The emergence of cryptocurrency has depicted the fact that the future is all about digital money. Crypto trading has made a drastic impact in the currency world, and we can say that this form of money is all you will need in the upcoming times. Bitcoin is the most common cryptocurrency, and while masses are trading bitcoin today, many still don’t know how to buy Bitcoin in the first place. This article will clear all your confusion regarding buying bitcoin by explaining the five primary steps for purchasing bitcoin. Let’s get started.
1. Determine How Much You Can Invest
The cryptocurrency world is quite unpredictable, so it is important that you invest wisely in bitcoin as people have had their bad experiences with it, and many have seen their financial heyday because of it. The best way to decide how much you want to invest is by evaluating how much you would be at risk of losing if things go south.
A few years back, you could buy bitcoin for an insanely low rate, but the prices spiked in 2017 when the bitcoin rate jumped to $20,000. Today, the value of one bitcoin is a whopping $55,000 and reached a peak of almost $64,000 in April 2021.
So, it’s best if you take out some amount as your backup, and then you can decide how much you’d like to invest in bitcoin.
2. Select a Method to Buy Bitcoin
The hardest part of buying bitcoin is determining how much you should invest, and once you have done that, the next step is to decide where you will buy bitcoin from. Some people like to buy bitcoin by peer-to-peer trading, online exchanges, crypto trading platforms, and OTC; online exchanges and crypto trading platforms are the most common method used for buying bitcoin.
If you want to buy bitcoin easily without encountering any difficulties, then opting for crypto trading platforms is the best way to do it; furthermore, you can purchase bitcoin from trading platforms at a much less expensive rate, which is another reason why the trading platform is better than any other way for buying bitcoin.
The online exchange is also a great way to buy bitcoin, and most investors trade via online exchanges, but there are a lot of things you should be careful of if you opt for this method.
3. Opt for a Bitcoin Exchange Platform
If you choose to buy bitcoins through a bitcoin trading platform, then the next step is to choose a suitable and reliable platform. Every bitcoin exchange platform has its pros and cons, so running in-depth research before opting for them will surely be the best thing to do for a smooth experience.
When selecting a trading platform, it is crucial to take their additional fees into consideration as many exchanges require you to pay a deposit and withdrawal fees along with an additional amount. Trading fees might be a little hefty, but as you keep on trading, it will reduce gradually.
4. Choose a Secure Bitcoin Wallet
When buying bitcoin, it is important that you don’t store it in cryptocurrency exchange platforms as they will have complete control over your bitcoin this way; however, storing in a secure bitcoin wallet doesn’t allow any third party to interfere with your bitcoins.
5. Select a Payment Method
There are a ton of payment methods available to investors through which they can pay for the cryptocurrency they purchase. Wire transfers, PayPal, cryptocurrencies, credit and debit cards are some of the most common methods. Paying with other cryptocurrencies is a way better method as it is quicker than bank or wire transfer.
The best and most effective way to have a smooth experience in cryptocurrency and face the least obstacle is by keeping in mind that you won’t be becoming a millionaire within one day, and you will have to go through some highs and lows, but in the end, it will be worth it.
This guide has all the necessary steps one would need to know before getting into the cryptocurrency business. It can be a huge help for beginners who are trying to figure out how to buy Bitcoin and invest their money wisely.