How to buy bitcoin? Buying bitcoin nowadays is very simple. Register to some major cryptocurrency exchanges, verify your account and you are good to go. You can buy bitcoin with your credit card, for example. When buying bitcoin, you don’t have to deposit hundreds and hundreds of dollars to buy bitcoin. You can easily get started with under 100 dollars.
How to choose the right exchange?
When choosing the best exchange for your needs, there are a few things to consider.
First, is the exchange legit? What kind of reputation do they have, and are you comfortable sharing your personal information with them? You should pick an exchange that you are comfortable sharing your personal information with and trust enough to buy bitcoin through them.
The second thing is the fees they charge you. Do they charge you storage fees, if you decide to keep the bitcoin you bought on their exchange? And how much is the buying fee. There can also be different fees in the payment methods you are willing to buy the bitcoin with.
The third thing to consider is the selection of cryptocurrencies they offer. If you are sure, you only want to buy bitcoin, then choosing with just the first two criteria can do. However, there are a lot of different cryptocurrencies, that you can buy as well. If the broker you chose has a very narrow selection, you might have to register to another exchange later as well.
Some exchanges you can take a look at are listed below
- Binance
- Coinbase
- Kraken
How to store your bitcoin?
There are a few different ways of storing your bitcoins.
Exchange Wallet
You can keep the bitcoin you bought in your exchange wallet, but this can be a riskier option than transferring it to another wallet. You can use your exchange wallet if you plan to sell them shortly. If you plan on holding the bitcoin for longer, other wallets might be a good option to consider.
Hot wallet
Hot wallets are one option you can go for. They can be on your phone or computer. You will have a private key, that you use to access your wallet. Don’t keep your private key on your phone or computer; keep it offline. For example, write it down on a paper and do a backup paper if you lose the first one as well.
Keep in mind that if you lose your private key, there is no way to restore your wallet. Even the wallet providers can’t help you if you lose it. You don’t need your private key every time you go check your wallet, only if you lose your phone or your computer happens to break down.
Cold wallet
Cold wallets are probably the safest option to hold your bitcoins. They are wallets that are not connected to the internet. They can look like usb sticks or external hard drives, and you can only access the bitcoins in the wallet if you physically connect it to your device. If you plan on holding large amounts of bitcoin for a longer period of time, this can be the best and safest option for you.
Should you buy bitcoin?
Should you buy bitcoin is a hard question to answer. Unlike stocks, bitcoins value is based on the supply and demand on the market. Some investors see it as digital gold; others use it to protect themselves against inflation of fiat currencies. You can use bitcoin to diversify your investing portfolio.
As we have seen in the past, bitcoins price movements can be huge. During a six-month period, a 50% fall in the price or a 100% gain in the price is not unusual. It can be really intimidating to see your bitcoin positions price fall by 10 to 20 percent even in one day.
We have seen bitcoin prices recover in the past even if the price fell for years. However, even that bitcoin is all over the news, there is no guarantee of future returns. If you decide to add bitcoin to your investment portfolio, don’t risk more than you are willing to lose.
Final words
Nowadays it is very easy to buy bitcoin. You can do so just with your credit card. Where you decide to keep your bitcoin is totally up to you and how much you are willing to put effort into it. Having a part of your portfolio invested in bitcoin or other cryptocurrencies can be a good way to diversify your investments.
Other cryptocurrency-related topics can be found here.
Other investing-related topics can be found here.
This is not financial or investment advice. Always do your research before risking your hard-earned money. Past returns are not a guarantee of future returns.