Depending on who you ask, Bitcoin can be a revolutionary invention with the potential to scrap out fiat money or just a fad. But one thing we can all agree on is that it’s disrupting the financial market and isn’t about to slow down soon.
The facts speak for themselves.
Starting at around just $0.08 per coin in 2010, Bitcoin quickly blew up to trade as high as $63,000 at its peak. From May 2020, Bitcoin has recorded a staggering 300% increase and continues to set and break its own records.
If you’ve thought about investing in Bitcoin but, because of either fear or doubt, have shelved your plans, here are three reasons to change your mind:
- High-security: Bitcoin is encrypted and protected by a blockchain system.
- Tested & proven strategy: People who’ve invested in Bitcoin from early on have seen massive returns.
- You’re in charge of your account and coins: Bitcoin is decentralized, which means you get to control what, where, and how you use your coins.
How to Buy Bitcoin- 3 Easy Steps
Buying Bitcoin can diversify your investment portfolio and help you attain the eventual goal of investing – building wealth.
Here’s how to buy bitcoin as a beginner in the world of cryptocurrency:
Pick a Crypto Exchange
You will need to set up what’s known as a wallet to hold your Bitcoin. You can create this wallet by signing up on a crypto exchange.
Cryptocurrency exchanges, sometimes known as digital currency exchange, allow customers to trade crypto and digital currencies with other financial assets. They are basically the middlemen of crypto. Examples of such platforms include Coinbase, Binance, Cash App, and Gemini.
Compare the different crypto platforms available to you before making your choice. Look into an exchange’s past and whether it’s experienced breaches you should be worried about.
Also, consider factors such as transaction fees, ease of use, security, limitations for your location, and customer support.
Load Your Account
Once you have a wallet to store and trade Bitcoin, the next logical step is to fund your account and order Bitcoin. You can make this using fiat money, i.e., USD, EUR, GBP, AUD, etc. Most mainstream exchanges accept PayPal, debit cards, wire transfers, etc.
The amount you load should depend on how much Bitcoin you want to buy. While one Bitcoin costs thousands of dollars, crypto exchanges allow you to buy a fraction of it.
Manage Your Wallet
In the first stages, you can focus on building your Bitcoin stack to a healthy level. But once you have a good amount, you can do any of these three things:
- Hold your coins until they appreciate in value and then sell;
- Start day trading (buying and selling) with other crypto traders;
- Perform online transactions.
Other Ways to Buy Bitcoin
Exchanges are popular and convenient, especially for beginners. However, you can buy Bitcoin through Bitcoin ATMs and peer-to-peer (P2P) exchange.
Even with its ups and downs, Bitcoin is one of the best ways to store and grow your digital investments. The steps highlighted above should help any beginner get started on their first purchase.
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