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https://watchmotion1.wordpress.com/2022/02/12/top-20-best-crypto-automated-trading-bots-coinbasethat-makes-profits/ in Bitcoin (BTCUSD) could seem complex, but it's simpler when you reduce it into smaller steps. Trading or investing in Bitcoin only requires an account with a service or exchange, however additional safe storage practices are advised.There are a number of things future Bitcoin investors should have in order to invest: a cryptocurrency-exchange account along with personal identification documentation to use a Know Your Customer (KYC) platform and a secure connection to the Internet and a means for payment. It is also suggested that you use your own personal account outside of the exchange account. Valid methods of payment using the method of bank accounts including debit cards, banks, and credit cards. It is also possible to acquire bitcoin using ATMs specifically designed for bitcoin and also through P2P exchanges.KEY TAKEAWAYS"The worth of Bitcoin is derived from its adoption as a store of value and payment method as well as its limited supply and decreasing inflation.* While it's virtually impossible for Bitcoin to be compromised but it is still possible for your exchange or wallet user account to compromise. This is the reason why implementing proper security and storage practices are essential.* You can also buy bitcoin through services that are widely used, like PayPal and Robinhood.* One way to invest in bitcoin indirectly is by investing in businesses with bitcoin on their balance books.Before You Buy BitcoinSecurity and privacy are vital security and privacy concerns in the lives of Bitcoin investors. Anyone who gains the private key to the public address in the Bitcoin blockchain may be able to sign transactions.1 Private keys must be kept secret as criminals may try to take them away should they learn of massive accounts. Be aware that anyone could be able to see the balance at a public address you've created. But the upside to this public information is that it allows an individual to create multiple public addresses to themselves. Therefore, they could distribute their stash of Bitcoin to multiple addresses. The best strategy is to safeguard investments with significant amounts at public addresses that are not directly linked to those that are used in transactions.Anyone can check the history of transactions recorded on the blockchain, even you. While transactions can be recorded publicly on the blockchain, identifying individual information about the user isn't. On the Bitcoin blockchain just a user's public keys are visible alongside any transaction. This makes transactions safe however not completely secretive. In this sense, Bitcoin transfers are much easier to trace and traceable in comparison to cash, as all of them are available for public view, unlike private cash transactions. However, Bitcoin transactions also come with the element of anonymity built inside their code. It's extremely difficult to find the transacting parties--i.e., the receiver and sender of bitcoin--on the blockchain of the cryptocurrency.International researchers as well as the FBI have claimed that they could identify transactions made using the Bitcoin blockchain to the users' various online accounts, including their digital wallets.2 For example, when someone registers on Coinbase it is required to provide their identification.3 Then, when that user purchases bitcoin, it is tied to their personal name. If they transfer the money to other wallets, it could nevertheless be traced back the Coinbase purchase which is tied to the account's owner's identity. It shouldn't concern the majority of investors as Bitcoin is officially legal within the U.S. and most other developed countries.Be sure to research your legal and regulatory, and tax laws for purchasing or selling bitcoin in the place you live prior to doing any transaction.Buying BitcoinWe have described the steps required for buying bitcoin below. Remember do your research to decide on the best option depending on the situation.<img width="329" src="https://xrpfamily.com/wp-content/uploads/2022/02/Tax-Season-Crypto-Bitcoin-NFTs.jpg">Step 1: Choose a crypto trading company or a venueThe first step for buying bitcoin is to select a crypto trading company or a location. Some of the most well-known trading platforms and venues to purchase cryptocurrencies include exchanges, payment service providers, and brokerages. Out of all these, crypto exchanges are the most efficient option since they offer a variety of features and than cryptocurrencies to trade.In signing up for a crypto exchange will enable you to buy, sell, and keep crypto. It is usually best for an exchange to make use of one that lets users cash out cryptocurrency to their personal online wallet for safekeeping. In the case of those wanting to trade Bitcoin as well as other cryptocurrencies, this may not be a problem.There are many kinds and types of crypto exchanges. Since the Bitcoin principle of decentralization and individual sovereignty, certain exchanges let users remain anonymous and do not have to require specific personal data. These exchanges operate on their own and are usually decentralized, which means that they do not have a central point of control.Even though these systems have purposeful purposes, they also provide benefits to the world's unbanked population. Certain categories of people -- refugees or those who reside in nations which have little or no infrastructure for credit from the government or banking, anonymized exchanges can make them part of the mainstream