Key Takeaways!
The most important thing for newbies to begin with buying bitcoin is their growth plan. It should be carefully outlined, and a need-to-know guide follows, providing helpful tips. Since it has become a mass-market phenomenon in recent years, all of us are involved, so one must make sure that we do not share their bitcoin investment plan with anyone.
1 Key Takeaways!2 Step 1; Opt for a bitcoin exchange!3 Step 2; choose your preferred payment method and connect it with the bitcoin exchange!4 Step 3; Buy your BTC!5 Step 4: Get a dedicated Bitcoin wallet!6 Centralized or decentralized exchange!
Step 1; Opt for a bitcoin exchange!
On the one hand, the bitcoin ecosystem offers a booming market of its own, and on the other hand, it has a lot of risks involved. It is why investors are always advised to go for only those centralized cryptocurrency exchanges which follow KYC and AML guidelines and also follow secure two-factor authentications (2fa). The top-class bitcoin exchanges like Coinbase, and Binance, offer this facility. The best practice entails an investor going for an exchange that offers high liquidity to buy bitcoin at competitive rates. When it comes to these factors, it is essential to know that buying low and selling high can fetch the highest profits in the marketplace.
Step 2; choose your preferred payment method and connect it with the bitcoin exchange!
The second step newbies must follow is choosing their preferred payment method when purchasing bitcoin. For instance, many decentralized cryptocurrency exchanges ask the investor to connect their bank account directly with their interface. But this could get risky, as some users have shared their experience of getting hacked on such exchange. Therefore one must always choose one of the top-class centralized bitcoin exchanges supporting various payment methods. Among all the payment methods offered by a bitcoin exchange, it is recommended to use the option which asks for an ID verification or compulsory know your customer (KYC) for higher volume transactions. It ensures that you are making transactions with verified credit or debit cards and purchasing from genuine sellers only.
Step 3; Buy your BTC!
If you have decided to purchase bitcoin with your credit or debit card, the next step is going for the “buy bitcoin” button. At this point, some exchanges like Coin base ask for only an email address and ID verification of the user. However, other exchanges disable buying bitcoin with cards if one does not provide a photo of their ID/Passport.
Step 4: Get a dedicated Bitcoin wallet!
After buying bitcoins, one should have a dedicated wallet for holding the digital currency. It must be carefully thought through, and a need-to-know guide follows with the information about wallets. Many of these wallets require that the user understands how to store the digital currency here correctly. Currently, only a few bitcoin exchanges offer their users an encrypted wallet that requires no additional hardware to store them. But this should not be your first choice since it means that you are running on external resources like hard drives or flash drives, and they can get hacked easily. The best practice entails using multiple wallets or a wallet that one can access from different devices like mobile phones and computers. Also, one must choose an appropriate wallet interface that gives the complete individual control over the funds and coins they own. Some of the best wallets include Ledger Nano S and Trezor.
Centralized or decentralized exchange!
The bitcoin ecosystem is one with a mass market appeal; hence, many investors are waiting for an opportunity to buy or sell bitcoin. The best way to go about it is by following a need to know a guide on how to invest in bitcoin. Currently, the centralized exchange seems more appealing in terms of security, but transaction fees are comparably lesser on a decentralized exchange.
