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Investments in Bitcoin (BTCUSD) might seem complex, but it's simpler when you cut it in smaller steps. In order to invest or trade Bitcoin is easy if you have an account at a service or exchange. However, further safe storage practices are recommended.There are many things aspiring Bitcoin investors should have including a cryptocurrency trading account in addition to personal identification documents that you can use with the Know Your Customer (KYC) platform and a secure connection to the Internet and a method to pay. It is also recommended to keep your own private bank account separate from the exchange account. Valid methods of payment using these options include bank account as well as debit cards and credit cards. It is also possible to acquire bitcoin using ATMs specifically designed for bitcoin and via P2P exchanges.KEY TAKEAWAYS"The price of Bitcoin is derived from its use as a store of value, as well as a payment method, as well as its limited supply and declining inflation.* While it's almost impossible for Bitcoin itself to be compromised in the event of a hack, it's nevertheless possible for your exchange or wallet account to get compromised. This is why practicing proper storage and security precautions is essential.You can also purchase bitcoin via mainstream services such as PayPal? as well as Robinhood.* One option to acquire bitcoin is to invest in businesses that have bitcoin on their balance sheet.Before You Buy BitcoinSecurity? and privacy are essential aspects when it comes to Bitcoin investors. Anyone who gains the private key to a public address that is on the Bitcoin blockchain can be authorized to make transactions.1 Private keys should be kept secret--criminals may attempt to take them away when they find out about large amounts. It is important to be aware that anyone can see the balance of a publicly accessible address. But the upside to this information being public is that the user can create multiple public addresses themselves. In this way, they can divide their stash of Bitcoin among several addresses. A good strategy is to hold large investments at public addresses that aren't directly linked to those that are used in transactions.Anyone can access a history of transactions completed on the blockchain -- even you. Though transactions are publically documented on the Blockchain, identifying user information is not. In the Bitcoin blockchain, only a user's public key is visible next to the transaction. This means that transactions are secure however not completely secure. This is why Bitcoin transactions are more transparent and traceable than cash due to the fact that all of them are public viewing, in contrast with private cash transactions. But Bitcoin transactions also have an element of security built as part of their design. It's extremely difficult to locate the transacting parties--i.e. both the parties who are sending and receiving bitcoins on the cryptocurrency's own blockchain.Researchers from around the world and the FBI claim to be able to identify transactions made using the Bitcoin blockchain with users' other accounts on the internet, including their digital wallets.2 For instance, if someone creates an account on Coinbase the account holder must verify their identification.3 This means that when that user purchases bitcoin, it will be linked to their own name. If they decide to transfer it to an alternative wallet, it could be traced back to the Coinbase transaction which is linked to the account holder's name. This should not be a concern for the majority of investors as Bitcoin may be used legally in U.S. and most other advanced countries.Be sure to research what is legal, regulatory and tax status of purchasing and selling bitcoin where you live prior to doing any transaction.Buying BitcoinWe?'ve described the steps required for purchasing bitcoin in the following steps. You should remember to research your options and pick the most appropriate option to suit the situation.Step 1: Select the best crypto trading service or venueThe first step in purchasing bitcoin is to choose the best crypto trading services or a location. Some of the most well-known trading platforms and venues for purchasing cryptocurrency include payments, exchanges and brokerages. Of these, cryptocurrency exchanges are the most convenient option since they come with a number of features and than cryptocurrencies to trade.By signing up to a cryptocurrency exchange can allow you to buy, sell, or hold cryptocurrency. https://notes.io/UYzW is generally best practice to go with an exchange which allows its users to cash out cryptocurrency to their private online wallet to keep safe. In the case of those wanting to trade Bitcoin or any other cryptocurrency, this feature isn't crucial.There are various kinds of exchanges for cryptocurrency. Since the Bitcoin principle is the individual sovereignty and decentralization, some exchanges permit users to remain anonymous and do not demand that users enter their personal details. They operate independently and are usually decentralized, which means that they don't have a central point of control.Even though these systems have harmful purposes, they also provide benefits to the poorest of the world's inhabitants. In certain cases, people who are refugees as well as those living in nations which have little or no infrastructure for credit from the government and banking--anonymous exchanges might help connect them to the world's economy.As of now, most popular exchanges are not decentralized and adhere to laws that demand users submit identifying documentation. Within the United States, these exchanges include Coinbase, Kraken, Gemini, FTX, and Binance.US