A Guide To Buying Bitcoin – What You Should Know

Bitcoin seems to be everywhere. Wherever you go, you are bound to hear someone throwing around such words as blockchain, mining, bitcoin, and cryptocurrency. After numerous lucky and smart investors have made substantial sums on bitcoin’s rise in 2017, its popularity has gone through the roof.

Even though bitcoin is highly volatile, many experts believe that bitcoin has a high potential. Do you want to keep up with the trend and buy bitcoins? We’ll take you through a short guide.

1. Get A Wallet

You can’t touch the bitcoin, but you do need a wallet to store it in. That’s why the first thing to do is to set up a wallet for your virtual currency. Get one BEFORE you buy the coins not after. This way you can be sure your money is safe.

Today, numerous types of bitcoin wallets exist. When you don’t know anything about them, it can be hard to choose one without doing too much research. We’ve done some of the work for you. Here are a few popular types.

·         Independent bitcoin wallet – you are the sole owner of the wallet. No third party can get its hands on it. However, it’s harder to set up than the rest of the types. If you lose it, all the coins are gone.

·         Third-party bitcoin wallet – the wallet is controlled by you and a third party. It’s usually a company or an exchange. Beginners may want to consider this wallet type since it’s easy to set up. You get access to it online, which makes the wallet more vulnerable to hacking.

·         Multi-user bitcoin wallet – the wallet has several owners and can only be opened when several of them agree. They are secure since they require more than one key to be accessed.  

So if you are a beginner, take a look at third-party bitcoin wallets. Another matter to consider is whether you want software or hardware wallets. Software wallets are accessible online by entering keys. Hardware wallets are physical devices, which you need to connect to your computer to get access to what is inside the wallet.

Third party wallets are software wallets. Independent wallets can be either software or hardware wallets.

2. Buy Bitcoin At An Exchange

An expert from Wunderbit shares that once you have the wallet set up, you can proceed to buy bitcoins at an exchange. Each exchange comes with a different set of rules and acquiring nuances. A safe way to buy bitcoin is to research before purchasing in order not to face unexpected fees.

Things to check out when looking at an exchange are:

·         Does it support customers from all around the world?

·         Does it accept your preferred payment method?

·         What are the deposit, transaction, and withdrawal fees?

·         What is the exchange rate?

·         What is the buying limit?

·         Does the exchange have more positive than negative reviews?

3. Decide on The Amount

Once you’ve set up your wallet and chosen the exchange, an online calculator would come in handy to calculate the amount you want to spend on the currency. Since bitcoin is a highly volatile currency, it’s a good idea to evaluate how much you are ready to lose. Ideally, the amount you invest in bitcoin shouldn’t exceed about 7 percent of your income.

If you prefer a safer way to invest with bitcoin, you may want to consider crypto funds. These funds take responsibility for researching for you when it comes to smart cryptocurrency trading, mostly yielding average returns.

Buying bitcoins is easy. Making sure you aren’t losing money is harder. Take the time to consider the reasons why you want to buy this cryptocurrency. Is paying for wallet maintenance worth it? Will you be losing money by just keeping the coins in a wallet? Will you practice bitcoin trading?

Owning bitcoins is a bit trickier than simply keeping money in the bank. Do your research.