Understanding The Best Way To Purchase Bitcoins And Invest In Bitcoin
Bitcoin has been making headlines in recent times thanks to its roller-coaster dips and skyrocketing prices. As a result, everyone is looking to buy and invest in BTC, which has increasingly become popular worldwide with several applications. BTC's value has been on the rise in the past few months, and everyone wants to dip in by looking for the best way to purchase bitcoins and the best way to invest in bitcoin.
With BTC's growing popularity, one may wonder how they can get in and reap the benefits of owning bitcoin. But the good news is that the process is not that complicated because all you need is a Bitcoin wallet and then set up an account with an exchange, and you start buying your bitcoin. If you want to leverage BTC opportunities, there are some things you need to know about purchasing and investing in bitcoin.
Steps to follow when purchasing bitcoin
1. You need a bitcoin wallet
The first thing you get is a bitcoin wallet where you will store your funds until you spend or invest them. There are several crypto wallet providers around, such as PrivateX.io, which offers a free BTC wallet. Security is essential when choosing a wallet, and with PrivateX.io, you will be dealing with a provider offering secure digital wallets. You are in control of your PrivateX.io wallet with a 12-word private key that the platform doesn’t have access to. Always guard your private key secretly by storing it on an offline device and use it when authorizing BTC transactions.
2. Means of payment for BTC purchase
The second thing that you should have after the Bitcoin wallet is a payment method that you will use to purchase your BTC. You can use bank transfer, credit card/debit card, and payment services such as PayPal to pay for your purchase. It is important to note that the payment mode depends on the trading platform's jurisdiction or crypto exchange of your choice.
3. Pick your exchange or trading platform.
After getting a bitcoin wallet and with your preferred payment method, you need to find a place/platform to purchase bitcoin. The best way to purchase bitcoins is through a cryptocurrency exchange, just like the regular stock exchange. There are several exchanges available globally, but you need to find a reputable, secure, and most trustworthy exchange. Some of the exchanges have had scandals like exit scams, so be keen on the exchange you choose. The exchange will connect you to a BTC market place where you can use your credit/debit card or any other traditional payment method to buy BTC.
4. Buy your BTC
After having everything in place, you can proceed to purchase BTC. Interestingly the exchange provides information on the amount of BTC you can purchase with a given sum. It is important to remember that the BTC price is highly volatile, and the bitcoin prices can vary from time to time.
The Best way to invest in Bitcoin
There are several ways of investing in bitcoin that have sprung up since bitcoin's discovery over a decade ago. Bitcoin has many applications, and it is no surprise that the digital currency has become so popular globally, attracting massive interest from investors.
1. Trading bitcoin
It is the first way to invest in bitcoin, whereby you buy BTC through exchanges and Bitcoin platforms, which is sent to your wallet. You can access the funds from your wallet, and like stocks depending on price-performance, you can sell your bitcoins for some profit.
2. Greyscale’s Bitcoin Investment Trusts (GBTC)
If you want to invest BTC through capital markets, you can access the investment vial GBTC, which offers the benefits of making your investment more digestible. For starters, GBTC shares are held in Roth IRA, IRA, and some brokerage and investor accounts. It allows for easy access through a range of accounts and to various levels of investment. GBTC helps investors that are less technical to access the BTC market quickly and safely.
3. Buying BTC and HODL
HODLing is a popular term in the crypto industry that means holding BTC. When you buy and HODL BTC, you expect the value of BTC to increase in the future, and that near term volatility is just a blip on the path to a higher value. Sometimes investors can buy BTC and sell once the price rallies, and they do this by relying on price volatility. Leveraged trading is available on most crypto platforms, whereby the site lends you some BTC that you can trade for increased returns.