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Investments in Bitcoin (BTCUSD) could seem complicated, but it's much easier when you breakdown the process into steps. In order to invest or trade Bitcoin is easy if you have an account at a provider or exchange, but other safe storage practices are suggested.There are a number of things hopeful Bitcoin investors need such as a cryptocurrency exchange account along with personal identification documentation to use the Know Your Customer (KYC) platform an encrypted connection to the Internet as well as a method of payment. It is also recommended to have a personal wallet that is separate from the exchange account. Alternative payment options for these options include bank account including debit cards, banks, and credit cards. It is also possible to cash out bitcoin at ATMs with specialized equipment and also through P2P exchanges.KEY TAKEAWAYS* The value of Bitcoin is due to its adoption as a store of value and payment method as well as its limited supply as well as the decreasing inflation.* Even though it's nearly impossible for Bitcoin to be hacked It is nevertheless possible for your exchange or wallet Account to fall victim to a hack. This is the reason why implementing proper security and storage practices are imperative.* You can also buy bitcoin through services that are widely used, such as PayPal? and Robinhood.* One method to hold bitcoin in indirect ways is to invest in businesses that have bitcoin on their balance financial statements.Before You Buy BitcoinSecurity? and privacy are key aspects with regard to Bitcoin investors. Anyone who obtains the private secret key to a public address through the Bitcoin blockchain is able to approve transactions.1 Private keys must be kept secret--criminals may attempt to take them away when they discover huge amounts. You should be aware that anyone is able to observe the balance of the public account you've used. On the other hand, these public records is that it allows an individual to have multiple addresses public for themselves. So, they can share their stash of Bitcoin over multiple addresses. A good strategy is keeping large investments in public addresses that are not directly associated with those which are used for transactions.Anyone is able to view a historical record of transactions performed on blockchain--even you. Although transactions are publicly recorded on the blockchain, the identifying personal information of the user isn't. It is true that on the Bitcoin blockchain it is the only place where a public key appears next to an transaction. This makes transactions secure however not completely in any way anonymous. In this regard, Bitcoin transfers are much easier to trace and traceable than cash due to the fact that all of them are available for public access, unlike private cash transactions. But Bitcoin transactions also include certain aspects of anonymity built into the design. It's very difficult to trace the transacting parties--i.e. the person who sends and receives bitcoin--on the blockchain of the cryptocurrency.International researchers as well as the FBI have claimed that they could track transactions made on the Bitcoin blockchain with users' other accounts on the internet, including their digital wallets.2 As an example, if one creates an account with Coinbase they have to verify their identification.3 In the future, when that user purchases bitcoin, it is linked to the account holder's name. If they transfer the money to the other account, it's possible to still be traced back to the Coinbase transaction, and is linked to the person who owns the account. This should not be a concern for the majority of investors , as Bitcoin may be used legally in U.S. and most other developed countries.Be sure to research how legal, tax-related and tax laws for purchasing and selling bitcoin in the country where you live before transacting.Buying BitcoinWe?'ve described the steps required for purchasing bitcoin in the following steps. Keep in mind that you will need to research the options and choose the most suitable option for your needs.Step 1: Choose a crypto-trading service or venueThe first step in buying bitcoin is to select a cryptocurrency trading service or venue. Popular venues for trading and platforms that allow the purchase of cryptocurrencies comprise cryptocurrency exchanges, payment services, and brokerages. Out of these, cryptocurrency exchanges are the most reliable option since they come with a broad range of options and currencies for trading.The process of signing up for a exchange will enable you to buy, sell, or hold cryptocurrency. It is usually best to choose an exchange that lets users withdraw crypto to their own account online for safe keeping. For those who want to trade Bitcoin or any other cryptocurrency, this feature isn't crucial.There are numerous types on cryptocurrency exchanges. Since the Bitcoin concept is about independence and personal sovereignty, certain exchanges permit users to remain anonymous and don't need users to input specific personal data. These exchanges are autonomous and are typically decentralized, which means that they do not have a central source of control.While these systems are able to serve purposeful purposes, they also offer services to the vast majority of people without banking. For certain kinds of people--refugees and those living in countries where there isn't much infrastructure for government credit or banking -- anonymous exchanges can make them part of the mainstream economy.In the moment, most of the popular exchanges do not decentralized and follow laws that require users to provide identifying documentation. To be specific, within the United States, these exchanges include Coinbase, Kraken, Gemini, FTX, and Binance.US Just to name a few. These exchanges have seen significant growth in the range of services they offer.The world of crypto has expanded rapidly in the last decade with a multitude of new tokens seeking investor dollars. Except for Bitcoin and some prominent coins like Ethereum there are a few exceptions to the fact that not all these tokens can be found on all exchanges. Each exchange has different criteria to determine whether to include or exclude the trading of certain tokens.