According to some observers, if cryptocurrencies and blockchain technologies become more prevalent in people’s daily lives, the price of Bitcoin could increase even further. But investing in Bitcoin has significant dangers. Bitcoin has seen stunning increases as well as heartbreaking falls. For instance, the value of Bitcoin crashed to roughly £2,400 in over a year after almost reaching a value of almost £16,000 in 2017.
Bitcoin is still a very erratic asset. Experts advise investing no more than a modest portion of your net worth in Bitcoin if you want to purchase the most popular cryptocurrency.
Four Steps To Buying Bitcoin (BTC)
If you plan to buy BTC but are unsure of where to start then follow the 4 steps mentioned below to easily buy BTC in no time.
1. Pick a Cryptocurrency Exchange
To acquire Bitcoin (BTC) or any other cryptocurrency, you’ll need a cryptocurrency exchange, where buyers and sellers come together to swap pounds for coins.
Although there are countless exchanges accessible, as a beginner you should pick one that balances user-friendliness, low charges, and superior security. Some of our favorite exchanges that we rely on are Bitcoin Billionaire, Binance.com, eToro or Coinbase.
Make it important to verify whether your exchange’s platform includes a Bitcoin wallet; if not, you’ll need to locate one on your own. You can also decide to purchase your cryptocurrency through a service like Robinhood or Paypal, albeit doing so frequently prevents you from withdrawing your funds and transferring them to another service. You must first sell your cryptocurrency holdings and then repurchase them on a separate exchange if you wish to keep them in a different wallet.
2. Pick a Payment Option
So now in the second step you need to put in some funds in your account to carry out some transactions. Depending on the exchange you are using like Bitcoin billionaire or others, you can deposit funds through bank transfer, paypal or etc.
Not all service providers let you use your credit card to purchase cryptocurrency; for instance, Tesco Bank, Virgin Money, and TSB restrict transactions with cryptocurrency exchanges. You might be able to purchase cryptocurrency from some providers using your credit card, but watch out for any additional fees they could tack on.
It usually makes sense to use electronic transfers from a bank account instead of other means because fees restrict how much you can invest (and consequently how much money is available to grow and compound). Additionally, using a credit card to purchase cryptocurrencies would typically be treated as a cash advance and come with a higher interest rate than normal charges. Furthermore, it is exceedingly dangerous to take on debt in order to purchase unpredictable investments.
3. Make a Purchase
You could be able to buy BTC by just tapping a button on Bitcoin Billionaire or any platform you’re using, or you might have to input the ticker symbol for Bitcoin (BTC). The next step is to enter the amount you intend to invest.
When the transaction is complete, a fraction of a Bitcoin will be in your possession. This is because buying a single Bitcoin now has a significant initial cost. For instance, you would need to invest £30,000 to get one Bitcoin at the present pricing. You would receive a portion of a Bitcoin, in this case 3.33 percent, if you invested less than £1000.
4. Pick a Secure Storage Choice
Many cryptocurrency exchanges include a built-in Bitcoin wallet, or at the very least, have a preferred partner where you may store your Bitcoin securely. Others, though, are wary of leaving their Bitcoin connected to the internet, where thieves would have an easier time stealing it.
The majority of large exchanges also have private insurance to compensate customers should this happen, in addition to increasingly keeping the majority of user assets offline, so-called “cold storage.”
If you desire the utmost level of security, you can keep your Bitcoin in the offline or online wallet of your choosing.However, bear in mind that you could have to pay a modest withdrawal charge if you transfer cryptocurrency from an exchange. Additionally, if you utilize a third-party custodian for your crypto wallet, you run the risk of losing the private key that acts as your wallet password, which could prevent you from ever being able to access your coins again.
It can be alluring to invest in the well-known cryptocurrency when its price is surging. Although it might be a profitable investment, you should exercise caution. Even if you choose to proceed, many experts advise against investing a sizable portion of your money in it due to its volatility.