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Making investments in Bitcoin (BTCUSD) is complicated, but it is simpler when you take it apart into smaller steps. The process of investing or trading Bitcoin only requires an account with a company or an exchange. further safe storage practices are advised.There are several items that aspiring Bitcoin investors require such as a cryptocurrency exchange account and personal identification documents should you be using an Know Your Customer (KYC) platform, a secure connection to the Internet, and a method to pay. It is also suggested that you use your own private bank account separate from the exchange account. Valid methods of payment using this option include bank accounts such as debit cards, bank accounts, and credit cards. You can also take bitcoin at ATMs that specialize in bitcoin and through P2P exchanges.KEY TAKEAWAYSIts value Bitcoin is derived from its acceptance as a currency of value as well as a payment system and also its limited supply, and the decrease in inflation.* While it's almost impossible for Bitcoin to be hacked However, it is possible for your wallet or exchange Account to fall victim to a hack. This is why taking care of proper storage and security measures is imperative.* You can also buy bitcoin using the mainstream service such as PayPal? and Robinhood.* One method to hold bitcoin indirectly is by investing in businesses with bitcoin in their balance books.Before You Buy BitcoinThe? security and privacy of your information are critical issues in the lives of Bitcoin investors. Anyone who has access to the private secret to an address within the Bitcoin blockchain is able to authorize transactions.1 Private keys must be kept secret. Criminals might attempt to steal them when they find out about large accounts. Be aware that anyone can examine the balance of a public address you use. However, the flip side of this open information is that anyone can make multiple public addresses for themselves. In this way, they can divide their wealth of Bitcoin to multiple addresses. One good option is keeping large investments in public addresses that aren't directly connected to ones which are used for transactions.Anyone is able to view a historical record of transactions performed on blockchain--even you. Though transactions are publically documented on the blockchain, personal information of the user isn't. The Bitcoin blockchain it is the only place where a public key appears next to any transaction. This makes transactions safe however not completely anonymous. In that way, Bitcoin transactions are more transparent and trackable over cash as all them are open to public examination, unlike private transactions. However, Bitcoin transactions also have an element of security built to their design. It's very difficult to find the transacting parties--i.e. both the parties who are sending and receiving bitcoins on the cryptocurrency's own blockchain.International researchers as well as the FBI have claimed that they can identify transactions made using the Bitcoin blockchain to the users' other accounts on the internet, including their digital wallets.2 For instance, if anyone creates an account on Coinbase they have to verify their identification.3 Now, when that buyer purchases bitcoin, it is linked to their identity. In the event that they transfer it another wallet, it may nevertheless be traced back the Coinbase transaction that is tied to the person who owns the account. This shouldn't cause concern to most investors since Bitcoin can be legally used in the U.S. and most other developed countries.Check out your legal and regulatory, as well as tax-related status of purchasing and selling bitcoin where you live prior to transacting.Buying BitcoinWe?'ve described the steps required for purchasing bitcoin in the following steps. Be aware that you need to research the options and choose the best solution depending on your circumstances.Step 1: Select the best crypto trading service or venueThe first step for buying bitcoin is to choose a crypto trading company or a location. Some of the most well-known trading platforms and venues for buying cryptocurrency include exchanges, payment services and brokerages. These exchanges are a good choice due to the fact that they provide a number of features and different cryptocurrencies that can be traded.Making an account with a cryptocurrency exchange can allow you to buy, sell and keep crypto. It is generally recommended to sign up with an exchange that allows users to withdraw their crypto funds to their individual online wallets for safekeeping. If you are looking to trade Bitcoin or other crypto currencies, this feature may not matter.There are several kinds that offer cryptocurrency exchanges. Since the Bitcoin ethos is about independence and personal sovereignty, certain exchanges allow users remain anonymous and don't require users to fill in particular information about themselves. Such exchanges operate autonomously and are generally decentralized which means they do not have a central point of control.While these systems are able to serve harmful purposes, they serve as a service to the majority of the world's population that is not banking. In certain cases, people who are refugees and those living in countries with a lack of infrastructure for credit from the government or banking - anonymous exchanges can integrate them into the mainstream economy.The moment is, however, that the majority of popular exchanges aren't fully decentralized. They also follow the laws that need users to present identifying documentation. To