There are many others to mention. The number of exchanges has increased in the variety of features they offer.The crypto world has grown rapidly in the last decade With a variety of new tokens fighting for the investor's dollars. Except for Bitcoin and a handful of other well-known coins like Ethereum there are a few exceptions to the fact that not all these tokens are listed on all exchanges. Each exchange has its own set of criteria to determine whether to include or exclude trading of specific tokens.Coinbase, Kraken, and Gemini provide Bitcoin along with a growing selection of altcoins. They're among the most convenient on-ramps to cryptocurrency within the entire cryptocurrency industry. It caters to an advanced trader, and offers greater trading capabilities and an extensive selection of altcoin options. FTX is a fast-growing digital exchange with the highest valuation in terms of dollars per share, has an exclusive number of altcoins for U.S. investors.4 However, traders from outside their home country of the U.S. have a greater choice of cryptocurrency options on the platform.One important point to remember when setting up a cryptocurrency exchange account is to follow safe Internet procedures. This is done by using two-factor authentication. the use of a unique, long password which includes a variety of lowercase letters, capitalized letters or special characters as well as numbers.El Salvador made Bitcoin legal tender on September 7, 2021. It was the first nation to do so.5 The cryptocurrency can serve as the currency of any transaction where the business can accept it. In the end, however, it is still the U.S. dollar continues to serve as El Salvador's main currency.Step 2. Connect your exchange to your payment optionIf you've made a decision to go with an exchangeoption, you'll need to gather personal documents. It is contingent on the exchange. it could be necessary to have photos of a drivers license or Social Security card, as well as information about your employer as well as the source of money. The information you'll require could depend on the specific region that you reside in, as well as the regulations that are in place within it. The process is largely the same as setting up a typical brokerage account.After the exchange has verified your identity, you will be asked to join with a payment option. In the majority of exchanges, you can connect your bank account to the exchange directly, or you can connect a credit or debit card. Even though you can use a credit card to purchase cryptocurrency, it's unwise because the volatility in cryptocurrency prices can increase the price of buying the coin.Bitcoin exists in legal form in United States, but some banks may not allow or stop deposits to crypto-related sites or exchanges.6 It is recommended that you check to see if your bank is able to accept deposits at the exchange you have chosen.There are different charges for deposits to a bank account such as debit or credit card. It is vital to look into the fees associated with every payment method to help pick an exchange option or decide which one works most effectively for you.Exchanges may also charge fees for each transaction. These charges can be the form of a flat rate (if the amount of trading is not large) or a percentage of the trading amount. Credit cards incur the processing fee in addition to transaction charges.Step 3: Make an orderBitcoin can be purchased (or other cryptocurrency) after choosing an exchange option and connecting a payment option. In recent years Bitcoin exchanges have slowly been gaining popularity. They have grown considerably in terms both of liquidity and their range of features. The changes in the operation of cryptocurrency exchanges parallel the change in how they are perceived by the public. An industry once thought of as a scam or one with unsound practices is gradually becoming an authentic one, which has attracted interest from every major player that are in the business of financial transactions.These days, cryptocurrency exchanges have evolved to the point where they have nearly the same feature set as their counterparts in stock brokerage. There are now crypto exchanges that offer several types of orders and options to invest. Most exchanges in the crypto space offer limits and market orders. A few offer stop-loss options. Out of the exchanges mentioned above, Kraken offers the most kinds of orders. Kraken lets you place market, limit, stoploss or stop-limit or take-profit limit orders.7In addition to offering a range of options for orders, the exchanges provide options for setting up indefinite investments, allowing customers to apply a cost-per-dollar average to their investments of choice. Coinbase for instance, lets users create recurring purchases for every day, week, or month.8Step 4: Secure storageBitcoin and cryptocurrency wallets provide the ideal way to store digital assets more safely. A crypto wallet that is separate from the exchange and within your personal wallet ensures that only you control the private key that you have to your funds. Additionally, it gives you the possibility of storing your funds away from exchanges and eliminate the possibility that your exchange's security being compromised and the loss of your funds.Although most exchanges offer the option of wallets for their users security is not their primary business. We do not generally recommend the use of exchange wallets for the long-term, large-scale holdings of cryptocurrency. http://bvkrongbong.com/Default.aspx?tabid=120&ch=458215 come with more options than others. Some are Bitcoin only, and some offer the ability to store numerous types of altcoins. Some wallets provide the option of swapping one token with another.When it