Bitcoin has surged in popularity over the past few years. Digital currency has been a hot topic among investors, businesses, and the general public. But with its rising profile has come an abundance of information about how to buy bitcoin, store it, send it, and even sell it again if you want to cash out your investment. But for many people who are interested in buying bitcoin for the first time, the process can seem confusing and complicated.
However, buying bitcoin needn’t be difficult. Here, we will take you through some useful tips on how to buy bitcoin. Whether you’re new to cryptocurrency or just need a handy refresher, this guide will help you understand what investing in bitcoin means and why it is a safe bet right now – and also give you insight into where the virtual currency is headed in the future.
Decide How to Buy Bitcoin
First thing that you’ll have to do before you buy any cryptocurrency is thinking how you’re going to purchase it. You have plenty of option to do this, and each has its own advantages and disadvantages.
You can buy bitcoin:
- Through a cryptocurrency broker: Brokers are companies that buy and sell cryptocurrencies on their own accounts and then facilitate the transaction by providing you with an account to which they will send the purchased cryptocurrency.
- From a friend or family member: If you know anyone who owns bitcoin, you can ask them to sell a portion of their holdings to you or accept payment in the form of bitcoin for something you sell them.
- At a bitcoin ATM: You can also find bitcoin ATMs in a growing number of locations around the world, where you can use cash to purchase bitcoin by depositing it into the machine.
- Through a peer-to-peer trading platform: Finally, you can exchange cash for bitcoins directly from other users on a peer-to-peer platforms.
Find a cryptocurrency exchange
A cryptocurrency exchange is where you can purchase bitcoin and other cryptocurrencies. Before you choose an exchange, it is important to do your research on the benefits and drawbacks of each platform. Some exchanges will offer lower fees, others will have a wider selection of cryptocurrencies, and some will have a reputation for being safer than others.
When you find an exchange that you’re interested in, make sure to create an account, set up two-factor authentication to make your account extra secure, and read over the exchange’s terms of service to understand how they operate. When you sign up for an exchange, you’ll be required to provide some personal information, including your name, your contact information, and an authentication wallet address.
You’ll be asked to supply this information so that the exchange can transfer your purchased bitcoin to your account. Make sure that the wallet address you supply is one that is fully controlled by you and not a joint account with someone else.
Identify the type of Bitcoin investment you want to make
If you decide to buy bitcoin, you’ll first have to decide how much of your money you want to invest in the cryptocurrency. As with any investment, it’s a good idea to start small and then increase your investment once you’ve mastered the process.
You can purchase bitcoins in increments as small as $10. Once you’ve decided how much you want to invest, you’ll need to decide how long you want to hold onto your bitcoin before selling it. To determine this, you’ll need to consider a couple of things.
First, you’ll want to think about the current state of the bitcoin market. Are people generally optimistic about the future of bitcoin? Or are they pessimistic? You can get a general idea of this by reading articles about the topic and paying attention to what the media is saying about bitcoin.
Second, you’ll want to consider the amount of time it takes for your purchased bitcoin to be deposited into your account. Some exchanges will take less time than others.
Set up Your Account and Understand the Process
When you’ve decided which exchange you want to purchase your bitcoin from, you’ll have to set up an account with that platform. The first thing you’ll need to do is provide your name and contact information as well as a valid email address and perhaps a phone number. Make sure you use a valid email address because some exchanges will send you an email confirmation that you need to confirm before you can begin trading on their platform.
This is an important security measure because it helps to keep hackers out of the system. Once you’ve set up your account, you’ll be asked to create a password, and you’ll also likely be asked to provide some verification information like your full name, a government-issued ID, or a copy of your utility bill to confirm your identity.
Be prepared to wait a few days while the exchange verifies your information. Some exchanges are swifter than others, but generally, you can expect to have your account verified within a few business days.
Don’t forget to set a limit and always stay safe!
You should always set a limit for how much money you’re willing to lose. Because bitcoin and other cryptocurrencies are so volatile, it’s possible to lose a significant amount of money in a very short period of time. Therefore, it’s important to set a target amount that you’re willing to lose before you start trading.
Furthermore, it’s important to keep your personal information safe when using an exchange. Make sure you never share your password with anyone and don’t log into your account while using a public computer. Finally, always remember that cryptocurrency exchanges are not banks.
They are not regulated like financial institutions, and they are not required to provide the same level of customer service. If you have a problem with your exchange, there’s a good chance that somebody will be able to help you out over the phone.
The Bottom Line
Many people are interested in buying bitcoin as a way of diversifying their investment portfolio, and for a good reason. Many experts agree that bitcoin is a safe bet right now. If you’ve been considering buying bitcoin, now is a good time to get started.
There are a number of different ways to get your hands on some cryptocurrency, and the process of buying bitcoin needn’t be complicated. As long as you’re prepared to do a bit of research, you’ll be able to find an exchange, set up an account, and buy bitcoin in no time.