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Affording investments in Bitcoin (BTCUSD) may seem complex, but it's much simpler when you divide it up into smaller steps. If you are interested in investing or trading Bitcoin is easy if you have an account with a service or exchange. However, more secure storage practices are suggested.There are several things that hopeful Bitcoin investors should have an account with a cryptocurrency exchange and identification proof If you're using an Know Your Customer (KYC) platform as well as a secure connection to the Internet, and a method for payment. It is recommended that you establish your own private wallet separate from the exchange account. Valid methods of payment using this route are bank accounts as well as debit cards and credit cards. You can also get bitcoin at specialized ATMs and also through P2P exchanges.KEY TAKEAWAYS"The value and value that comes from Bitcoin is derived from its usage as a place of value and payment method and also its limited supply, and the decrease in inflation.While it's nearly impossible to for Bitcoin to be hacked however, it is still possible that your bank or exchange user account to compromise. That's why using secure storage and security is essential.* You can also purchase bitcoin through services that are widely used, such as PayPal? or Robinhood.* One way to own bitcoin is to invest in companies with bitcoin on their balance reports.Before You Buy BitcoinPrivacy? and security are important concerns for Bitcoin investors. Anyone who gets the private password to a publicly accessible address that is on the Bitcoin blockchain can then authorize transactions.1 Private keys should be kept secret--criminals may attempt to steal them when they discover large assets. Make sure that you are aware that anyone could check the balance on a public address used. Another benefit of having these public records is that an individual can make multiple public accounts for themselves. They can then distribute their stash of Bitcoin to multiple addresses. It is a good idea keeping large investments in public addresses that are not directly connected to ones that are used in transactions.Anyone can see a record of transactions on the blockchain -- even you. Even though transactions are recorded publically on the blockchainplatform, identifying individuals' personal details isn't. With the Bitcoin blockchain only the public keys are visible alongside the transaction. That makes transactions confidential, however not completely secretive. In that way, Bitcoin transactions can be more easily traceable than cash since all of them are public review, in contrast to private cash transactions. But Bitcoin transactions also come with added security features that protect the privacy of the transaction as part of their design. It is very difficult to discover the transacting parties--i.e., the recipient and the sender of bitcoins--on the cryptocurrency's Blockchain.Researchers from around the world and the FBI have said they are able to track transactions done on the Bitcoin blockchain and connect them to other online accounts, such as their digital wallets.2 In the case of someone opens an account at Coinbase the account holder must verify their identification.3 Then, when that user purchases bitcoin, it is linked to their name. If they decide to transfer it to another wallet, it can be traced to the Coinbase transaction which is linked to the identity of the account's owner. This should not concern most investors because Bitcoin is legal in the U.S. and most other developed countries.Be sure to research the lawful, regulatory, and tax requirements for buying or selling bitcoin in the place you reside before you make any transactions.Buying BitcoinWe?'ve broken down the steps to buying bitcoin below. Remember that you still need do your research to determine the best option for you based on the specifics of your situation.Step 1: Choose the best crypto trading service or venueThe first step to purchase bitcoin is to select a crypto trading service or a venue. Most popular venues and trading services to buy cryptocurrencies include transactions, payment options, and brokerages. In all of them, cryptocurrency exchanges are the most convenient option since they offer a range of features, and even more cryptocurrencies for trading.By signing up to a cryptocurrency exchange will enable you to purchase, sell, and hold crypto. It is generally best practice using an exchange service that allows users to withdraw cryptocurrency into their personal online account for safekeeping. For those looking to trade Bitcoin or other cryptos, this option may not be necessary.There are many kinds from cryptocurrency-based exchanges. Because the Bitcoin concept is about autonomy and decentralization, certain exchanges allow users to remain anonymous and don't oblige users to submit private information. These exchanges operate independently and are usually decentralized therefore, they do not have a central source of control.While these systems are able to serve malicious purposes, they also provide benefits to the world's unbanked population. For certain kinds of people--refugees as well as those living in nations where there isn't much infrastructure for government credit or banking, anonymized exchanges can bring them into the mainstream economy.At present, the most well-known exchanges aren't centrally managed and have 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, to name a few. These exchanges have seen significant growth in the range of services they provide.The cryptocurrency market has expanded rapidly over the last decade as a number of new coins have been competing for investor dollars. Except for Bitcoin as well as a few prominent coins like Ethereum however, not all of the coins are available on all exchanges. Each exchange has its own set of standards to determine whether to include or exclude trading