How Do Beginners Invest in Bitcoins?
Investing in cryptocurrency may seem overwhelming at first glance and intimidating for beginners, but it is easy once broken down into steps. You can click here to get a massive variety of trading strategies and activities that can assist you in polishing your trading skills. There are different ways beginners can invest in BTC, including trading on an exchange, mining, and purchasing.
However, with a bit of research and thought before you start investing, cryptocurrency will be profitable and a good learning experience that can help you become better-rounded. Beginners can take the time to learn about the various methods of investing, so they know what strategies will benefit them best. The easiest one is to purchase a BTC through a cryptocurrency exchange.
Step 1: Choose a crypto trading service or venue
There are a variety of digital currency exchanges, so beginners will have to do their research to find the right one for them. Look for a user-friendly site that allows you to purchase BTC using several different payment methods and provides sufficient security. Some may also require you to buy a certain amount of BTC before allowing you to trade on the exchange.
Most major crypto exchanges like Bitstamp, Coinbase, Coincheck, and Bitfinex allow purchasing with credit cards or PayPal. However, some small exchanges only accept wire transfers as a deposit method.
Step 2: KYC:
You need to send in some personal information like your photo, scans of your ID, a copy of a utility bill and a selfie picture of you holding your ID up to the camera.
Step 3: Deposit funds
Log in, select a currency pair you want to trade, and then select Deposit on the right-hand sidebar. For example, if you are buying bitcoin with U.S dollars, type in your amount and deposit funds with the payment method supported by the site you selected. For example, choose the USD/BTC or BTC/USD fiat currency pair if you plan to purchase BTC with PayPal.
Step 4: Buy bitcoin
Once you have chosen a fiat currency and completed the deposit process, click “Buy Bitcoins” from your account balance on the left-hand sidebar. When you buy bitcoin, it is held by the exchange’s custodian wallet for security.
Step 5:
Move bitcoin from the exchange to your wallet
It is possible to store BTC on an exchange, but it’s not recommended. Exchanges get hacked often, and most do not offer insurance protection for customer funds. It’s also more convenient and secure to transfer the bitcoin you bought back into your wallet where you control the private key because this way, you hold the coins yourself without having to trust anyone else with them. Cryptocurrency wallets are further of a different type :
Web wallet: A web-based cryptocurrency wallet you can use with any device. However, the advantage of this type of wallet is that it’s convenient to use, and you don’t need any additional software to access it once you’ve logged in.
Mobile wallets are among the most secure types of bitcoin wallets available because they are stored on your mobile device (smartphone, tablet, etc.). Furthermore, they are convenient because these apps allow users to buy and sell bitcoin anywhere. The app also provides a solution for users who do not wish to download a new app for each new platform they want to purchase BTC.
Hardware wallets are physical devices that store private keys in a secure environment. Hardware wallets are more convenient because the smartphone you use for accessing your account doesn’t need to be combined with your computer.
Paper wallet: A paper wallet is simply a piece of paper or an electronic document showing your public and private keys printed on both sides. You can either print out the private and public keys themselves or have someone else print them out for you using a service.
A bitcoin wallet secures the assets with the assistance of cryptographic technology. Wallets based upon their nature have different features and interfaces. Some focus on security, some are designed for speed and convenience, but all provide you with a place to send and receive BTC as long as your device is connected to the internet.
