A complete guide and precautions for beginners to buy Bitcoin

With the rapid development of digital currencies, Bitcoin, as one of the most representative cryptocurrencies, has attracted more and more investors, especially novices. Bitcoin is not only an investment tool, but also a part of the future financial system. However, for many novices who have just come into contact with this field, how to buy Bitcoin correctly and avoid potential risks has become an urgent problem to be solved. This article will comprehensively analyze how novices can buy Bitcoin, as well as the matters that need to be paid attention to during the purchase process, to help you walk more steadily on this road full of opportunities and challenges.

 Understanding the basic concepts of Bitcoin

Before you go deeper into purchasing, you first need to have a basic understanding of Bitcoin. Bitcoin is a decentralized digital currency proposed by Satoshi Nakamoto in 2009. Its biggest feature is that it is based on blockchain technology, and all transaction records are stored on a distributed ledger, ensuring the transparency and security of transactions. The total amount of Bitcoin is limited to 21 million pieces, and this scarcity allows for a certain amount of room for improvement in value.

For newcomers, it is crucial to understand how Bitcoin works. Bitcoin transactions are verified by "miners", who are rewarded with Bitcoins by solving complex mathematical problems. This process not only maintains the security of the network, but also provides the power for the generation of Bitcoins.

 Choose the right trading platform

The first step to buying Bitcoin is to choose a suitable trading platform. There are many Bitcoin trading platforms on the market, such as Binance, Huobi, Coinbase, etc. Each platform has its own characteristics and advantages. Here are a few factors to consider when choosing a trading platform:

1. Security: It is crucial to choose a platform with high security. You can check the platform's security history, user reviews and other information to ensure that it has a good record in protecting user funds.

2. Transaction fees: The transaction fees of each platform vary greatly. Understanding the transaction fee structure of each transaction can help you save costs when purchasing.

3. User experience: A user-friendly interface can greatly reduce the learning cost for novices. You can choose platforms that provide simple and clear operation processes.

4. Supported payment methods: Different platforms support different payment methods. Some platforms support credit cards and debit cards, while others support bank transfers. It is very important to choose a platform that meets your needs.

5. Customer Support: Good customer support can help you get problems solved quickly. You can first consult online customer service or email to understand the platform's response speed and service quality.

 Create a digital wallet

Before buying Bitcoin, you need to have a digital wallet to store your Bitcoin. There are many types of digital wallets, mainly divided into hot wallets and cold wallets.

- Hot wallet: Hot wallet refers to an online wallet that facilitates quick transactions but is relatively less secure. It is suitable for users who trade frequently, such as accounts at exchanges.

- Cold wallet: A cold wallet is an offline storage method, such as a hardware wallet or paper wallet, which is highly secure and suitable for users who hold Bitcoin for a long time.

For novices, you can choose a hot wallet to trade in the early stage, but after accumulating a certain amount of Bitcoin, it is best to transfer it to a cold wallet to ensure the safety of your assets.

 Steps to buy Bitcoin

1. Register an account: To register an account on a selected trading platform, you usually need to provide information such as email address, mobile phone number, and conduct identity verification.

2. Recharge funds: According to the platform's requirements, select a suitable payment method to recharge funds into your trading account. Please note that you must confirm the relevant fees when recharging.

3. Place an order to buy: After the funds arrive, you can choose to buy Bitcoin. There are generally two ways to place an order: market order and limit order. Market order is executed immediately according to the current market price, while limit order sets a price and will only be executed when the market price reaches that price.

4. Confirm the transaction: Before confirming the purchase, carefully check the transaction information, including quantity, price, handling fee, etc., and make sure it is correct before confirming.

5. Transfer to wallet: After the purchase is completed, transfer the Bitcoin to your own digital wallet in time to ensure the safety of your assets.

 Precautions and Risk Management

Although Bitcoin has great investment potential, it also comes with high risks. Here are some things that novices need to pay special attention to when buying Bitcoin:

1. Market volatility: Bitcoin prices fluctuate greatly and may rise or fall sharply in a short period of time. Therefore, investors need to have a certain psychological tolerance and not blindly chase the rise and fall.

2. Investment amount: For beginners, it is recommended not to invest too much, especially when you first start to get involved in Bitcoin. You can start with a small investment and gradually understand the market.

3. Beware of fraud: As Bitcoin becomes more popular, fraud cases are also emerging. Be wary of projects that promise high returns and make sure to trade on a formal platform.

4. Keep learning: Bitcoin and its related technologies are developing rapidly. As an investor, you should keep paying attention to and learning about the market and adjust your investment strategy in a timely manner.

5. Diversified investment: It is not recommended to invest all funds in Bitcoin. You can consider other digital assets for diversified investment to reduce risks.

 Summary and Outlook

As an emerging investment tool, Bitcoin is gradually changing the landscape of traditional finance. Although its investment risk is relatively high, reasonable investment strategies and risk management can help novices find their own opportunities in this market. In the process of buying Bitcoin, understanding the basic concepts, choosing the right platform, creating a secure wallet, placing orders carefully, and keeping learning are all key to ensure that you go further on this investment path.

