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An investment in Bitcoin (BTCUSD) can seem complex, but it's simpler when you cut it in smaller steps. Making investments or trading Bitcoin only requires an account with a company or an exchange, although more secure storage practices are suggested.There are numerous things future Bitcoin investors need to have: a cryptocurrency exchange account along with personal identification documentation in the case of a Know Your Customer (KYC) platform with a secure connection the Internet as well as a method to pay. It is also suggested that you use your own personal account outside of the exchange account. Alternative payment options for this route include bank accounts including debit cards, banks, and credit cards. There is also the option to get bitcoin at specialized ATMs and through P2P exchanges.KEY TAKEAWAYS"The value and value that comes from Bitcoin is due to its adoption as a source of value and a payment system and also its limited supply and decreasing inflation.Although it's almost impossible to for Bitcoin to be hacked yet, it's possible for your wallet or exchange user account to compromise. This is why having a secure security and storage practices are crucial.You can also purchase bitcoin through services that are widely used, such as PayPal? and Robinhood.One way to get bitcoin in indirect ways is to invest in companies that have bitcoin on their balance and balance sheets.<iframe src="https://www.youtube.com/shorts/wYJhUGVaeyk" width="560" height="315" frameborder="0" allowfullscreen></iframe>Before You Buy BitcoinSecurity? and privacy are the most important issues to Bitcoin investors. Anyone who gets the private key to a public account that is on the Bitcoin blockchain can authorize transactions.1 Private keys must be kept secret. Criminals might attempt to steal them should they learn of massive assets. Be aware that anyone will be able to see the balance of a public address that you have. Another benefit of having this public information is that one can make multiple public accounts for themselves. Thus, they are able to distribute their stash of Bitcoin across several addresses. A great strategy is keeping large investments in public addresses that are not directly associated with those which are used for transactions.Anyone can check the history of transactions that have been recorded on the blockchain, even you. Even though transactions are recorded publically on the blockchain, the identifying users' information is not. It is true that on the Bitcoin blockchain just a user's public key appears next to any transaction. This makes transactions safe however not completely secure. In this regard, Bitcoin payments are more transparent, and traceable in comparison to cash, as all of the transactions are publicly available for scrutiny, unlike private cash transactions. However, Bitcoin transactions also include certain aspects of anonymity built within their designs. It is extremely difficult to trace the transactions of the parties--i.e. recipients and senders of bitcoin--through the blockchain used by the cryptocurrency.International researchers and the FBI claim they are able track transactions made on the Bitcoin blockchain to users' other online accountsas well as their digital wallets.2 For instance, if someone opens an account at Coinbase users must present their identification.3 This means that when that buyer purchases bitcoin, it is linked to their account. When they transfer it to another wallet, it will be traced back the Coinbase transaction, and is linked to the identity of the account's owner. This shouldn't be a problem for most investors as Bitcoin has been legalized in U.S. and most other developed nations.Be sure to check out whether there are any legal or regulatory and tax implications of buying and selling bitcoin based on where you reside prior before making any transactions.Buying BitcoinWe? have laid out the steps to buying bitcoin below. Remember be able to research the market and decide on the best option for you based on your situation.Step 1: Choose an online trading platform or a venueFirst step in buying bitcoin is selecting a crypto trading site or a venue. A variety of popular services and venues for buying cryptocurrencies are cryptocurrency exchanges, payment services and brokerages. Out of these, cryptocurrency exchanges are the most reliable option as they provide a range of features, and even more cryptocurrency options for trading.Joining a cryptocurrency exchange will enable you to buy, sell, or keep cryptocurrency. It is generally best practice to sign up with an exchange that allows its users to withdraw their crypto funds to their private online wallet to keep safe. For those seeking to trade Bitcoin or any other cryptocurrency, this feature may not matter.There are numerous types on cryptocurrency exchanges. Because the Bitcoin ethos is about autonomy and decentralization, some exchanges allow users to remain anonymous and don't demand that users enter particular information about themselves. These exchanges operate on their own and are generally decentralized therefore, they do not have a central point of control.Although such systems can serve criminal purposes, they help the large majority of the population who do not have access to banking. Certain categories of people -- refugees or people living in countries with no infrastructure for government credit or banking - anonymous exchanges can move them into the mainstream economy.Right now, however, the majority of popular exchanges aren't fully decentralized. They also follow the laws that require users to submit identifying documents. For instance, in