comes down to picking the right Bitcoin wallet, you have many options. The first thing you require to know about cryptocurrency wallets is the concept of hot wallets (online wallets) and cold wallets (paper or physical wallets).Hot walletsInternet-connected wallets have also been known as "hot wallets. Hot wallets are wallets that run via Internet-connected devices, including computers, phones, or tablets. This poses a risk because these wallets produce private keys to your money via these connected devices. Although a hot-wallet can prove extremely beneficial in the way that it allows you to connect to and perform transactions with your cash quickly, having your private key with an internet-connected device makes it more vulnerable to hack.This may seem absurd although hot wallet users who do not have adequate protection run the risk losing money due to theft. This is a frequent incident, and it can occur in a variety of ways. You can, for example, brag on a social media platform like Reddit about the amount of bitcoins you have in your account when there is little or the minimum security and stashing it in a hot bank account would not be sensible. Although, these accounts can be made secure as it is taken care of. Strong passwords, two-factor authentication, and safe Internet browsing should be considered essential specifications.These wallets can be used for small amounts of cryptocurrency as well as cryptocurrency that you are already trading on an exchange. You could liken a hot wallet to a checking account. Conventional financial wisdom would say to hold only spending money in a checking or savings account while the majority of your funds is in savings accounts or other investments accounts. The same could be said of hot wallets. Hot wallets encompass mobile, desktop, web, and exchange account custody wallets.As was mentioned earlier, exchange wallets are custodial accounts offered by exchange. The owner of this kind isn't the owner of the private key to the cryptocurrency which is stored in the wallet. In the event that an incident would occur , where the exchange becomes stolen or your wallet is compromised, you could lose your money. The expression "not your key, not your coin" is often utilized in cryptocurrency forums as well as communities.Cold walletsThe simplest way to describe a cold or cold-weather wallet is that it isn't directly connected to Internet and therefore has less risk of being compromised. They can also be called offline wallets or even hardware wallets. These wallets save a user's private key on something and isn't connected the internet. They could also be equipped with software that operates in parallel so users are able to look over their entire portfolio without putting personal key at risk.The most secure and secure method for storing cryptocurrency offline is using a paper wallet. Paper wallets are digital wallet that is created on certain websites. It then produces both public and private keys that are printed out on a piece of paper. Access to the cryptocurrency within these addresses is only possible if you have the piece of paper that has the private key. A lot of people laminate their papers wallets and place them in safe deposit boxes in their banks or even in a safe in their home. These wallets are designed to be the highest security and for long-term investments, as you are unable to swiftly sell or trade bitcoin stored on this type of wallet.The most commonly used type of cold wallet is a hardware wallet. Hardware wallets are generally an USB drive that is used to store the private keys of a user offline. These wallets offer significant advantages over hot wallets as they are unaffected by viruses that could infect one's computer. With hardware wallets, private keys are never in contact with your network-connected computer or software that might be vulnerable. They're also usually open source, allowing the community to gauge their safety via code audits , rather than a company declaring that they are appropriate for usage.In fact, cold wallets can be described as the best and most safe way to store your bitcoin or any other cryptocurrency. However, they require more technical understanding to set up.A great way to set your wallets is by having three items: an exchange account to sell and buy in hot wallets, a hot account to hold small to moderate amounts of cryptocurrency you wish to trade or sell and a cold hard-copy wallet to hold larger amounts with a longer time-frame.How to Buy Bitcoin With PayPalBitcoin? can also be purchased through payment processor PayPal? Holdings, Inc. (PYPL). There are two options to buy bitcoin through PayPal?. The most popular and easiest method is to buy cryptocurrencies using your PayPal? account, which is linked to a payment system, such as a check or debit card. The other option is to use the balance of account balances in your PayPal? account to purchase crypto through a third party service. This option is not as easy as the first because very few third-party providers allow users to buy bitcoin via PayPal?. PayPal? button.Four cryptocurrencies--Bitcoin, Ethereum, Litecoin, and Bitcoin Cash--can be purchased directly through PayPal?.9 With the exception of those who live in Hawaii, residents of all states can either use their existing PayPal? accounts or set up new ones. It is also possible to use your cryptocurrencies to purchase products and services through"Checkout With Coin "Checkout With Crypto" feature.10To create a crypto account through PayPal? The following information is required include: name, physical addresses (where applicable), birth date, along with a tax identification number.11It is not possible using a credit/debit card to purchase Bitcoin via PayPal?. While you are