Now every person on the planet has heard about bitcoin. It aroused the greatest interest at its peak in 2017. And the beginning of 2021 was a landmark in the growth of bitcoin. Bitcoin price was above $ 40,000.
Now more and more newcomers are interested in bitcoin. Any beginner in the crypto world asks the question:
How to buy bitcoin? How to buy with low commissions? Or without them at all.
First, let's take a look at what bitcoin is
Bitcoin is a program that is installed on a computer. A feature of this program is that it is installed not on one computer, but immediately on all computers that communicate with each other using it. In the course of the program, coins are credited, the so-called satoshi.
Satoshi is an integral part of Bitcoin. Like cents in dollars. Only there are much more than 100,000,000 Satoshi in one bitcoin. The number of bitcoins issued is limited, there can be no more than 21 million.
More and more people are joining the program every day. Therefore, getting bitcoins becomes more difficult.
You ask, for what bitcoins are credited to those who installed the program?
The people who installed the program are called miners. They use their computers to support the Bitcoin network. And they get bitcoins for this.
Network support is that the program generates a series of self-regulating tasks and solves them. With the arrival of new users, the tasks become more and more difficult. Therefore, the time and processor power for these tasks becomes more and more difficult. And at the same time, coins are mined, it is less and more difficult.
The mined bitcoins must be stored on special addresses - a bitcoin address.
A Bitcoin address is a long combination of letters and numbers. It is received by users (miners and other contributors) who have installed the computer program. The address does not contain information about who created it.
Bitcoin addresses are of several types:
- legacy (standard, high commission);
- P2SH (standard, medium commissions);
- Bech32 (high defense, lowest fees).
You can see how many bitcoins the network has credited you with using a blockchain browser or a bitcoin wallet.
If you send bitcoin, the network charges you a transaction fee. The commission does not depend on the amount of bitcoins you transfer. The commission is set by the network, that is, by the miners. Miners are interested in processing a transaction with a higher commission. They thus earn bitcoins. Therefore, if you put the commission above the network commission, then your transaction will go faster. If the net is lower, you will wait longer. The wait can range from 1 minute to several days, in various cases.
A transaction is considered sent if it received at least 2 network confirmations.
As mentioned above, you can see how many bitcoins you have through a blockchain explorer or using a crypto wallet.
You can get a bitcoin address using a crypto wallet. To do this, you need to download the application of a wallet. Then create an account and go through user verification and get permission for the limit of input / output of cryptocurrency and fiat currencies, if the wallet supports them. After going through all the operations, you will be given the opportunity to generate a bitcoin address. You can use this address in the future to buy bitcoin, view the balance, send bitcoin, exchange bitcoin for other cryptocurrencies or fiat currencies, send bitcoin to the address of the cryptocurrency exchange for further trading.
How to buy bitcoin?
The easiest way is to buy on a cryptocurrency exchange. To do this, you need to create an account on the exchange. Pass the KYC / AML check. Get the limit on the deposit and withdrawal of coins. Buying on the exchange is more of a bitcoin trading, which consists in placing the correct order (at a bargain price) to buy.
Some exchanges provide the ability to buy bitcoin through plastic cards.
The next way to buy bitcoin using payment systems on a crypto exchange for dollars, hryvnia, euro, ruble and other fiat currencies.
The third way to buy bitcoin is through an exchange. There are many exchangers, all of them can be seen on the bestchange website. Exchangers also have cryptocurrency exchanges. You can have an account on the exchange, and quickly make a purchase of bitcoin through the exchange's exchanger.
& gt; The fourth purchase method is through a cryptocurrency wallet. To do this, you need to download the crypto wallet application. Then create an account. Top up your wallet account with cryptocurrency supported by the wallet. After replenishment, go to the exchange section and exchange cryptocurrency for bitcoin. Some crypto wallets offer buying bitcoin from your debit card.
To the fifth method pBitcoin payback can be attributed to the purchase of Bitcoin using payment systems. Some payment systems allow their customers to buy bitcoin in their wallets. There are two ways - this is an exchange in the payment system itself or on the exchange.
Such a purchase is no different from the previous methods. You also need to create an account in the payment system, pass user verification. By the way, in payment systems, verification is very simple, fast and fairly small commissions.
Each person, making in their daily life purchases of various goods and services, asks the question of cost. In cases where intermediaries are involved in the purchase, the question arises of the cost of intermediaries' services. When buying bitcoin, there are also intermediaries: crypto exchanges, crypto wallets, payment systems, exchangers. Let's consider the commissions for each of them.
When depositing funds (cryptocurrency) to the exchange wallet, the exchange does not charge a commission for the input. You only pay the cryptocurrency network for forwarding the transaction if you exchange bitcoin for another crypt. If you transfer crypto from the wallet to the address of the exchange wallet, then you will still need to throw the crypts into the wallet for the transfer.
When trading on the exchange, in order to buy bitcoin, you will need to pay a trading commission. This is from 0.1% to 0.2% per trade.
And of course, we must not forget about the exchange commission for withdrawing funds. More accurate figures can be found on the websites of the exchanges in the COMMISSIONS section.
When buying bitcoin, wallets take out the network commission and their own commission.
Payment systems and exchangers, when buying bitcoin from plastic cards, withdraw the bank's commission for transferring funds to the system account; network fee for sending bitcoin. And their commissions for the exchange, which range from 1 to 5%.
More precise figures can be found on the websites and in the applications in the COMMISSION sections.
Before making a purchase of bitcoin, it is necessary to study in detail the commissions on crypto exchanges. The entire list of exchanges can be seen on the rating sites coinmarketcap, coingecko, cryptocompare.
Study the commissions for the exchange in crypto exchangers in detail. List of exchangers, including those that exchange bitcoin with minimal commissions at bestchange. The bulk of exchangers operate on the territory of Ukraine.
And do not forget about safety, but more on that in the next article.