Bitcoin is the world’s first successful Cryptocurrency which functions is a peer-peer system, without any banks or controlling authorities as to the intermediaries. Bitcoins’ value was tremendous, and there is a chance of becoming a millionaire when bought at the right time. But it is always advisable to invest only 10%, as there the value of bitcoins is volatile due to frequent fluctuations. But despite this pitfall, bitcoin is being successful, and many people are interested in buying bitcoins. This article discusses the buying guide for Bitcoins, for those, who wish to buy bitcoins, in the following sections.

Steps in buying bitcoins

The following are the four steps in buying bitcoins. They are:

Step 1: Choose where to purchase bitcoins

Step 2: What is the storage type of Bitcoins

Step 3: Plan your investment

Step 4: administer your investment.

 

Step 1: Choose where to purchase bitcoins.

There are various means of buying cryptocurrencies like bitcoins. They are:

  • Cryptocurrency exchanges

Bitcoins can be easily bought form Cryptocurrency exchanges. Some of the famous Cryptocurrency agencies are Coinbase, Binance, Gemini, and Coinmama.

  • Stockbrokers

The stockbrokers pave the way for the customers to buy and sell cryptocurrencies. Some of the famous stockbrokers are, Robinhood, the first bitcoin stockbroker, where no fees are incurred for bitcoin trading. The Tradestation occupies the second place to buy bitcoins, with its unique social trading platform. There are many other Cryptocurrency stockbrokers, with various plans, which will be established very soon.

  • bitcoin ATM

Bitcoin ATM functions similarly to a traditional ATM, where only bitcoins will be used for buying and selling bitcoins, through a Bitcoin ATM.

  • Bitcoin owners

In this method, the bitcoins can be directly bought from other bitcoin owners, like Bisq, Bitquick, and LocalBitcoins.com, utilizing Golden Profit.

Care and caution have to be followed if Bitcoins are directly bought from the individuals.


  • Grayscale funds

This is a digital currency asset manager. Grayscale funds have two trusts, namely, Grayscale Bitcoin Trust (GBTC) and Grayscale Ethereum Classic Trust (ETCG). Both funds can be bought through brokers, who sell at a discounted rate. The shares of GBTC are more, and they may cost, much more than the cost of the Bitcoins, where many people are ready to pay more, to acquire bitcoins.

Step 2: What is the storage type of Bitcoins

The next step is how to store your bitcoins? For the traditional currency system, you will have a physical wallet to store your physical money. But how to store this digital currency, which composed of 0’s and 1’s? You can use digital wallets to store this digital currency. There are two types of wallets, namely 1) Hot wallet, with high transaction speed and 2) cold wallet with slow transaction speed due to additional security steps in safeguarding your bitcoins.

Hot wallet

In the case of a hot wallet, the bitcoins are stored in the cloud utilizing an exchange or service provider. The wallets can be accessed utilizing a web browser or an app. With a third-party wallet, the users will be able to download the wallet and which is free at the same time. Many exchanges offer wallet service, but still, people prefer to use wallets offered by a third-party provider due to high security and fast transaction. Some of the hot wallets providers are Electrum, Coinbase, Blockchain, and Mycelium.

Cold wallet

A cold wallet is a physical device, where you will be able to download and store the bitcoins. The cost of this cold wallet is $100, but this is the most secure wallet, as there cannot be any security threats or virus attacks, as they are not connected to the internet. Some of the cold wallet providers are Ledger Nano and Trezor. 

Step 3: Plan your investment

Now you have bought your bitcoin and linked your bitcoin account to exchange or third-party service provider. The next step is to decide how much bitcoins to purchase. Always buy lesser bitcoins say $25 as a first move, as the bitcoin price values are volatile.

Step 4: administer your investment.

The investment plan depends on how the value of Cryptocurrency would be in the future. You can either buy a bitcoin or sell when the price value hikes or buy and hold the bitcoins for a long time when you expect there will be a price hike in the future.

Thus this article has discussed a buying guide for bitcoins, for those, who wish to buy and trade with bitcoins.

 

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