Despite its volatility, Bitcoin (BTC) has weathered the drama and is quickly becoming the new smart way to invest. But navigating the cryptocurrency sphere can be quite the journey, so you should do your research.
Luckily, investing in this promising new product is becoming easier every year. If you've been interested in taking the cryptocurrency plunge, but don't know where to start, don't worry, we've got you covered on buying your first BTC!
Read on to learn the simple steps involved to buy Bitcoin cryptocurrency securely and with minimal fees.
Find a Wallet
One of the products Bitcoin has pioneered is the virtual wallet.
A cryptocurrency wallet is a safe way to store your Bitcoin. As you may already know, Bitcoins are not really coins at all, but a type of virtual currency accessed via "keys." The keys refer to an address that is visible to anyone.
To access Bitcoin stored at your address and make transactions, you need easy access to these private keys. The keys are obviously valuable, so you also need to keep them safe, and that's where a cryptocurrency wallet comes in.
There are several types of wallets out there, but most can be divided into two types: software and hardware wallets.
Software Wallets
Also known as hot wallets, software wallets store your keys for easy online access. Often, software wallets come in the form of mobile wallets, meaning you can access your keys and make transactions directly from your phone.
While the blockchain ledger model is widely considered to be safe, many hackers have successfully stolen Bitcoin. When you store your keys in a hot wallet, you entrust access to your assets to the wallet provider, which can get hacked.
Most Bitcoin thievery happens via third-party companies whose security gets breached. So, buyer beware! Many experts suggest not using wallet services offered through cryptocurrency exchanges for precisely this reason.
Hardware Wallets
Hardware wallets, or cold storage wallets, allow you to store Bitcoin offline. These types of wallets are generally considered the safest and run the least risk of hacking.
Functioning like a password-protected flash drive, hardware storage devices can sell for as little as $50. Cold wallets may be the best option if you own massive amounts of Bitcoin you're storing for the long haul.
Other types of hard wallets include paper wallets, on which you can print your Bitcoin keys in the form of a scannable QR code.
Whether you need lock-tight security or security with flexibility, you can find the type of storage you need if you shop around. Here a list of the best Bitcoin wallets on the market.
Fund Your Wallet
Not only is a wallet where you can safely store your Bitcoin, but it's also a means of purchasing new investments. So after you've found a reliable, safe wallet, your next step is to fund your trading.
Connect your bank account or your payment of choice. Thanks to wallets, you can buy Bitcoin with a credit card. These days you can even use an ATM machine to buy Bitcoin or other cryptos!
Popular payment platforms like Square are starting to offer wallet services, too. You can even buy Bitcoin with PayPal through their recently-offered wallets as well.
Keep in mind that transactions using a traditional bank account can take up to five days to process, especially if they go through mega-sites like Coinbase. If you're a serious Bitcoin trader, all of this lag time can translate to a loss.
A service like a BTM can shave time and fees off of your Bitcoin transactions. By transmitting your trades over several nodes, miners can acknowledge and process your transaction with greater efficiency.
Find an Exchange
Now that the important preliminary stuff is out of the way, the question you've been waiting for.
How Do You Buy Bitcoin?
The answer of where to buy Bitcoin (BTC) is on a crypto exchange. And, since Bitcoin's explosion, a slew of exchange platforms have popped up.
A cryptocurrency exchange is a place where you can buy and sell Bitcoin. Most exchanges deal in many types of cryptocurrencies, not just Bitcoin. So if you are interested in alternative cryptocurrencies to BTC, like Ethereum, EOS, Shiba Inu, Dogecoin, or LiteCoin, you can use an exchange to dabble in different coin products.
Some of the most popular exchanges include:
• Coinbase
• Cashapp
• Bisq
• Bitstamp
• Kraken
• Robinhood
And this is just a tiny sampling of what's out there. There are hundreds of cryptocurrency exchanges in existence. Now you can even buy Bitcoin ETFs!
Coinbase, while popular with beginners because of its easy-to-use platform, is the most comprehensive. You can find around fifty of the most popular currencies, including Bitcoin and Ethereum.
With so many trading platforms around, the choices can be mindboggling. Check out this list of the best cryptocurrency trading sites to get started.
Keep in mind that there is an exchange fee you'll need to consider, and this can vary by platform. Trading fees can be as low as a fraction of a percent to upwards of 2-3% for sites like Coinbase, whose fees are known in the industry to be some of the highest.
Alternative Ways to Invest
All of this can sound a little daunting, but don't be scared off from buying BTC cryptocurrency! Even though getting started with Bitcoin is easy as ever, there are even easier ways to wet your beak in the crypto craze.
Companies are packaging crypto assets (and blockchain industry assets, in general) into familiar products, like trusts and index funds. If you're interested in going through traditional channels but still want to benefit from blockchain's growing popularity, consider these options:
• Bitwise 10 Crypto Index Fund
• Greyscale's Bitcoin Investment Trust
• Amplify Transformational Data Sharing (BLOK)
• Swan Bitcoin (easy, wallet-less, Bitcoin trading platform)
Even though these investments still carry blockchain's volatility, they're a good way to gain broad exposure to the different types of blockchain assets, including cryptocurrencies.
Buy Bitcoin Today
By all accounts, Bitcoin's future is bright. Many experts think BTC could go as high as a million dollars within the next decade. With so much promise and so many ways to enter the market, there's no excuse not to purchase Bitcoins crypto.
Do some research, then buy Bitcoin cryptocurrency, so you don't miss out on its stellar growth! Click here for more sources and reliable cryptocurrency updates to stay updated and gain strategic insights into your trading methods.
Crypto Conclusion
Knowledge is power when it comes to Bitcoin and other crypto. Read more valuable cryptocurrency and blockchain articles on the rest of this website by visiting the Crypto section of Bootstrap Business.
