As you’d find with NFL draft events, investing in Bitcoin is also supposed to provide investors with lucrative sources of opportunity to make money in the best way possible. But as a beginner starting out, it may be quite challenging for you to know where exactly to begin when you want to go about buying Bitcoins. In this guide, we will be providing you with different ways you can go about investing in Bitcoin without coming across dodgy sites or being led astray.
Table of Contents
Understanding Bitcoin
As you do your research, you’ll begin to see that the main way you can buy Bitcoin is through stockbrokers and exchanges. But before you go in to purchase this cryptocurrency, be sure to be fully aware of the advantages and disadvantages associated with investing in digital assets like Bitcoin.
For someone that’s used to traditional financial products, the thought of understanding unfamiliar landscapes, like cryptocurrency, can seem a bit challenging at first. While Bitcoin is known to be a risky investment with highly volatile markets, you should have a clear goal and strategy on how you intend to go about this.
Bitcoin happens to be a dominating force to run all available forms of cryptocurrency, however, since Bitcoin was mainly developed to be used as a payment system, many investors gravitate to it for more simplistic reasons.
How To Buy Bitcoin
Decide Where You Will Buy Bitcoin
Cryptocurrency exchanges offer several cryptocurrency choices that investors can choose between. Traditional stockbrokers also do the same, however, investors also have the opportunity to buy and sell Bitcoin on such platforms that can sometimes do this at no additional charges. Other ways that you can also buy Bitcoin include:
- Bitcoin ATMs
- Peer-to-peer bitcoin owners
- Exchange-traded funds
- Grayscale funds
As you go about preparing to buy Bitcoin, always have important information on hand. This will include things like your social security numbers, banking details, and card details. In some cases, you may be asked to provide a picture of your ID as well. Avoid using a credit card at all times since borrowing funds from high-interest products like these can prove to be a bad choice in the long run. Also, it’s always best to use a private internet connection so that all your financial transactions done online remain protected.
Make A Decision On How To Store Bitcoin
There are two kinds of digital wallets that you can use to store your Bitcoin, namely hot wallets and cold wallets.
With hot wallets, you have the advantage of experiencing faster transactions. Here, your investment is stored with a trusted provider located in a cloud and you can access through your computer browser or mobile app using an internet connection. Leading hot wallet providers that you can consider registering with include:
- Coinbase
- Electrum
- Blockchain
- Mycelium
With cold wallets, you have the advantage of having added security measures to your wallet to keep your assets safe. Cold wallets are usually small portable devices that come encrypted to allow you to download your Bitcoin and carry it around. These can typically cost roughly $100 but because of the added security, they can be worthwhile. Leading cold wallet providers that you can consider registering with include:
- Trezor
- Ledger Nano
As you go about creating your hot or cold digital wallet, it’s worth noting that it would be in your best interests to use strong passwords and two-factor authentication at all times.
Make The Bitcoin Purchase
After creating the digital wallet, the next step will involve you needing to link the digital wallet to the Bitcoin exchange platform that you’re registered on. Once this is done, you will then decide how much Bitcoin you want to buy as an investor. While buying whole Bitcoins can prove to be on the rather pricey side, you can also opt to buy and sell the coin at a fractional share of its value. This creates the opportunity for investors with a limited budget to also have a piece of the pie.
Make Sure You Manage Your Investment
By being a day trader, you can buy and sell your Bitcoin when you see an opportunity to do so. But if you’re seeing this from a digital currency perspective, you may think of wanting to buy Bitcoin for the long haul. Either way, be sure to manage your investment accordingly.
