Since it’s the pioneer virtual currency, Bitcoin is undoubtedly a popular cryptocurrency. And this has prompted many people to want to learn about it. Many beginners don’t know where or how to start purchasing Bitcoin. Others are looking for ways to trade or invest in Bitcoin.
Steps for purchasing Bitcoin
A general guide for buying Bitcoin includes four primary steps as follows:
- Get a crypto wallet for storing your Bitcoins.
- Locate a Bitcoin address that you can share with the people you want to send you virtual coins.
- Sign up with a crypto exchange like the Immediate Edge App and fund your account with some money using an acceptable payment method.
- Select the number of Bitcoins to purchase.
- Place your Bitcoin order with the exchange.
- Receive your Bitcoins and send them to your crypto wallet.
Most crypto exchanges take minutes to send Bitcoins after placing an order and paying for it. In a nutshell, that’s how you purchase Bitcoin. However, you need some tips to help you buy this virtual currency safely and efficiently.
When to buy Bitcoin
Most people wonder about the right time for purchasing Bitcoin. Well, there’s no good answer to this question. Ideally, it depends on your reasons for buying this digital currency. If you want to trade Bitcoin, it means you want to purchase it low and sell it high. Since you want to get a short-term gain, start by familiarizing yourself with various trading techniques. Also, time and monitor the crypto market to know the right time to buy.
On the other hand, if you love the technology behind Bitcoin and believe that the future of this virtual currency is bright, you can use Dollar Cost Averaging or purchase it regardless of its price. Dollar Averaging means spending a fixed amount of dollars to buy Bitcoin on a specific date without considering its price. When you believe in Bitcoin’s technology, you purchase it without considering its price. That’s because you think its price will eventually increase and you will benefit from the difference.
Where to buy Bitcoin
As hinted, you can purchase Bitcoin at a crypto exchange. Each Bitcoin exchange has its rules, fees, and accepted payment means. Also, consider other factors to select a suitable Bitcoin exchange, depending on your unique needs. Here are the primary factors to consider when choosing a crypto exchange.
- Exchange reputation
- Buying limits
- Exchange rate
- Accepted payment means
- Supported countries
In addition to these considerations, check reviews to find out what other users say about a Bitcoin exchange. Avoid a crypto exchange with negative reviews because they give you insights into what you can expect.
Selecting a Bitcoin wallet
A Bitcoin wallet offers storage for this virtual currency. It’s software that people use to manage their Bitcoins. That means you use it to receive, send, and store Bitcoin. Ideally, you use Bitcoin to send value the same way you use an email address to transfer information and digital files.
Sending Bitcoins to your wallet after purchasing them allows you to control how you spend or send them to other people. That way, you ensure that you won’t lose all your coins if somebody hacks the crypto exchange. What’s more, you keep your Bitcoins even if the crypto exchange closes down.
However, keep your private key and Bitcoin address secure to avoid losing your money. You share your Bitcoin address with people that want to send you Bitcoin. You can display your Bitcoin address publicly because people can’t use it to hack your digital wallet. However, the private key is like a password to your digital wallet. That means anybody with a password can control your Bitcoins. Therefore, hide and keep it safe all the time.
Knowing how, when, and where to purchase Bitcoin helps you avoid losing your hard-earned money. Also, learn how to store your Bitcoins safely in a digital wallet by hiding and keeping your wallet’s private key safe.