buying the Bitcoin, PayPal? will display a price for the cryptocurrency. The price, however, is subject to rapid changes because of the fluctuation of markets for cryptocurrency. It's a good idea to be sure to have more than the amount you planned for the purchase in your bank account.When you purchase bitcoin directly from PayPal? it earns profit by selling the crypto spread, or the variation between Bitcoin's market value and exchange rate USD. The company adds a transaction fee for every purchase. These fees depend on price of the purchase. For example the flat cost of $0.50 is per purchase between $100 to $200. Thereafter, the fee is proportional to the overall dollar amount. A typical example is a charge of 2 percent of the amount total is applied to purchases made with cryptos between $100 and $200.12One disadvantage of purchasing cryptocurrencies via PayPal? is that you aren't able to move the crypto beyond the company's platforms for payment. It is therefore not possible to transfer bitcoin purchased through PayPal?'s bank account to an external crypto wallet, or your personal wallet.11The second disadvantage of using PayPal? is the fact that very few sites and exchanges support you to make use of the payments processor in order to buy payments. eToro is one of the very few online marketplaces that allow payment through PayPal? to purchase bitcoins on its platform.13How to Buy Bitcoin With a Credit CardThe? procedure of purchasing bitcoin with credit cards will be similar to the process for purchasing it through debit cards or automated clearing house (ACH) payments. The buyer must enter your credit card details with the exchange or online trading company and also authorize the transaction. The general rule is that it's not a good decision to buy bitcoin using credit cards. There are a few reasons why this is.First, most exchanges will not allow Bitcoin purchasing with credit cards due to associated processing fees and the possibility of fraud. This could work to be in the best interest of the customers. This is because credit card processing might tack additional charges onto such transactions. Thus, as well as the transaction fee the customer will be charged with processing charges that the exchange might pass on to you.The second reason is that credit card purchases can be costly. Card issuers see bitcoin purchases as cash advances, and have to charge high-cost fees and rates for these advances. For instance, American Express and Chase both treat purchases of cryptocurrency as cash advance transactions. In other words, if one purchases $100 worth of bitcoin using an American Express card, you will pay $10 (current cash advance charges for the transactions) and an annual percentage fee of 25%. The credit card company limits you to making $1,000 worth of bitcoin transactions per month.14A more indirect way of purchasing bitcoin using a credit card is by acquiring an Bitcoin reward credit card. They function just like your typical rewards credit card except they reward you in the cryptocurrency bitcoin. Thus, they put the cash back that is earned from purchases into Bitcoin. One illustration of a Bitcoin reward card that is a rewards one would be the BlockFi? Bitcoin Rewards Credit Card.15 Be aware that the annual fees for these cards could be expensive and there could be additional charges for the conversion of fiat currencies to crypto.Even though exchanges such as Coinbase as well as Binance remain as the most popular method to purchase Bitcoin But they're by no means an all-inclusive solution.Alternative Ways to Buy BitcoinBitcoin? ATMsBitcoin? ATMs act like in-person bitcoin exchanges. Individuals can plug cash into an ATM and then use it to purchase bitcoin, which is later made available to the online wallets of users. Bitcoin ATMs are more popular in recent years--even retail massive Walmart Inc. (WMT) is testing a pilot program that will give its customers the option of purchasing bitcoin. Coin ATM Radar can help to find the closest ATMs.However ATMs can be expensive alternative. There are two charges that are associated with ATM bitcoin transactions which are a purchase charge and a conversion fee for converting money from fiat into bitcoin. The fees for both are quite steep relative to the other alternatives. The world standard purchase price for Bitcoin ATMs is 8.4 percent (of the purchase amount) and 5.4 percent for sales at ATMs.16Be aware, however, that Bitcoin ATMs are more often requiring Government-issued IDs starting in 2020.Exchanges P2PAs opposed to decentralized exchanges which provide buyers and sellers with anonymity and can facilitate every aspect of the transfer, there's a few peer-to-peer (P2P) exchanges that provide a more direct link between users. LocalBitcoins? is an example of this type of exchange. After registering for an account users can request to purchase or sell bitcoin. They can also provide information about payment options and prices. Customers can then browse through lists of offer to buy or sell as well as select the partner who they would like to transact.LocalBitcoins? simplifies certain aspects of trading. While P2P exchanges may not provide the same level security and anonymity as traditional exchanges but they provide users with the opportunity to search for the best deal. A large portion of these exchanges have rating systems in place so that buyers can review potential trade partners prior to transacting.Mainstream brokeragesThe majority of brokerages do not offer bitcoin purchase and trading capabilities due to the uncertainty of the legal status of cryptocurrency. Robinhood Markets, Inc. (HOOD) A mobile app highly regarded by investors at retail, is an exchange that provides crypto trading facilities. It