<img width="450" src="">Coinbase, Kraken, and Gemini offer Bitcoin along with a growing selection of altcoins. These three are one of the most simple on-ramps that crypto has in the entire market. Binance caters to a more sophisticated marketer, and provides more robust trading functions and more altcoin choices. FTX is a rapidly growing crypto exchange that has achieved a multibillion-dollar valuation, offers the limited number of altcoins to U.S. investors.4 However, customers outside of that U.S. have a greater option of tokens offered on its platform.The most important thing to consider when setting up accounts for cryptocurrency exchanges is to ensure that you are using secure Internet practices. This includes two-factor authentication and having a unique and long password that includes lowercase characters, capitalized letters as well as special characters and numbers.El Salvador made Bitcoin legal tender on September 7, 2021. The country was the first to do so.5 Bitcoin is able to serve as a currency to pay for transactions in which the business will accept it. It is the U.S. dollar continues to be El Salvador's main currency.Step 2. connect your account to any payment optionAfter you've picked the exchange option, you'll need to gather personal documents. Dependent on the exchange, these may include pictures from a driver's license and/or Social Security card, as in addition to information about your employer as well as the source of funds. What information you'll need may vary based on the state that you reside in, as well as the laws within it. The procedure is basically the same as creating a typical brokerage account.Once the exchange has confirmed your identity, you will be asked to join a payment option. In most exchanges, you can connect to your bank account without a hassle or you can connect a credit or debit card. Although you can utilize a credit card to purchase cryptocurrency, it's not a good idea because it could cause volatility in the price of buying the coin.Bitcoin may be legal throughout the United States, but some banks might question or block deposits to crypto-related websites or exchanges.6 It is an excellent idea to confirm to confirm that your bank accepts deposits to the exchange you prefer.There are various costs for deposits via a bank account (debit, credit) or credit card. It is imperative to find out the fees that are associated with each payment option in order to determine the best exchange for you or choose the option that is best for you.Exchanges can also charge fees per transaction. These fees can be either a flat amount (if you trade at a relatively small) or part of the transaction amount. Credit card transactions incur the processing cost as well as transaction fee.Step 3: Place an orderYou can purchase bitcoin (or other cryptocurrencies) by selecting the exchange you want to use and then connecting it to a payment option. In the past few years cryptocurrency exchanges are slowly become more commonplace. They have risen significantly in terms if liquidity and their range of features. The operational changes at cryptocurrency exchanges are in line with the shift in the way people perceive cryptocurrencies. An industry once seen as a fraud or one that had questionable methods is slowly evolving into legitimate and has attracted interest from the top players in the industry of financial services.The cryptocurrency exchanges of today have been able to reach a point at which they're almost the same quality of features as their counterparts from stock brokerages. They offer various order types as well as ways to invest. All crypto exchanges will offer both limit and market orders. Some also offer stop-loss-orders. In the list of exchanges above, Kraken offers the most kinds of orders. Kraken permits market, limit, stop-loss, stoplimit take-profit, and take profit limit orders.7In addition to a range of orders, exchanges provide the option of setting up periodic investments, and allow customers to add a dollar-cost average to their investment options. Coinbase, for example, allows users to set up recurring purchases for each week, day, or month.8Step 4: Safe storageThe cryptocurrency and bitcoin wallets can be an ideal place to store digital assets in a more secure way. A crypto wallet that is separate from the exchange and stored in your personal wallet guarantees that only you control the private key that you have to your funds. It also gives you the ability to separate your cash from exchanges and eliminate the possibility of your exchange being hacked and causing loss of funds.Though most exchanges provide the option of wallets for their users security isn't their main business. We generally don't recommend using an exchange wallet to manage huge or long-term crypto holdings.Certain wallets come with more features than others. Some are Bitcoin only, and others can be used to store many different altcoins. Some wallets are also equipped