In this blog post, we'll explore the best ways to purchase your first Bitcoin.
Exchanges
One of the most popular methods to buy Bitcoin is through online exchanges. These are places where you need to sign up, deposit your funds, and then manually purchase your Bitcoin. This Bitcoin is then stored on the exchange, whereby it can stay here or be withdrawn to another wallet address, such as in cold storage or with another exchange.
Exchanges have their benefits and costs. One great benefit of buying Bitcoin on an exchange is the independent nature of the transaction; you don't tend to have to rely on another party to purchase, the market is the market and you can purchase from it. Exchanges may also offer a host of services such as yielding crypto, competitions or derivatives trading.
With this said, exchanges do come with their drawbacks; they often have extremely slow customer support, experience issues with depositing funds, charge burdensome fees, require the holding of their own crypto token to reduce fees, are arguably less secure than other means of storage and may be subject to price slippage upon the purchase of crypto assets (if purchasing larger amounts, the market can move as a result of your purchase).
Some popular exchanges include Binance, FTX, KuCoin, Coinbase and Kraken.
Crypto Brokers
A broker in any space can be a helpful way of facilitating trade, this is especially the case in an industry as new, innovative and complex as crypto.
Crypto Brokers are those that perform an array of functions, from helping you purchase, store or even earn yield on your crypto all under the guidance of a personal broker. A broker can help you through the process of purchasing your first Bitcoins with ease and help answer any questions you may have along the way - this can be achieved directly, or by responding to advertisements on peer to peer exchanges such as Local Bitcoins or Paxful.
There are many benefits to having your own personal broker. Being able to talk to a real person in an age where chatbots, lengthy phone calls and poor customer support characterise many different industries is invaluable. If you have any issues with the process, you can simply contact your broker to resolve it. This personal element can also lend itself to guidance from an industry expert, if guidance is required.
While brokers may operate on peer to peer exchanges like Local Bitcoins, they can also facilitate Over The Counter (direct) transactions. Depending on the means and timing of purchase, Over The Counter transactions may be less subject to moving the market. Other benefits of using brokers can also be superior prices, knowledge imparted of how to store your Bitcoin, and the ability to Earn your yield.
There are of course certain drawbacks; many brokers tend to operate in an unregulated fashion where Anti Money Laundering Checks are not performed and some brokers use bots thereby reducing the customer support because responses are automated. Lastly, some offered purchase rates can be high.
Whether you experience the downsides when purchasing Bitcoin from your broker depends on the broker, as like with exchanges, they are all different.
Introducing SatoshiDeals
Buy, Sell and Access Crypto with SatoshiDeals, an authorised personal crypto broker.
SatoshiDeals offer exceptional customer service and market leading rates. We pride ourselves in guiding customers through purchasing cryptos while answering questions they may have along the way.
If you are looking to purchase crypto or Bitcoin for the first time, or if you are a repeat customer, SatoshiDeals is the broker to use. For more information on the advantages of having your own personal broker, please click the link to find out more.
We partner with Trezor, a market leading custodial wallet provider for the everyday user who wants to hold their own cryptocurrency securely. Please find our referral links below:
"10/10 service really quick, very friendly will be returning. Best service on here by far!" – Local Bitcoins Customer