of specific tokens.Coinbase, Kraken, and Gemini offer Bitcoin as well as a growing array of altcoins. These three are the easiest crypto on-ramps in the whole market. The Binance platform is targeted at an sophisticated buyer, with more robust trading functions and greater variety of cryptocurrency options. FTX has been a rapid-growing crypto exchange that has achieved a multibillion-dollar valuation, offers the limited number of altcoins to U.S. investors.4 However, traders outside those from the U.S. have a greater selection of options on its platform.One important point to remember when creating an account with a cryptocurrency exchange company is that you use secure Internet methods. This means two-factor authentication. a long, unique password that includes a variety of lowercase, capitalized, and capital letters or special characters as well as numbers.El Salvador made Bitcoin legal tender on September 7, 2021. It was the first nation to do so.5 Bitcoin is able to serve as a payment method for any transactions that the company can accept it. In the end, however, it is still the U.S. dollar continues to be the primary currency in El Salvador.Step 2. connect your account to an alternative payment methodAfter you have chosen an exchange, you'll require your personal documents. If you are using an exchange, they could include photos from a driver's license and/or Social Security card, as in addition to information about your employer and the source of money. The information you'll require depends on the place that you reside in as well as the laws within it. It's basically similar to opening a traditional brokerage account.After the exchange has verified your identity, you will be asked to connect with a payment option. On most exchanges you can connect to your bank account through the account or you can connect a debit or credit card. While you may use a credit card to purchase cryptocurrency, it is not a wise choice because the price fluctuations of cryptocurrency could raise the total cost of purchasing the coin.Bitcoin is legal in United States, but some banks might be suspicious or stop deposits to crypto-related sites or exchanges.6 It is an excellent idea to confirm to confirm that your bank will allow deposits to the exchange you prefer.There are various charges for cash deposits from a bank account (debit, credit) or credit card. It is crucial to investigate the costs associated with each payment method in order to decide on a payment option or decide which option is best for you.Exchanges also charge fees per transaction. They may charge fixed (if the trade amount is small) or a percentage of the trading amount. Credit cards are charged fees for processing in addition to the transaction costs.Step 3: Make an orderBitcoin can be purchased (or other cryptocurrency) when you select an exchange , and then connecting a payment option. In recent times cryptocurrency exchanges have slowly become more popular. They have grown significantly with regard to liquidity and their variety of features. Changes in the operations at cryptocurrency exchanges coincide with the change in how they are perceived by the public. An industry that was once believed to be a scam or with questionable practice is gradually evolving into an authentic one, which has attracted interest from all the big players in the financial sector.The cryptocurrency exchanges of today have evolved to the point where they offer the same level of features as their counterparts who are stock brokers. Today, cryptocurrency exchanges offer several types of orders and methods to invest. Nearly all exchanges allow both limit and market orders. Some also provide stop-loss transactions. From the above exchanges, Kraken offers the most options for order types. Kraken can accommodate market, limit, stoploss or stop-limit as well as take-profit and limit orders.7In addition to a range of orders, exchanges provide options for setting up regular investments that allow clients to add a dollar-cost average to their investment options. Coinbase, for example, allows users to make recurring purchases for each week, day or month.8Step 4: Secure storageThe cryptocurrency and bitcoin wallets can be the ideal way to store digital assets more securely. Being able to store your cryptocurrency away from an exchange and placed in your own wallet, you can be sure that only you are the only person who has control over the private key for your funds. Additionally, it allows you to have the ability to protect your funds without an exchange and protect yourself from the possibility of your exchange being hacked and the loss of your funds.While most exchanges provide clients with wallets, security is not their primary business. We generally do not recommend using an exchange's wallet for massive or long-term holdings of cryptocurrency.Certain wallets come with more options than others. Some are Bitcoin exclusive, while others can be used to store numerous types of altcoins. Some wallets offer the possibility of swapping one token with another.When you're trying to decide on the best Bitcoin wallet, you can choose from a number of options. The first thing you will have to be aware of about crypto wallets is the notion of hot wallets (online wallets) and cold wallets (paper or hardware wallets).Hot walletsThe online wallets can also be referred to as "hot wallets. Hot wallets run on devices that are connected to the Internet, such as phones, computers or tablets. The risk of vulnerability is that these wallets create the secret keys to your currency through these internet-connected devices. While a hot account can be extremely convenient in way that it allows you to gain access to and complete transactions using your assets rapidly, storing your private keys on an Internet-connected device makes it more susceptible to a hack.It might sound like a lot of work even to some, but people that don't put in place enough security can