Currently, buying and selling bitcoins is as easy as downloading apps for smartphones.
1) Join a Bitcoin exchange
First, you need to determine where you want to make a purchase of Bitcoins. Most Bitcoin investors use cryptocurrency exchanges. There is no official “Bitcoin” company because it is an open source technology, but there are several different exchanges that facilitate Bitcoin transactions. These exchanges are the intermediaries of investments in cryptocurrencies, as a stockbroker.
If you decide to buy from a bag, you will have to decide which bag you want to buy from. Here are some of the most popular options:
Coinbase: a very popular exchange encryption that guarantees losses in the event of security breaches or fraudulent transfers
Bitfinex: the longest-lasting cryptocurrency exchange, optimized for advanced traders and creditors (unfortunately, Bitfinex does not currently accept US customers)
Make a strategy of the company’s strengths and weaknesses.
2) Get a Bitcoin wallet
When you buy a currency, it is stored in a “wallet”, where all of your cryptocurrencies are stored. There are two types of wallets that you can get: a “hot wallet” or a “cold wallet”.
A hot wallet is a wallet operated by your cryptocurrency exchange or a provider. Some exchanges will automatically provide you with a hot wallet when you open your account. In any case, hot wallets are convenient because you will be able to access your coins via the Internet or a software program.
Some notable important portfolios are:
Electrum: software that allows you to store your coins on your computer
Mycelium: a mobile-only app for Android and iPhone users
However, hot wallets are not the safest way to store coins. If the hot wallet provider gets hacked, your currency information may be at risk.
A cold wallet is the most secure method of storing your coins. A cold wallet is a real piece of hardware that stores your coins, usually a portable device similar to a flash drive. Most cold wallets cost between $ 60 to $ 100. Some popular cold wallets are:
If you are going to buy only small amounts of coins, then you can use a hot wallet with secured exchange encryption. But if you are going to trade large amounts of currencies, a cold wallet would be well worth your investment.
3) Connect your wallet to a bank account
After obtaining your wallet, you will need to link it to your bank account. This allows you to buy coins and sell coins. Alternatively, your bank account can be linked to your cryptocurrency exchange account.
4) Place your Bitcoin order
You are now ready to buy Bitcoin. Your cryptocurrency purse will have everything you need to buy. The big question is: how much Bitcoin should you buy?
Some currencies cost thousands of dollars, but exchanges often allow you to buy fractions of a single currency – your initial investment can be as low as $ 25.
Investing in Bitcoin is very risky and it is important that you carefully determine your risk tolerance and analyze your investment strategy before buying any Bitcoin. We will see this in the next section.
5) Manage your Bitcoin investments After purchasing bitcoin, you can:
Use your currencies to make online transactions
Hold your coins for a long time in the hope that they will have value
Conduct daily trades with your currencies, that is, buying and selling currencies with other Bitcoin owners, which can be facilitated in cryptocurrency exchange
Your cryptocurrency exchange will provide you with everything you need to buy and sell coins.
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We recommend reading our other posts so as not to be fooled when buying your precious Bitcoins.
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