economy.At the moment, the most well-known exchanges aren't uncentralized and do not need users to present identifying documents. To be specific, within the United States, these exchanges include Coinbase, Kraken, Gemini, FTX, and Binance.US among others. These exchanges have grown dramatically in the range of services they offer.The cryptocurrency market has expanded rapidly over the last decade as a number of new coins have been in competition with investor dollars. The exception is Bitcoin and certain prominent coins such as Ethereum however, not all of the tokens listed are on all exchanges. Each exchange has its own set-of criteria that determine whether they will include or exclude trading of certain tokens.Coinbase, Kraken, and Gemini offer Bitcoin as well as a growing array of altcoins. They're the easiest on-ramps to crypto in the entire market. Binance targets a more sophisticated marketer, and provides the most sophisticated trading features and more diverse altcoin choices. FTX is a rapidly expanding crypto trading platform that has earned itself its valuation to be multibillion dollars, also offers the limited number of altcoins to U.S. investors.4 However, investors from outside in the U.S. have a greater choice of tokens on its platform.One thing you should remember when creating accounts for cryptocurrency exchanges is it is to utilize secure Internet methods. This means two-factor authentication, as well as A long, unique password that includes a range of lowercase, capitalized, and capital letters, special characters, and numbers.El Salvador made Bitcoin legal tender on September 7, 2021. It was the very first country to do so.5 The cryptocurrency is used as the currency of any transaction in which a company is willing to accept it. In the end, however, it is still the U.S. dollar continues to be the primary currency in El Salvador.Step 2. Connnect your exchange with an option for paymentWhen you've selected the exchange option, you'll have to collect your personal documents. If you are using an exchange, they may require photos of a driver's permit or Social Security card, as and information about your employer as well as the source of money. The information you require may depend on where which you reside and laws that apply to it. The process is in general the same as the process of setting up a standard brokerage account.After the exchange has verified the authenticity of your account, you will be asked to connect an option for payment. The majority of exchanges can connect your bank account with a single click or you can connect a credit or debit card. However, if you want to use a credit card to purchase cryptocurrency, it is not recommended as currency price volatility can inflate the overall cost of purchasing coins.Bitcoin remains legal across the United States, but some banks may question or refuse deposits to crypto-related web sites or exchanges.6 It is recommended that you check whether your bank accepts deposits to your preferred exchange.There are various charges associated with payments made via bank accounts such as debit or credit card. It is crucial to investigate the costs for each payment method so you can determine the best exchange for you or choose the option that is best for you.Exchanges also charge fees per transaction. These charges can be one-time fees (if the trading value is low) or some percentage of the trading amount. Credit cards are charged the processing cost as well as transaction fees.Step 3: Make an orderYou can buy bitcoin (or other cryptocurrency) when you select the exchange you want to use and then connecting it to a payment method. In recent times cryptocurrency exchanges have slowly become more commonplace. They have grown significantly in terms of their liquidity and their variety of features. The operations of exchanges for cryptocurrency are mirrored by the change in the perception about cryptocurrencies. An industry that was considered to be a scam or one that was based on questionable practices is now slowly becoming legitimate, and has attracted the attention of all major players in the industry of financial services.In the last few years, cryptocurrency exchanges have progressed to the point where they're able to provide nearly the exact level of features as their counterparts with stock brokerages. The cryptocurrency exchanges of today provide an array of different order types and options to invest. The majority of crypto exchanges offer limits and market orders, and some also offer stop-loss order. Of the mentioned exchanges, Kraken offers the most different types of orders. Kraken accepts market, limit, stoploss, stop-limit as well as take-profit and limit orders.7Alongside a wide range of order types, exchanges also offer methods to set up recurring investments, allowing clients the option of incorporating a dollar-cost median into their investments of choice. Coinbase for instance, lets users make recurring purchases to be made every day, week or month.8Step 4: Safe storageIn addition, bitcoin and cryptocurrency wallets can be places to store digital assets more safely. Your crypto is kept away from the exchange and stored in the private wallet of your wallet ensures only you hold the private key to your funds. It also gives you the option of keeping your money away from an exchange , and reduce the possibility of your exchange being hacked and causing loss of funds.Though most exchanges provide wallets for their customers, security isn't their main business. We generally don't recommend using an exchange wallet for larger or longer-term holdings in cryptocurrency.Certain