with the ability to exchange one token with another.When you're trying to decide on a Bitcoin wallet, you can choose from several choices. The first thing you be able to comprehend about crypto wallets is hot wallets (online wallets) and cold wallets (paper or physical wallets).Hot walletsOnline wallets are also referred to as hot wallets. Hot wallets are those that run through Internet-connected devices like phones, computers or tablets. This could lead to vulnerability since these wallets produce private keys to your bank accounts using these devices that are connected to the Internet. Although a hot-wallet can be very convenient in the manner it allows you to access and make transactions with your cash quickly, having your private key with an internet-connected device makes it more susceptible to a attack.This may seem a bit nebulous and a bit naive, but wallets with inadequate security have the chance of losing their money to theft. It's not a rare situation and it could occur in a variety of ways. For instance, boasting on a social media platform such as Reddit about the amount of bitcoin you've got while you have little or no security and storing it in a hot wallet would not be a good idea. That said, these wallets are safe as long as the necessary precautions are in place. Secure logins that require two authentication and secure Internet browsing are as minimum standards.These wallets can be used for small amounts of cryptocurrency or cryptocurrency that you are actively trading on an exchange. A hot wallet to a checking account. It is common knowledge that you should only keep money for spending in a savings or checking account, but the majority of your savings is saved in savings or other investment accounts. This is also true for hot wallets. Hot wallets consist of mobile, desktop, web and exchange account custody wallets.As we have mentioned before, exchange wallets are custodial accounts provided by exchanges. The owner of this kind isn't the holder of the key private for the cryptocurrency that is held in the wallet. If an incident were to occur , where the exchange becomes hacked or your account becomes compromised, you'd be liable to lose your money. The phrase "not your key, not your coin" is frequently utilized in cryptocurrency forums as well as communities.Cold walletsA simple description of the term "cold wallet" is that it isn't connected to the Internet and thus has lower risk of being compromise. These wallets can be known as offline wallets or even hardware wallets. https://sisypheannews.com/the-experts-are-getting-crypto-all-wrong/ keep a user's private key on something that isn't connected to the internet. They come with software that functions in parallel so that the user can view their account without putting their private keys in danger.The most secure method to store your cryptocurrency offline is via a paper wallet. A paper wallet is a wallet that you can create by visiting certain websites. It produces public and private keys that you print out on paper. The ability to access the cryptocurrency contained in these addresses is only possible if you have that piece of paper with the private code. A lot of people laminate their paper wallets and store them in safe deposits at their bank or even in a safe in their home. These wallets are intended for long-term investments and high security because you are unable to swiftly sell or trade bitcoins stored in through this method.A more common type of cold device is a hardware wallet. Hardware wallets are generally one that is a USB drive that can store one's personal keys offline. These types of wallets have distinct advantages over hot wallets in that they are not affected by virus that could infect your computer. With hardware wallets, your private keys never come into contact with your computer's network or potentially vulnerable software. They are also generally open source, allowing users to test their security via code audits , rather than a firm stating that they're acceptable to make use of.A cold-wallet is by far the best and most secure way to store bitcoins or other cryptocurrencies. However, they require more technical expertise to setup.A great way to set up your wallets is having three items: an exchange account to purchase and sell items Hot wallet to store small or medium amounts of crypto you want to trade or sell as well as a cold hardware wallet to store larger holdings over a longer period of time.How to Buy Bitcoin With PayPalBitcoin? can also be purchased through payment processor PayPal? Holdings, Inc. (PYPL). There are two ways to buy bitcoin with PayPal?. The first and most convenient method is to purchase bitcoin by using your PayPal? account that is connected with a payment instrument that accepts credit card, bank account or debit card. The other option is to make use of the balance on the balance of your PayPal? account to purchase crypto through a third-party vendor. This isn't so convenient as the former since very few of the third-party sites permit 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. You can also make use of the cryptocurrency you own to purchase products and services with"Checkout With Crypto. "Checkout With Crypto" feature.10To establish a cryptocurrency account with PayPal? it is necessary to provide the following details is needed the following information: name and physical address (where applicable), birth date, plus tax identification number.11It is not possible to make use of a credit card to purchase Bitcoin using PayPal?. In the course of purchasing, PayPal? will display a price for the