Crypto For Beginners: How to Buy and Invest In Bitcoin
Bitcoin has become all the rage over the past year. The price of Bitcoin went up in 2020 like crazy. This led many people to rush to invest in this cryptocurrency.
The interest in Bitcoin continues in 2021 as many believe it will keep going up to the moon. If you haven’t invested in Bitcoin, you still have time.
If you’re new to Bitcoin and want to start buying it, this guide is for you. Read this crypto for beginners guide to learn everything you need to know how to buy and invest in Bitcoin.
Table of Contents
Bitcoin is a type of cryptocurrency or digital currency. A person or a group of people using the name “Satoshi Nakamoto” are behind Bitcoin. The real creator(s) of Bitcoin aren’t known to the public.
Bitcoin came out in 2009 as open-source software. Bitcoin isn’t a physical coin. It’s a virtual currency found on a public ledger that everyone can access.
Blockchain is the ledger that keeps track of the coins and their owners. A bank or government doesn’t control this crypto. A decentralized authority operates Bitcoin.
You may be asking, “What can I use Bitcoin for?” Once you buy Bitcoin, you can use it for online transactions. Some of the biggest companies are now accepting Bitcoin as a form of payment.
Cryptocurrency investing is nothing to fear. There are so many opportunities to invest in this crypto. There’s a reason why Bitcoin has become the most popular cryptocurrency in the world.
Now that you know more about Bitcoin, you’re ready to start investing in Bitcoin. It’s easier than ever to buy Bitcoin. One of the most popular ways to buy Bitcoin is through a cryptocurrency exchange. Suppose you’re ready to step in and make your first purchase because the cryptocurrency market spread is in your favour. In that case, it is time to decide and be mindful of your options. Not all exchange platforms are the same.
A cryptocurrency exchange allows users to buy, sell, and hold their Bitcoin. If you’re looking to open an account with an Exchange, you have different options to choose from.
Most exchanges will ask you to enter your personal information to create an account. You’ll have to provide your name, SSN, and address, among other personal information. Once you enter this information, the exchange will verify your identity.
Have your personal documents on hand. The exchange will ask you to upload pictures of your driver’s license and SS card.
If everything is in order, you’ll be able to open the account. You can then turn your attention to connecting the exchange to a payment option.
You can connect your bank account or a debit card. Most exchanges allow users to connect a credit card. Do take into account that exchanges charge a fee for using a payment option.
Once everything is set up, you can start to buy Bitcoin. To buy Bitcoin, select the amount you want to buy. Each exchange offers buying options that allow users to make recurring investments.
Refer to the exchange’s tutorial to learn how to use it. This is your best bet, so you avoid making a mistake.
Other Buying Options
Exchanges aren’t the only way to buy Bitcoin. You can buy Bitcoin through a Bitcoin ATM. The concept is the same as using a bank ATM.
You locate a Bitcoin ATM that you can insert cash in. It will process the transaction and give you a receipt to verify it.
This is becoming a popular method to buy Bitcoin. These are the places where you can find Bitcoin ATMs near you.
You can also choose to buy Bitcoin through a P2P exchange. This type of exchange isn’t decentralized like the ones we just discussed. Bitcoin transactions are made between users.
When you buy Bitcoin through a P2P exchange, you’ll know the user’s identity who sells you the Bitcoin. You can choose who you want to make a transaction with.
Securing Your Bitcoin
You have to make sure that you keep your Bitcoin secure. The good news is that there are several options you can choose from to help you keep your precious Bitcoin safe.
Digital wallets allow users to store their Bitcoins and maintain control over it. Wallets are a great way to keep your Bitcoin secure as they offer you a private key that works like a password.
Here’s a word of advice. Write down the private key and place it in a secure location. Without the private key may not be able to access your Bitcoin if you happen to lose the app that serves as your wallet.
Types of Wallets
There are two types of wallets. A cold wallet and a hot wallet. They both offer different features that attract Bitcoin owners.
The hot wallet works with private keys. You can download this type of wallet on your phone as an app. It’s best to keep a small quantity of cryptocurrency that you plan to invest in an exchange.
A cold wallet isn’t connected to the Internet. This is a hardware wallet that resembles a USB drive device. You can connect it to your computer if you need to check your Bitcoin.
There’s an argument that cold wallets are better than hot wallets. Cold wallets have a lesser chance of being compromised. In this type of wallet, the private keys are offline.
Investing in Crypto for Beginners
Now that you have read this crypto for beginners guide, you can use a ton of information to buy Bitcoin. This is a type of cryptocurrency you should invest in.
All signs point to Bitcoin going up. Don’t wait any longer. Get a piece of the pie now by buying Bitcoin.
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