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Affording investments in Bitcoin (BTCUSD) may appear difficult, but it's much easier when you simplify it by smaller steps. Trading or investing in Bitcoin is easy if you have an account at a third party or exchange, but further safe storage practices are recommended.There are numerous things prospective Bitcoin investors should have including a cryptocurrency trading account along with personal identification documentation for those who use the Know Your Customer (KYC) platform with a secure connection the Internet as well as a method to pay. It is recommended to keep your own personal wallet outside of the exchange account. The most reliable methods to pay using this route are bank accounts as well as debit cards and credit cards. You can also receive bitcoin from ATMs with specialization as well as through P2P exchanges.KEY TAKEAWAYS"The value" of Bitcoin is derived from its adoption as a source of value as well as a payment system in addition to its limited supply and decreasing inflation.It is almost impossible to for Bitcoin to be compromised but it's still possible for your wallet or exchange bank account to have been compromised. This is why having a secure storage and security precautions is essential.You can also purchase bitcoin via mainstream services such as PayPal? and Robinhood.* One way to own bitcoin in indirect ways is to invest in businesses that have bitcoin on their balance sheets.Before You Buy BitcoinSecurity? and privacy are vital issues when it comes to Bitcoin investors. Anyone who gains the private key to a public account through the Bitcoin blockchain may be able to sign transactions.1 Private keys must remain secret, as thieves may try to take them away should they learn of massive accounts. Remember that anyone is able see the balance of a publicly accessible address. The other side of this public information is that one can establish multiple public address for themselves. This allows them to spread their wealth of Bitcoin across multiple addresses. A good strategy is to hold large investments at public addresses that aren't directly connected to ones which are used for transactions.Anyone can view a history in transactions done on blockchain, even you. Although transactions can be publicly recorded on the blockchain, identifying the user's information isn't. With the Bitcoin blockchain only the public key appears next to the transaction. That makes transactions confidential, however not completely private. In this regard, Bitcoin the transactions appear more clear and trackable than cash because all of transactions are public view, unlike private cash transactions. However, Bitcoin transactions also come with some element of privacy built as part of their design. It is very difficult to track the transaction parties--i.e. the recipient and the sender of bitcoins on the cryptocurrency's own blockchain.International researchers and the FBI have claimed to be able monitor transactions on the Bitcoin blockchain and connect them to various online accounts, including their digital wallets.2 As an example, if anyone creates an account on Coinbase and then registers, they need to show their identification.3 Then, when that buyer buys bitcoin, that is linked to their identity. In the event that they transfer it another account, it will be traced back the Coinbase purchase , which is linked to the account's owner's identity. This should not be a concern for the majority of investors as Bitcoin is lawful in U.S. and most other advanced countries.You should be sure to verify the lawful, regulatory, and tax status of purchasing or selling bitcoin in your area of reside prior to completing transactions.Buying BitcoinWe? have simplified the steps of buying bitcoin below. Keep in mind that you will need to research the options and make the best choice for your situation.Step 1: Choose a crypto trading company or venueThe first step of buying bitcoin is selecting an exchange service that is crypto-related or venue. Popular venues for trading and platforms to buy cryptocurrencies include exchanges, payment services and brokerages. The cryptocurrency exchanges are the best alternative because they have a wide range of features and cryptocurrencies for trading.Joining a cryptocurrency exchange will enable you to buy, sell, and hold cryptocurrency. It is usually best for an exchange to make use of one that lets its customers withdraw crypto into their secure online wallet for their personal. If you're looking to trade Bitcoin or other currencies, this option may not be necessary.There are several kinds and types of crypto exchanges. Since the Bitcoin philosophy is based on individual sovereignty and decentralization some exchanges permit users to remain anonymous and don't oblige users to submit any personal information. These exchanges operate independently and are usually decentralized, which means they do not have a central source of control.Although these systems can serve criminal purposes, they also provide services to vast majority of people without banking. For certain groups of people, such as refugees or those in countries with little to no infrastructure for government credit or banking--anonymous exchanges can help move them into the mainstream economy.However, at present, most popular exchanges are not uncentralized and do not need users to present identifying documents. In the United States, these exchanges include Coinbase, Kraken, Gemini, FTX, and Binance.US These