Investing in Bitcoin is almost the same as investing in a stock market. If you have some experience with stock market investment, you can have a relatively more straightforward time investing in Bitcoin.
A crucial thing is to create an investment account and link it to your bank account. Once you have done that, decide the amount you want to invest. Here are the main steps for investing in Bitcoin.
Register with a Crypto Exchange
When buying stocks, you start by setting up an account with a broker. And this is also the case when trading Bitcoin. You begin by registering with a crypto exchange like bitcoin system. This platform allows you to trade Bitcoin for profits.
In some cases, trading Bitcoin when unsure about what to do or look for makes analyzing the crypto market difficult. However, things get easier with a reliable crypto exchange. That’s because a platform like Bitcoin System App has auto-trading bots designed to help users find ideal trades. Thus, you don’t need specialized knowledge or skills to use the platform to trade Bitcoin.
Link Your Bank Account to the Exchange Account
After registering or creating an account with a crypto exchange, connect it with your credit card, debit card, or bank account. That’s because you will need money from your debit card, credit card, or bank account to buy Bitcoin. Ideally, the crypto exchange will charge your bank account or card the cash you will spend on the purchase of Bitcoin.
Open a Digital Wallet
Bitcoin is digital money. As such, you need a digital wallet for storing your cryptocurrency. Your crypto exchange might be offering a digital wallet. However, consider having a separate wallet for extra security.
Essentially, a Bitcoin exchange focuses on facilitating the purchase and sale of cryptocurrencies. Security, therefore, might not be a priority. On the other hand, digital wallets store cryptocurrencies. Therefore, security is a priority for most digital wallets.
Both offline and online wallets have passwords or private keys. You will provide private keys whenever you want to store or transfer Bitcoins from your digital wallet.
Once you’ve set up your crypto exchange account, you can buy Bitcoin. Some exchanges feature different cryptocurrencies. As such, you will have options like Bitcoin, Litecoin, and Ethereum from which to choose. You will also have the opportunity to select the amount of money to spend on the purchase.
Remember that most exchanges sell crypto coins in small fractions. Thus, you don’t need money for the purchase of an entire Bitcoin. You can purchase a hundredth of the millions of Bitcoin. And this is called the Satoshi.
After making your first Bitcoin purchase, you can buy and sell the cryptocurrency for profits. And, there are various ways of selling Bitcoin. For instance, you can cash Bitcoin into your bank account. In that case, you will receive the value of your Bitcoin in fiat money in your bank. Another way to sell Bitcoin is by using it to purchase services and goods.
You can also purchase other cryptocurrencies with your Bitcoins. Thus, you can diversify your portfolio by buying Litecoin, Ethereum, or other cryptocurrencies.
Costs of Investing in Bitcoin
Some crypto exchanges do not charge users any fee. That’s because they get charge brokers that use them to get business. However, you are likely to incur the following fees when trading Bitcoin:
- Trading fee: When buying and selling Bitcoin
- Maker fee: The cost of placing your cryptocurrency order if not fulfilled right away
- Taker fee: The cost of putting your cryptocurrency order if fulfilled right away
- Miner fee: The fee paid to Bitcoin miners
These fees can vary from one crypto exchange to another. Therefore, do your due diligence when choosing the Bitcoin exchange via which to…
Read More:A guide for investing in Bitcoin