cryptocurrency. However, that price is susceptible alteration rapidly because of the volatility of cryptocurrency markets. It's best to ensure you have more than the cost which you budgeted in your savings account.When you purchase bitcoin from PayPal?, it makes money from the spread of crypto or the gap between the price at which Bitcoin is traded or exchange rates USD. The company adds a transaction fee for every purchase. The fee is based on the value of the purchase. For example the flat fee of $0.50 is applicable for purchases that are between $100 to $200. After that, the charge is in the form of a percentage of total dollar amount. A typical example is a charge of 2 percent of the total value is due for transactions between $100 to $200.12One drawback to purchasing cryptocurrency through PayPal? is that you are not able to transfer the cryptocurrency outside of the company's platforms for payment. It is therefore not possible for you to transfer bitcoin purchased from PayPal?'s wallet into another crypto-wallet, or your personal wallet.11Another disadvantage to using PayPal? is that not many sites and exchanges support it to be used to purchase payment. eToro is one of the very few online merchants that permit users to use PayPal? to buy bitcoin through its platform.13How to Buy Bitcoin With a Credit CardThe? process for purchasing bitcoin using credit cards is similar to that for purchasing it using debit cards as well as through electronic clearinghouse (ACH) transactions. You will need to enter your credit card information with the exchange or online trading company and then approve the transaction. In general, , it's not a wise idea to purchase bitcoin with credit cards. There are a few causes for this.First, none of the exchanges permit bitcoin purchases using credit cards because of the processing costs and the chance of being a victim of fraud. The decision could be in the best interests of consumers. This is since credit card processing is able to add additional charges onto transactions. So, in addition to paying transaction fees it will also leave you paying processing costs that the exchange might pass onto you.Another reason is that credit card purchases can be expensive. Some credit card companies treat bitcoin purchases as cash advances, and charge hefty fees and interest rates for such advances. For instance, American Express and Chase both view purchases of cryptocurrency being cash advance purchases. Therefore, if, for example, you purchase $100 worth in bitcoin using the American Express card, you are required to pay just $10 (current cash advance charges for these transactions) plus an annual fee of 25%. Further, the credit card company limits you to $1000 worth of bitcoin purchases per month.14An indirect method of purchasing bitcoin using a credit card is to get a Bitcoin Rewards credit card. These cards function similar to your regular rewards credit or debit card, however, they can offer rewards in type of bitcoin. So, they invest the cash-back earned from purchases into Bitcoin. One illustration of a Bitcoin rewards credit card would be BlockFi? Bitcoin Rewards Credit Card.15 Be aware that the annual fees associated with such cards can be high and there could be additional charges for the conversion of fiat currencies to crypto.Although exchanges like Coinbase as well as Binance remain as the most popular method to buy Bitcoin However, they're not the only option.Alternative Ways to Buy BitcoinBitcoin? ATMsBitcoin? ATMs act like in-person bitcoin exchanges. Customers can simply insert money into machines and use it for the purchase of bitcoin. It is then transferred to online wallets of users. Bitcoin ATMs are increasingly popular in recent times. Even retail huge Walmart Inc. (WMT) is trying out a pilot program that provides customers with the option to purchase bitcoin. Coin ATM Radar can help to find the closest ATMs.However, ATMs are an expensive option. There are two charges that are associated with ATM bitcoin transactions which are a purchase charge and the conversion fee when converting Bitcoin into fiat currency. Both fees are fairly steep when compared to other options. For example, the worldwide average price for purchases made of Bitcoin ATMs is 8.4 percent (of the amount of purchase) and 5.4% for sales at ATMs.16Be aware, however, that Bitcoin ATMs are more often requiring government-issued IDs since the beginning of 2020.P2P exchangesIn contrast to decentralized exchanges that offer buyers and sellers a secure way to communicate and facilitate all aspects of the transfer, there's a few peer-to-peer (P2P) exchange services that offer a closer connection between the users. LocalBitcoins? is an example of this type of exchange. After creating an account, users are able to post requests to buy or sell bitcoin. It also includes information on payment methods as well as prices. The users can then look through the listings of deals to buy and sell by selecting the partners with whom they wish to transact.LocalBitcoins? helps with certain aspects of the trade. Although P2P exchanges cannot provide the same level security and anonymity as traditional exchanges, they do give users the option of shopping around to find the most affordable deal. Some exchanges offer rating systems to ensure that users have a way to evaluate potential trade partners prior deciding to do business.Mainstream brokeragesOnly a handful of mainstream brokerages have bitcoin trading and purchase capabilities because of the uncertainty about regulations for cryptocurrencies. Robinhood Markets, Inc. (HOOD) A mobile app popular with retail