are just a few. The exchanges have seen a significant increase by the variety of features they offer.The world of crypto has expanded rapidly in the last 10 years as a number of new coins have been offering investor dollars. The exception is Bitcoin and some of the most well-known coins like Ethereum There aren't all of these tokens are listed on all exchanges. Each exchange has its own set criteria to decide if it's appropriate to include or restrict trading of certain tokens.Coinbase, Kraken, and Gemini provide Bitcoin along with a growing selection of altcoins. They're the most user-friendly on-ramps of crypto in the entire market. Binance caters to a more advanced trader, offering greater trading capabilities and more altcoin options. FTX is a rapidly growing crypto trading platform that has earned itself an impressive multibillion-dollar valuation, is offering limited number of altcoins to U.S. investors.4 However, buyers outside the U.S. have a greater range of cryptos available on its platform.The most important thing to consider when setting up accounts with cryptocurrency exchange companies is to follow safe Internet practices. This is done by using two-factor authentication. using a long, unique username that includes a variety of lowercase letters, capitalized letters along with special characters and numbers.El Salvador made Bitcoin legal tender on September 7, 2021. It was the first nation to do so.5 Bitcoin is able to serve as currency for 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 account to an alternative payment methodIf you've made a decision to go with an exchangeoption, you'll need to gather personal documents. According to the exchange you choose, they could include photos of a driver's license or Social Security card, as plus information on your employer as well as the source of funds. The information you need depends on the place which you reside and rules within it. The process is almost similar to setting up a typical brokerage account.Once the exchange has confirmed your identity, you will be required to connect the payment option. In most exchanges, you can connect your bank account to the exchange directly, or you can connect a debit or credit card. However, if you want to use a credit card to buy cryptocurrency, it's not recommended as the price fluctuations of cryptocurrency could raise the price of buying a coin.Bitcoin can be legally used in the United States, but some banks may be reluctant to accept or close deposits to crypto-related websites or exchanges.6 It is an excellent idea to confirm to ensure that your bank is able to accept deposits at the exchange you choose.There are different charges for payments made via bank accounts such as debit or credit card. It is crucial to investigate the costs associated with each payment method so you can pick an exchange option or select which one is most effectively for you. https://www.ted.com/profiles/33359894 can also charge fees per transaction. They may charge fixed (if you trade at a too low) or a percentage of the trading amount. Credit card transactions incur the processing cost in addition to transaction charges.Step 3: Make an orderYou can purchase bitcoin (or other cryptocurrency) by selecting an exchange , and then connecting a payment option. In the past few times the cryptocurrency exchanges have gradually become more mainstream. They have grown dramatically by virtue of their liquidity, and their range of features. Changes in the operations at exchanges for cryptocurrency are mirrored by the change in the perception about cryptocurrencies. A sector that was previously seen as a fraud or one with questionable methods is slowly evolving into a legitimate one that has attracted attention from all major players in the financial sector.In the last few years, cryptocurrency exchanges have reached a stage where they're nearly offering the same quantity of features available as their counterparts who are stock brokers. Today, cryptocurrency exchanges offer numerous types of order and methods to invest. A majority of cryptocurrency exchanges offer limits and market orders. Some also offer stop-loss orders. Out of the exchanges mentioned above, Kraken offers the most orders of all types. Kraken can accommodate market, limit, stop loss, stop limit or take-profit limit orders.7Aside from a variety of order types, exchanges also allow users to set up recurring investments, allowing clients to apply a cost-per-dollar average to their chosen investments. Coinbase, for example, lets users create recurring purchases for every day, week, or month.8Step 4: Secure storageA cryptocurrency, Bitcoin, or cryptocurrency-based wallet are places to store digital assets with greater security. Having your crypto outside of the exchange and in your personal wallet means that only you are the only person who has control over the private key to your account. Additionally, it gives you the option of keeping your money away from exchanges and eliminate the risk of your exchange being compromised and causing loss of funds.While the majority of exchanges have users with wallets, security is not their primary business. We generally do not recommend using an exchange-based wallet for larger or longer-term holdings in cryptocurrency.Certain wallets feature more options than other wallets. Some are Bitcoin only, while others have the capacity to store diverse altcoins. Some wallets additionally offer the ability to exchange one token for another.When it comes time to choose the best