be specific, within the United States, these exchanges comprise Coinbase, Kraken, Gemini, FTX, and Binance.US These are just a few. These exchanges have increased in terms of the features they provide.The crypto universe has grown quickly in the past decade With a variety of new tokens fighting for the investor's dollars. The exception is Bitcoin as well as some well-known coins such as Ethereum However, not all the tokens listed are on all exchanges. Each exchange has its own set criteria which determine whether to add or exclude trading in specific tokens.Coinbase, Kraken, and Gemini provide Bitcoin as well as a growing array of altcoins. They are among the easiest crypto on-ramps across the whole industry. Binance is geared towards an advanced trader, and offers an enhanced trading experience and more altcoin options. FTX is a fast-growing digital exchange that has earned its valuation to be multibillion dollars, also offers an exclusive number of altcoins to U.S. investors.4 However, investors outside of within the U.S. have a greater selection of options on its platform.One of the most important things to remember when creating an account for cryptocurrency exchange is to ensure that you are using secure Internet procedures. This means two-factor authentication, as well as using a long, unique username that includes lowercase letters, capitalized or lowercase letters or special characters as well as numbers.<img width="441" src="">El Salvador made Bitcoin legal tender on September 7, 2021. It was the only country to do so.5 Bitcoin can be used as currency for any transaction that a business is able to accept it. For now, the U.S. dollar continues to be the primary currency in El Salvador.Step 2: Make sure your exchange is connected to any payment optionWhen you've selected an exchangeoption, you'll be required to gather your personal documents. Depending on the exchange, these could include photographs of a driver's permit or Social Security card, as well as information about your employer and the source of your funds. The information you may need may vary based on the state your home is located in and regulations within it. The process is similar to opening a traditional brokerage account.Once the exchange has confirmed your identity, you'll be required to connect an option for payment. Most exchanges can connect to your bank account through the account or connect a debit or credit card. While you may use a credit card to buy cryptocurrency, it's unwise because the price fluctuations of cryptocurrency could raise the price of buying coins.Bitcoin exists in legal form in United States, but some banks may question or make deposits unavailable to crypto-related sites or exchanges.6 It is important to research to make sure that your bank allows deposits at the exchange you have chosen.There are varying fees for deposits through bank accounts, debit, or credit card. It is vital to look into the charges associated with each payment option in order to decide on a payment option or choose the option that is best for you.Exchanges may also charge fees for each transaction. They may charge one-time fees (if the trading value is lower) or as a percentage from the trading amount. Credit cards are charged an extra processing fee in addition to the transaction charges.Step 3: Place an orderYou can buy bitcoin (or other cryptocurrency) after choosing an exchange and linking a payment option. In recent years, cryptocurrency exchanges have slowly become more commonplace. They have increased significantly both in terms liquidity and their array of features. The operating changes that have occurred at crypto exchanges have been accompanied by a change in the perception about cryptocurrencies. An industry that was thought of as a scam or one that was based on questionable practices is slowly turning into an established one that has attracted the attention of all of the major players within the financial service industry.Now, cryptocurrency exchanges are reached a stage where they are able to offer nearly the same quantity of features available as their counterparts in the stock brokerage industry. The cryptocurrency exchanges of today provide several types of orders and methods to invest. Most crypto exchanges provide both market and limit orders. A few offer stop-loss order. Out of the exchanges mentioned above, Kraken offers the most different types of orders. Kraken accepts market, limit, stop-lossand stop-limit taking-profit, and take-profit limit orders.7In addition to offering a range of orders, exchanges provide ways to create ongoing investments, allowing investors to dollar-cost average into the investments they prefer. Coinbase, for example, lets customers set recurring purchases for each week, day or month.8Step 4: Safe storageThe cryptocurrency and bitcoin wallets provide storage options for digital assets more securely. When you store your cryptocurrency outside of the exchange and in your own wallet, you can be sure that only you control the private key for your funds. Additionally, it gives you the ability to protect your funds in a safe place away from exchanges, and avoid the risk that your exchange could be hacked and thereby losing your money.While the majority of exchanges have the option of wallets for their users security is not their primary business. We do not generally recommend the use of exchange wallets for the long-term, large-scale holdings of cryptocurrency.Some wallets are more advanced than others. Some are Bitcoin only, and some can be used to store diverse altcoins. Some wallets are also equipped with the ability to