Cryptocurrency, as a whole, is something that has fascinated many people, especially since its rise in popularity in recent years. For some people, the draw of Bitcoin and other currencies is the fluctuation in prices and the allure of making a profit from trading. For other people, cryptocurrency is an optimal method to pay for things as it is safer than more conventional methods. For all groups of people who have taken an interest in Bitcoin, there is merit to learning how to buy Bitcoin. It is becoming more commonplace for businesses to accept cryptocurrencies as payment. Subsequently, with more people taking an interest in the coins, the fluctuation of the prices will also vary as well, drawing in the people who are interested in making a profit. No matter what group one might belong to, cryptocurrency functions a bit differently than standard currencies and it may take a bit of learning to know how to purchase it at first. Here are five steps to take when first dipping one’s toes into this field.
- Research Everything
The first step that one should take when getting into Bitcoin, or any other type of cryptocurrency, should be to research everything that it encompasses. This begins with getting a basic understanding of what cryptocurrency is, how it works, and how it can be used. From there, one can begin learning about the different kinds of coins to invest in and the history behind all of those. For people who are more interested in cryptocurrency, there are many different routes to go down when it comes to research. Some people may want to focus on the anonymity and the secure aspect of this method of payment, while other people might be interested in the value of the coin over time and how it has changed as the years have passed. Understanding all of these minute details will play a role in making sure that one will be able to make the most out of their own cryptocurrency. The most important areas to research are going to include understanding how it all works, how it is stored, and where one can begin making his or her investments.
- Find a Wallet
Of course, cryptocurrency is entirely online and it has no physical body to it. This is one of the many appeals of it, as if there is no physical form to the currency, then there is no chance that it can be stolen when walking down a crowded street. Despite this, it is still important for people to look into digital wallets, which will act as the storage space for any cryptocurrency that one may have. Unlike purchasing a physical wallet and simply keeping the money there, one will look into different platforms and their offers of digital wallets. Different digital wallet platforms will offer different benefits and focus on what the wallets may offer. Some may focus on being easily accessible for people who do not know a lot about cryptocurrency, making it simple to use. Other wallet platforms may focus on encryption, security, and privacy, which is a major facet of cryptocurrency. It may take some time to find a wallet that aligns with one’s priorities, but matching those priorities to a wallet will be well worth it.
- Connect the Bank Account
Once the wallet has been set up, it will need to be connected to a bank account. This will be another step of making sure that wallets one is interested in are compatible with the bank account in question, or if it means that one may have to set up a bank account elsewhere. Regardless, it is an important step to connect the bank account and the wallet so that transactions between the two can be made. With most wallets, connecting to a bank account will allow deposits and transactions to be made directly, rather than taking a considerably longer time to process. Bank accounts are usually recommended for those who intend to deal with large amounts of coin, though, and for new users it may be worth the extra hassle to wait a few days for transfers to go through.
- Find a Platform
There are countless exchange programs for Bitcoin. When looking at how to buy Bitcoin, one is going to have to consider which exchange platform is going to offer the most benefit. Many people will go along with the platforms that are connected to or recommended by the wallet that they are using, but this is often optional. Different Bitcoin exchange platforms will have different focuses, ranging from trying to make the experience on the user’s end as simple as possible to making it as secure as possible, and everything in between. It is also important to consider the exchange’s country of origin as different countries have different regulations regarding cryptocurrency exchanges. For example, Bitbuy is a Canadian exchange that follows government guidelines and is annually audited, providing their users with a peace of mind. Finding a platform may take some time, but it will be worth it when one is able to confidently invest in Bitcoin without having to stress about it.
- Begin the Purchase
From here, people can begin to purchase their bitcoins. This is also where a majority of the research will come into play, as people will want to try and make sure they are getting the Bitcoin at a profit. This includes the general practice of waiting until prices have reached a low point and purchasing the coin before the influx of coin purchases inevitably brings the price back up. Likewise, one will want to sell off the coin when prices reach their height, before the price falls again as people collectively wait for it to become less expensive. For many people, Bitcoin is a great way to get into cryptocurrencies and the world of trading them.