Bitcoin wallet, you have several choices. The first thing you will need to understand about crypto wallets is the notion of hot wallets (online wallets) and cold wallets (paper or hardware wallets).Hot walletsThey are referred to for their hot-looking wallets. Hot wallets are ones that run on devices that are connected to the Internet, such as phones, computers or tablets. This poses a risk because hot wallets create private keys for your coins on these devices with Internet connectivity. Although a hot wallet may prove extremely beneficial in the manner that you can access and transact with your assets rapidly, storing your private keys on an Internet-connected device can make it more susceptible to a hack.This may sound ridiculous however, hot wallet owners who haven't setup enough protection run the risk losing money due to theft. This is not an infrequent occurrence, and it can happen in a number of ways. For instance, bragging on a forum like Reddit about how much bitcoins you've stored while you're using little to zero security and placing it in a hot wallet might not be wise. The fact is, these wallets can be made secure so they are protected by the appropriate measures. Strong logins that require two authentication, and secure Internet browsing should be considered as minimum prerequisites.They are great for smaller amounts of cryptocurrency or cryptocurrency that you're active trading on exchanges. You can compare a hot wallet to a bank account. Financial wisdom is generally believed to put only money you spend on a checking account whereas the bulk of your money are in savings and other investment accounts. It is the same regarding hot wallets. Hot wallets consist of mobile, desktop, web and exchange accounts custody wallets.As mentioned previously, exchange wallets are custodial accounts that are provided by exchanges. The user of this wallet of this type does not hold the holder to the encryption key to the cryptocurrency held in this wallet. If an incident were to occur where the exchange compromised or your account is compromised, you'd end up losing your money. The expression "not your key, not your coin" is heavily used on cryptocurrency forums as well as communities.Cold wallets<img width="327" src="">A simple description of a cold-wallet is that it's not associated with the Internet and , therefore, has an extremely low risk of being affected. These wallets could also be described as offline wallets or hardware wallets. These wallets save a user's private keys on a device but isn't connected the internet and can come with software which operates in parallel, so users are able to look over their entire portfolio without putting private keys at risk.The most secure method to store cryptocurrency offline is through a paper wallet. Paper wallets are wallet that can be created through certain websites. Then, it generates private and public keys which you print out on a piece of paper. Access to cryptocurrency in these addresses is only possible when you've got the piece sheet of paper with a private key. Many people laminate these paper wallets and keep them in safe box at their bank or even in a safe at home. These wallets are meant for the highest security and for long-term investments, as it is impossible to quickly sell or trade bitcoin stored with these wallets.A more frequent type of cold device is a hardware wallet. Hardware wallets are generally made up of a USB drive device that keeps personal keys of the user offline. These wallets offer significant advantages when compared to hot wallets as they aren't affected by viruses that can infect a computer. Hardware wallets ensure that private keys will not be in contact with your network-connected computer or potentially vulnerable software. The devices are usually open source, allowing users to test their safety through inspections of their code rather than the business stating that it is appropriate for usage.A cold-wallet is by far the most secure way to store bitcoin or any other cryptocurrency. However, they require a greater amount of technical knowledge to set up.An excellent way to set your wallets is to include three things one of which is an exchange bank account to buy and sell an exchange account, a hot bank account to store small or medium amounts of crypto they want to trade with or sell and a cold physical wallet to store your larger assets to last for a long time.How to Buy Bitcoin With PayPalYou? can also buy bitcoin via the payment processor PayPal? Holdings, Inc. (PYPL). There are two options to buy bitcoin through PayPal?. The first and simplest method is to buy cryptocurrencies using your PayPal? account that is connected with a payment instrument like 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 isn't nearly as effective as the first since a small percentage of third-party websites allow users to buy bitcoin by clicking this 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 the cryptocurrency you own to purchase products and services through"Checkout With Bitcoin" or the "Checkout With Crypto" feature.10To establish a cryptocurrency account through PayPal? it is necessary to provide the following details is required: name, physical address and birth date and tax identification number.11It isn't possible using credit cards to purchase Bitcoin through PayPal?. In the course of purchasing, PayPal? will display a price for the cryptocurrency. The price, however, is subject alteration rapidly because of the volatility of cryptocurrency markets. It's