Bitcoin is a decentralized currency that anyone can trade, invest or use as a method of payment for goods and services. Although cryptocurrency is still a fairly new concept to many people, Bitcoin has gradually been recognized as a legal asset and means of payment in many stores around the world. If you are a newbie, here are a few things you need to know before making any purchase.
Get a Bitcoin wallet
Bitcoin is a pseudonymous platform that allows users to transact without revealing personal information. Bitcoin users often identify each other by public addresses that do not reveal personal details. However, to buy, sell or pay for items with Bitcoin, you need a Bitcoin wallet.
There are some service providers offering Bitcoin wallets on the market, including both free and chargeable. You can also get a Bitcoin wallet right on reputable crypto exchanges that allow you to link it to your bank account for smooth transfers.
There are two types of Bitcoin wallet you can choose from: hot or cold wallet. A hot wallet is online-based which lets you keep your private keys on the internet. In contrast, a cold Bitcoin wallet does not link to the Internet and usually comes in hard drives or USB disks. As you can guess, although the hot Bitcoin wallet is more convenient because you can access it anywhere, it is also vulnerable to hackers. If you want to be more secure, a cold wallet is a good choice because it doesn’t connect to the online network.
Buy Bitcoins online
Since Bitcoin is a digital currency, Bitcoin can only be traded online. 2021 has seen a record price of Bitcoin (nearly 68.000$/BTC) and according to experts, it will explode even more in the future. Of course, you don’t have to buy the whole Bitcoin. You can buy a fraction of Bitcoin instead, as with fiat currencies.
Satoshi is the smallest unit of Bitcoin, equivalent to a hundredth-million Bitcoin. Reputable crypto exchange platforms like ethereum-trader.io are the best places to buy Bitcoins online. They allow individuals and businesses to buy, transact and invest in Bitcoin based on your budget and goals.
You can buy Bitcoins with cash or other cryptocurrencies on crypto exchanges. After making a purchase, you can also use the funds to transact in different digital currencies and pay for goods and services through those platforms or your wallet. Trading through crypto exchanges will require you to pay a small transaction fee to process the funds, however, the costs are usually not too much.
How much Bitcoin should you buy?
The answer will depend on your goals and budget. If you need Bitcoin to pay for an online product, you should first find out the amount of Bitcoin it would be worth, based on the market prices. Stores that accept crypto payments will automatically display the price in Bitcoin, making it easy to know how much Bitcoin needs to be paid.
If you need Bitcoin to trade or invest, it’s best to discuss your plans with financial advisors or crypto experts. Bitcoin can offer great returns but also carries a lot of risks. Sharp price movements can make you disillusioned. Therefore, as a newbie, you should invest a small fraction first so that if any risks occur, you can completely control and handle it.