Buying cryptocurrencies including Bitcoin in just four steps

 Bitcoin is the digital currency launched in January 2017. Though there are many cryptocurrencies available, the bitcoin investment has gained immense popularity since 2017. According to the data of January 2020, 86.42% or 18.15 million of the total Bitcoins have been created till now. 

The basic steps for buying cryptocurrency and bitcoin are as follows:

 

  • Decide the platform to buy bitcoin.

 

  1. Determine how to store your bitcoin.
  2.  Make your purchase

       4)   Manage your investment

 

  •  Decide the platform to buy bitcoin. 

 

There are ways like traditional brokers and exchanges where you can buy cryptocurrencies, including bitcoin. 

Cryptocurrency Exchange: 

One can buy bitcoin from various cryptocurrency exchanges. Many of them charge a portion of the buying price. Select the right exchange that will suit you.

Some of the exchanges are: 

  • Coinbase: It is a favourite choice for bitcoins buyers because one can easily link its bank account. It provides access to litecoin, etherium and other crypto. It charges a spread of about 0.5% plus a fee on each transaction. 
  • Binance: It is the world’s largest exchange in terms of volume. It charges a fee of 0.1% for all trades in crypto plus a withdrawal fee. 
  • Gemini: It is a US-based crypto exchange for bitcoin, bitcoin cash, cash, ether and litecoin. The transaction fees charged by it range from $0.99 to 1.49%, depending on the size of the sale or order. It also charges an extra cost of about 0.5%. 
  • Coinmama: It allows trading in eight types of cryptocurrencies (including bitcoin). It takes a transaction fee of 5.9% and requires a minimum purchase of $60. The extra fee charged on credit card purchases is 5%). 

Traditional stockbrokers

  • One can purchase bitcoin from different brokerage firms. One such broker is ROinvesting the famous brokerage firm regulated by CySEC. 

Features of ROinvesting:

  • Minimum leverage 1:400
  • Zero commission on trading 
  • Allows trading in 350+ assets and over 10,000 markets
  • Minimum pip is 0.03
  • 24/7 customer service available

Check ROinvesting reviews before starting bitcoin investment. 

What to know before you purchase

1) Never use a credit card. 

2) Using a private and secure connection

3) Gather the information you need regarding bitcoin investment.

  1. Determine how to store your bitcoin. 

For storing bitcoin, there are two options available in digital wallets: a cold wallet or a hot wallet. The hot wallet transaction is usually faster; on the other hand, a cold wallet takes longer for transactions but is safer as compared to hot. They often include extra steps for security. 

Hot wallet

In the hot wallet, the bitcoin is stored with a reliable provider or exchange in the cloud. One can access it through a computer browser (on the internet) or app. Any trading exchange you choose will provide a free bitcoin hot wallet on which all your purchases will automatically store.

But many traders prefer the third-party hot wallet for storing and transferring bitcoin. It is free to download and practice. 

There are many types of hot wallets available provided by various wallet providers. Here are a few:

  • Coinbase: It is a popular bitcoin currency exchange. It offers free and secure online hot wallets and guarantees losses due to employee theft, hacks or breaches or fraudulent transfers. 
  • Electrum: This software allows the storage of your bitcoin on a desktop computer or laptop. 
  • Blockchain: It is also an online hot wallet. It is the safest and less attractive target for hacking. 
  • Mycelium: It is a mobile-oriented bitcoin wallet, available for both iPhone and Android users. 

Although some hot wallet providers offer insurance for large-scale hack attacks, that insurance may not cover one-off cases of unauthorized access to your account.

Cold wallet

It is an encrypted, small portable tool that enables you to carry and download your bitcoin. These are considered safer than hot wallets and cost around $100 to the trader. 

Cold wallet includes: 

  • Ledger Nano: It is designed in the shape of a thumb drive. The prices range from $60 to $170. 
  • Trezor: This firm offers key-size, compact cold wallets. The price range of this wallet is $80 to $170

Note: While creating an account for currency exchange and wallets use two-factor verification and a strong password. 

  1. Make your purchase

After connecting the bitcoin wallet to the exchange that too of your own choice, the second last level is the easiest, where you have to decide the number of bitcoins you want to purchase. The bitcoin marked the level of $8,000 in May for the first time in a year. The bitcoins can be purchased and sold for some fractional shares, so the initial investment of an individual can be as low as $25. 

  1. Manage your investment

The last step in this list is to manage your investment. One can purchase the bitcoin now and sell it when its value moves higher this idea comes under day trading strategies. But if you are among those who look at the future of bitcoin in digital currency, then your investment strategy should be buying and holding the bitcoin for a long period.