In today’s world, cryptocurrency is the trending investment option. Different types of cryptocurrencies have been developed over the years, bitcoin being the most popular among those. Functioning on blockchain technology, cryptocurrency is nothing but a form of digital currency.
Despite its price volatility, bitcoin has been one of the most popular cryptocurrencies. With time, investing in bitcoin has become more accessible and an increasing number of people are starting to invest. But a lot of investors are asking how to buy bitcoin.
How to buy bitcoin?
Here are four simple steps that can help you understand how to buy bitcoin with ease.
1. Select a crypto exchange
In order to purchase bitcoins or any cryptocurrency, the first thing you will need is a cryptocurrency exchange. As bitcoins become an increasingly popular investment opportunity, there are thousands of cryptocurrency exchanges in the market. However, if you are a beginner in bitcoin investment, choose an exchange that is low-cost but provides high security. Make sure that your chosen cryptocurrency exchange has a built-in bitcoin wallet.
You can choose from options like Gemini, Finance.US, Coinbase, and other similar options. One can also purchase cryptocurrencies over platforms like PayPal, Venmo, and the like.
2. Choose a payment option
Once you have chosen a cryptocurrency exchange, the next step is to fund your account so that you can begin buying bitcoins. Depending on the options available on your cryptocurrency exchange, one can fund their account through bank transfers from savings or checking accounts, PayPal, wire transfer, a cryptocurrency wallet, or credit or debit cards. Keep an eye on the transaction fees charged by these modes of transfer and choose an option that suits you the best. Remember, the transaction fees reduce how much you can invest in bitcoins.
3. Order away
Once you have successfully funded your account, you can start ordering bitcoins. You can either order a bitcoin with a simple click or may have to use a Bitcoin Ticker Symbol (BTC), depending on the platform you have chosen. Subsequently, enter the amount of money you want to invest. After successful completion of the transaction, you will own a portion of Bitcoin. Purchasing an entire bitcoin requires a huge upfront investment.
4. Choose a safe storage option for your bitcoins
Finding a safe storage space is the most integral step in buying bitcoin. Bitcoins are a form of digital currency and unless they are stored in safe storage options, there is a high possibility of losing access to your bitcoins. Some people store their bitcoins in the integrated Bitcoin wallet that comes along with their crypto exchange. Some people do not prefer to leave their bitcoins on the internet as it becomes prone to hacking and use something known as cold storage. Most of the major cryptocurrency exchanges have private insurance policies to reimburse clients in cases of bitcoin hacking.
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It has been observed that due to its many advantages, cryptocurrency has revolutionized a large part of the traditional financial systems and may even replace the traditional financial system in the near future. People prefer more time-effective and cost-effective financial systems over the tedious process of going through traditional banks.
Moreover, bitcoins are not controlled by any single entity and so, investors exercise a higher degree of freedom and can often escape heavy transaction costs charged by banks and the State.
Since its discovery, bitcoin has seen meteoric growth in valuation. Statistics suggest a 30,000% increase in value between October 2013 and June 2021.
It is believed by financial analysts that this growth could be higher with the integration of blockchain technology and cryptocurrency in people’s daily lives. Remember, bitcoins are highly volatile when it comes to their value. Needless to say, the value of bitcoins has seen both immense highs as well as devastating lows. So, beware of the risks before investing in bitcoins.