We have all witnessed the incredible rise of bitcoins since they were introduced in 2009. The subject is everywhere.
Most of us think of Bitcoin as some kind of ghost and unattainable. In addition, most of us are unaware of how to buy bitcoins and invest them.
However, it isn’t like that. Buying and investing in bitcoins isn’t just for millionaires, anyone can do it. The purpose of today’s discussion is to dispel myths about bitcoin buying and investing.
Nonetheless, we need to explore what bitcoin actually is first. Are you ready to dive into the world of cryptocurrencies? I am certain you will gain valuable insight into how to buy bitcoin and invest in cryptocurrencies smartly after reading this complete guide which is primarily designed for beginners.
How to buy bitcoins step-by-step
It is a little complicated figuring out how to buy bitcoin if you’re new to crypto. Fortunately, it’s not too hard to get started. In this beginners guide, we explain how you can buy bitcoin even if you have no previous experience.
Each of the methods mentioned below combines 3 main factors in a different way. Safety, expenses, and ups downs in the crypto industry.
Find the right cryptocurrency exchange
It is necessary to visit a crypto exchange where you can trade dollars for bitcoins in order to buy bitcoin or other cryptocurrencies. You can easily deal in, purchase, and keep bitcoins by registering on a crypto exchange.
As a starting trader, you should pick an exchange that blends convenience with reasonable charges and robust security. Crypto exchanges come in many varieties.
A number of cryptocurrency platforms offer anonymity by not requiring any sensitive information since bitcoin emphasizes autonomy and control. Interested in crypto exchanges but don’t know where to begin? Take the time to check out the best crypto exchanges.
“Do you know that Robinhood was the only major financial company that offered bitcoins in the majority of US states, but not in all of them”?
Ensure that your trading platform includes a bitcoin wallet; otherwise, you’ll have to purchase one separately. Among the leading exchanges for cryptocurrencies are Binance, Gemini, and Coinbase.
In addition to their standard trading interfaces, these companies offer user-friendly, easy purchase options, especially for beginners who are unfamiliar with stock trading.
A convenient interface does come with a price because easy-to-use options are significantly more expensive compared to standard trading interfaces across platforms. For cost savings, you may want to familiarize yourself with the major cryptocurrency exchanges prior to purchasing your first cryptocurrency.
Choose a payment method
Once you have decided which exchange you want, gather your personal documents and be ready.
Your exchange trading platform can ask you to submit documents like those mentioned below:
- Employer information
- Funding sources
- Number of the Social Security card
- Photographs of driving permit
Your region and laws can dictate what data you need to provide. Once the trading platform has confirmed your account credentials, you will need to set up your billing gateway.
In order to buy bitcoins, money must be deposited into your account via an investment forum. In most exchanges, your current or savings account can be used to deposit funds.
Credit cards can also be used to buy crypto, but the volatile nature of bitcoin prices could drive the overall cost up.
Send an order request
Now that you have connected your payment method, you are eligible to place an order for bitcoin. There are several online places that allow you to purchase Bitcoins by simply clicking a button or providing the Bitcoin ticker.
“Do you know that recent months have seen the value of individual bitcoin swing between $50k and $60k?”
With bitcoin, you are going to buy a small fraction of a coin. Whenever you put in funds, the trading platform will measure it as a % of your Bitcoin balance.
Let’s say that you have put in a minimum of $2k. How many bitcoins would you receive? You will receive 0.037% of the total (BTC).
Safe storage is essential
It is easiest for beginners to hold their funds within their accounts on many trading platforms. You can always move your e-assets to a bitcoin wallet if you want to make them more secure.
Almost every bitcoin exchange provides a crypto wallet or at the very least a secure service for keeping bitcoins safe. And if you keep your coins on your own, I mean in your own wallet, you are the only person with access to the security key.
It also enables you to keep your funds separate from an exchange company and reduces the possibility of your exchange getting compromised, resulting in the loss of all your funds.
Alternatively, you can utilize a 3rd party application or a physical device for ultimate security. Therefore, you can keep your bitcoin either offline (often referred to as cold storage) or online (of your own choosing). We will discuss cold data later in this article.
There may be a small transaction fee associated with the removal of crypto from a platform. And if you are easy with that you are good to go.
Bank Pricing Structure
The fee depends on your deposit method. Debit cards, credit cards, and bank transfers are the most common methods. Account transfers are also available. Keep in mind the associated fees before choosing the best payment option for yourself.
Fees charged by Coinbase
Coinbase is a solid exchange for beginners and has a 1.49% fee for bank accounts with a 3.99% fee for debit and credit cards.
A transaction fee is also charged by exchanges. Depending on the amount of the trade, this cost may be a percentage or flat rate. When using credit cards, a fee for processing is charged.
What is a bitcoin wallet and how does a bitcoin wallet work?
A virtual currency wallet or a bitcoin wallet is a secure location where an individual can keep their cryptocurrencies. The degree of protection possessed by the different wallets varies.
Many of them come with additional features. It is possible to store a wide variety of bitcoins on some sites, while others are bitcoin only. Some platforms also let you exchange tokens.