the United States, these exchanges comprise Coinbase, Kraken, Gemini, FTX, and Binance.US just to mention a few. These exchanges have seen significant growth with regards to the amount of features they offer.The crypto market has grown exponentially in the past decade and there are a myriad of new tokens offering investor dollars. The exception is Bitcoin and a few of the more well-known ones, such as Ethereum but not all of the coins are available on all exchanges. Each exchange has its own set-of criteria to decide whether to allow or exclude the trading of specific tokens.Coinbase, Kraken, and Gemini provide Bitcoin and a variety of altcoins. These three are possibly the easiest crypto on-ramps within the entire cryptocurrency industry. Binance is for an advanced marketer, providing higher-quality trading features as well as an increased variety of altcoin options. FTX is a booming crypto exchange that has garnered the valuation of a multibillion dollar, provides the limited number of altcoins to U.S. investors.4 However, traders from outside to the U.S. have a greater selection of tokens on its platform.One thing you should remember when creating a cryptocurrency exchange account is to ensure that you are using secure Internet practices. This is done by using two-factor authentication. one long, unique password that includes lowercase lettersand capitalized ones as well as special characters and numbers.El Salvador made Bitcoin legal tender on September 7, 2021. It was the first country to do so.5 The cryptocurrency is used as a currency to pay for transactions where the business can accept it. A U.S. dollar continues to constitute El Salvador's primary currency.Step 2: Make sure your exchange is connected to your payment optionAfter you've picked an exchange, you will require your personal documents. Depending on the exchange, the documents could include a photo of your driver's license or Social Security card, as along with information regarding your employer as well as the source of money. The information you'll require may vary based on the state your home is located in and laws in it. It's basically similar to opening a traditional brokerage account.Once the exchange has confirmed your identity, you will be required to connect to a payment service. The majority of exchanges can connect your bank account to the exchange directly, or connect a debit or credit card. However, if you want to use a credit card to purchase cryptocurrency, it's not recommended because the volatility in cryptocurrency prices can increase the price of buying a coin.Bitcoin may be legal throughout the United States, but some banks may be reluctant to accept or suspend deposits on crypto-related websites or exchanges.6 It is an excellent idea to confirm whether your bank accepts deposits to the exchange you choose.There are various charges associated with transactions made with a banking account either debit or credit card. You should research the fees associated with the various payment options to assist you to you choose an exchange, or choose the option that is best for you.Exchanges may also charge fees for each transaction. These charges could be an all-inclusive fee (if the trading amount is not large) or an amount that is a percentage of the trade amount. Credit card transactions incur the processing fee in addition to transaction charges.Step 3. Place an orderYou can purchase bitcoin (or other cryptocurrencies) after selecting an exchange and connecting to a payment method. In the past few times crypto exchanges have slowly become more mainstream. They have grown substantially in terms of their liquidity and their range of features. The operational changes of crypto exchanges have been accompanied by a change in the perception of cryptocurrencies. The industry was thought to be a fraud or one with questionable methods is slowly evolving into legitimate and is attracting the attention of the top players within the financial service industry.Now, cryptocurrency exchanges have reached a stage where they're nearly offering the same amount of features as their stock brokerage counterparts. These exchanges provide numerous types of order and methods to invest. A majority of cryptocurrency exchanges offer limits and market orders. A few offer stop-loss order. From the above exchanges, Kraken offers the most possible types of orders. Kraken supports market, limit, stop-loss, stop-limit take-profit, and take profit limit orders.7Apart from offering a variety of purchase types, exchanges provide options for setting up an investment program that allows investors access to a daily cost average of their investment options. Coinbase, for example, lets users set up recurring purchase for each week, day or month.8Step 4: Secure storageCoins and crypto wallets provide storage options for digital assets more safely. When you store your cryptocurrency outside of the exchange but in your personal wallet ensures that only you hold the private key to the funds. This gives you the option of keeping your money away in a safe place away from exchanges, and avoid the possibility of your exchange getting hacked and losing your funds.While most exchanges provide wallets to their customers, security is not their primary business. We do not generally recommend making use of an exchange account for large or long-term cryptocurrency holdings.Certain wallets have more features than other wallets. Some are Bitcoin only, while some are able to store several types of altcoins. Some wallets also provide the possibility of swapping one token for another.When you're trying to decide on the right Bitcoin wallet, you have several choices. The first thing you