be at risk of losing money due to theft. It's not a rare occasion, and could occur in several ways. https://issuu.com/royalqq2 is for instance, boasting on forums like Reddit about the amount of bitcoins you've saved up while you are using little to zero security and placing it in a hot wallet might certainly not be safe. These wallets can be secured so it is taken care of. Secure security measures, such as two-factor authentication and secure Internet browsing are minimum standards.These wallets are suitable to store small amounts of cryptocurrency or any cryptocurrency that you're already trading on an exchange. You could liken a hot wallet to a checking account. Traditional wisdom in finance would advise that you should keep your money only for spending in a checking or savings account while the majority of your money is in savings accounts or other investment accounts. This is also true in the case of wallets that are hot. Hot wallets cover mobile, desktop, web and exchange account custody wallets.As was mentioned earlier, exchange wallets are custodial accounts provided by exchanges. The user of this wallet types is not actually the holder or owner of the keys for the cryptocurrency held within the wallet. Should an incident happen where the exchange gets damaged or your accounts are compromised, you'd lose your money. The phrase "not your key, not your coin" is often repeated on cryptocurrency forums and communities.Cold walletsThe simplest way to describe the cold wallet is that it is not in connection with the Internet and is therefore at lower risk of being susceptible to being compromised. These wallets may also be known as offline wallets or even hardware wallets. They store the user's private keys on a device and isn't connected the internet. They may also come with software operating in parallel so that the user has access to the account without putting his personal key at risk.The most secure and secure method to store cryptocurrency offline is through a paper wallet. Paper wallets are wallet that can be created by visiting certain websites. It creates both private and public keys that can be printed on paper. The ability to access the cryptocurrency within these addresses is only possible if you have the piece of paper with the private key. Many people laminate these paper wallets , and then store them in safe storage boxes at the bank or even in a safe at home. These wallets are designed to be more secure and long-term investments due to the fact that you can't quickly sell or trade bitcoin stored with these wallets.A more commonly used kind of cold wallet is a hardware one. Hardware wallets are generally comprised of a USB drive device that keeps your private keys offline. These types of wallets have distinct advantages over hot wallets since they are unaffected by viruses that could infect one's computer. With hardware wallets, your private keys will not be in contact with your computer's network or potentially vulnerable software. They're also open source, allowing the community to judge their security by conducting codes audits rather than a company that declares that they're completely safe for you to utilize.It is believed that cold-money wallets provide the most secure method to store your bitcoin or other cryptos. However, they require more technical know-how to setup.An effective way to set your wallets is with three items including an exchange account that can be used for selling and buying and a hot wallet to store small or medium amounts of crypto that you intend to trade or sell along with a cold and secure hardware wallet for holding larger sums for long-term time periods.How to Buy Bitcoin With PayPalBitcoin? can also be purchased through a payment processor PayPal? Holdings, Inc. (PYPL). There are two options to buy bitcoin through PayPal?. One and the easiest method is to buy cryptocurrencies using your PayPal? account, which is linked to a payment method like a banking account, debit card or credit card. The second option is to utilize the balance on you PayPal? account to purchase cryptocurrencies by a third party. This isn't so convenient as the former because a few sites permit users to buy bitcoin by using 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. You can also use your cryptos to pay for products and services through the "Checkout With Crypto" feature.10For the purpose of opening a crypto account through PayPal? it is necessary to provide the following details is required to establish a PayPal? account: name, physical address and birth date and tax identification number.11It isn't possible to use a credit/debit card to buy Bitcoin via PayPal?. In the course of purchasing, PayPal? will display a price for the cryptocurrency. But , the price can be subject for rapid change because of the volatility of the cryptocurrency market. It's a good idea to ensure that you've got more than the price which you budgeted in your bank account.When you purchase bitcoin directly from PayPal? it earns profit through the crypto spread or the variation between Bitcoin's market value or exchange rates USD. The company also charges a transaction fee per transaction. These fees depend on amount in dollars that the purchase is. For instance, a flat fee of $0.50 is charged for purchases between $100 to $200. After that, the charge is proportional to the overall dollar amount. For instance, a rate of 2 percent of the total amount is payable for purchases of crypto between $100 and $200.12One drawback to purchasing cryptocurrency through PayPal? is that you are not able to transfer the cryptocurrency out of the payments processor's system. It is therefore not possible for you move your bitcoin through PayPal?'s bank account to an outside crypto wallet or your personal wallet.11Another drawback to using PayPal? is that a small number of trader and exchanges accept users to utilize the credit card processor in order to buy payment. eToro