In the past decade, Bitcoin’s growth has appealed to a new generation of traders and investors. Cryptocurrencies are a promising asset class, but many people aren’t aware of some of its facts and don’t know where to start. It is first important for every individual to enter the crypto market to educate themselves about all the assets, dashboards, wallets, technologies, regulatory considerations, and exchanges. Once you have a proper understanding of fundaments, it will easy for you to start with investing and trading bitcoin and other cryptocurrencies. If you want to do bitcoin trading, choose http://crypto-code.live/ which is a unique trading platform.
Let’s first learn the process of buying bitcoin in the upcoming paragraphs.
Buy Bitcoin through Crypto Exchange
If you are a beginner and want to buy a cryptocurrency for the first time, the best way to buy it is from cryptocurrency exchange for fiat currencies. Most investors find it easy and safe to start their bitcoin journey by creating an account at a reputable and reliable crypto exchange. Cryptocurrency exchanges are specially developed online marketplaces that enable crypto enthusiasts to buy, sell and hold bitcoins and other cryptocurrencies. These marketplaces or organizations charge fees from users for buying and withdrawing funds from the exchange. You can easily fund your crypto exchange account and buy bitcoins and other cryptocurrencies similar to what you do at online crypto exchanges or brokerage accounts.
Here are the steps that buyers need to follow:
- Select the right crypto exchange
It would help if you did a lot of homework choosing the exchange that you want to open an account with. Make sure to find out and choose only the crypto exchange licensed to operate in your local area. Additionally, consider the user features that exchange offers, including fee structure, fund settlement times, minimum and maximum deposit and withdrawal amount and record of security. Not every exchange allows its users to purchase cryptocurrencies through fiat currencies, so make sure to choose the account that allows you to buy bitcoins or other cryptocurrencies with fiat currencies.
- Fund your account by adding a payment option
Once your account setup is completed on the crypto exchange, the next thing you need to do is to link your exchange account to a completely secure payment option, like a bank account or debit card. Note that each exchange operates differently and charges different fees and fund settlement amount and time accordingly. Make sure to choose the best and most secure payment option according to your convenience.
Once everything is done, you need to decide whether to make a bitcoin investment or trade bitcoin. Let’s learn about bitcoin investment first.
As some investors choose to invest in bitcoin, this can be done by HODLing bitcoin. HODL means hold on for dear life, which means you hold your cryptocurrencies for the long run to get the increased value of it in the future. If you choose to HODL bitcoins, there are few things that you must consider:
- Know about taxes
The crypto policies are different in different countries, and before you start investing in bitcoin, you must know about the tax implications of crypto trades. For example, if we talk about the U.S., their bitcoins and altcoins are considered capital assets that mean property which means that any sale and purchase of crypto is related to capital gains taxes.
- Don’t go with the hype.
However, you have invested in bitcoin, and it is crucial to understand that bitcoin is a form of online money that is highly volatile. Its price may skyrocket in minutes and may drop down to 0 in minutes, and therefore you need to be highly careful while making an investment in it. Never go with the hype that its price will definitely increase and only invest by doing your research and analysis instead of relying on hype or marketing gimmicks.
- Protect your investment
Cryptocurrencies are digital currencies that are susceptible to cyber-attacks. Therefore, you must enact the right safety and security practices on your wallets like two-factor or multifactor authentication to protect your investments. As bitcoin transactions cannot be reversed, you must pay a little more attention to securing your funds, and if they are accidentally transferred to the wrong wallet address, you can never get them back.