People often ponder upon the question- How to buy Bitcoin online? Bitcoin has been popular among all Cryptocurrencies, but many people get perplexed by the process of buying and using Bitcoins. Bitcoin is a digital currency that emerged in 2009. Since then, the value of this cyber currency has skyrocketed from just a few cents to over $20,000 per coin in December 2017.
Many people see Cryptocurrency as a tricky concept (possibly because people do not understand the technical methods involved), thus considering Cryptocurrency and NFTs a risky investment.
However, many people who invested in Bitcoin at its early stage are enjoying the high returns now. Investing in Bitcoin or any other Cryptocurrency is not as tedious a task as it may seem. If you’re considering buying Bitcoin or another Cryptocurrency, here are some handy tips for the same.
Currency markets are volatile, so it’s challenging to know when the right time is to buy or sell your investments. After all, we all want to invest our money wisely, so it grows as fast as possible. However, what if you could get more out of your investment? The tricky part is identifying which opportunities are safe and which involve too much risk. Let’s start with the procedure to buy Bitcoin, which is quite simple!
Important Points to consider while Buying Bitcoin
There are certain essential points to consider if you want to buy Bitcoin. Even if you’ve heard some people saying that it’s too late to profit from Bitcoin, it doesn’t make sense to jump in without doing your research first.
- Exchange: Where to buy Bitcoin? There are lots of online exchanges available where you can buy Bitcoin with the fiat currency of your choice. You can also purchase other cryptocurrencies such as Ethereum, Litecoin, and Ripple with your Bitcoin. The fiat currency is usually USD, EUR, or a few other currencies.
- Fees: What are the charges for trading Bitcoin? The price of bitcoin is much higher than it seems. Know if you can afford to buy bitcoin and how it will affect your current financial situation. Exchanges often charge a small fee for buying, selling, or withdrawing your investment. You may also have to pay taxes when you sell your Bitcoin, but remember that you are not required to pay taxes if you bought your investment years ago.
- Regulation: Is it legal to buy Bitcoin in India? Although it’s 100% legal to buy Bitcoin in India, it’s not legal in every country. It’s because governments worldwide have different views and opinions on cryptocurrencies. However, the United States government has recognized Bitcoin as a legal payment method, and other countries are likely to follow suit soon.
- Wallet: What is a wallet, and why do I need one? An online cryptocurrency wallet is a software program that stores your private key. It is a unique, encrypted code that lets you access your Bitcoin. Getting a wallet is a good idea if you want to invest in Bitcoin.
- Buy now or wait?: Should I buy Bitcoin now or remain until the price drops? It’s your decision whether you want to buy Bitcoin now or wait until the price drops. If you buy now, you could earn a higher return but risk losing some of your investment if the price drops.
If you wait until the price drops, you could make a higher return, but you risk losing your investment if the price shoots back up. It’s a tricky decision! If you are considering buying Bitcoin, ensure you have enough information about the market and the involved potential risks. You can then think if you want to buy Bitcoin now or wait until the price drops some more.
Things to keep in Mind while Buying Bitcoin
Buying bitcoin can seem confusing if you’ve never done it before. So many options are available, and it’s tough to know your best choice. Cryptocurrency exchanges are the digital marketplace where you can buy, sell, and trade cryptocurrency. To join an exchange, you need to register, verify your identity, and transfer funds to that exchange from your wallet.
We have defined some of the most important points that you need to keep in mind while buying bitcoins:
- Check the reputation of the exchange you want to use- First, check the reputation of the exchange you’re using. Ensure the exchange has a good security rating and isn’t involved in any scandals or lawsuits. Look at reviews online before committing any money at all. You want to choose an exchange that has been around for a while and has good reviews from other users.
- Identify your needs- Are you just looking to buy some small amounts of bitcoin? Or do you want to buy more? Do you require immediate access to your funds or want them deposited into your account within a few days? Do you need the cheapest possible price? Do you want more anonymity on your purchase? Make sure you know what exactly you need before investing any money!
- Check the transaction fee- Finally; check out the transaction fee associated with each platform. Some exchanges charge very little for their services, while others charge more than 50% per transaction (or even more than 100%). It can impact how much profit someone makes as an investor if they don’t know this beforehand. You don’t want to pay excessively for your purchase, so make sure the fee isn’t too high!
Buying Bitcoin
Buying Bitcoin is a great way to secure your wealth and protect it. But it’s also important to be aware of the factors that can affect your chance of success. Below are the steps that will tell you how to buy Bitcoin in the USA and also how to buy Bitcoin in India:
1. Choose a Crypto Trading Service
When it comes to choosing a crypto trading service, there are several things you should keep in mind. First, a few companies may offer better exchange rates by providing more significant cuts than others. Another thing to remember is how secure the company is. Ensure the company has a good reputation and proves they’re working hard to keep their network safe against hackers and scammers.
2. Select A Cryptocurrency Exchange
Although Cryptocurrency Exchanges are more talked about on the internet, brokerage services and Payment services could also be used to buy Cryptocurrency. For newbies, Centralized Exchanges are more useful since they provide a platform that ensures secure storage and transactions of funds. Decentralized Cryptocurrency Exchanges on the other hand allow users to have complete control of Cryptocurrency Wallets and transactions (peer-to-peer systems).
