, but the blockchain provides a permanent record.
- Irreversible Transactions: Once sent, Bitcoin cannot be retrieved without the recipient’s consent.
Bitcoin’s value is determined by market forces (supply and demand). It has a limited supply of 21 million coins, similar to gold.
How much is 1 BTC?
The price of Bitcoin, like all cryptocurrencies, constantly fluctuates. The price of Bitcoin (BTC) can change very quickly, even within seconds or minutes. This rapid volatility is a defining characteristic of the cryptocurrency market.
Here are some factors that contribute to the speed of price changes:
- News and Events: Any significant news or events, such as regulatory changes, major adoption announcements, or even tweets from influential figures, can cause immediate price swings.
- Market Sentiment: Shifts in investor sentiment, fear, or greed can lead to rapid buying or selling pressure, triggering quick price movements.
- Trading Volume: High trading volume, especially on exchanges, can amplify price changes as more transactions occur in a short period.
- Algorithmic Trading: Automated trading bots can react to market signals and execute trades rapidly, contributing to volatility.
- Whale Activity: Large-scale transactions by “whales” (investors with significant holdings) can significantly impact the price, particularly in a market with relatively low liquidity.
A single tweet from Elon Musk about Bitcoin can sometimes trigger a substantial price increase or decrease in a matter of minutes.
How to Buy Bitcoin?
You can buy Bitcoin through various methods:
* Cryptocurrency Exchanges: These are platforms where you can buy and sell cryptocurrencies.
In order to buy Bitcoin on a crypto exchange, you need to open an account, verify your identity, and top up your balance in one of the ways that are possible on this exchange. The purchased Bitcoin is credited to the exchange account. If you are not going to make other trading operations with it in the near future, then it is better to withdraw your funds to an external wallet, where BTC will be stored more securely. Even the best cryptocurrency exchanges are at risk of hacking, so you should not put your money in danger.
* P2P Exchanges: You trade directly with other users, often with lower fees.
P2P (peer-to-peer) exchanges allow users to trade directly with each other, eliminating the need for intermediaries. These platforms provide a safe environment for buying and selling Bitcoin, while also offering lower fees than traditional exchanges. However, they may not offer as many payment options as traditional exchanges.
* Aggregators: These services compare prices from multiple exchanges to find the best deals.
Purchasing BTC through such services is one of the easiest options for beginners. Aggregators provide a wide choice of directions between fiat and cryptocurrency, do not require verification, are simple and convenient to use. Usually such services cooperate with reliable fiat providers and provide the best exchange rates. One of such services is Fiatom. We support operations with almost 50 fiat and almost 100 cryptocurrencies. We compare and analyze many offers to provide our users with the best exchange rate. Our interface eliminates any difficulties and makes the process simple and intuitive, and the exchange profitable and fast. We do not charge service fees and do not store your funds.
* Cryptocurrency Wallets: Some wallets allow you to buy Bitcoin directly.
Such services combine the functionality of both storage and asset management — including their purchase. This is convenient as it allows you to manage your funds as quickly and flexibly as possible without leaving the familiar and secure interface for this. To purchase Bitcoin, it is usually suggested to use a Visa or Mastercard bank card, but the fee can range from 5% to 10%. One of the most popular representatives of such platforms are Matbea, Atomic, Trust Wallet, and others.
* Bitcoin ATMs (BTM): Physical machines where you can exchange cash for Bitcoin.For those who do not want to register on exchanges and make virtual transactions, there is an alternative way to buy cryptocurrency — a crypto ATM (BTM). According to the Coin ATM Radar resource, more than 35 thousand ATMs have been installed worldwide to date. Finding the nearest ATM is not so difficult. There are special services for this: for example, Coin ATM Radar, Bitcoin ATM Map, Buy Bitcoin Worldwide. On them, you can see the nearest ATM right on the map, and at the same time clarify its functionality, manufacturer, purchase/sale limits and with which coins it works.
What to watch for?
When choosing a service where you can buy Bitcoin, it is important to take into account a lot of different factors. Among the most important ones are:
- Amount of fees. Commissions on cryptocurrency exchanges, BTMs, aggregators, and other services may differ significantly. Namely, commissions eat up a significant part of profits, so this moment deserves attention.
- Usability. It is especially important to evaluate the usability of the platform, because one wrong step can lead to irreparable consequences. Always remember that the cryptocurrency transaction cannot be reversed so you should be very careful while sending your coins.
- Available payment methods. Different platforms have different payment options – some accept SEPA and some not, the same goes with Visa and Mastercard transactions. In addition, you should take into account the country of residency, while there might be some limitations for specific regions.
- Credibility. Unfortunately we have to admit that there are lots of scam projects in the cryptocurrency market. Therefore one has to be extra careful in choosing the platform for buying Bitcoin – pay attention to the reviews on Trustpilot and read the documentation before ensuring your assets to the third party.
To date, there are a lot of ways you can buy Bitcoin for fiat. However, often such platforms either charge fabulous fees, or are limited to a very small range of payment methods, or are prohibited on the territory of certain countries. This article has collected the fastest, most convenient, and safest ways to make a fiat-to-Bitcoin exchange. You can choose the service that seems to you the most convenient and less expensive.