You have a number of options for selecting a crypto wallet. Also, crypto wallets are characterized by 2 main types of wallets with varying levels of protection, convenience, and unique benefits.
- Cold wallets are more like any physical wallet or paper wallet.
- Hot wallets are more like online wallets.
Let’s explore them individually.
The most basic idea of a cold wallet is that it does not rely upon the online world and is, therefore, less vulnerable to hacking. We can also refer to these (cold wallets) as cold storage or hardware wallets.
A cold wallet is a hardware wallet that holds cryptocurrencies exclusively on the hardware (offline). A USB drive is considered to be hardware here.
A paper wallet is one of the safest forms of keeping digital currency offline. A variety of sites offer the option of creating a paper wallet. This program generates both private and public keys for printing.
It is only possible to get the digital currency via these addresses if you hold the paper with your private key. Coating these paper wallets and locking them in a lockbox at the bank or in the house is a popular practice. Unlike traditional bitcoin wallets, these wallets are intended for long-term investments rather than quick sales.
It is the most reliable method of holding bitcoins and other digital currencies, however, the process of setting up a cold wallet requires more advanced expertise. When setting up your wallet, you should have these three things:
- Long-term storage of large holdings with a cold hardware wallet.
- Hot wallet where you can store modest reserves of cryptocurrency that you are planning to exchange or sell.
- A buying and selling account.
Type of wallets that are accessible through the internet and run on devices connected to the internet, for example, cellular devices, iPads, laptops, and PCs.
In spite of their accessibility, hot wallets pose a considerable risk of being hacked due to their connection to the internet. As a result, your bitcoins will be at risk because hot wallets synchronize your private keys on these online platforms. Various factors can cause this to happen, including:
- Publicly bragging on a community site like Reddit that you have a lot of bitcoin while maintaining minimal security seems counterproductive.
- If you are engaged in trading cryptocurrencies via an exchange, hot wallets are ideal for that purpose and also for holding limited sums of cryptocurrencies.
A glimpse of what is bitcoin?
Unlike traditional currencies, Bitcoin is decentralized. Yeah, we heard that term multiple times but what actually is bitcoin, and what does the term decentralized mean?
In simple terms, decentralization refers to the fact that no centralized authority stands behind Bitcoin. In comparison to traditional online payment methods, Bitcoin promises to charge lower fees for each transaction.
”Satoshi Nakamoto”, the enigmatic figure behind Bitcoin, laid out the theory in the white paper. However, the identity or identities of the people who created BTC remain a mystery.
In the last few years, it has been a wild ride, with many investors speculating on bitcoins and making fortunes. If you are thinking about buying this decentralized form of virtual cash, there are several ways to do so. Many traditional brokers and start-ups also sell them directly and through third parties.
Wanna know more about the best crypto? Here’s a list of the top 10 cryptocurrencies.
Does it have legal status in the United States?
Even though BTC is legally recognized in the US, still some banks are hesitant to grant or refuse funds to bitcoin brokers and websites. If you intend to deposit funds at your chosen exchange, you should double-check whether your bank allows it or not.
You should keep certain points in mind before buying bitcoins
In order to open a crypto account, you may need to provide personal information as described above (funding sources, social security card number, employer information, and photographs of a driving license).
Additionally, we encourage you not to make any kind of purchase such as (buying BTC online while traveling using public Wi-Fi).
The security and privacy of Bitcoin investors are of utmost importance. Just like if someone gets access to the private key of a Bitcoin address, they can approve purchases.
Thus, private keys need to be kept private in order to prevent criminals from stealing them.
Bitcoin Trades Are Transparent
Be aware that anybody can look at the contents of a public address of yours. On the blockchain, trades are displayed openly, but specific details about individuals are not.
Trades on the bitcoin network display only with a person’s publicly accessible key, which makes them discreet, but not anonymous. The ubiquity and tracking abilities of bitcoin payments make them superior to cash transfers in the way that they are all public to anyone, unlike anonymous payments. Yet they also provide a measure of anonymity.
The blockchain of BTC makes it hard to trace the parties involved in transactions, such as those sending and receiving bitcoin.
Some Other Best Ways To Buy Bitcoins
There are some trusted online platforms where you can also buy bitcoin. The prices associated with each platform differ. Without further ado, let’s begin.
Buy Bitcoins Via PayPal
PayPal, a trusted online payment service provider, also allows its users to sell and buy bitcoins on their platform. Buying and selling bitcoins with PayPal is as easy as any online payment you have ever made. There are 2 methods of buying bitcoins with PayPal.
- A checking account or debit card linked to your PayPal account is perhaps the easiest way to make a purchase.
- Alternatively, you can make the purchase of bitcoins using your PayPal balance from a 3rd-party vendor.
In contrast to the first option, the second alternative is not as handy because most of the websites cannot be used to purchase bitcoins with PayPal.
List of Cryptocurrencies you can buy with PayPal
Payments through PayPal can be made for four different types of cryptocurrencies.
- Bitcoin cash
Aside from those residing in Hawaii, anyone can use their PayPal account, whether created or already existing.
