Bitcoin is inching towards $50,000 as we speak. The digital gold hit a record $49,000 yesterday. Investors worldwide have sent the price of the digital asset skyrocketing during the COVID pandemic as the U.S Federal Reserve crashed its interest rate to near zero in March last year, severely weakening the US dollar. This makes Bitcoin, relatively, an attractive currency. With the set limit to the supply of bitcoins on the planet, investors believe that digital asset’s price will only skyrocket once the supply runs out.
As Bitcoin soars to record highs, global investors are stockpiling it, and international conglomerates are embracing it, adding to Bitcoin’s surging valuation. Moreover, Tesla and other big companies are considering accepting bitcoin as a payment option hence magnifying Bitcoin’s global adoption.
With support from every major company, Bitcoin has finally gotten the trust and push it needed for global mass adoption. Since all the hype that surrounds Bitcoin, you may be wondering how to buy Bitcoins in this day and age. Don’t worry, in this article; we’ll be explaining just that.
Why should I buy bitcoins?
Buying Bitcoins has become more accessible than ever. It is extremely easy to buy and sell Bitcoin today via exchanges; users can choose from a diverse list of payment options such as bank transfers of fiat currencies, credit cards, debit cards, and even other cryptocurrencies.
Bitcoin’s market cap is nearing $1 trillion, making it the greatest worth crypto asset in the entire globe. The Bitcoin community is enormous and active, with plenteous social media buzz, consistent source code repository activity, and substantial media attention aiding its adoption and popularity.
When should I buy Bitcoins?
The most asked question by every newcomer is that “Can you tell me the right time to buy Bitcoin?”. The problem is, there are no correct answers for this question because it is solely dependent on the intent and reason that you’re buying Bitcoins for.
If you’re seeking to get into Cryptocurrency trading, want to trade bitcoins, and are in it for short-term gain, you’ll have to get in touch with various cryptocurrency trading methods and try to analyze the market.
Suppose you’re seeking to get into the Cryptocurrency ecosystem, and you want to support Bitcoin’s for its principles, technology, and future. In that case, you have two options: DCA or buying it regardless of the price.
You can invest a defined quantity of your money, into Bitcoin, in an orderly period. For example, you can buy $100 of bitcoin every week instead of investing a larger sum of money in one day; this strategy will help you buy bitcoins for the long-term and protect you from losing all of your money. Or you can buy it regardless of the price it is at right now because, in the long term, the price is expected to go up, making these differences unimportant.
Where can I purchase Bitcoins?
You have to put in the work before you choose an exchange. Each exchange adheres to different rules, accepts various payment methods, has varying fees, and other factors that you should consider. You should research and take certain steps to satisfy your requirements. Here are some tips that could help you.
Find out what countries the exchanges support.
Exchanges tend to have geographical restrictions, so you need to make sure the exchange supports your country.
Find out what payment methods they accept.
Every exchange has its own set of accepted payment methods. You must do your research and choose that which suits your needs in the best possible way.
Find out their fees.
Exchanges abide by four different fees: the fees which you deposit, the fees of the transaction, the fees at the time of withdrawal, and Bitcoin network fees. All of the fees vary and can influence the total amount you gain at the end.
Each exchange has varying exchange rates. Ultimately, it is important to research the combination of the exchange rates and fees to determine the final operation cost. Some exchanges may have a low exchange rate but higher fees or vice versa.
As far as buying limits are concerned they heavily vary based on two factors: payment and identity. It is worth noting that almost every exchange has these limits and the governing factors are your payment method and identity verification process.
Before depositing your hard-earned money, you must ask yourself if the exchange is reputable and trustworthy. You must research the background and find how well the customer support and insurance policies are if you lose your assets.
What exchange should I buy Bitcoins from
There are diverse options in the markets. To help you find your ideal choice, you need to understand the type of exchanges available in the market.
Brokers are platforms that enable you to buy bitcoins through their website at a specific price often determined by the platform. Brokers tend to be more expensive than other options available in the market; however, brokers are the easiest and most user-friendly way to buy Bitcoins.
Trading platforms allow you to buy bitcoins at the cheapest rates. However, they are not very user-friendly. You’ll have to go through the hassles of finding sellers who are willing to meet your price, which often takes quite a lot of time. Moreover, trading platforms provide advanced and sophisticated tools that can be intimidating to users who don’t know how to use them.
As the name indicates P2P platforms allow peer-to-peer interactions without any middle party to rely on; so users can interact directly with buyers and vice versa. The direct channel of communication will enable users to negotiate with sellers over the price. P2P platforms have many benefits, such as accessibility and compatibility in multiple countries and flexible payment methods. However, note that direct communication isn’t free from risks.
What wallet should I choose for my Bitcoins?
Bitcoins are often stored in software wallets called Bitcoin wallets. A bitcoin wallet assists you to manage your bitcoins. After choosing your exchange and buying your Bitcoins, you must transfer your bitcoins to a safer, more secure, and personal wallet.
Your bitcoin wallet will typically hold two crucial pieces of information. It will contain your private key and your bitcoin address. In case these particulars get compromised, you could lose ownership of your assets. Therefore, it is imperative that you chose a secure wallet.
You could choose from Non-custodial wallets, Custodial wallets, Physical wallets, Multi-Sig wallets, and more. What matters is your frequency of use, the number of Bitcoins, user-friendliness, privacy, and ease-of-use.
The top 3 places to Buy Bitcoin
We highly regard eToro’s user experience. The website is informative and user-friendly. It contains a lot of information on the specifics of buying bitcoin, making this exchange an ideal choice for beginners.
Besides, eToro is also regulated by the FCA. Their money is secured in tried one European bank, and unlike other exchanges, eToro doesn’t charge any trading fees for deposits and withdrawals to and from external wallets.
Headquartered in California, Coinbase is a notable cryptocurrency exchange and a popular choice for buying bitcoins. The company offers a free wallet and an exchange for its customers. Almost 98% of Coinbase’s assets are stored in cold storage.
Binance is the world’s top-tier cryptocurrency exchange. The cryptocurrency exchange supports a diverse set of cryptocurrencies, payment options, and trading options, making it an excellent choice for upcoming traders.