How to buy bitcoin? This thought brings many questions to your mind. Where do you buy it? Where do you keep it? Can you buy a fraction of it?
Buying bitcoin can be divided into three simple steps. These steps will be explained in this article. You first need to get a bitcoin wallet. After that, you will have to find a bitcoin address and then you can buy the bitcoins.
Find a Bicton Wallet:
Finding or getting a bitcoin wallet is the first step. A bitcoin wallet is a program that you will use to send, receive and store your bitcoins. Bow these programs or wallets are mainly of two types. There are software bitcoin wallets and hardware bitcoin wallets.
Difference between Software and hardware bitcoin Wallets:
Evident from the name, software bitcoin wallets are the ones that you can use on your gadgets like your system or mobile phones. Whereas, hardware wallets are hardware devices that you can connect with your computer system.
You can use a free software wallet to send, receive or store small amounts or fractions of bitcoins. Whereas, a hardware wallet is recommended if you have a large number of bitcoin transactions or bitcoins to store. Hardware bitcoin wallets are safer as compared to the software bitcoin wallets. Software wallets are considered less secure.
Get Bitcoin Address
Getting a bitcoin address is the second step. Once you get your wallets you need to get a bitcoin address. This address is a long series that contains letters and numbers. This address usually starts with the number “1” or “3”. You use this address to make transactions.
It is the third step. Once you have everything that you need a place to store your bitcoins, you can now buy them. It is mostly recommended that you buy bitcoins from an exchange. Most people use online exchanges to buy bitcoins.
Two types of Online exchange:
There are two types of online exchange from where you can buy bitcoins. You need to understand what kind of exchange is suitable for you.
The first type is brokers’ exchange. You can directly buy bitcoins from the brokers. It is a simple and comparatively faster way to buy bitcoins. However, it has a high free rate and can be costly for you. If you are a beginner and new to the bitcoin market, it is better that you buy the bitcoins from a broker. Look for a reputed broker and then make a purchase.
The second type is the trading platforms bitqz. You can have more options if you buy through trading platforms. It will give you a more open list of anonymous buyers and sellers. If you know the bitcoin market and are aware of all the factors, buying through trading platforms is a more convenient option. It will cost you a lesser fee.
Storing the Bitcoins:
Withdrawing your bitcoins after buying them is a very important step. After buying them, you need to trade your bitcoins to your wallet. Use the generated address to send the bitcoins to your wallet. Your wallet is the place that you will use to store the bitcoins that you have bought.
The Investment Amount:
Investment is a crucial cog when you are investing in something as risky as buying a bitcoin. You should first think about the amount that you plan on investing in buying the bitcoins. Invest a small amount that may not have an adverse effect on your financial status if you are a beginner or have no experience in the bitcoin market.
Most experts recommend that you must not use more than five percent of your complete assets. You can also buy the fractions of bitcoins. This means you can also invest in buying less than a bitcoin itself.
Some other Ways to Buy Bitcoins:
There are some other ways to buy bitcoins. Bitcoin atm is one of the well-known ways among them. Different machines in the world give you bitcoin money in exchange for the physical money that you put in them. You can use your paper money or commonly known as fiat money to buy bitcoins through these machines. These ATMs automatically send bitcoins to your bitcoin wallet.
This method will make the process of buying bitcoin easy for you. It will also eliminate the wait for identity verification and will save you from all the other troubles. The companies that own these ATMs also charge a buying or selling fee from you.
There are several ways of buying bitcoin. You can buy them through online brokers, trading platforms, bitcoin ATMs, and also in person. All you have to do is explore the options, understand the process and then buy the bitcoins.