a good idea to be sure to have more than the cost which you budgeted in your account at the bank.When you purchase bitcoin via PayPal? it earns revenue through the crypto spread or the gap between the price at which Bitcoin is traded plus its price of exchange USD. The company may also charge an transaction cost for every purchase. The amount charged is contingent upon the dollar value of the purchase. For instance the flat fee of $0.50 is assessed for purchases between $110 and $200. After that, the charge is proportional to the overall dollar amount. For instance, a charge of 2% from the total amount to be paid for crypto purchases between $100 and $200.12A disadvantage to buying cryptocurrency via PayPal? is that you are unable to move the crypto beyond the payment processor's platform. Therefore, it is not possible for you to transfer bitcoin purchased through PayPal?'s bank account to the external cryptocurrency wallet, or your personal wallet.11Another disadvantage to using PayPal? is that not many websites and exchanges permit it to be used to make payments. eToro is among the few online trader that allows using PayPal? to purchase bitcoin on its platform.13How to Buy Bitcoin With a Credit CardThe? procedure for buying bitcoin with credit card is similar to that when buying it through debit cards or by automated clearing house (ACH) transfer. The buyer must enter your credit card's details into the exchange or online trading firm and then authorize the transaction. However, generally speaking, it is not a good idea to purchase bitcoin with credit cards. There are a couple of reasons for this.First of all, the majority of exchanges don't allow bitcoin buying with credit cards due to the associated processing fees as well as the risk of fraud. This choice could be in the best interests of customers. This is because credit card processing could include additional charges to these transactions. Thus, in addition to paying transaction fees You will be charged having processing charges that the exchange may pass onto you.Another reason is that buying credit card products can be costly. The issuers of credit cards treat bitcoin transactions as cash advances and charge substantial fees and rates for these advances. For example, American Express and Chase both count purchases made with cryptocurrencies as transactions that are cash advances. In other words, if one purchases $100 worth of bitcoin on the American Express card, you must pay $10.00 (current cash advance fee applicable to these transactions) and an annual percentage fee of 25 percent. Further, the credit card company is also able to limit your purchase to $1,000 of bitcoin purchases per month.14A more indirect way of purchasing bitcoin with a credit-card is to get a Bitcoin reward credit card. They function just like your traditional rewards credit card however they pay rewards in Bitcoin form. They invest the cash back that is earned from purchases into Bitcoin. One illustration of an Bitcoin cards that reward you is called BlockFi? Bitcoin Rewards Credit Card.15 Be aware that the annual fee for the cards could be hefty as well as the costs associated with the transformation of fiat currencies into crypto.Even though exchanges such as Coinbase as well as Binance remain among the top methods to buy Bitcoin but they're certainly not the sole option.Alternative Ways to Buy BitcoinBitcoin? ATMsBitcoin? ATMs act like in-person bitcoin exchanges. Individuals can insert cash into machines and use it for the purchase of bitcoin. It is then made available to the online wallets of users. Bitcoin ATMs have become increasingly commonplace in recent years. Retail massive Walmart Inc. (WMT) is developing a pilot project that will provide customers with the option of purchasing bitcoin. Coin ATM Radar can help to find the closest machines.However ATMs can be expensive option. There are two charges associated with ATM bitcoin purchases: a purchase fee and the cost to convert the fiat currency into bitcoin. Both of these fees are quite expensive as compared to other options. As an example, the standard purchase price with Bitcoin ATMs is 8.4% (of the amount of purchase) and 5.4 percent for sales at ATMs.16Be aware, however, that Bitcoin ATMs are now requiring government-issued IDs by the start of 2020.Exchanges between P2PAs opposed to decentralized exchanges which provide buyers and sellers with anonymity and facilitate all aspects of the transactions, there are peer-to-peer (P2P) exchanges which provide a direct connection between customers. LocalBitcoins? is one such exchange. After registering an account, users can post requests to purchase or sell bitcoin. They can also provide details about payment methods and costs. After that, they can browse through the lists for buy-sell offers to select the trading partners who they would like to transact.LocalBitcoins? assists in certain aspects of the trade. Although P2P exchanges can't offer an identical level of security and privacy as decentralized exchanges, they also give customers the ability to shop around for the best deal. Some of these exchanges have rating systems that allow users to can assess potential trade partners prior to transacting.Mainstream brokeragesThe majority of brokerages do not offer bitcoin trading and purchase options due to the uncertainty surrounding the legal status of cryptocurrency. Robinhood Markets, Inc. (HOOD) which is an app widely used by retail investors is an exchange which offers bitcoin trading capabilities. It