have to be aware of about crypto wallets is the notion of hot wallets (online wallets) and cold wallets (paper or hardware wallets).Hot walletsThese wallets may also be referred to as "hot wallets. Hot wallets work on devices that are connected to the Internet, such as phones, computers or tablets. This poses a risk because they create private keys to the coins on devices that have Internet connectivity. Though a hot wallet can provide convenience in the manner that you can access and make transactions with your assets in a short time, storing your private key on an Internet-connected device can make it more susceptible to a hack.It might sound like a lot of work yet hot wallet holders with inadequate security are at risk of losing money to theft. This is not an infrequent incident, and it can occur in a variety of ways. For instance, boasting on a public forum like Reddit about the amount of bitcoins you have in your account when the wallet has little to no security , and storing it in a wallet with a high temperature would make sense. The fact is, these wallets can be secured so long as the necessary precautions are in place. Secure security measures, such as two-factor authentication, and secure Internet browsing should be considered the minimum standards.These wallets are perfect for small amounts of crypto or cryptocurrency that you are currently trading on an exchange. One could compare a hot wallet to a bank account. Traditional wisdom in finance would advise to hold only spending money in a checking or savings account while most of your money is held in savings accounts or other investment accounts. Similar could be said to hot wallets. Hot wallets consist of mobile, desktop, web and exchange accounts custody wallets.As previously mentioned, exchange wallets are custodial account that is provided by the exchange. The owner of this types is not actually the holder of the key private for the cryptocurrency stored in this wallet. If an event should happen where the exchange gets breached or your account is compromised, it would be lost the funds you have invested. The expression "not your key, not your coin" is frequently repeated in cryptocurrency forums and communities.Cold walletsThe simplest definition of the term "cold wallet" is that it's not attached to an Internet and therefore is at less risk of being in danger of being hacked. These wallets may also be called offline wallets or even hardware wallets. These wallets are used to store a customer's private key in a device which is not connected to the internet. They can also come with software which operates in parallel, so that the user is able to see the portfolio of their choice without putting their personal key at risk.Perhaps the most secure way for storing cryptocurrency offline is with a paper wallet. Paper wallets are wallet that you can create via certain websites. It then produces both private and public keys which you print out on a piece of paper. The ability to access the cryptocurrency within these addresses is only possible if you have that piece of paper that has the private key. Many people laminate these cash wallets with paper and store them in safe deposit boxes at their banks or even in a safe in their home. These wallets are for long-term investments and high security because you are unable to swiftly sell or trade bitcoins stored in with these wallets.A more commonly used kind of cold type of wallet is the hardware. A hardware wallet is generally comprised of a USB drive that is used to store key information of the user offline. Such wallets have serious advantages over hot wallets , as they are unaffected by viruses that can infect one's computer. With hardware walletsyour private keys never come into contact with your computer's network or software that might be vulnerable. They're also open source, which allows users to test the security of their devices through an audit of the code instead of a business stating that it is secured to work with.They are by far the most safe method of keeping your bitcoin or any other cryptocurrency. But they require more technical understanding to setup.An excellent way to set your wallets is to include three things that you need: an exchange account for selling and buying Hot wallet to store small or moderate amounts of cryptocurrency you would like to trade or sell, and a cold hardware wallet that can store more substantial holdings for long-term durations.How to Buy Bitcoin With PayPalBitcoin? can also be bought through payment processor PayPal? Holdings, Inc. (PYPL). There are two options to purchase bitcoin using PayPal?. https://historydb.date/wiki/What_is_bitcoin_very_popular_cryptocurrency_find_out and simplest method is purchasing cryptocurrencies by using your PayPal? account, which is linked to a financial institution such as a check or debit card. The other option is to utilize the balance in an existing PayPal? account to purchase crypto through a third-party vendor. This isn't quite as user-friendly as the previous because a few sites allow users to purchase bitcoin through 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. You can also use your cryptos to pay for products and services through"Checkout with crypto "Checkout With Crypto" feature.10For the purpose of opening a crypto account through PayPal? The following information is required to establish a PayPal? account: name, physical address (where applicable), birth date, the tax identification number.11It is not possible to use credit cards to buy Bitcoin using PayPal?. During the buying process, PayPal? will display a price for the cryptocurrency. However, this price can be subject to rapid change due to the volatility