As a digital currency, Bitcoin is new to many people. However, some people are already accepting it as a store of value and a medium of exch...
As a decentralized currency, Bitcoin is easily accessible to everyone via smartphones, tablets, computers, and the internet. But how does buying Bitcoin actually work? The following steps can help you invest in Bitcoin.
Choose a reputable crypto exchange or broker
You can buy bitcoins through a crypto exchange platform or broker. However, there are some differences between the two establishments that you should know in advance. A cryptocurrency exchange is a marketplace where sellers and buyers come together to trade digital currencies. Exchange platforms are relatively inexpensive but use complex interfaces with multiple trading patterns and levels that can easily intimidate beginners.
However, there are also reputable crypto platforms with advanced automated binary trading systems like Bitcoin Era, the official site that offer user-friendly options for buying Bitcoin. They also provide an accurate analysis of market statistics to help you determine the best times to buy bitcoin.
Crypto brokers are like intermediaries that offer simpler interfaces with automation features to manage the exchanges on your behalf. That is why most of them usually charge higher fees than crypto exchanges. Others even claim they are free to lure customers. While they may seem convenient, brokers might sometimes prevent you from transferring your bitcoin holdings to other platforms.
Create and verify your account
The exchange platform guides you on how to create an account in just a few steps. Most crypto exchanges require identity verification, which is essential for regulatory compliance and fraud prevention.
You can buy bitcoin after verifying your account. The verification process usually requires you to submit a copy of your passport or driver's license. Sometimes you even have to send a selfie to compare with the submitted documents.
Make a cash deposit
Make sure you have enough cash in your account to buy the required amount of bitcoin. You can link your bitcoin account to your bank account and initiate a wire transfer for the deposit. Alternatively, you can also deposit the money by credit or debit card. It may take a few days before you can use the deposited funds to buy bitcoin, depending on the exchange platform, broker, and funding method.
While most crypto exchanges and brokers accept credit card payments, be aware that doing so can be precarious and costly. That's because they typically process bitcoin purchases via credit cards as cash advances, which carry higher interest rates than regular purchases. Also, they charge additional fees for processing cash advances, which amount to around 10% of the deposit.
Order Bitcoin
You can now use the credit in your account to buy Bitcoin. Make sure you include the number of bitcoins you want to buy. Most crypto exchanges and brokers also allow you to buy fractional bitcoin if you don't have enough funds to purchase the amount you want. However, Bitcoin has higher divisibility. This means you can always buy as much as you can with what you have.
Choose a save method
A bitcoin wallet is the safest place to store your bitcoin holdings. However, you can also transfer your bitcoins to another online platform (hot wallets) or offline (cold wallets) for a small fee, depending on the exchange platform or broker.
If you don't want to buy Bitcoin directly, you can use other options as described above, such as e.g. B. Investing in bitcoin-owned companies and exchange-traded funds (ETFs).
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