exchange one token for another.When it comes to choosing the best Bitcoin wallet, you have many options. The first thing you will be able to comprehend about crypto wallets is the concept of hot wallets (online wallets) and cold wallets (paper or physical wallets).Hot walletsThe online wallets can also be referred to as "hot" wallets. Hot wallets are those that run on Internet-connected devices such as phones, computers, or tablets. This could lead to vulnerability since they create key to your private coins via these connected devices. While a hot wallet could prove extremely beneficial in the manner it allows you to connect to and perform transactions with your funds quickly, the storage of your private key using an Internet-connected device may make it more susceptible to a hack.This may sound ridiculous and a bit naive, but wallets who don't have sufficient security have the possibility of the loss of funds due to theft. This is a frequent instance, and it can happen in a number of ways. For instance, boasting in a public forum such as Reddit about the amount of bitcoins you've saved up while you have little or the minimum security and stashing it in a wallet that is hot would not be the best idea. It is true that these wallets could be secure so when precautions are made. Secure secure passwords, 2-factor authentication and safe Internet browsing should be considered as minimum specifications.These wallets are best for small amounts of crypto or any cryptocurrency that you're actively trading with an exchange. The idea is to think of a wallet to a checking account. According to conventional wisdom, you should to store only money used for spending in a checking or savings account while the bulk of your money is in savings account or other investment accounts. The same is true on hot wallets. Hot wallets are mobile, desktop, web, and exchange accounts custody wallets.As previously mentioned, exchange wallets are custodial accounts provided by exchange. The owner of this of this type does not hold the owner of the public key for the cryptocurrency stored within the wallet. In the event of an event to happen where the exchange gets hacked or your account becomes compromised, you would lose your money. The phrase "not your key, not your coin" is heavily used in cryptocurrency forums and communities.Cold walletsThe simplest definition of an offline wallet is that it is not directly connected to Internet and therefore has greater risk of being susceptible to being compromised. These wallets can be described as offline wallets or hardware wallets. These wallets are used to store a customer's private key on something that isn't connected the internet. They could also be equipped with software that works in parallel, so that users can see their entire portfolio without putting private key at risk.The most secure way to store cryptocurrency offline is through a paper wallet. Paper wallets are one that you can build via certain websites. It creates both public and private keys that you print out on a piece of paper. The ability to access the cryptocurrency contained in these addresses is only possible if you have the piece of paper with the private code. Many people laminate these papers wallets and place them in safe deposit boxes in their banks or in a safe in their home. These wallets are meant for higher security and longer-term investments since you cannot quickly sell or trade bitcoin stored this way.The most popular type of cold card is a a Hardware wallet. A hardware wallet is generally made up of a USB drive device that keeps personal keys of the user offline. These wallets offer significant advantages over hot wallets as they are unaffected by viruses that could be infected by computer. With hardware walletsyour private keys don't come in contact with your computer's network or software that might be vulnerable. The devices are usually open source, allowing users to assess the safety of these devices by performing code audits instead of a company declaring that they are suitable for use.A cold-wallet is by far the most secure method of storing your bitcoin or other cryptocurrencies. However, they require more technical understanding to set up.The best way to set up your wallets is to have three things including an exchange account that can be used for buying and selling with a hot or hot wallet that will hold small to moderate amounts of cryptocurrency that you intend to trade or sell and a cold, hardware bank account to store larger amounts to last for a long time.How to Buy Bitcoin With PayPalYou? can also buy bitcoin through the payment processor PayPal? Holdings, Inc. (PYPL). There are two methods to purchase bitcoin using PayPal?. The most popular and easiest method is buying cryptocurrencies by using your PayPal? account, which is linked to a method of payment like a check or debit card. The second alternative is to use the balance on that PayPal? account to purchase cryptocurrencies from a third party provider. This isn't so convenient as the former because very few third-party providers allow customers to purchase bitcoin through their 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 your cryptocurrencies to buy goods and services with"Checkout with crypto "Checkout With Crypto" feature.10To set up a bitcoin account through PayPal? The following information is needed to establish a PayPal? account: name, physical address the date of birth in addition to a tax-identification number.11It is not possible to make use of a credit card to buy Bitcoin through PayPal?. During the buying process, PayPal? will display a price for the