charges no fee for cryptocurrency trades or purchases . It also earns money from payment for order flow, passing its trading volume onto others trading platforms or brokerages.17The absence of a fee for commissions can be a enticing option for newcomers, but there are a few issues with that. One is, Robinhood does not have the number of features or coins offered by prominent crypto exchanges like Coinbase. Robinhood had enabled trading on its platform to trade seven cryptocurrencies: Bitcoin, Bitcoin Cash, Ethereum, Bitcoin SV, Dogecoin, and Ethereum Classic.18 But, in contrast, you can trade more than 100 currencies with Coinbase.19 It also has different order types to help reduce the risk and minimize losses when trading.The Robinhood platform also does not have an online wallet. Therefore, if you intend to buy crypto through Robinhood you'll need to consider additional fees for an online wallet provider.Bitcoin and other cryptocurrency investments , however, are not covered by insurance coverage from insurance companies like the Securities Investor Protection Corporation (SIPC). When you use regular brokerages like those, the corporation protects against loss of securities and cash in brokerage accounts that have a total of $500,000, with a $250,000 cash limit.20 This insurance option isn't accessible to clients of cryptocurrency exchanges. Cryptocurrency exchanges such as Coinbase have crime insurance to guard their infrastructure against hacks. However, it does not guarantee the security of individual users against password theft.21How to Sell BitcoinYou? can sell bitcoin through similar places to where you purchased the cryptocurrency including cryptocurrency exchanges, and P2P platforms. Typically, the process involved in selling bitcoin on these platforms is similar to the procedure for buying it.For instance, you might only need to click on a button and select an order type (i.e., whether the cryptocurrency is to be sold immediately at the most competitive prices or the sale should be made to reduce losses) in order to conclude the sale. Based on the composition of the market and demand at the place, the offering price for Bitcoin could vary. For instance, some exchanges in South Korea traded bitcoin at what is known as a kimchi cost during the price increase in the year 2018.Cryptocurrency exchanges charge a percentage of the amount sold in the form of fees. For instance, Coinbase charges 2.49% of the transaction total as fees.22Exchanges generally have daily and monthly withdrawal limitations. This means that cash earned from the sale of a significant amount may not immediately be available to the seller. There are no limits on the quantity of cryptocurrency you can sell, however.What Are the Steps for Purchasing Bitcoin?The process of buying bitcoin is comprised with four main steps: selecting the location and exchange you want to make your purchase and selecting a payment method and ensuring that your data is safe for your newly purchased cryptocurrency. The type of option you pick in the initial step, there might be more steps involved in this procedure. In the case of Robinhood, for instance, if you are purchasing the cryptocurrency with Robinhood there may be a need to add additional charges for an online wallet or custody of your bitcoin , as they do not provide these services.What Are the Most Popular Venues for Buying Bitcoin?The most popular venues for buying Bitcoin are cryptocurrency exchanges and brokerages (crypto and conventional) and payment companies like PayPal?. You can also buy Bitcoin through P2P trading platforms. For the indirect ownership of bitcoin, you can invest in companies that have bitcoin on their balance sheets, for instance Tesla, Inc. (TSLA) or MicroStrategy? Incorporated (MSTR).2324How Much Should I Expect to Pay to Purchase Bitcoin?Typically, the cost for purchasing bitcoin is the cost of trading plus the cost of converting a cash currency (generally dollars) to bitcoin. (Cryptocurrency exchanges and payment services make money out of this conversion spread.) The amount charged per trade is dependent on how much money is involved in the trade. An amount that is higher will attract higher fees. The total price of purchase depends on features offered by the site. For instance, Robinhood does not currently provide an online wallet that allows storing bitcoin. So, 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 places:* Through Bitcoin ATMs* Through online payment solutions such as PayPal?* At mainstream brokerages like RobinhoodIs? My Bitcoin Purchase Protected by SIPC?No, your bitcoin purchase is not covered by SIPC.20 For certain exchanges like Coinbase and Coinbase, the balances of bitcoin in individual accounts could be insured by the FDIC up to $250,000 per account.21The Bottom LineThe? process for purchasing bitcoin can be a little more difficult than the procedure for buying ordinary equity or stocks. This is due to the cryptocurrency ecosystem and infrastructure aren't as well-developed like the ones used in mainstream trading.A process to purchase bitcoin consists from four steps: choosing an appropriate location or service for purchasing, connecting with an option for payment, placing an order and ensuring safe storage for your purchased cryptocurrency. Each of these steps requires extensive research and careful analysis of the pros and negatives of each service. You can also purchase bitcoin through Bitcoin ATMs or pay services like PayPal? and more traditional brokerages like Robinhood.