After the huge success of Bitcoin in 2017, most if not all people have heard of the digital currency and cryptocurrencies. And while some understand how bitcoin works, not everyone knows how to buy it. Here are 5 steps to make it easier for you to buy Bitcoin:
- Decide where to buy Bitcoin
The first thing you need to do is decide where you are going to buy bitcoin. There are several ways you can buy bitcoin:
Centralized Exchange
Most people who buy bitcoin for the first time choose a centralized exchange, with Binance being one of the most popular. This platform supports a wide variety of digital currencies, including Bitcoin, Ethereum , and its own Binance Coin (BNB).
Decentralized Exchange
They are more secure than centralized exchanges, but are less user-friendly for beginners. Some of the most popular decentralized exchanges include BitShares, Sparkdex, and IDEX.
Peer-to-Peer Network
In a peer-to-peer (P2P) network, buyers and sellers communicate directly with each other to make bitcoin transactions. One of the oldest and most trusted P2P networks for bitcoin is Localbitcoins.
Cash
The ability to buy bitcoin with cash still exists. The two ways are through ATMs located in most major cities and through the Cash Point network available through the Bitspark mobile app.
- Make a plan
Once you've decided how to buy, you need to create a plan. The plan depends on your goal, but if you want to hold onto bitcoin to sell it at a higher price later, you need a strategy.
The price of Bitcoin is constantly changing. You can use different tools, such as Bitcoin Wisdom or Cryptowatch, to analyze bitcoin price trends and stay up to date with all the news to understand the market. If you want to buy with partners internationally, try a service like The Word Point to communicate more effectively with them.
- Choose a storage method for your Bitcoin
There are many safe ways you can store bitcoin:
Desktop Wallet: Unlike online wallets, desktop wallets are less vulnerable to attacks, but they cannot be accessed from anywhere in the world, as they are only accessible from your personal computer, using special security keys that are stored only on that machine. Unfortunately, if your computer is infected with malware that specifically targets security keys, your desktop wallet can be compromised.
Mobile Wallet: A Mobile Wallet is essentially the same as a desktop wallet, but with the added advantage of always having it with you, so you can store a portion of your bitcoins in it.
Hardware Wallet: It is the most secure of the previous two. You can carry them with you, as they look like real hardware devices, such as USB sticks. In addition, you have complete anonymity for your transactions. No personal information is associated with the hardware, which means that nothing can be leaked.
Paper Wallet: A paper wallet can be a relatively secure way to store bitcoin. You can either create one online, using one of the dedicated websites, such as Wallet Generator, or create one offline.
Physical coins: Last but not least, you can buy physical bitcoins that have a tamper-proof sticker and cover a pre-determined amount of bitcoins. However, you will have to pay a fee to manufacture and ship your physical bitcoins.
- How can you buy bitcoin?
You can use a debit or credit card, bank transfer, or cash to buy bitcoin.
- Key things to focus on
- Always be informed. Always know what you are doing and how bitcoin works.
- Proceed with caution. Buying bitcoin is always risky, just like any other type of transaction or investment.
- Expand effectively: By expanding your portfolio, you will reduce the chances of losing your money when the value of an asset decreases. Fixed amounts that are pegged to local currencies are a good option.
- Keep coins in wallets: Don't store your bitcoin in transactions, as it's not the best or safest place.
- Be prepared for changes: Always be prepared for any kind of changes. Stay consistent with your plan and hold on to your digital currencies.
