Buying Bitcoin may seem like a daunting task, but the truth is it’s no different than buying a product on Amazon or any other e-commerce shop.
Whether as an investment, for trading or as a keepsake, here’s how you can buy the amount of Bitcoin you want this 2021.
Table of Contents
Step 1. Pick a Crypto Exchange
A cryptocurrency exchange is where you can hold, sell and buy cryptocurrency. It’s recommended you start with one that allows quick transfers to your personal wallet for safekeeping.
Cryptocurrency exchanges vary from decentralized to ones that require a user account. The most popular ones are Kraken, Coinbase and Binance, among others.
Regardless of which platform you pick, you should always practice safety and err towards security. Always set up a strong password, one that has a special character and a number and enable two factor authentication where applicable.
Step 2. Link Your Account to a Payment Method
The exchange you signed up to may need a few documents from you. At this point you will need to provide papers and a source of funds where you’ll draw a capital from.
Once verified you can go ahead and link a payment method, e.g., a bank account or a credit card. In some cases you’ll be able to add a PayPal account or something similar.
You will also want to make sure your bank is okay with you buying Bitcoin or other cryptocurrency. Give them a call and a representative should be able to give you an okay.
Step 3. Buy the Bitcoin You Want
You’ve gotten through the halfway point, and things will be easier from here on out. With your account linked up it’s time to spend your capital and purchase the cryptocurrency.
Take your time and familiarize yourself with the interface, then pick Bitcoin and enter the amount of money you’d like to exchange the asset for. You’ll get a confirmation, followed by evidence that you bought Bitcoin when it appears on your exchange account.
Step 4. Put Bitcoin in Storage
Bitcoin is a digital asset, which is usually stored in digital wallets. Dig deeper and you’ll find there are several types of wallets you can store your private keys in.
It’s worthy to note that exchanges offer their own wallets, which is a good option if you intend to do some day trading. If this is the case, it’s recommended that you add the infinity system to your repertoire so you can make the most of every trade.
However, if you plan to hold on to Bitcoin for a month or longer then it’s recommended that you get a cold wallet. It’s a type of storage that’s not connected to the internet and is therefore safer and more secure.
Step 5. Trade and Cash In
Depending on your investment strategy you will have to exchange your Bitcoin or cryptocurrency to fiat currency to turn in a profit. If this is the case, then you will first want to transfer the keys to your exchange account, then use the exchange to sell Bitcoin at the current price.