charges 0% commissions for cryptocurrency trading and purchases and makes money from the payment of order flow, transferring its trading volume to various trading platforms and brokerages.17The absence of a commission fee may be an enticing prospect in the beginning, but there are a few limitations to the service. Primarily, Robinhood can't offer the range of features and currency offered by major crypto exchanges such as Coinbase. Robinhood has allowed trading on its platform for seven cryptocurrencies: Bitcoin, Bitcoin Cash, Ethereum, Bitcoin SV, Dogecoin, and Ethereum Classic.18 However, you can trade more than 100 different cryptocurrencies through Coinbase.19 The exchange also has various order types to minimize risk and offset losses during trading.The Robinhood platform does not have an online wallet. Thus, if your goal is to purchase cryptocurrencies through Robinhood, you will have to take into consideration additional expenses to an online wallet service.Bitcoin and different cryptocurrency investments aren't insured by Insurance companies such as the Securities Investor Protection Corporation (SIPC). In the case of regular brokerages and brokerages, the insurer protects against losses of cash or securities brokerage accounts with a maximum of $500,000, and has a $250,000 cash limit.20 This insurance option isn't available to customers trading on crypto-currency exchanges. Cryptocurrency exchanges like Coinbase are covered by insurance against crime to safeguard their infrastructure from hacks. But , this type of insurance cannot guarantee the security of individual users against password theft.21How to Sell BitcoinThere? are ways to sell bitcoin at the same locations where you bought the cryptocurrency, including cryptocurrency exchanges, and P2P platforms. Typically, the process of selling bitcoin through these platforms is the same as the process for purchasing it.For instance, you might just need to click one button and indicate an order type (i.e., whether the cryptocurrency should be sold instantly for the best prices or the sale should be made to prevent losses) for the sale. Based on the composition of the market and the level of demand at the site and the location, the price at which you can offer Bitcoin can be different. The example is that exchanges in South Korea traded bitcoin at an alleged kimchi premium in the time of the increase in prices in the year 2018.The cryptocurrency exchanges charge a portion of the amount sold in the form of fees. For example, Coinbase charges 2.49% of the overall transaction amount as fees.22<iframe src="https://youtu.be/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe>Exchanges typically have monthly and daily withdrawal limits. Thus, cash from large sales may take a while to reach the trader. There are no limits on the amount of bitcoin you can sell however.What Are the Steps for Purchasing Bitcoin?The procedure to buy bitcoin consists comprising four steps: choosing a venue or exchange to make your purchase as well as selecting a payment option and making sure that you have secure storage for the cryptocurrency you purchased. Based on the venue chosen in the first section, there may be additional steps in the process. If, for instance, you acquire the cryptocurrency using Robinhood you may need take into account additional costs for an online wallet , as well as custody of your bitcoin since it doesn't offer these services.What Are the Most Popular Venues for Buying Bitcoin?The most popular options to purchase bitcoins are exchanges and brokerages (crypto along with mainstream) and payment companies such as PayPal?. There is also the option of buying Bitcoin through P2P marketplaces. To acquire indirect ownership of bitcoin you could invest in companies which hold bitcoin on their balance sheets. For instance, Tesla, Inc. (TSLA) or MicroStrategy? Incorporated (MSTR).2324How Much Should I Expect to Pay to Purchase Bitcoin?Typicallyspeaking, the cost of purchasing bitcoin comprises fees per trade, plus the cost of changing a foreign currency (generally dollars) to bitcoin. (Cryptocurrency exchanges and payment services make money by selling this conversion spread.) The fee per trade is a function of your dollar amount for the trade. A larger amount of trade will have higher charges. The cost of the purchase is contingent on the features provided by the vendor. For instance, Robinhood does not currently offer an online bank account for holding bitcoin. Therefore, you'll need be prepared for charges for your online wallet purchase.Besides Cryptocurrency Exchanges, Where Else Can I Buy Bitcoin?You can also purchase bitcoin at these locations:* Through Bitcoin ATMs? Online payment services such as PayPal?* At mainstream brokerages like RobinhoodIs? My Bitcoin Purchase Protected by SIPC?No, your bitcoin purchase is not protected by SIPC.20 At certain exchanges, such as Coinbase the balances of fiat currency in individual accounts may be insured by FDIC up to $250,000 per account.21The Bottom LineThe? process for purchasing bitcoin is somewhat more complicated than the procedure for buying traditional equity or stocks. This is due to the fact that the cryptocurrency's infrastructure and ecosystem are not as well developed as those for traditional trading.A bitcoin purchase process consists of four steps: deciding on an option or a place to make payment, connecting with an online payment system, making the order, and also ensuring secure storage for your bought cryptocurrency. Each of these steps calls for research as well as a careful analysis of both the pros and pros of each service. Bitcoin can be purchased through Bitcoin ATMs or from payment services like PayPal? and traditional brokerages like Robinhood.