ESSENTIAL GUIDE TO BUYING BITCOIN FOR BEGINNERS
Buying Bitcoin should be easy, right? Just similar to buying groceries online or offline? Frustratingly bitcoin can be challenging to purchase despite having numerous platforms providing the service, especially for first-timers and newbies. You need not worry anymore; help is here: we will walk you through the process just like a baby learning to take the first step.
At Shinobi, we understand the problem newbies and first-timers face when taking advantage of soaring crypto prices in the market. Cryptocurrencies’ values fluctuate by the clock due to their high volatility, perhaps riskier than stocks, but that’s the fun part because it generates significant returns. Do you feel Frustrated? Do you feel helpless in those moments? We understand first-hand what it feels like to be in such positions. That is why we provide you with insights into the buying process.
What do I need to invest in Bitcoin?
Shockingly, you don’t need much to invest in bitcoin. All you need is:
- Personal Identification Documents
- Bank account
- A secure internet connection
With Shinobi wallet, we make it seamless.
How to Buy Cryptocurrency
- Choose an exchange
2. Get a bitcoin wallet
3. Connect wallet to a bank account
4. Place an order
5. Manage your investment
Are you feeling anxious already? I suggest you tighten your seatbelt the ride is about to be explosive.
- Choose an exchange: Just as a child learns to take the first steps, let’s figure out what exchange means; A cryptocurrency exchange is a platform for buying and selling cryptocurrency. Each exchange has its rules for buying, selling and trading cryptocurrencies. Still a bit confused? Relax, we’ve got you; there are two types of exchanges CENTRALISED EXCHANGE (CEX) and DECENTRALISED EXCHANGE (DEX)
· A centralised exchange (CEX): It is a platform to buy and sell digital assets cryptocurrency inclusive. In this type of exchange, third parties monitor and secure transactions on your behalf. The blockchain system does not track these transactions. Centralised exchanges require users to verify their personal information before using their provided tools. The verified users on these exchanges get to enjoy a higher withdrawal quota and other customer support in case of any technical error.
· A decentralised exchange (DEX): share certain similarities with a centralised exchange. The most distinct feature is the absence of third parties, and transactions do not require third parties. The funds on the exchange are encrypted and kept on the blockchain.
It is better to choose an exchange you trust. A reputable exchange provides its users with solid structures such as superior security, low fees, storage, easy deposit and withdrawal options, and an educational resource; Shinobi wallet has spent the last 12 months creating these structures for our growing customer base.
2. Get a bitcoin wallet: Now, we have made our first step. Certain factors guide our decision when considering what wallet is best for us. For instance, purchasing needs and purpose are significant in the decision-making process. It can range from investment purposes to daily trading; whatever the conditions are, Shinobi got you covered! Shinobi wallet is the most accessible and user-friendly way to manage your bitcoin. Shinobi is a free wallet, and it supports other coins. You set up your shinobi wallet by following these easy steps:
· Go to the App Store (iOS) or Google Play store (Android)
· Search and download Shinobi.
· Open the app and write down your recovery phrase. Very important, this will be the backup to your wallet!
· Set a strong password
· Add bitcoin to your wallet
· Use your receiving address to receive bitcoin
Voila! You’ve got yourself a wallet. A vital takeaway is never to store your recovery phrase digitally in the event of a cyber-attack. Your wallet won’t be vulnerable to attacks as they are safely stored on a piece of paper stored somewhere in your house.
3. Connect wallet to a bank account: Are you feeling confident already? Next, now that you’ve gotten a wallet, you will need to fund your account to start investing or trading. Depending on the platform, most exchanges allow users to purchase cryptocurrencies (Bitcoin, Ethereum, Solana, Polkadot and a host of others are supported by shinobi wallet) using fiat currencies such as USD or EUR a debit or credit card. It is worth knowing that exchanges may charge fees; in addition to transaction fees, deposit and withdrawal transaction fees may apply. And the prices you pay for deposits or withdrawals from your account usually depend on the payment method.
4. Place an order: You are now prepared to purchase your first bitcoin! Congratulations on making it this far. Now that you have a payment method link, the process of placing an order (Buy/Sell) may vary depending on the exchange with shinobi wallet. It is relatively easy and seamless. Quite ambiguous? Relax! We will walk you through the easy steps.
· Select the order type [Buy] or [Sell]
· Enter the amount you would like to [Buy]or [Sell]
· Confirm the order
The type of order you choose will affect the price at which the order is executed. There are three types of orders: Market orders, Limit orders and Stop orders. Exchanges offer their users three orders: spot, margin, and futures trading. Are you getting confused? Let’s clarify what spot, margin and futures trading mean.
- Spot Trading: is when users place “buy” or “sell” orders on the open market to be filled as soon as the price hits their specific target.
- Margin Trading: is when a user “borrows” funds from others to trade more than they can afford, and many exchanges allow up to 20 times the trader’s capital.
- Futures Trading: is when two parties agree on a certain price at a specific future date for any supported coin on the exchange.
5 Manage your investment: 😌 What a ride it has been! Most exchanges would allow their users to leave their investment in their account, beginners especially we aren’t beginners anymore, so let’s manage our digital assets by transferring them to our already downloaded Shinobi wallet.