wallets feature more options than others. Some are Bitcoin only, while some can be used to store many different altcoins. Some wallets provide the ability to exchange one token with another.In the case of choosing an Bitcoin wallet, you have several options. The first thing you have to know about crypto wallets is the idea of hot wallets (online wallets) and cold wallets (paper or hardware wallets).Hot walletsInternet-connected wallets have also been referred to also as hot wallets. Hot wallets run through Internet-connected devices like phones, computers or tablets. It is possible for them to be vulnerable since they create secret keys to your currency using these devices that are connected to the Internet. Although a mobile wallet can be very convenient in the way it lets you connect to and perform transactions with your assets quickly, storing your private key using an Internet-connected device may make it more vulnerable to attack.This might sound a bit absurd however, hot wallet owners who haven't set up enough security have the possibility of the loss of funds due to theft. This is not an infrequent possibility, and can occur in several ways. For example, you could boast in a public forum, such as Reddit about the amount of bitcoin you own while your wallet is essentially no security and keeping it inside a hot wallet will not be a good idea. Although, these accounts may be secured as they are protected by the appropriate measures. Secure logins that require two authentication and secure Internet browsing are as minimum requirements.These wallets are suitable for smaller amounts or cryptocurrency that you are engaging in exchange trading. One could compare a hot wallet to a checking account. Financial wisdom is generally believed to hold only spending money on a checking account whereas the majority of your cash is saved in savings or other investments accounts. The same could be said with hot accounts. Hot wallets cover mobile, desktop, web and exchange account custody wallets.As we have mentioned before, exchange clients are custodial wallets that are offered by the exchange. The person who uses this wallet of this type does not hold the owner to the encryption key for the cryptocurrency stored in this wallet. If a situation were to occur where the exchange compromised or your account gets compromised, it would be lost your funds. The expression "not your key, not your coin" is heavily heard in cryptocurrency forums, and communities.Cold walletsThe most straightforward description of an offline wallet is that it is not directly connected to Internet so it has greater risk of being compromised. These wallets might also be called offline wallets or hardware wallets. They keep a user's private key in a device which is not connected to the internet. They also come using software that works in parallel, so the user is able to view the portfolio of their choice without putting their personal key at risk.The most secure way to store cryptocurrency offline is by using a physical wallet. A paper wallet is a account that can be generated off of certain websites. It then generates public and private keys that are printed out on a piece of paper. Access to cryptocurrency from these addresses is only possible when you've got the piece paper that has the private key. A lot of people laminate their wallets in paper and put them in safe deposit boxes at banks or even in a safe in their home. These wallets are made for security and long-term investment because they are not able to quickly sell or trade bitcoins stored in on this type of wallet.A more commonly used kind of cold wallet is a hardware one. Hardware wallets are typically a USB drive device that stores users' private keys offline. The advantages of these wallets are significant over hot ones since they are immune to viruses that could infect one's computer. With hardware walletsyour private keys do not come into contact with your computer's network or any software that may be vulnerable. They're also usually open source, which allows the community to gauge their safety via code audits , rather than a corporation stating they're secured to work with.They are by far the most secure way to store bitcoin or any other cryptocurrency. However, they require more knowledge of technology to set up.A great method to set your wallets is to set up three items: an exchange account that allows you to purchase and sell products the hot wallet, which can hold small to moderate amounts of cryptocurrency which you'd like to trade sell and a cold physical wallet to hold larger amounts with a longer time-frame.How to Buy Bitcoin With PayPalYou can also buy bitcoin through a payment processor PayPal Holdings, Inc. (PYPL). There are two ways to buy bitcoin through PayPal. The first , and the most convenient method is to purchase cryptocurrencies through your PayPal account, which is linked to a payment method that accepts deposit card or a bank account. The second alternative is to use the balance in account balances in your PayPal account to purchase crypto from a third party provider. This option is not exactly as efficient as the other since a small percentage of third-party websites allow users to purchase bitcoin via it's 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 cryptocurrencies you have to buy items or services using PayPal's "Checkout With Crypto" feature.10To set up a crypto account with PayPal it is necessary to provide the following details is needed in order to set up a PayPal account: name; physical address (where applicable), birth date, plus tax identification number.11It isn't possible to