investors, is one of the exchanges that offer bitcoin trading capabilities. It charges 0% commissions for cryptocurrency trading and transactions and earns revenue from payments for order flow passing its trading volume onto other trading platforms or brokerages.17The absence of a fee for commissions might be an appealing option for those just starting out, but there are a couple of drawbacks to that proposition. For one, Robinhood hasn't got the number of features or currencies offered by prominent crypto exchanges like Coinbase. Robinhood offered trading on its platform for seven cryptocurrencies: Bitcoin, Bitcoin Cash, Ethereum, Bitcoin SV, Dogecoin, and Ethereum Classic.18 On the other hand, you can trade more than 100 cryptocurrencies through Coinbase.19 The exchange also provides diverse order types that can help you minimize potential risk and limit losses when trading.The Robinhood platform doesn't offer an online wallet. If you're looking to purchase cryptocurrencies using Robinhood they will need to factor in additional costs for an online wallet provider.Bitcoin and other cryptocurrency investments are not secured by insurance provided by Securities Investor Protection Corporation (SIPC). Securities Investor Protection Corporation (SIPC). At regular brokerages, the corporation protects against loss of cash and securities brokerage accounts with up to $5000, with a $2500-dollar cash limit.20 This service isn't available to customers who use cryptocurrency-related exchanges. Cryptocurrency exchanges like Coinbase have crime insurance to safeguard their infrastructure from hacks. However, that insurance won't shield individual customers from password theft.21How to Sell BitcoinThere? are ways to sell bitcoin at the same places where you bought the cryptocurrency such as cryptocurrency exchanges and P2P platforms. The process of selling bitcoin through these platforms is similar to the buying process.For instance, you might only need to click one button and indicate an order type (i.e. which cryptocurrency is sold immediately at available prices or whether it should be sold in order to keep losses to a minimum) for the sale. Based on the composition of the market and demand at the place and on the market composition, the prices for Bitcoin could vary. For example, exchanges in South Korea traded bitcoin at the so-called kimchi rate during the upswing in its prices in the year 2018.Currency exchanges that trade in crypto charge a proportion from the cryptocurrency sold amount as fees. For instance, Coinbase charges 2.49% of the total amount for transactions as fees.22Exchanges generally have daily and monthly withdrawal limitations. Therefore, the proceeds from an enormous sale might not be immediately available to the buyer. There are no limitations on the number of coins you can sell however.What Are the Steps for Purchasing Bitcoin?The process of purchasing bitcoin consists with four main steps: deciding on the right venue or exchange to make your purchase before deciding on a payment technique in order to secure the storage for your cryptocurrency purchase. Depending on what place you have chosen for the first step, there could be additional steps needed in the procedure. For instance, if you choose to purchase the cryptocurrency through Robinhood it could be necessary to calculate additional costs for an online wallet and the custody of your bitcoins since it doesn't provide these services.What Are the Most Popular Venues for Buying Bitcoin?The most popular places to purchase bitcoins are exchanges, brokerages (crypto or mainstream) as well as payment solutions like PayPal?. There is also the option of buying Bitcoin by using P2P-based exchanges. For the indirect ownership of bitcoin you may put money into companies that own 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 buying bitcoin is comprised of a fee per trade plus the cost of conversion of a cash currency (generally dollars) to bitcoin. (Cryptocurrency exchanges and payment service providers make money out of this conversion spread.) The fee per trade is a function of what amount in dollars is the trade. A larger trade volume will be charged more. The total cost for purchase is dependent on the features offered by the vendor. For example, Robinhood does not currently provide an online wallet for keeping bitcoin. So, you'll need to plan for the cost of an online wallet for your purchase.Besides Cryptocurrency Exchanges, Where Else Can I Buy Bitcoin?You can also purchase bitcoin in the following locations:* Through Bitcoin ATMs* Through online payments services such as PayPal?* At mainstream brokerages like RobinhoodIs? My Bitcoin Purchase Protected by SIPC?Your bitcoin purchase is not covered by SIPC.20 On certain exchanges like Coinbase Bitcoin, the balances of the fiat currency in individual accounts are FDIC insured at $250,000 per account.21The Bottom LineThe? process for purchasing bitcoin is a bit more complex that the process of buying regular stocks or equity. This is due to the fact that the cryptocurrency ecosystem and infrastructure is not as well-developed as those for traditional trading.A bitcoin purchase process consists in four steps: choosing the service or the location of purchases, joining with an online payment system, making an order, as well as ensuring an appropriate storage space for your cryptocurrency. Each of these steps needs research and an in-depth review of pros and pros of each option. You can also purchase bitcoin through Bitcoin ATMs, as well as from payment companies like PayPal? and traditional brokerages like Robinhood.