What also comes to your mind when you hear the word Bitcoin? Do you also immediately picture in your mind the most valuable cryptocurrency? You are not alone, and of course, you are right. Bitcoin is not only the first cryptocurrency but also one with the highest value and most usage. The digital currency is now being used across the globe for different purposes. While some people use it as a secure store of value, some use it for investing in real estate. Some trade with it, and some use it to buy goods and services too.
Whatever the reason you are buying Bitcoin, you will soon discover it has plenty of benefits locked up in it. To possess Bitcoin, you will need to either buy it, mine it, or receive it as payment. If this is your first time buying and investing in Bitcoin, it will do you a lot of good to first read this post before you go ahead. It will show you important things you should know before you buy Bitcoin online for the first time.
There are different methods you can buy your first Bitcoin. You will have to choose one that best works for you. Some of these options include:
This may be different from what you have been told about Bitcoin. The cryptocurrency is not anonymous, so you have to put in the effort on your end to ensure your privacy. Bitcoin transactions are stored permanently on a public ledger, which means anyone can see your transaction history and balance.
Although your address may not be showing up with the transactions, government agencies have the tools they can use to link addresses to your identity. So if you really care about privacy, you may want to consider some so-called privacy coins, such as Zcash and Monero.
Yes, buying Bitcoin is not as important as having a safe place to store them. You will need to first get a digital wallet that will keep your coins safe from scammers and hackers that may want to steal your Bitcoin. There are different wallets you can choose from, such as software wallets, hardware wallets, desktop wallets or mobile wallets.
Choose one that best meets your budget and needs. If you are planning to keep and store a large amount of Bitcoin and for a long time, going for a hardware wallet will be the best option for you. It is also in your wallet that you will be receiving any Bitcoin sent to you.
With Bitcoin, it is impossible to reverse any completed transaction. That means once Bitcoin leaves your wallet, there is no way to get it back. That is why you will need to keep your password secure away from getting into the wrong hands. If someone steals your password or uses your phone to authenticate a transaction, there is no way you can get the fund back. It is gone forever.
Most people don’t know the difference between these two. When we talk about investing in Bitcoin, what we are simply saying is buying Bitcoin and holding onto it for the long run. But trading Bitcoin simply means buying it with the hope that the price will go up quickly so you can make a quick profit selling it.
Even when you see “no transaction fee,” know that buying Bitcoin is never free. Most platforms that engage in buying and selling Bitcoin profit from the difference in price they purchased and the price they sell – known as a “spread.”
Some platforms, including exchanges and brokers, charge a transaction fee on top of the spread. Even though you are not to be scared away from buying by these fees, you just need to be aware of them.
Many people, particularly new investors, get scared of buying Bitcoin because they thought they would have to buy a whole 1 BTC, which is presently equivalent to around $34,500. But you can buy a fractional amount of 1 BTC. This could mean buying as little as 0.00000001 BTC which is known as one Satoshi (the smallest unit of Bitcoin).
Whether you are using a broker or an exchange to buy Bitcoin online, be sure you are using only a trusted source. Using the wrong broker or exchange can cause you to lose serious money. If you buy with a credit card, your details might be captured and later used for a scam. An exchange with loose security can also cause your wallet to be hacked and all your money was stolen away. So when you want to buy Bitcoin online, always make sure you use a trusted platform for your safety and that of your coins. One we can recommend is Coingate. The platform has been serving both traders and investors for years. The reports we get about them are really encouraging.
So you can try to check out Coingate when it’s time for you to buy your Bitcoin. You will also like the fact that they accept a wide range of payment methods to make buying easy for their users.
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