of cryptocurrency markets. It's a good idea to ensure that you've got more than the cost you anticipated for the purchase in your bank account.When you buy bitcoin online from PayPal? this company, you earn through the crypto spread or the variance between Bitcoin's current market price and the rate at which it exchanges USD. PayPal? is also charged a transaction fee for every purchase. These fees depend on the amount of money spent. For instance the flat rate of $0.50 is paid for purchases between $100 to $200. After that, fees are determined by a percentage percentage of the dollar amount. A typical example is a charge of 2% of the entire amount is charged for crypto purchases between $100 to $200.12One of the disadvantages of buying cryptocurrency via PayPal? is that you aren't able to transfer the crypto outside of the Payment processor's own platform. It is therefore not possible for you to transfer the bitcoin you purchased from PayPal?'s wallet to any other crypto account or your personal wallet.11The other disadvantage of using PayPal? is that only a few websites and exchanges permit payments through the PayPal? processor for payment. eToro is among the few online brokers that allow it to utilize PayPal? to buy bitcoin through its platform.13How to Buy Bitcoin With a Credit CardThe? procedure of purchasing bitcoin with credit cards is similar to the one used of buying it with debit cards or automatic clearing houses (ACH) transactions. You'll need to input the details of your credit card with the exchange or online trading firm , and then sign off on the transaction. In general, however, it's not the best decision to buy bitcoin using credit cards. There are a couple of reasons to this.First of all, most exchanges will not allow Bitcoin buying with credit cards due to associated processing fees and the threat of fraud. The decision could be in the best interests of customers. This is because credit card processing can add additional charges onto transactions. As a result, instead of paying transaction fees and transaction fees, you'll also be charged with processing fees that an exchange could charge you.The second reason is because buying credit card products can be costly. Credit card issuers consider bitcoin transactions as cash advances, and they charge huge fees and rate on these advances. For instance, American Express and Chase both view purchases of cryptocurrency to be cash advance payments. Thus, if it is possible to purchase the equivalent of $100 in bitcoin using the American Express card, you must pay an amount equal to $10 (current cash advance fee for these transactions) and an annual rate of 25%. Further, the credit card's company also limits your purchases to a maximum of $1,000 in bitcoin transactions per month.14An alternative way to purchase bitcoin with a credit or debit card is to use an Bitcoin rewards credit card. These cards function similar to your traditional rewards credit card however they also offer rewards in form of bitcoin. The cards invest money earned from purchases into Bitcoin. One example of a Bitcoin rewards card is the BlockFi? Bitcoin Rewards Credit Card.15 Be aware, however, that the annual charges for these cards could be high and could also come with additional expenses associated with the conversion of fiat currencies to crypto.Though exchanges like Coinbase and Binance remain among the top methods to purchase Bitcoin but they're not the only option.Alternative Ways to Buy BitcoinBitcoin? ATMsBitcoin? ATMs act like in-person bitcoin exchanges. Individuals can insert cash into a machine which can then be used to buy bitcoin. The money is stored in online wallets of users. Bitcoin ATMs are becoming increasingly popular in recent years--even retail big Walmart Inc. (WMT) is conducting a test program that offers its customers the option of buying bitcoin. Coin ATM Radar can help locate the closest machines.However http://wiki.hashsploit.net/index.php?title=Wall_St_Week_Ahead_Crypto_investors_will_be_more_uncertain_after_a_an_unsettling_start_to_2022_ . There are two costs that come along with ATM bitcoin purchases that include a fee for purchase and the cost of conversion for changing cash to bitcoin. Both of these fees are quite expensive in comparison to other alternatives. For instance, the world average charge for purchase of Bitcoin ATMs is 8.4 percent (of the purchase amount) and 5.4 percent for sales at ATMs.16Be aware, however, that Bitcoin ATMs increasingly require Government-issued IDs starting in 2020.Exchanges between P2PDifferent from decentralized exchanges that provide buyers and sellers with anonymity and manage all aspects of the transactions, there are peer-to-peer (P2P) exchanges that allow a much more direct connection between customers. LocalBitcoins? is an example of this type of exchange. After creating an account, users can send requests to purchase bitcoin or sell it, with information about payment methods and costs. The users can then look through the listings of buy and sell offers selecting the trading partners who they would like to transact.LocalBitcoins? helps with certain aspects of the trading. Although P2P exchanges do not have the same level security and anonymity as traditional exchanges but they provide users with the ability to shop around to find the most affordable deal. A large portion of these exchanges provide rating systems so users are able evaluate potential trade partners before transacting.Mainstream brokeragesMost brokerages don't offer bitcoin purchasing and trading features because of the uncertainty around how cryptocurrencies are regulated. Robinhood Markets, Inc. (HOOD) is an app highly regarded by investors