cryptocurrency. The price, however, is subject changing rapidly due the volatility of the cryptocurrency market. It's a good idea for you to check if you have more than the amount that you set for the purchase in your savings account.If https://www.wattpad.com/user/dibblecow5 purchase bitcoin straight from PayPal? this company, you earn out of the spread in crypto, or the variance between Bitcoin's current market price along with its currency exchange USD. PayPal? may also charge an transaction fee for each purchase. These charges are based on cost of the purchase. For instance it is possible to pay a flat amount of $0.50 is charged for purchases between $100 to $200. Thereafter, the fee is determined by a percentage percentage of the dollar amount. For example, a fee of 2% from the total amount charged for crypto purchases between $100 to $200.12A disadvantage to buying cryptocurrency through PayPal? is that it is not possible to transfer the crypto outside of the pay processor's website. This means it's not possible for you to transfer your bitcoin purchase from PayPal?'s wallet into an external crypto wallet or your personal wallet.11Another drawback to using PayPal? is that only a few trading platforms and exchanges allow payments through the PayPal? processor in order to buy payment. eToro is one of the only a few online sellers that allow PayPal? to be used on PayPal? to purchase bitcoins through its platform.13How to Buy Bitcoin With a Credit CardThe? procedure for buying bitcoin using credit cards is similar to the process when buying it through debit cards , or through Automated Clearing House (ACH) funds transfers. You will need to enter the details of your credit card with the exchange or online trading firm and then authorize the transaction. It is generally accepted that it's not a great idea to make purchases with bitcoin credit cards. There are a couple of reasons why this is.First of all, certain exchanges are not able to allow bitcoin purchase with credit card due to processing charges as well as the risk of fraud. This might be in the best interests of the customers. This is because credit cards can include additional charges to these transactions. Therefore, in addition to the transaction fee it will also leave you with processing costs that the exchange could pass on to you.The third reason is credit card purchases can be costly. Credit card issuers consider bitcoin transactions as cash advances, and charge hefty fees and interest rates for such advances. For example, American Express and Chase each count cryptocurrency purchases to be cash advance payments. In other words, if one purchases $100 worth of bitcoin with an American Express card, you are required to pay $10.00 (current cash advance fee applicable to the transactions) plus an annual percentage fee of 25%. The credit card company limits your purchase to $1,000 of bitcoin purchases per month.14An alternative way to purchase bitcoin using credit cards is to use one of the Bitcoin reward card. These cards function in the same manner as your usual rewards credit card but they provide rewards in the shape of bitcoin. They invest the cash-back earned from purchases into Bitcoin. One illustration of one Bitcoin rewards credit card would be BlockFi? Bitcoin Rewards Credit Card.15 Be aware, however that the annual cost for these cards could be quite high and there could be additional charges associated with the conversion of fiat currencies into crypto.Even though exchanges such as Coinbase and Binance remain among the most popular methods to purchase Bitcoin but they're not an all-inclusive solution.Alternative Ways to Buy BitcoinBitcoin? ATMsBitcoin? ATMs act like in-person bitcoin exchanges. Individuals can insert cash into the machine and then use it to purchase bitcoin. This bitcoin is then delivered to online wallets of users. Bitcoin ATMs have become more commonplace in recent years. Retail massive Walmart Inc. (WMT) is conducting a test program that offers customers 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 in the form of a purchase fee as well as the cost to convert an exchange rate from fiat to bitcoin. Both costs are quite costly as compared to other options. For example, in the world, the typical purchase cost on Bitcoin ATMs amounts to 8.4 percent (of the purchase amount) and 5.4% for sales at ATMs.16Be aware, however, that Bitcoin ATMs are now requiring government-issued IDs beginning in 2020.Exchanges P2PIn contrast to decentralized exchanges that allow sellers and buyers to meet anonymously and make it easy for both parties to the transfer, there's a few peer-to-peer (P2P) exchanges that offer a closer interaction between users. LocalBitcoins? is one such exchange. After creating an account, users can make requests to purchase or sell bitcoin. This includes details on payment methods and prices. Users can also browse through listings for buy-sell offers selecting the trading partners who they would like to transact.LocalBitcoins? simplifies certain aspects of the trading. While P2P exchanges aren't able to provide the same level of anonymity as decentralized exchanges, they also give customers the chance to shop around to find the most affordable deal. A large portion of these exchanges have rating tools so that users can assess potential trade partners before making any transactions.Mainstream brokeragesVery few mainstream brokerages offer bitcoin-based trading and purchasing capabilities because of the uncertainty regarding how cryptocurrencies are regulated. Robinhood Markets, Inc. (HOOD) which is an app well-liked by investors who are retail, is