Start your Bitcoin purchases by choosing the best place to buy and store your digital currency. Popular places to buy Bitcoin include Coinbase, Robinhood, eToro, FTX, Gemini, and BlockFi, among many others. Keep in mind the fees and reputation of the exchange when choosing where to buy Bitcoin. Additionally, if you plan to transfer your Bitcoins out of your brokerage account, make sure this feature is supported as not all brokers give you this option.
Once you’ve chosen your ideal account, it’s time to open your brokerage or cryptocurrency account. For those residing in the United States, plan to share your basic contact information and a valid ID to meet the exchange’s know-your-customer (KYC) requirements.
Fund your account in Fiat currency (government supported)
Once your account is open, it’s time to make a deposit. The fastest and cheapest way is usually to make an online transfer from a connected bank account. Depending on your exchange, you can also use payment apps like PayPal. Some cryptocurrency exchanges give you instant trading access, while others may require you to wait for funds to be transferred before buying. If you can buy cryptocurrency immediately, you may have to wait for the deposit to be processed before you can withdraw funds from the account.
Enter orders
When you think it’s time, click the buy button to place your order. The exchange will turn your dollars into Bitcoin, stored in the same cryptocurrency account, as holding stocks in a brokerage account. Once your transaction is done, you officially own Bitcoin. Things you need to know before investing in Bitcoin
Bitcoin is an exciting digital currency that has started a revolution in online money and digital assets. Bitcoin uses a tripartite accounting system that powers a decentralized system run by many participating computers around the world, called miners. Bitcoin was first created in 2009 and reached its peak value of over $60,000 per coin in early 2021. However, the price is very volatile compared to other assets, such as stocks and other ETFs together.
If you go ahead and buy Bitcoin, you can choose between storing your Bitcoin in the same exchange account you used to purchase the currency, or in the cryptocurrency’s software, hardware, or paper wallet. dead outside. Offline storage using a hardware wallet, known as cold storage, is considered the safest and most secure place to keep your Bitcoins. Understand the risks of investing in Bitcoin
As mentioned, Bitcoin is a relatively new asset and comes with many risks. While the value of Bitcoin can double, triple, or even 10-fold in a short period of time, it can also decrease to zero. Bitcoin is also susceptible to government actions and can considered illegal or severely restricted, as happened recently in China.1
People’s Bank of China. “Opinion on the prevention and resolution of risks related to virtual currency trading and speculation.”
With Bitcoin or any other cryptocurrency, only invest what you can afford to lose.
Bitcoin is also vulnerable to some forms of hacking, which is why it is important to keep your digital currency accounts extremely secure. If someone gets your Bitcoin wallet address and password (private key), they can take your Bitcoins and you will likely have no way to recover any losses.
If you keep your Bitcoin offline, it is essential to keep your access information safe and available, as losing your wallet information could leave you unable to access your currency.
Relatively easy to buy: You can easily buy Bitcoin using a cryptocurrency exchange, broker, or other account that supports Bitcoin. It’s as simple as buying stocks and other common investments.
Offers an alternative currency and investment strategy: Bitcoin can serve as a hedge against inflation and other currency risks. It also offers a unique investment outside of traditional financial markets.