use a credit or debit card to purchase Bitcoin via PayPal. In the process of buying, PayPal will display a price for the cryptocurrency. However, the price is subject for rapid change because of the volatility of the cryptocurrency market. It's best to ensure that you've got more than the price you estimated for the purchase in your bank account.If you purchase bitcoin straight via PayPal and it earns money out of the spread in crypto, or the difference between the market price of Bitcoin or exchange rates with USD. The company is also charged a transaction cost for every purchase. These fees depend on amount in dollars of the purchase. For example the flat cost of $0.50 is per purchase between $100 and $200. After that, the charge is a percentage of the overall dollar amount. For instance, a rate of 2% of the total value is applied to purchases made with cryptos between $100 and $200.12One disadvantage of purchasing cryptocurrencies via PayPal is that you can't transfer the cryptocurrency out of the PayPal's payment processing system. So, it's not possible for you to transfer the Bitcoin you bought through PayPal's bank account to an external crypto wallet, or your personal wallet.11Another drawback of using PayPal is that few marketplaces and online retailers allow using the processor in order to buy payments. eToro is among the few online marketplaces that allow the use of PayPal to purchase bitcoins on its platform.13How to Buy Bitcoin With a Credit CardThe process of buying bitcoin with credit cards is the same as the method of buying it with debit cards or through computerized clearinghouse (ACH) transfers. You'll need your credit card's information into the online trading or exchange company and then approve the transaction. However, generally speaking, it's not a wise idea to purchase bitcoin with credit cards. There are several factors to consider.First of all, many exchanges do not support bitcoin purchases with credit cards due to processing charges and the risk of fraudulent transactions. This can be to be in the best interest of the customers. This is since credit card processing can apply additional charges to transactions. Thus, as well as paying transaction fees the customer will be charged having processing charges that the exchange will pass on to you.The second reason is that the purchases made using credit cards are expensive. Credit card issuers treat bitcoin transactions as cash advances, and charge hefty fees and interest rates on advances. For instance, American Express and Chase both consider cryptocurrency purchases being cash advance purchases. If, for instance, you purchase $100 worth in bitcoin using an American Express card, you must pay at least $10 (current cash advance charge for such transactions) and an annual percentage fee of 25%. The credit card company limits your purchase to $1,000 of bitcoin transactions per month.14Another method to purchase bitcoin using a credit card is to purchase one of the Bitcoin reward card. They function just like your typical rewards credit card except they also offer rewards in shape of bitcoin. The cards invest cash back that is earned from purchases into Bitcoin. One illustration of an Bitcoin Rewards card to use is BlockFi Bitcoin Rewards Credit Card.15 However, be aware that the annual cost for the cards could be hefty and could also come with additional costs associated with the transformation of fiat currencies to crypto.Although exchanges such as Coinbase and Binance remain among the most popular methods to buy Bitcoin but they're certainly not the only choice.Alternative Ways to Buy BitcoinBitcoin ATMsBitcoin ATMs act like in-person bitcoin exchanges. You can use cash inside the machine and use it to buy bitcoin. The bitcoin is then made available to the online wallets for users. Bitcoin ATMs are becoming more widespread in recent times. Retail big Walmart Inc. (WMT) is conducting a test program that offers its customers the option of purchasing bitcoin. Coin ATM Radar can help to track down the closest machines.However ATMs are expensive alternative. There are two fees that are associated with ATM bitcoin transactions that include a fee for purchase and the conversion fee when converting a fiat currency to bitcoin. Both charges are quite high when compared to other options. In the case of Bitcoin, for instance, the standard purchase price in Bitcoin ATMs stands at 8.4% (of the purchase amount) and 5.4 percent for sales at ATMs.16Be aware that Bitcoin ATMs have increasingly required government-issued IDs by the start of 2020.Exchanges P2PUnlike decentralized exchanges, which offer buyers and sellers a secure way to communicate and can facilitate every aspect of the transfer, there's a few peer-to-peer (P2P) exchange services with a greater direct connections between users. LocalBitcoins is an example of this type of exchange. After signing up, users can request to purchase or sell bitcoin. The request must include details regarding payment methods and prices. Users then browse through listings of sell and buy offers and select the trade partners with whom they wish to transact.LocalBitcoins simplifies certain aspects of the trade. While P2P exchanges do not offer the same security as decentralized exchanges do, they offer users an opportunity to shop around to find the most affordable deal. Many exchanges provide rating systems so users are able to review potential partners for trade prior to doing business with them.Mainstream brokeragesFew major brokerages provide bitcoin trading and purchase options due to uncertainty about regulations for cryptocurrencies. Robinhood