Below are some Cryptocurrency Exchanges that you can choose from:
- Binance.US
- Coinbase
- Kraken
- Crypto.com
- Gemini
- Gate.io
- KuCoin
- Bitstamp
- Bittrex
- bitFlyer
3. Connect your Payment Option
Following your Exchange selection, assemble all your paperwork. The information may have to be submitted depending on the place you live, its laws, and Cryptocurrency Exchanges policies.
After verification of identity by the Cryptocurrency Exchange, you must connect a payment method. Most Cryptocurrency Exchanges allow you to connect your bank account, debit card, or credit card directly. Credit card-accepting exchanges include Coinmama, Paxful, and CEX.io.
Check that your bank enables deposits at your preferred Cryptocurrency Exchange, as certain banks may not allow deposits to Cryptocurrency-related sites or Exchanges. Lastly, decide the amount of Bitcoin you want to purchase.
4. Place your order
After connecting your payment option for your bitcoin purchase, place your order by entering your email address and desired BTC amount you want to purchase. Once the chatbot has confirmed the correct amount, it will complete the last step, verifying your payment information and sending a receipt to your email/Paypal address.
5. Safe storage
A vital aspect to remember when investing your money in Cryptocurrency is its safety. If you have a physical bitcoin, it doesn’t matter if you are storing it on a paper wallet or an online cryptocurrency wallet. However, for people who keep their bitcoin on an exchange platform or an online wallet, security is an essential aspect of their investment decision.
There are a lot of companies behind bitcoins, and the best way to ensure that no banks, government, or online hackers can access your accounts and steal your bitcoins is through hardware wallets.
How to Buy Bitcoin with Paypal
Paypal is among the easiest ways to buy bitcoin with a credit card. A few exchanges allow you to buy bitcoin with Paypal; however, some of these few exchanges charge a fee for accepting Paypal. The main point is that you must verify your account before purchasing.
One way around this is to get a Paypal “verified” account. By doing so, you bypass the verification process and can buy immediately. However, this is not possible for all users – Paypal will reject some people because of previous fraud or other issues.
Another way to get a “verified” account is to link it to an existing bank account. It requires more trust in Paypal and may take longer, but it allows for faster purchases. It also allows for higher limits than a standard Paypal account.
Another best place to buy bitcoin with PayPal is by linking your account directly to your Coinbase account. It will allow you to instantly purchase crypto with fiat currency once you have deposited funds in your Coinbase account. But how to buy bitcoin on Coinbase?
- First, purchase some Bitcoin and then exchange that for PayPal using Coinbase.
- Then, you can transfer your PayPal account to your new Bitcoin address and start spending.
Coinbase also offers a debit card that allows you to send money anywhere in the world instantly.
How to Buy Bitcoin with a Credit Card
Buying Bitcoin with credit cards is a quick and easy way to purchase Cryptocurrency. You can buy Bitcoin with a credit card for one of two reasons. First, you may have a credit card to charge certain purchases in fiat currency. If so, you can use it to purchase Bitcoin. Second, you may have a credit card that does not charge foreign transaction fees. In this case, you can use it to buy Bitcoin.
Of course, using a credit card for Bitcoin purchases is not free. The fees are typically 3-5%. Additionally, if you pay off your balance in full each month, the interest rate on your card will likely be higher than what your credit card company charges on other purchases. Using a debit card or bank account with better terms and lower fees may make more sense.
Additionally, additional risks are involved when purchasing Bitcoin with a credit card due to the possibility that your card could be hacked or stolen. Therefore, it may be preferable to store your Bitcoins and only use online services for trading.
You can also use cash to buy Bitcoin online if you don’t have a credit card. For this, you will have to find an online exchange where you can buy Bitcoin with cash. You can also make an in-person cash purchase at stores accepting Bitcoin as payment.
Once you have your bitcoin, could you keep it safe? You must ensure the address is secure and the private key is not written or used anywhere else. You should only use the same password on different websites if possible, as hackers may try to steal your password from one site and use it on another.
How To Ensure Safety Of Your Bitcoin?
Bitcoin presents a new opportunity to diversify one’s portfolio. To secure this new type of asset, an individual needs to understand that Cryptocurrencies like Bitcoin are not like other assets.
Cryptocurrency wallets store Digital Assets securely. Cryptocurrency funds in a self-managed wallet instead of a Cryptocurrency Exchange keep the access details private to you. There are a variety of online Cryptocurrency wallets available, including Hot wallets, Cold wallets, Paper wallets, and so on.
Most Exchanges provide wallets for their users, but using them is not recommended for significant Cryptocurrency funds. Individuals with a large amount of Cryptocurrency should start thinking about how they want to distribute it as part of their Estate Planning process.
A person can sell their Bitcoin all at once for fiat currency (which could have a considerable tax implication) or use some basic Estate planning strategies such as using Trusts and avoiding chances of Probate.
Conclusion
Now that you know everything about how you can buy Bitcoin and how to buy crypto currencies, you can take the plunge and make your first investment! Be sure to read up before you accept Bitcoin, and make sure you understand the risks involved.
Buying Bitcoin is a great way to invest your money, but it does come with risk. If you are careful enough and perform your research well, you can expect your investment to grow over time.
