So you’ve researched cryptocurrency and you want to try your hand at Bitcoin investing. Are you having trouble finding out where to start? Not sure what you need to do to get the ball rolling? If that’s the case, you’ve come to the right place.
Here are five things you need to do to successfully invest in Bitcoin cryptocurrency:
- Know before you go.
- Choose a trading service.
- Connect the exchange to a payment option.
- Place your order.
- Secure safe storage.
In this article, we’re going to go into further detail about each of these steps. By the time you finish reading, you should be all set and ready to make your very first Bitcoin investment.
1. Know Before You Go
The most important thing you should do before pulling the trigger on investing is to get as much information as possible. The more foundational knowledge you have, the better prepared you’ll be to enter the world of investing.
For starters, it’s essential you know and understand what cryptocurrency is, as a whole. You should also have a solid foundation of how the investing and trading process works before you get started. Knowing this information will help you do so properly and it very well may keep you from making rookie mistakes.
Although it isn’t absolutely necessary to know the history of Bitcoin, this information is also helpful as it gives you a better idea of the currency you’re working with. For example, Bitcoin will cap off its currency at 21 million. Once it reaches that number, no more Bitcoin will be created and the only way to get it will be through the trading process.
2. Choose a Trading Service
After you’ve gathered important information, your next step is to choose a trading service to use. Typically, investors and traders will use a cryptocurrency exchange, payment service, or broker. Cryptocurrency exchanges are among the most common as they offer more features than other options.
When you sign up for an exchange, you’ll then be granted access to buy, sell, and trade various cryptocurrencies, including Bitcoin. Although some exchanges are centralized, there are uncentralized exchanges that also follow laws in the United States. These include Coinbase, Kraken, Gemini, FTX.US, and Binance.US.
3. Connect the Exchange to a Payment Option
After choosing a platform, you’ll need to connect your exchange to a means of payment. This may require you to provide certain documentation like a driver’s license, social security number, or specific proof of funds.
These documents are meant to prove your identity. Once this step is processed, you’ll then be directed to connect to some type of payment option. This could be your bank account, a debit card, credit card, or another form of physical money.
Although Bitcoin is legal, some banks may stop or cancel orders on crypto platforms. To prevent this from happening, it may be helpful to confer with your bank first.
4. Place Your Order
Now that you’re payment method is connected, you’re free to browse your chosen platform and buy, sell, or trade your Bitcoin currency. On some databases, you may be served with the option to make recurring investments into a specific currency.
Buying Bitcoin With Paypal
Paypal gives investors the option to purchase four different types of cryptocurrencies: Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. However, this isn’t the case if you live in Hawaii. Paypal also gives you the option to pay for goods and services with your cryptocurrency by using the “checkout with crypto” button.
Buying Bitcoin With a Credit Card
Buying with a credit card may not be available on all platforms due to the risk of fraud. With that said, the process to do so is much the same as it would be when paying with a debit card. When you go to check out, simply input your card information and the process is complete.
There are also alternative ways to pay for Bitcoin, including Bitcoin ATMS where you insert cash into a machine and convert that into your cryptocurrency.
5. Secure Safe Storage
A Bitcoin or cryptocurrency-specific wallet is helpful in securing your newfound investments. Most exchanges will have a wallet available for members to use, but some investors choose to use a separate digital wallet.
There are different wallets available and some will only hold specific currencies. If you want to invest in a variety of cryptocurrencies, you may want to check with different wallets to ensure they’ll hold varying currencies.
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