The first and most widely used cryptocurrency, Bitcoin (BTC), is decentralised digital cash that is used to buy goods and services online. In fact, it is even considered the future of the financing industry.
With its growing popularity, more people are now interested in learning how to use and trade Bitcoin as they become aware of this decentralised and peer-to-peer form of electronic payment. This just proves that it is now slowly becoming one of the top payment options for online transactions.
To join the Bitcoin revolution, you must first understand how to acquire BTC and the whole story behind Bitcoin. Before you rush to acquire Bitcoin, it’s important to know what you’re truly purchasing.
To begin the process of purchasing Bitcoin, you must first comprehend its ideology. An anonymous author going by the alias Satoshi Nakamoto created Bitcoin and the first blockchain in January of 2009.
According to Nakamoto’s white paper titled ‘Bitcoin: An Electronic Cash System’, Bitcoin can be used to conduct online purchases without going through a bank. Nakamoto’s description of a transparent financial system that nevertheless allows for safe and private individual transactions was nothing short of revolutionary.
As a result of Bitcoin’s decentralisation, governments throughout the globe have struggled to maintain uniform regulation of it. For some, this is a major selling point of the cryptocurrency Bitcoin.
Uncertainty is compounded by Bitcoin’s extreme volatility, which may see its value fluctuate by as much as 100% in a matter of days, hours, or even seconds. If you’re purchasing Bitcoin with a long-term outlook in mind, you better be prepared for volatility.
Your country’s crypto tax legislation must be taken into account if you wish to acquire Bitcoin. Different countries have different tax regulations when it comes to digital currencies, depending on whether they’re considered assets, securities, or currencies.
For the most part, crypto may be subject to taxation in the form of either income or capital gains (or a combination of the three).
The next step to buying BTC is deciding where to trade it. Using a crypto exchange or trading service is a popular and simple method to achieve this.
A large number of exchanges allow you to acquire cryptocurrencies directly, while other prominent trading platforms like Binance instead provide exposure to cryptocurrency values without the need to actually own cryptocurrencies themselves.
Since Bitcoin is the most widely used cryptocurrency, it is available on most crypto exchanges or trading sites. However, not all platforms are created equal. Transaction costs, registration procedures, and terms of service might differ widely. Decide whether you’re happy with the platform’s terms and conditions before making a Bitcoin purchase.
Be careful to look into the company’s reputation as well. Fraudulent platforms that seem real have ensnared a large number of individuals. Use established exchanges with a strong reputation as a decent rule of thumb.
Once you’ve decided on a crypto exchange, it’s important to pick how you’ll keep your Bitcoins. As a general rule, there are two types of crypto wallets: hot and cold.
A hot wallet is the most convenient method of storing your cryptocurrency. ‘Hosted wallets’ are a term for these services, which are usually free to use.
In the event that you lose track of your password, there are normally safeguards in place to assist you to recover it if you use a hosted wallet. Using a hosted wallet has the potential drawback of making your account more open to assault by outside parties.
If you’re concerned about security, a cold wallet may be your best bet. A cold wallet is a kind of offline programme or piece of hardware that looks like a USB flash drive.
Due to their lack of internet connectivity, these devices are less susceptible than those that link to the internet. Costs for cold wallets range from $90 to $100. Transferring your Bitcoin from a hot wallet into a cold wallet may entail a cost.
You’ll need to fund your account after you’ve decided on a cryptocurrency exchange and wallet. Fiat money is being added to a cryptocurrency exchange so that it may be exchanged for Bitcoin.
Depending on the exchange, the method of funding your account may differ. Payments may be made using PayPal, bank transfer, or wire transfer.
Be aware that various means of financing may charge varying transaction fees. It’s possible that the cost of using your PayPal account for a wire transfer is less or more expensive. Depending on the type of payment you choose, the time it takes to complete a transaction might vary.
Now that you know the whole story behind Bitcoin and how to buy it, it’s now time to test your newfound knowledge and earn a lot of profits owning one of the most prominent cryptos in the world.