buying bitcoin – Cryptocurrencies had a record year in 2020. The price of Bitcoin went up to the moon last year. More people are seeking to invest in this crypto as they hope to see a big return.
It’s not too late to start investing in Bitcoin. You can do it too. All you need is the knowledge and resources to start on your investment journey.
This is your ultimate guide. It’ll make buying Bitcoin simple. Read it to learn everything you must know about buying Bitcoin.
What is bitcoin
You’re new to the world of Bitcoin? There are several things a new Bitcoin investor must know. You must know what this crypto is all about.
Bitcoin is a form of digital currency. Its origins date back to 2009 to when a person with the alias Satoshi Nakamoto created it. The identity of this person remains a mystery.
A blockchain network powers Bitcoin trading. Think about it as a database that spreads across different computers. It works without banks or governments.
The steps to buying bitcoin
Now that you know what Bitcoin is, you’re ready to learn how to buy Bitcoin. If you’re going to do so, you must do it right. Here are the steps you must follow.
1. Decide where to buy bitcoin
The first step you must take involves deciding where to buy your Bitcoin. You have different options to choose from.
One way to buy Bitcoin is through cryptocurrency exchanges. There are several popular exchanges that you can use.
Because you’re new to Bitcoin investing, you should explore the different exchanges. You’ll find that each one is unique. Take your time to explore the layout of each exchange.
The exchanges allow you to buy Bitcoin with fiat money, but you have to pay a small fee. You’ll want to use one that charges fees you’re comfortable paying.
You can use traditional brokers to buy and sell Bitcoin. Choose a platform that allows you to safeguard your Bitcoin investment. Also, make sure to use one that offers low transaction fees.
Did you know you can buy this crypto through a Bitcoin ATM? Yes, Bitcoin ATMs are the real deal. This is a great option for people who want a simple and secure way to buy Bitcoin.
Want to find a local Bitcoin ATM? Visit https://www.bytefederal.com/bitcoin-atm-near-me/ to find the best Bitcoin ATM near you.
2. Storing your bitcoin
Once you have your Bitcoin, you must decide where to store your crypto. You can store your Bitcoin on an exchange, but this might not be a good idea. Doing so can put your Bitcoin at risk for hacking.
If you use this type of storage option, you’re using a hot wallet. Most exchanges offer one to customers who open an account. You can access the wallet through the app or computer browser.
You’ll receive private keys. Think about it as a password that helps you access your Bitcoin.
Hot wallets are free to use. You can choose to transfer and store your Bitcoin in a third-party hot wallet. Make sure to read the hot wallet’s reviews before moving your Bitcoin to the wallet.
Cold wallets are also available. This type of wallet takes the form of a small, portable device. You can download your Bitcoin to the device and carry it around with you.
A cold wallet is more secure than a hot wallet as it’s encrypted. You can expect to pay as much as $100 for a cold wallet. It’s a good investment as it offers more protection.
3. Time to buy bitcoin
Once you link the wallet to the exchange, the next step is to buy your Bitcoin. You must decide how much Bitcoin you want to buy. The price of Bitcoin will vary, so it is important to execute your purchase at the price you want to buy for.
You might not have the means to buy one Bitcoin due to the high price, but you can buy fractional shares. The exchange you decide to use might have a minimum amount of Bitcoin you can buy.
Enter how much you want to buy and select your payment method. The exchange lists the payment methods available. Most exchanges allow you to link your bank account, thus making it easier for you to buy Bitcoin.
Next, you must preview the order. Make sure all the information is correct. Then you can confirm your order.
There you have it! You’re a new Bitcoin investor.
4. Manage your investment
You must learn how to manage your investment. This is crucial to your success as a Bitcoin investor.
You must learn how to assess the cryptocurrency market. You can be a day trader, or you can think like an investor.
You might want to buy and hold your Bitcoin for the long haul. This is a good idea if you believe that the price of Bitcoin will go up.
No matter what your investment plan is, you must have a strategy. It’ll help you avoid Bitcoin nightmares down the road.
Don’t invest money that you can’t afford to lose. You don’t find yourself in a situation that’ll leave you under financial hardship.
Track everything you do. Come tax season, Uncle Sam will be looking for his share. You must pay taxes on cryptocurrency-related income.
Use this guide to help you start buying bitcoin
If you want to start investing in Bitcoin, now is the perfect time to start. Use this guide to help you excel. You’ll find that buying Bitcoin is simple.
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