In the future, with the continuous development of blockchain technology, the application scenarios of Bitcoin will become more and more extensive. Whether as a payment tool or a means of storing value, Bitcoin has potential that cannot be ignored. For novice investors, understanding and grasping this opportunity may help them occupy a place in the future financial world. I hope that every novice can gain not only an increase in wealth in the journey of buying Bitcoin, but also a deeper understanding and grasp of the financial world.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

According to market data, after approaching $20,000 in December 2017, Bitcoin experienced a crash. A year later, the value of Bitcoin plummeted to $3,000. Recently, the price of Bitcoin has returned to its peak. On December 21, 2020, Bitcoin even created a new historical high of $24,287.75, which has also set off a buying frenzy for Bitcoin in the market. So, how can novices buy Bitcoin? The following editor of the currency circle will tell you about it and popularize what are the precautions for novices to buy Bitcoin?
 How do newbies buy Bitcoin?
If a novice wants to buy Bitcoin, the first thing to consider is how to choose a safe platform. When choosing a platform, try to choose the industry's leading exchanges, which are relatively more secure, have a long history, strong risk resistance, and a higher reliability coefficient. For example, many people use trading platforms, so the editor of the currency circle will take the OKEX trading platform as an example to tell you how novices can buy Bitcoin?
1. Account Registration
1\. Open the official website, click the [ ] button in the upper right corner of the page to enter the registration page, and enter the email address on the homepage.
2\. Slide the slider to the right, complete the puzzle for verification, and then enter the verification code received in the email. The verification code is valid for 10 minutes.
3. Then enter your mobile phone number and click "Verify Now"
4. Enter the six-digit verification code received on your mobile phone, which is also valid for 10 minutes
5. Select your country of residence, check the Terms of Service, Risk and Compliance Disclosure, and Privacy Policy and Statement
6. The password you create must be 8-32 characters long, contain 1 lowercase letter, 1 uppercase letter, 1 number, and 1 symbol, such as: ! @  $ % etc.
7. You must verify your identity (KYC verification) before you can conduct transactions. On the homepage, click [Personal Center] - [Identity Authentication] to conduct identity authentication.
Note:
(1) The higher the certification level, the easier it is to match better merchants and more favorable prices when conducting fiat currency transactions.
(2) The official website cannot perform LV.3 video authentication. Please download the OuYi APP to complete the authentication.
2. Quickly buy coins:
1. First log in to the OKEX official website account, and click "Buy Coins"--"C2C Buy Coins" on the page to enter the trading page.
2. Select an experienced merchant based on the amount and payment method you want to purchase, and click "Buy USDT"
3. After buying USDT, click "Trade"--"Basic Trading" to enter the trading page
4. Select the BTC/USDT trading pair to see the real-time BTC market.
5. Fill in the BTC quantity to be purchased and click Buy. If you want to sell, fill in the BTC quantity to be sold and click Sell. Note: The minimum BTC transaction amount is 0.00001BTC
 Summary of things to note for novices buying Bitcoin
1. Strictly control stop loss and prevent risks. Investment can allow losses, but losses must be controlled within an acceptable range. Therefore, strictly setting stop loss is the first step for investors to make profits. People often complain that the losses are serious, so why don't you do a good job of stop loss? Others blindly go long when the market rises, and go short when the market falls. This kind of situation of chasing ups and downs is a taboo in investment. Yanwen has always emphasized that no matter how much the market fluctuates, stop loss must be brought, generally 60-100 points.
2. Strictly control the stop-profit. Yanwen repeatedly emphasized that the profit target should be 100-200 points every time when making a layout. When the target point is reached, the stop-profit should be gradually expanded. This will prevent some people from making little profit. Why do they make little profit? It is time to think about it. The market trend is clear and you can obviously get more profit. Why not get it gradually? Follow the above operation strategy, make profits gradually, maximize profits, and then exit in time to secure the profits. Short-term operation is to seize the profits of the band market.
3. Make a good plan to keep your profit. Before the troops move, the food and grass must go first. Before entering the market, investors should first make a comprehensive prediction of today's market trend and set their profit and loss range scientifically. Only with a big direction and plan, and a planned order, can you effectively obtain profits. Some people don't look at the points, don't look at the entry time, and want to do all the orders. As a result, at the end of the day, it's a small matter if they don't make a profit, but it's very depressing if they lose money. They are busy all day and get nothing, and they are nervous. It's really not worth it. So it's very necessary to make a good plan.
4. Follow the trend and summarize experience. The most important principle of investment is to follow the trend. Only by following the market's direction can investors make profits more safely. You cannot insist on buying short when the market is clearly going up, or go long when the market is going down. Don't you know that those who follow the trend will prosper, and those who go against the trend will perish.
When investors are trading Bitcoin, they must learn to read the Bitcoin K-line chart, because the K-line of a digital currency can analyze the situation of the digital currency. For example, if the K-line chart shows that the trading volume is very small, then this digital currency is not worth buying. In addition, if the digital currency only rises and never falls, or only falls and never rises, investors should not buy it. Of course, how to use the K-line chart requires investors to study for a long time before they can make more professional judgments.