There are many different ways to invest in bitcoins. If you’re a total newbie in the world of investing, you may find it difficult to wrap your head around the idea of investing in bitcoin.
Where to Buy Bitcoins?
There are generally two ways to start buying bitcoins. The first one is through cryptocurrency exchanges like Coinbase and Binance, while the other one is through traditional brokers.
Popular Cryptocurrency Exchanges
- Coinbase – for US bitcoin buyers, Coinbase is probably the most popular name. It lets you connect your exchange account to your account. At the same time, it offers access to other coins like Ethereum and Litecoin.
- Binance – Binance is the world’s largest exchange in terms of volume for all cryptocurrencies. This exchange charges 0.1% fee for all crypto trades, although you can avail many discounts. You also have to pay some withdrawal fees.
- Gemini – this is a US-based crypto exchange where you can trade bitcoin, bitcoin cash, ether, zcash, and Litecoin.
- Coinmana – Coinmana trades in eight cryptocurrencies like bitcoin. It requires traders to buy $60 minimum purchase. Transaction fee is at 5.9%.
Other Ways to Buy
- Bitcoin ATMs
- Peer-to-peer bitcoin owners
- Bitcoin futures
Before You Buy
Before you buy bitcoins from those exchanges and outlets, it’s very important to know what you’re getting into.
Research the Info
As with many other important purchases, you have to do some research about the product, the seller, and the services.
Prepare Your Own Info
If you’re using crypto exchanges, you are required to sign up for an account. And when registering, you may need a lot of personal information in handy such as your social security number and your bank account number.
Don’t Use Credit Cards
Some outlets let you use credit cards to buy bitcoins. However, just because it’s available doesn’t mean you have to use it. It’s actually not a good idea to buy or make investments using high interest products like credit cards.
Use a Secure Connection
You have to use a secure and private internet connection when you’re investing in bitcoins. That’s true for all of the financial decisions that you make online.
Storing Your Bitcoins
After buying bitcoins, you probably wonder where to store them. In general, you can store bitcoins in two kinds of digital wallets. You can choose either a hot or cold wallet.
Using hot wallets, you can store your bitcoins through your trusted exchange or provider in the cloud. You can then access it when you use an app or a browser on your internet-enabled device. Bitcoin trading exchanges offer hot wallets when you purchase bitcoins on their platforms.
Meanwhile, a cold wallet is a small and encrypted portable gadget that enables you to download and carry your bitcoin. These types of wallets can be as expensive at $100, but that’s a small price to pay when you consider the value of one bitcoin. Also, cold wallets are considered to be more secure than hot wallets.