at retail, is one exchange offering crypto trading facilities. It charges 0% commission on cryptocurrency trades and purchases . It also earns money from payments for order flow transferring its trading volume to the other platforms for trading or brokerages.17The absence of commissions might be an appealing option especially for people who are just beginning, but there are some downsides to the offer. For one, Robinhood isn't equipped with the variety of features and coins offered by prominent crypto exchanges such as Coinbase. Robinhood has allowed trading on its platform for seven cryptocurrency: Bitcoin, Bitcoin Cash, Ethereum, Bitcoin SV, Dogecoin, and Ethereum Classic.18 As a contrast, you can trade more than 100 cryptocurrencies with Coinbase.19 The exchange also provides various types of orders that help minimize the risk of losing money during trading.The Robinhood platform doesn't have a hosted wallet. So, if you'd like to buy cryptocurrency through Robinhood the platform, you'll have to factor in additional costs for an online wallet provider.Bitcoin and other cryptocurrency investments are not covered by insurance under an insurance company like Securities Investor Protection Corporation (SIPC). For regular brokerages, the firm is responsible for the loss of cash and securities in brokerage accounts with up to $500,000, and has a $250,000 cash limit.20 This option is not available to customers trading on crypto-currency exchanges. Cryptocurrency exchanges such as Coinbase have insurance for crime to safeguard their infrastructure from hacks. However, the insurance does not protect individual customers from password theft.21How to Sell BitcoinYou? can sell bitcoin at the same locations where you bought the cryptocurrency, including cryptocurrency exchanges, and P2P platforms. In general, the process of selling bitcoin on these platforms is the same as purchasing it.For example, you may just need to click the button and choose the type of order (i.e. it is whether the cryptocurrency is sold immediately at the lowest price, or whether it is sold to be able to limit losses) to conduct the sale. Based on the composition of the market and the demand at the location and on the market composition, the prices for Bitcoin can differ. For instance, some exchanges in South Korea traded bitcoin at Kimchi's premium, also known as the time of the increase in prices back in 2018.Coinbase and other cryptocurrency exchanges charge a certain percentage of the total amount sold as fees. For example, Coinbase charges 2.49% of the total transaction amount as fees.22Exchanges typically have daily and monthly withdrawal limitations. Thus, cash generated by the sale could not be immediately available to the seller. There is no limit to the amount of bitcoin you can sell, however.What Are the Steps for Purchasing Bitcoin?The process of purchasing bitcoin is made up of 4 steps: choosing a venue or exchange for your order and selecting a payment method and then ensuring a secure storage for your bought cryptocurrency. Depending on the type of choice made in the first phase, there will be other steps to be taken in the procedure. For instance, if you purchase the cryptocurrency using Robinhood it is possible to include additional costs in order to have an online wallet and the custody of your bitcoin , as the company does not offer these services.What Are the Most Popular Venues for Buying Bitcoin?The most popular places for buying bitcoins include cryptocurrency exchanges, brokerages (crypto in addition to mainstream) as well as payment services like PayPal?. It is also possible to purchase Bitcoin via P2P exchanges. If you want to own bitcoin indirectly, you can invest in businesses that hold the cryptocurrency in their balance sheets, such as Tesla, Inc. (TSLA) or MicroStrategy? Incorporated (MSTR).2324How Much Should I Expect to Pay to Purchase Bitcoin?In general, the cost of purchasing bitcoin comprises the cost of trading plus costs to convert a non-fiat currency (generally dollars) to bitcoin. (Cryptocurrency exchanges and payment providers earn revenue from this spread.) The cost per transaction is dependent on an amount in dollars that is associated with the trade. A higher trade amount will incur higher fees. The total cost of purchase is contingent on the amenities offered by the location. For example, Robinhood does not currently offer an online wallet for saving bitcoin. Therefore, you will need to plan for expenses for an online wallet purchase.Besides Cryptocurrency Exchanges, Where Else Can I Buy Bitcoin?You can also purchase bitcoin at these locations:* Through Bitcoin ATMs* Through online payment services such as PayPal?* At mainstream brokerages like RobinhoodIs? My Bitcoin Purchase Protected by SIPC?No, your bitcoin transaction is not protected by SIPC.20 On certain exchanges such as Coinbase accounts, the balance of your fiat in individual accounts are FDIC insured in the amount of $250,000 per account.21The Bottom LineThe? process for purchasing bitcoin is slightly more complicated that the process of buying normal equity or stock. This is mainly because the infrastructure and ecosystem for cryptocurrency aren't as well-developed as those of mainstream trading.A process to purchase bitcoin consists from four steps: choosing an option or a place to make purchasing, connecting with an acceptable payment method, making an order, as well as ensuring safe storage for the cryptocurrency. Each of these steps needs research and an in-depth study of the pros & pros of each option. Bitcoin can be purchased through Bitcoin ATMs, as well as from payment services such as PayPal? and traditional brokerages like Robinhood.