Bitcoin has been increasing since its launch in 2009: for example, from October 2013 to early June 2021, its value increased by nearly 30,000%. Although this growth is incredible in itself, some analysts say that the value of Bitcoin as a cryptocurrency may continue to rise. The blockchain technology they run is becoming more and more popular and integrated into people’s daily lives. There is a big buyer of bitcoin, but be careful: although it has experienced tremendous ups and downs, it has also fallen to devastating lows. For example, buy bitcoin. Its value fell in 2017 and rose to no more than half of that value by 2020. Although it has shown an upward trend since then, it is still a very volatile investment, and Elon Musk’s early tweets may cause losses. I recommend that you invest a small portion of your capital in Bitcoin.
1. First, you should pick a Crypto Exchange to buy bitcoin
To buy Bitcoin or any other cryptocurrency, you need a cryptocurrency exchange where buyers and sellers meet to exchange U.S. dollars for coins. If you haven’t already, check out our top picks for the best cryptocurrency exchanges such as Coin base, Gemini, and Binance.US. Please check if your exchange has a Bitcoin wallet built into its platform if you refer to an exchange. If not, you will have to find your own. You can also buy your cryptocurrency on platforms such as Robin Hood, PayPal, or Venmo. However, buying cryptocurrency in this way usually means that you cannot withdraw your tokens and transfer them to another platform. If you want to keep your cryptocurrency in a different wallet, you will need to sell your stock and repurchase it on another exchange.
2. Choose a Payment Preference to buy bitcoin
The first fall, you need to fund your account before you can start investing in Bitcoin. Depending on the exchange, after choosing an exchange, you can fund your account via bank transfer from a checking or savings account, PayPal, bank transfer, cryptocurrency wallet, or even a credit or debit card. However, please note that the platform may charge higher transaction fees for specific financing options. For example, when you transfer money from a bank account, Coin base does not charge a fee. 2.5% of bank transfer and transaction amount when using PayPal.
If you buy cryptocurrency directly with PayPal or a debit card, instead of topping up your account and then using the transferred funds to make a purchase, it will become more expensive: Coin base fees increase to 3.99% of the transaction amount. Credit card transaction fees on other platforms are usually at least as high. Since fees reduce the amount you can invest (and reduce the amount you need to grow and grow), it makes sense to use bank transfers instead of other methods. When you use a credit card to buy cryptocurrency, it is usually treated as a cash advance, with an interest rate higher than the interest rate you pay with regular commissions. Borrowing to buy volatile assets is also extremely risky.
3. Put an Order
Once your account is funded, you can place an order to buy Bitcoin. After completing the transaction, you will get a share of Bitcoin. This is because buying a single Bitcoin now requires a significant initial investment. When the current Bitcoin price is 38,000 USD, for example, this is how much you must invest in buying Bitcoin. If you invest less, say $1,000, you will receive a certain percentage of Bitcoin, in this case, 0.026%.
4. Run-through Safe Storage
Many exchanges allow you to keep your investments in your account, which is easier for most novices. Still, if you want to protect your digital assets further, you can transfer them to a cryptocurrency wallet.
5. Selling Bitcoin easily
When you decide to sell Bitcoins, you can place a sell order through the exchange, just like you originally bought Bitcoins. Most exchanges offer different types of orders, so all you can do is decide whether Bitcoin will reach a specific price, or you can place an order and process it immediately. You can sell all Bitcoins or only a certain amount of Bitcoins. After the sale, you can transfer the funds to your bank account. However, there may be a retention period before it is transferred to your bank account. This is not a concern; it only takes a while to ensure that the transaction is clean.
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