Like most things, when you are new to them, buying cryptocurrency can seem a little tricky!
You need someone to walk you through it the first time...
In this article, I will show you how you can buy Bitcoin, the world’s most popular cryptocurrency, on Binance, which is currently the most popular exchange.
So let's get into it!
So, How do you Sign Up to Binance?
When you first open up Binance, it should look a little something like this.
You can sign up via your email or by using your Gmail or Apple ID.
Once you specify your email, you will receive a verification code on this email to confirm that it is indeed yours.
So, after verifying your email, set up your password, and voila!
...you just created your very own Binance account!
But, before you can actually use Binance services, they still need to know more about you….
Let’s Look at How to Verify your Identity on Binance
You can verify your account either by using your phone or your PC, but mobile is probably the easier way to go about it.
If you're on your PC, have your phone nearby, and make sure you have the Binance app installed beforehand.
Then, simply scan the QR code that shows up on your screen to proceed with the process on your phone.
You will need to enter all of the relevant personal information to move forward.
This includes your nationality, your legal name, and your date of birth.
Next, you’ll need to upload a document like your driver's license or national identity card, along with a selfie.
Once you're done, you will have to wait until Binance clears your documents and gives you the green light.
This step usually only takes about 15 minutes but can sometimes be longer.
You will receive an email about your verification status once Binance has reviewed your documents.
If your identity is verified, you can finally get to the fun part!
So, How Do you Buy Bitcoin?
There are a couple of different ways you can buy Bitcoin on an exchange like Binance.
For instance, you can trade money for Bitcoin with another individual on the network, known as P2P trading.
However, that is a bit advanced right now, so let's hold off on that one.
Another method you can use is a bank transfer.
For instance, if you're in the US, you can use the ACH and domestic wire transfer options.
However, that option may not be available to you depending on your geolocation and the fiat currency you're planning on using.
That brings us to the last option.
The easiest way for you to buy Bitcoin is by using a debit or credit card.
To start, you click on the 'Buy Crypto' option in the upper left corner of the Binance home screen.
Then, choose the crypto you want to buy and which currency you'll be using.
In our case, we're using USD to buy Bitcoin. But you can also use Euro instead of USD depending on what suits you.
Click on 'Buy BTC' to move to the next step.
Now, you specify how you plan on paying for your Bitcoin - a payment method.
Most of you should have the option to use popular money transfer apps like Wise and Skrill.
But perhaps the most readily accessible method to buy Bitcoin on Binance is through a bank card.
If you just signed up on Binance, you may not have added any card details yet
The details you have to add include your card number, expiration date, and CVV.
Once you have added your card details, hit 'Confirm.'
The card you just added should then be selected for payment purposes.
Before you actually initiate the transaction, Binance shows you the exact number of Bitcoin you will get for the amount you are spending.
It also shows you the fee you will be charged, which should be minimal.
Once you hit 'Confirm,' Binance will take you to your bank's payment window.
The transaction should only take a couple of seconds to process.
Once the transaction is processed, you will receive a confirmation email.
You should see your freshly bought Bitcoin in your Binance wallet.
How Does my Binance Wallet work?
So, let's take a quick tour of your Binance wallet.
If you click on the 'Fiat and Spot' tab in the upper right corner after your transaction is processed, you will see an overview of your assets in the Binance Wallet.
You can actually get a good idea of how the assets in your wallet have been performing recently, both individually and as a whole, from here.
The overall performance is reflected by the Profit and Loss figures in the upper right corner beside the 'Estimated balance' of your assets as a whole.
And if you're looking for numbers specific to each asset, scroll down to get those details for each of your cryptos.
Another section you should know about after buying your Bitcoin is the 'Wallet Overview.'
You see, the Binance Wallet has sub-sections.
You can think of these as separate mini wallets of your overall Binance Wallet.
Each of these has a specific function.
The mini wallets you need to be most familiar with are the 'Spot' and 'Funding' wallets.
The Spot wallet is for general exchange-related trading.
On the other hand, the Funding wallet is specific for P2P trading.
Once you start dabbling in crypto a bit, you may often have your crypto jumping from your Funding wallet to your Spot wallet and vice versa.
For example, if you buy Bitcoin using P2P, you will receive your coins in the Funding wallet.
To use your Bitcoin for trading on Binance, you will then need to transfer it to the Spot wallet.
It’s a kind of separation to help you focus on how much of your money to allocate to specific goals.
The Wallet Overview section gives you an idea about how many of your assets are in your Spot Wallet Vs. your Funding Wallet and the other options where you can place your assets.
So now you know how to buy and have some oversight over your Bitcoin.
But is it always best to leave it on the server?
How can I transfer Bitcoin off of Binance?
So, you might want to do this when you are looking to stake the crypto you bought for the best returns on another platform.
Or maybe you just want to send some of your assets to a friend.
Well, it's quite easy to withdraw your coins.
In the 'Wallet Overview' section, click on the 'Withdraw' button.
On the Withdrawal screen, you need to enter all of the relevant details.
This includes the coin you want to send, the amount, and the address you want to send to.
Once you’ve completed and confirmed the transaction, you should receive an email about the withdrawal.
But here is an important question to ask since we are talking about withdrawing your assets.
People are often uneasy about keeping their assets on an exchange in fear of a hack.
To safeguard your Bitcoin, you could keep it in a more personal wallet.
But, what kind of wallet should you use?
There are two main types of wallets you can use.
The first, and the kind I would recommend to you as a beginner, are hot wallets.
These wallets are kind of like a digital bank account for your crypto.
They are connected to the internet, which is why they are called "hot" wallets—kind of like a gadget that’s always plugged in, right?
A good example of a wallet you can use for your Bitcoin is Exodus.
Being connected to the internet does make them more of a security risk, but they are more efficient and easier to use than cold wallets.
Cold wallets are generally not connected to the internet.
They are typically physical objects and portable, like USB sticks.
A good example of this kind of wallet is the Ledger Nano X.
While these wallets may be a little more tricky to use, they can become easier to deal with once you get a little familiar with them, as they are very strong against hacking attacks.
Although I recommend hot wallets for you since they're more accessible, you should choose the kind of wallet that suits you best based on your priorities.
You can always switch to a cold wallet down the line when you've got a little more experience with crypto on your hands.
Conclusion
So there you go!
In this article, you saw exactly how to buy Bitcoin on the Binance platform.
Starting with the basics, you learned how to create an account, verify your email, and ensure that your Binance account remains uniquely yours.
Then came the exciting part: buying Bitcoin!
I showed you the various methods available, focusing on simplicity with a debit or credit card.
You explored the inner workings of the Binance wallet, giving you information on how assets are managed, categorized, and transferred within the platform.
And because the crypto world isn't just about buying, you also learned about how to withdraw your assets.
There are a number of choices available for safeguarding your precious Bitcoin, whether hot wallets like Exodus to ultra-secure cold wallets such as the Ledger Nano X.
Well, that’s it for this article - I hope you enjoyed it!
