The world is becoming more reliant on the internet. Hence, it’s not surprising that bitcoin, a global, digital, and secure currency, has captured the interest of many investors. This currency is open to every person and may provide exciting opportunities to delve into a new asset class. Investing in bitcoins may seem complicated, but it may be easier when it’s narrowed to various guidelines. Some of these guidelines are outlined below.
- Know Where to Purchase
Coinbase is the largest and most respected platform to buy Bitcoins in the US. This platform provides both hardware wallets and exchanges, making it one of the best. It also supports other Cryptocurrencies, such as Litecoin, Ethereum, and Bitcoin Cash.
After signing up on the platform, you may transfer your cash and convert it to bitcoins. The charges are variable of 1.49% for transactions in the US from Coinbase USD wallet or bank account, while purchases with debit or credit cards retract a fixed fee of 3.99%. Apart from Coinbase platform, you can also consider other businesses like:
- Square Cash
- Coinbase Pro
- Learn How to Store
Like keeping credit cards and cash on physical wallets, bitcoins are also stored in wallets. This digital way of storing these currencies may be in the form of hardware wallets or desktop wallets. The hardware wallet is secure and may comprise of external devices, such as USB sticks that you may carry around. In addition to that, there are no personal details that are linked to the hardware, so your data can hardly leak. On the other, desktop wallets are easily accessible through personal security keys stored on the machine, but they can be vulnerable to hacking.
- Have a Bank Account
Buying bitcoins through a bank wire is a perfect way to get the cheapest rate. Depending on where you reside, there are different exchange rates, which will suit you. For instance, buying bitcoins through Bitpanda comes with relatively low fees, intuitive interface, and many payment options. Bitpanda also accepts SEPA transfer from Europe, and you may deposit three major fiat currencies through Swiss Franc, GBP, and Euro, but not USD. Other platforms you can buy Bitcoins from your bank account, include:
- Join a Bitcoin Exchange
Bitcoin users can buy coins from online marketplaces referred to as exchanges, similar to platforms, which traders use to purchase stock. Exchange connects you directly to bitcoin markets, where you may exchange your traditional coins for bitcoins.
Typically, there are reputable exchanges, which provide a one-stop solution with security standards. However, when choosing, it’s important to exercise due diligence to choose the right exchange platform, like Gemini and CEX.IO.
Buying bitcoins may be a great way to explore a new investment. The value of bitcoins across the world has improved from recent lows, but it still tradeoffs far below 2017 highs. Similar to other cryptocurrencies, bitcoins are more volatile than many other investments, like mutual funds, stocks, and bonds. Hence, the rule of thumb is to avoid investing more than 10% of your cash in risky stocks like bitcoins.