Instructions for buying Bitcoin. How to buy cryptocurrency profitably


How to start your way in the field of digital assets, how to store them correctly and what are the main risks of this industry

There are different ways of investing in digital coins

buy bitcoin

The first and simplest of them is through cryptocurrency exchanges. To do this, it is enough to create an account there and transfer money to it. It is worth remembering that the commission is charged for the input of funds, which on average can be 3-5%.

Another way to buy cryptocurrency is with the help of an exchanger. There you can buy bitcoin and other digital assets using bank cards, electronic payment systems and even cash.

Often, exchange fees are lower than on cryptocurrency exchanges, averaging 1-3%. However, then you will still need to create a cryptocurrency exchange account or cryptocurrency wallet to store the coins you buy.

The third way is to buy digital coins “from hand”. You can buy them from other users for cash or by bank transfer.

How to store Bitcoin properly

store bitcoin

The easiest and most convenient way is to keep cryptocurrency on the exchange. This will allow you to quickly exchange your assets for fiat or stabelcoins. That said, it is believed that trading floors are not the safest place, as they are all subject to hacker attacks.

You can also store digital assets in browser-based cryptocurrency wallets such as MyEthereumWallet, apps on your phone or computer. Some offer the ability to pay for goods and services with cryptocurrencies or exchange them for traditional money and other coins.

The safest way to store cryptocurrency is to use a hardware wallet. However, in this case, the user does not have the ability to quickly get rid of their cryptocurrency if unforeseen circumstances occur. To sell your coins, you will need to use the services of a cryptocurrency exchange or a cryptocurrency exchange, and that takes time.

The main danger

The riskiest way to buy cryptocurrency is “hands-off”. There is a chance not only to lose money during the exchange, but also to put your life in danger. Adding to the risk is the fact that the sphere of digital assets is poorly regulated, which makes it difficult to prove your case in court.

There are several risks when you buy coins from exchangers. The main one is to contact an unscrupulous service or a fraudster. You can also make a mistake when filling out an application to purchase an asset. In this case, the funds will simply “burn”. It will not be possible to get them back, because it is impossible to undo a transaction in the blockchain.

When investing in cryptocurrencies through trading platforms, you should use only the most well-known ones – they are more reliable. With smaller exchanges, there is a higher risk that they will go bankrupt or will not be able to withstand a hacker attack due to weak security.

Getting Started

buy bitcoin firstly

For an inexperienced investor, the safest place to start is by creating an exchange account and funding it with a small amount. You can use it to buy staplecoins such as USDT, TUSD, BUSD, and others. These are fixed rate cryptocurrencies that are backed by the U.S. dollar.

By storing capital in stabelcoins, the user has no risk as they are protected from cryptocurrency price volatility. This will give the user time to become familiar with the exchange’s interface and features.

It is advisable to invest in the leading cryptocurrencies by capitalization, such as Bitcoin, Ethereum, XRP, Litecoin and others. The lower the coin is in the ranking, the higher the chance that this project is abandoned or may be so in the future.

It is safer to invest in cryptocurrency in portions and after a strong drop in its rate. This strategy is called averaging and is used to find the best price to invest in digital assets.

It will be helpful to keep all receipts of cryptocurrency purchases. You may need them in the future if you need to explain the origin of funds, for example, to the tax authorities.

And most importantly: it is recommended to invest in digital money only those funds that you do not regret to lose. Because no one can guarantee the rise in value of cryptocurrency. Moreover, some analysts are confident that in the future its price will fall. For example, CEO of ADVFN Clem Chambers suggested that in the future the bitcoin rate may fall to $10,000 or even $7,000. According to Chambers, the current state of the digital assets market is “cryptozyme”, and those who bought bitcoins for $60,000 will have to wait for a long time to get their investments back.