Cryptocurrencies you can buy via trading app
When you use a trading app such as Robinhood or Webulll, you can buy bitcoins. Meanwhile, Robin Hood does as he pleases by putting no markup on the digital currency but charges for the spread, which is not disclosed. Besides having coins at your disposal, you will be able to purchase other cryptographic assets. ETFs and stocks will also be available for purchase on a single platform. Webull on the other hand offers over 20 cryptocurrencies to trade. Nevertheless, you will be charged a spread of approximately 1% per trade.
Spread Fee Charges – 1% per trade.
Cryptocurrencies you can buy via Coinbase
With Coinbase, it is possible to purchase bitcoins and other digital currencies, in addition to creating a wallet. No doubt that Coinbase is a marketplace for cryptocurrencies you can purchase. Etherum, Bitcoin Cash, Bitcoin, and Solana are prominent cryptocurrencies that you can trade on Coinbase. Coinbase provides delay-sensitive transactions and secure storage.
Spread Fee Charges – 0.50% per trade (may vary based on funds and their size).
Cryptocurrencies you can buy via Bitcoin ATM
Bitcoin ATMs are another great way to buy bitcoins. Unfortunately, they charge a higher commission rate than others. Using a debit card or money, you can purchase bitcoins from ATMs as well as sell them. But for that purpose, you still need a bitcoin wallet to make it work.
Spread Fee Charges – 7% per trade.
Cryptocurrencies you can buy via Interactive Brokers
You can also buy and sell Bitcoin in direct exchange with interactive brokers as well as invest in other securities. Direct trading is available. Additionally, you will gain exposure to Litecoin, Bitcoin Cash, and Ethereum. You can also trade other securities with IB, giving you global access to securities.
Commission Charges – 0.12 – 0.18% per trade (depending on monthly income)
Broker Fee Charges – $10.02 per deal.
Top 10 Companies That Take Bitcoin As Payment
- Burger King
- Pizza Hut
- The Pirate Bay
The Best Way To Invest In Bitcoin
A bitcoin relies on an ingenious coding scheme called the blockchain, which distributes a unified code among thousands of computing devices. Let’s take a moment and suppose our coin is based on the following code – ZED125AXS. So here comes the role of blockchain. What blockchain will do is break the codes into smaller segments and distribute them among a number of computers. To access the entire code, a hacker would need to hack into various computers.
Five simple steps are required to invest in bitcoin.
- Become a member of a bitcoin exchange
- Set up a bitcoin wallet
- Link your bank account to your wallet
- Order bitcoins
- Invest in bitcoins and manage them
That’s fantastic. You are ready to invest in bitcoin.
Things You Can Buy With Bitcoin
If you are unsure about what you can buy with bitcoin, you will be surprised to discover what secrets are going to unfold here right now.
It is no secret that bitcoin is gaining popularity every day and lots of businesses have started to accept the existence of this digital currency. And in return for accepting the existence of this currency, they have started to sell their products in exchange for bitcoins.
Let’s see what companies are offering in return for bitcoin.
Expensive Rolex watches plus jewelry
Bitcoin is now accepted as payment for luxury goods by many manufacturers and merchants. Retailers like BitDials and JavyEstrella have opened their doors to cryptocurrency where you can buy “Rolex” and other premium watches plus jewelry.
Several automobile dealers now welcome cryptocurrency as a form of exchange. The directory includes a wide variety of dealerships offering Lamborghinis for sale in return for bitcoin.
Elon Musk, the man behind Tesla, has a passion for cryptocurrencies. In a tweet, Musk stated that he was in favor of bitcoin. This means Tesla recognizes bitcoin and has become a company that allows home buyers to purchase vehicles “Tesla 3” using bitcoin.
An insurance policy
The insurance industry has generally been cautious about adopting cryptocurrency. However, that is changing. The possibility of using bitcoins to purchase policies offered by insurance companies is now possible, although life insurance will remain out of reach.
Swiss insurance company revealed the acceptance of bitcoin as a payment method available across all areas of insurance.
Product mix of tech and E-commerce
A number of tech firms and online stores are now accepting bitcoin as an option on their sites. Microsoft, for example, only allows customers to use bitcoin on its web store but has no bitcoin button on its gaming service Xbox.
Top 10 Bitcoin Accepting stores
In addition to large corporations, there is a broad range of businesses that have started to accept bitcoin. Some of them are mentioned below:
- Euro Pacific
- BigFish Games
Why should anyone invest in bitcoin and wha
Some investors view Bitcoin as a digital gold coin, although it can also be used as a form of payment. You should invest in bitcoin because it offers a great return on investment.
Is bitcoin money?
In a way, it would not be wrong to say that Bitcoin has proven its worth and can be used for payments. So yeah, you could say that bitcoin is like digital money.
Is bitcoin worth investing in?
You will find a majority of people standing with bitcoin because it is the top-performing commodity on the global stage. Bitcoin has made many millionaires.
Is it too late for me to purchase bitcoin now?
It’s never too late to buy or invest in cryptocurrency. Just purchase it, hold it and wait for your moment to become a millionaire.
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