How to buy Bitcoins at Binance?
Are you looking for a clear guide to buying bitcoin on Binance? Then this page is the right place for you! With these 3 simple steps, you can buy bitcoins directly from Binance.
Step 1: Open an account on Binance
Don’t have an account on Binance yet? Then open an account with Binance right away by using the button below & get a 20% permanent friend discount:
Opening an account to buy bitcoins is easy: enter an email address and password. You will then need to enter the confirmation code you receive to activate your account. It is advisable to confirm your identity so that you do not have any limits on your account. It is also important to secure your account properly to prevent hacks. We have written a useful guide about this:
Step 2: Deposit money or crypto on your Binance account
At Binance, you can exchange both cash and other cryptos for bitcoin. Before you can start trading Bitcoin, you need to add funds to your account. To do this, navigate to your wallet by pressing Wallet and Spot within your account.
Then press the Deposit button. You can deposit both cryptos and cash here. Do you need help with depositing funds into your Binance account? In this article we will help you on your way.
Step 3: Buy Bitcoin
After you have deposited money into your account, you can immediately buy your first bitcoin. To do this, navigate via Trade to Convert. This is the easiest way to buy bitcoin from Binance. Here you can indicate what you to exchange for bitcoin: this can be euros, for example, or Ethereum.
You can also specify the type of order you want to use:
- Limit Order: You buy bitcoin at a specified price.
- Market order: you buy bitcoin at the available price.
With a limit order, you know for sure that you will not pay more than you specify. However, there is a risk that your order will not be executed. With a market order, your bitcoins are bought outright, but there is a risk that you end up paying more than you intended.
When you are satisfied with your order, you can press the preview conversion button. You will then see how much you would receive. If you are satisfied you can immediately execute your order: congratulations, you have now bought your first bitcoin with Binance!
Strategies for buying bitcoin
Timing the perfect time to buy bitcoin is difficult. You can get lucky and buy bitcoin at the right time. If you do this, you will make a nice profit. However, it is also possible to buy bitcoin at the wrong moment and lose a lot.
For most users, it is therefore wise to make use of dollar cost averaging. This means that you deposit a fixed amount periodically (e.g. monthly). As a result, you will sometimes receive less or more Bitcoin for your money. By dollar cost averaging, you benefit from the average return on Bitcoin.
At Binance, you can easily buy bitcoin periodically and automatically. You can use the Recurring Buy option to achieve this.
What is Bitcoin?
For those of you who have been lying under a rock, let us explain once again what Bitcoin really is. Bitcoin is a form of digital money that is completely decentralized. When you use the euro or dollar, there is always a third-party controlling the transaction. As a result, your transactions are never completely private, and you often pay high transaction fees.
Bitcoin is the first ‘digital currency’ to use the blockchain. The blockchain contains all the transactions ever executed and is approved according to a complex protocol. Every participant in the network owns a copy of this blockchain, which makes it practically impossible to add false transactions.
What makes Bitcoin interesting as an investment is that there is only a limited supply. There will never be more than 21 million Bitcoin on the market. When the demand increases in the future, the price will probably go up. Of course, there are also plenty of risks and the Bitcoin could become worthless. Therefore, it is important to remember that Bitcoin is very risky & volatile.
Is it wise to buy Bitcoin?
It is difficult to answer yes or no to this question. Whether it is smart to buy bitcoin with Binance depends on your personal situation.
If you are willing to take greater risks and if you have a long-time horizon, investing in cryptos can be appealing. If you are looking for stable investments, bitcoin is not a wise choice.
It also depends on whether you see Bitcoin as digital money or as a means of speculation. People from countries with high inflation may find Bitcoin an attractive alternative to their own currency. Bitcoin is volatile, but many currencies are even more volatile because of inflation.
Take a moment to consider whether Bitcoin fits in your investing portfolio. Only invest in Bitcoin if it suits your personal financial goals.
Why buy bitcoin on Binance?
Binance is the largest crypto exchange in the world, and they did not achieve this overnight. Binance is extremely fast: they can process over 1,400,000 orders per second. They also have a fund (the SAFU), which insures the bitcoins in your account in case of possible hacks. The fact that they are the largest exchange also means that volumes are high, which makes it easy to sell your bitcoin again.
What can you do with your Bitcoin?
You can hold your bitcoin in your Binance wallet or actively trade them with the trader. It is also possible to stake your bitcoin: you will then periodically receive a fixed return on your crypto. This is somewhat comparable to the dividend you receive on shares. In this article, you can read in more detail how this works.