If you want to buy Bitcoin, but are unsure what is the best way to buy this digital currency, you are not alone. Many people are interested in this cryptocurrency, so keep reading and find out how to buy Bitcoin safely and wisely.
Best Ways To Buy Bitcoin
Bitcoin is a cryptocurrency that no one has control over. It was created in 2009, and since then its market price has gone up and down repetitively.
Investing in Bitcoin has always been a risky business, and some investors have gained, and some have lost a lot of money. Either way, Bitcoin has never lost its popularity, even more so now in 2023.
If you plan on buying Bitcoin, you need to think carefully and do some research before venturing into this endeavor since there are many risks involved in buying this cryptocurrency.
So, what is the best way to buy Bitcoin?. If you’ve decided on buying it, here are the six best ways to do it:
#1 Cryptocurrency Exchanges
Using cryptocurrency exchange is one of the ways to buy Bitcoin and probably the best way for a newbie. Some of the best and renowned are Gemini, Kraken, Coinbase and Crypto.com. They all have different kinds of cryptocurrencies, fees and safety features. So you need to do a bit of research to determine which one suits your needs best and it is available in your country or region.
#2 Traditional Stockbrokers
Another good way to buy Bitcoin is using regular brokers like Robinhood, WeBull, TradeStation, and Fidelity. They have the option to trade Bitcoins among other things. Robinhood stands out among these since it does not charge any fees for Bitcoin.
Of course there are other broker options, but they may charge fees and may also have other benefits. It all depends on your financial goals, so choose the ones that best suit your needs.
#3 Bitcoin ATMs
Another way to buy Bitcoin is using Bitcoin ATMs. They are easy to find and use. You can find them in shops and stores, but one important thing to consider is to pay attention to the fees, and also how to store the Bitcoin after you purchase it.
Either way this method is a good way to get cryptocurrency fast especially when you need it on the go.
#4 Trusts or Exchange-Traded Funds
Next on our list comes the trust or exchange-traded funds. Some of the options include ProShares and Greyscale investment. ProShares has a Bitcoin ETF, but doesn’t buy cryptocurrency. Instead, it uses futures contracts. Grayscale, on the other hand, has Bitcoin trust funds, like GBTC, which you can trade on the market directly.
#5 Peer-to-Peer Money Transfer Apps
Some of the more popular apps to buy Bitcoin are PayPal, Venmo, and Cash App.
These apps make it easy to buy, store and sell cryptocurrency. They are easy to use, and everyone can pretty much use these without any difficulties.
#6 Wallet Software
There are other crypto apps and websites that are easy to use that trade Bitcoin. But you should be careful when using these since they can charge more fees when you use wallet software from other applications or platforms.
How to Store the Bitcoin You Buy
Now that you have bought your Bitcoin, it’s time to take the next step, which is storing it. Bitcoin can be stored in two types of digital wallets: hot wallets and cold wallets.
Hot wallet is a way for you to keep your Bitcoin online through a service. This way you can access your Bitcoin from anywhere, since it’s stored in a cloud service. You can access it using an app or a web browser.
The big downside to this method is that it can be hacked, risking losing all of your investment. So do some research before you choose your online or hot wallet.
Cold wallet is much like a safe for your Bitcoin. It’s like a usb for your cryptocurrency, since you can plug it into your computer and store it offline. They are slower to use, but are harder to hack into. The problem with cold wallets is that if you lose them, you will lose your Bitcoin as well. But since they are more resistant to hacks, some people opt for cold wallets more.
Either way, be sure when you set up your accounts online, use harder to guess passwords and two step authentication to improve the security of your account.
What to do after you buy Bitcoin
So you bought your Bitcoin, then what comes next? Bitcoin is more than just money. You can use it to buy, to trade with it, or to just save it for the future. Many trade with Bitcoin often in hopes to make profits from the changing prices. Others just keep it in hopes they can sell it later on if prices go up. It’s up to you what you want to do with it. You also need to be aware of taxes applied to you, so be aware of that as well.
Is Bitcoin an Effective Hedge Against Inflation
Bitcoin can be a popular choice of investment for those who want to avoid inflation. Many believe that with Bitcoin, they can keep their money’s value, when other things get expensive.
But the thing is, Bitcoin hasn’t been around for a long time to see how it does in a high- inflation situation. Experts argue that it may not be a good hedge against inflation. If you have Bitcoin, you need to consider how to keep it. It depends how you want to use it later on.
If you want to trade with it actively, it’s better to keep it online with an exchange or a broker, but if you want to keep it to yourself and use it later, it’s better to use a crypto wallet. We’ve discussed the pros and cons of crypto wallets earlier in the article, so use your own judgment.
There are many things to consider when buying Bitcoin, so be smart about it.