one platform that offers cryptocurrency trading facilities. It charges no fee for cryptocurrency trades or purchases . It makes money from money received for order flow and passing its trading volume onto different trading platforms, or brokerages.17The absence of a fee for commissions could be an attractive proposition for those just starting out, but there are a few disadvantages to this offer. To begin, Robinhood can't offer the variety of features and cryptocurrency offered by popular crypto exchanges such as Coinbase. Robinhood was able to allow trading on its platform on seven cryptocurrencies: Bitcoin, Bitcoin Cash, Ethereum, Bitcoin SV, Dogecoin, and Ethereum Classic.18 As a contrast, you can trade more than 100 crypto currencies with Coinbase.19 It also has various order types to lower risk and mitigate losses during trading.The Robinhood platform doesn't offer an online wallet. Thus, if your goal is to buy cryptocurrency on Robinhood and you want to purchase cryptocurrencies, you'll need to factor in additional costs to an online wallet service.Bitcoin and other cryptocurrency investments do not come covered by insurance offered by insurance companies like the Securities Investor Protection Corporation (SIPC). In the case of regular brokerages and brokerages, the corporation protects against loss of cash and securities brokerage accounts that have a total of $500,000, with a $250,000 cash limit.20 That facility is not available to customers at cryptocurrency exchanges. Cryptocurrency exchanges such as Coinbase offer insurance against crime to protect their infrastructure against attacks. But this insurance will not guarantee the security of individual users against password theft.21How to Sell BitcoinYou? can sell bitcoin at those same places that you bought the cryptocurrency, like cryptocurrency exchanges or P2P platforms. In general, the process of selling bitcoin through these platforms is similar to the procedure for buying it.For instance, you might only be required to click in a button to specify an order type (i.e. to decide if the cryptocurrency is to be sold immediately at available prices or whether it should be sold in order to keep losses to a minimum) for the sale. Depending on the market composition and the market demand at the event the price of offering for Bitcoin might differ. The example is that exchanges in South Korea traded bitcoin at a so-called kimchi premium during the upswing in its prices in the year 2018.The cryptocurrency exchanges charge a portion of the crypto sale amount in the form of fees. For instance, Coinbase charges 2.49% of the total amount for transactions as fees.22Exchanges generally have daily and monthly withdrawal limitations. This means that cash earned from the sale of a significant amount may not be readily available to the trader. There aren't any limitations on the amount of crypto you may sell, however.What Are the Steps for Purchasing Bitcoin?The procedure to buy bitcoin consists comprising four steps: selecting the location and exchange you want for your order before deciding on a payment technique as well as ensuring safe storage to store your bitcoin. It is dependent on the choice made in the first step, there may be additional steps required in the procedure. For example, if you make a purchase of the cryptocurrency through Robinhood you may have to be aware of additional costs associated with an online wallet as well as the custody for your bitcoin because it doesn't offer these services.What Are the Most Popular Venues for Buying Bitcoin?The most sought-after places to purchase bitcoins are exchanges, brokerages (crypto and mainstream) along with payment services such as PayPal?. You can also purchase Bitcoin through P2P platforms. For indirect ownership of bitcoin, you can invest in companies that hold 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 buying bitcoin is a transaction fee plus the cost to convert foreign currency (generally dollars) to bitcoin. (Cryptocurrency exchanges and payment solutions make money through this conversion spread.) Fees per trade are a function of its dollar value. trade. A greater amount of trades will carry higher fees. Also, the total cost for purchasing is contingent upon the features offered by the company. For instance, Robinhood does not currently offer an online wallet for storing bitcoin. Therefore, you will need to budget for charges for your online wallet purchase.Besides Cryptocurrency Exchanges, Where Else Can I Buy Bitcoin?Bitcoin can also be purchased in the following locations:* Through Bitcoin ATMs* Through online payment services such as PayPal?* At mainstream brokerages like RobinhoodIs? My Bitcoin Purchase Protected by SIPC?Your bitcoin purchase is not protected by SIPC.20 At certain exchanges, like Coinbase account balances with fiat currencies in individual accounts can be insured by FDIC at $250,000 per account.21The Bottom LineThe? process for purchasing bitcoin is slightly more complicated than buying the stock or equity that you normally purchase. This is due to the fact that the crypto ecosystem and infrastructure aren't as well-developed as those used for trading in the mainstream.The process for buying bitcoins consists from four steps: choosing a service or venue for purchases, joining with a payment option, placing an orderand providing secure storage for the purchased cryptocurrency. Each of these steps needs research and an in-depth study of the pros & cons of each service. You can also purchase bitcoin through Bitcoin ATMs or from payment services like PayPal? and major brokerages such as Robinhood.