Markets, Inc. (HOOD), an app that is popular among retail investors, is one platform that offers bitcoin trading capabilities. It charges no commissions on cryptocurrency trades as well as purchases . It earns its money through the transaction flow that it receives, passing its trading volume onto another trading platform or brokerages.17The absence of a commission-based fee could be an attractive proposition especially for people who are just beginning, but there are a few catches to that offer. One is, Robinhood doesn't have an array of features and currencies offered by prominent crypto exchanges such as Coinbase. Robinhood allowed trading on its platform with seven cryptocurrencies: Bitcoin, Bitcoin Cash, Ethereum, Bitcoin SV, Dogecoin, and Ethereum Classic.18 Contrary to Coinbase, you can trade more than 100 currencies with Coinbase.19 It also offers different order types to help reduce risk and mitigate losses during trading.The Robinhood platform does not offer an online wallet. Therefore, if you intend to purchase cryptocurrencies using Robinhood you'll need to account for additional costs to an online wallet service.Bitcoin and the other crypto investments aren't covered by insurance offered by an insurance company like Securities Investor Protection Corporation (SIPC). In regular brokerages the firm is responsible for the loss of securities and cash in brokerage accounts up to $500,000, which includes a $250,000 cash limit.20 This protection is not accessible to clients from cryptocurrency exchanges. Cryptocurrency exchanges like Coinbase have insurance for crime to safeguard their infrastructure from attacks. But , this type of insurance cannot safeguard individual customers against password theft.21How to Sell BitcoinThere are ways to sell bitcoin at the same outlets where you purchased the cryptocurrency for instance, cryptocurrency exchanges and P2P platforms. Typically, the process involved in selling bitcoin through these platforms is the same as the process of purchasing it.For example, you may only be required to click one button and indicate an order type (i.e. it is whether the cryptocurrency is sold immediately at the best price or it should be sold in order to reduce losses) to conduct the sale. Depending on the market composition and demand at the place the price of offering for Bitcoin may vary. For example, exchanges in South Korea traded bitcoin at the kimchi price during the price increase back in 2018.A percentage of cryptocurrency exchanges will charge you a fraction of the total amount sold in fees. For instance, Coinbase charges 2.49% of the total amount for transactions as fees.22Exchanges generally have monthly and daily withdrawal limitations. Thus, cash from a large sale may never be available immediately to the seller. There is no limit to the amount of crypto you may sell however.What Are the Steps for Purchasing Bitcoin?The process to purchase bitcoin is made up of four parts: deciding on a venue or exchange to place your order by selecting a preferred payment method and ensuring secure storage for your newly purchased cryptocurrency. Based on the choice made in the first section, there may be additional steps required in the process. For instance, in the event that you are purchasing the cryptocurrency with Robinhood it is possible to factor in additional costs for the online wallet and custody of your bitcoin , as it does not offer these services.What Are the Most Popular Venues for Buying Bitcoin?The most popular places to buy bitcoins are exchanges brokers (crypto and mainstream) along with payment services like PayPal. It is also possible to purchase Bitcoin through P2P marketplaces. In order to acquire bitcoin in indirect form it is possible to put money into companies that own the cryptocurrency in their financial statements, like Tesla, Inc. (TSLA) or MicroStrategy Incorporated (MSTR).2324How Much Should I Expect to Pay to Purchase Bitcoin?Typicallyspeaking, the cost of purchasing bitcoin is the fee for each trade as well as the cost of conversion of a conventional currency (generally dollars) to bitcoin. (Cryptocurrency exchanges and payment solutions make money off of this conversion spread.) The cost per transaction is dependent on an amount in dollars that is associated with the trade. A higher trade amount will result in higher costs. The total price of purchase depends on the features available by the vendor. For example, Robinhood does not currently provide an online wallet that allows keeping bitcoin. Therefore, you will need to budget 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 ATMsBy using online payment services such as PayPal* At mainstream brokerages like RobinhoodIs My Bitcoin Purchase Protected by SIPC?No, your bitcoin purchase is not covered by SIPC.20 Certain exchanges, like Coinbase bitcoin, balances in fiat on individual accounts are FDIC insured at $250,000 per account.21The Bottom LineThe process for purchasing bitcoin can be a little more difficult than buying regular stocks or equity. This is due to the infrastructure and ecosystem for cryptocurrency aren't as developed that those of traditional trading.A bitcoin purchase process consists in four steps: choosing an appropriate location or service for making the transaction, connecting to the payment method of your choice, placing an order, as well as ensuring secure storage for the purchased cryptocurrency. Each step will require research and a thorough evaluation of the pros and pros of each service. Bitcoin can be purchased at Bitcoin ATMs as well as through payment services like PayPal or major brokerages like Robinhood.