Buying Bitcoins online does not have to be a tedious affair or a nerve-wracking experience if you know how to go about it. You can buy Bitcoins through exchanges, peer-to-peer platforms, from crypto ATMs, and even from sellers directly. Using Bitcoins, you can make digital purchases just like you can trade with bonds and stocks in the stock market.
How to buy Bitcoins online:
To purchase Bitcoins, you have to look at an exchange. Cryptoexchanges are for trading and investing cryptos and regular currencies. The better-known exchanges like Gemini or Coinbase are secure, quick to install, user-friendly, and accept a variety of tokens.
- The first step for buying cryptos is to select an exchange. Here buyers and sellers can interact with one another to exchange fiat currencies for cryptos or vice versa. While there are many online exchanges out there, you should select those which prioritize security and charge nominal fees for money transfers.
- You need to check if the exchange has a built-in Bitcoin wallet. Else, you should download a Bitcoin wallet to store your coins securely. It is necessary that all the Bitcoins you purchase online should be stored in a wallet to avoid losing Bitcoins due to theft, computer failure, loss of access keys, etc. You need to choose a Bitcoin wallet that meets your requirements. Once you go through the Bitcoin wallet Vergleich blog, you will be able to pick the Bitcoin wallet that is right for you. If you decide to use platforms like Robinhood or Venmo, you need to remember that you cannot withdraw Bitcoins and shift them elsewhere. To do so, you must first sell your holdings, and then re-purchase them on the other exchange.
- To buy Bitcoins, you need to have a payment option. So, once you have an exchange, you need to make sure there are funds in your bank account before you can buy. The exchange account can be funded from savings or checking bank account, wire transfer, PayPal, credit/debit cards. Platforms may charge more for specific funding options; Coinbase, for example, charge higher fees for electronic transfers from a bank account. If you decide to use credit cards, it is counted as cash advance which means it is liable to a higher interest rate.
- To place an order you need to ensure there are requisite funds in your account. Depending on which platform you choose to use, you may to either tap a button or provide BTC symbol. You then have to type in the amount you wish to buy.
- After you have bought Bitcoins, you need a safe storage for them. Some exchanges will provide you with built-in wallets or preferred partners where it is possible to keep your Bitcoins safe. If you wish to store them outside the exchange you must download a hot or cold wallet.
- Exchanges like Coinbase provide insurance in the event of loss of funds due to hacking or cyber attacks. This however will not protect your funds from individual breaches, like if your password has been stolen.
- Make sure to use a secure web connection when buying coins online. Buying then in cafes, hotels, and other public places using public Wi-Fi is not a wise thing to do.
- For those who prefer day trading, it is possible to buy BTC and sell it when the prices rise. For others who wish to invest long-term, it is better to buy and hold onto your Bitcoins.
These are things you should know before buying Bitcoins on the Internet. You should invest only what you can afford to lose because prices are driven by market speculations. It is not like stock trading and far riskier; so test the waters before diving deep into it.