is among the few online merchants that permit PayPal? to be used on PayPal? to purchase bitcoin through its platform.13How to Buy Bitcoin With a Credit CardThe? process of buying bitcoin with credit cards is similar to the one used when buying it through debit or credit cards. You can also purchase it through electronic clearinghouse (ACH) transfer. You'll need to input your credit/debit card details to the exchange or online trading firm , and then sign off on the transaction. It is generally accepted that it's not a great idea to purchase bitcoin using credit cards. There are a couple of motives for this.First of all, certain exchanges are not able to allow bitcoin transactions using credit cards due to processing fees and the chance of being a victim of fraud. This decision may work out to be in the best interest of customers. This is since credit card processing can apply additional charges to transactions. Therefore, in addition to the transaction fee You will be charged paying processing costs that the exchange could charge you.The second reason is because purchasing credit cards is expensive. The issuers of credit cards treat bitcoin transactions as cash advances and charge substantial fees and rates for such advances. For instance, American Express and Chase both classify purchases of cryptocurrencies as transactions that are cash advances. Thus, if you purchase $100 worth of bitcoin using an American Express card, you are required to pay $10.00 (current cash advance fees for such transactions) plus an annual percentage rate of 25%. The credit card's provider limits you to making $1,000 worth of bitcoin purchases per month.14A second method of buying bitcoin with a credit-card is to apply for a Bitcoin rewards credit card. They function just like your regular rewards credit card, but they grant rewards in way of bitcoin. This means that they invest money earned from purchases into Bitcoin. One example of the Bitcoin rewards credit card would be BlockFi? Bitcoin Rewards Credit Card.15 Be aware that the annual costs for such cards can be high as well as the expenses associated with the conversion from fiat currency to crypto.Exchanges like Coinbase and Binance remain among the most sought-after ways to buy Bitcoin however they are not the only options.Alternative Ways to Buy BitcoinBitcoin? ATMsBitcoin? ATMs act like in-person bitcoin exchanges. Individuals can insert cash into machines and then use it to purchase bitcoin. The bitcoin is then stored in online wallets for users. Bitcoin ATMs have grown more popular in recent years. In fact, retail huge Walmart Inc. (WMT) is testing a trial program that will give customers the option of buying bitcoin. Coin ATM Radar can help locate the nearest machines.However ATMs can be costly option. There are two costs that come along with ATM bitcoin transactions that include a fee for purchase and the conversion fee when converting one currency that is fiat to bitcoin. Both fees are fairly steep in comparison to other options. For example, in the world, the average charge for purchase for Bitcoin ATMs is 8.4% (of the purchase amount) and 5.4 percent for sales at ATMs.16Be aware, however, that Bitcoin ATMs are increasingly requiring Government-issued IDs starting in 2020.Exchanges P2PIn contrast to decentralized exchanges that meet sellers and buyers in a non-public way while facilitating all aspects the transactions, there are peer-to-peer (P2P) exchanges which provide a direct connection between the users. LocalBitcoins? is one of these exchange. After registering an account, users are able to post requests to purchase or sell bitcoin. It also includes details regarding payment methods and prices. Users can also browse through listings of buy and sell offers in order to choose the business partners with whom they wish to transact.LocalBitcoins? can facilitate certain aspects of the trade. Although P2P exchanges aren't able to provide the same level security and anonymity as traditional exchanges, they also give customers the chance to shop around to find the most affordable deal. Some exchanges provide rating systems so users can assess prospective trade partners prior to committing.Mainstream brokeragesVery few mainstream brokerages offer bitcoin purchasing and trading features because of the uncertainty about the regulatory status of cryptocurrencies. Robinhood Markets, Inc. (HOOD) the app, which is that is popular among retail investors, is an exchange that has the ability to trade in crypto. It charges no fee for cryptocurrency trades or purchases and makes money from the transaction flow that it receives, transferring its trading volume to the other platforms for trading or brokerages.17The non-existence of a commission cost could be an attractive proposition especially for people who are just beginning, but there are a few negatives with this deal. It is the first. Robinhood lacks the full range of features and coins that are offered by the most prominent crypto exchanges like Coinbase. Robinhood has enabled trading on its platform with seven cryptocurrencies: Bitcoin, Bitcoin Cash, Ethereum, Bitcoin SV, Dogecoin, and Ethereum Classic.18 In contrast, you can trade over 100 cryptocurrencies on Coinbase.19 The exchange also has various order types to minimize the risk of loss and protect against losses during trading.The Robinhood platform also does not offer a hosted wallet. So, if you'd like the purchase of cryptocurrencies via Robinhood you'll need to factor in additional costs for an online wallet provider.Bitcoin and the other crypto investments aren't insured by this organization. Securities Investor Protection Corporation (SIPC). In the case of regular brokerages and brokerages, the agency protects against the loss of cash and securities in brokerage accounts with an amount of up $500,000, which includes a $250,000 cash limit.20 This service isn't available to customers that use crypto exchanges. Cryptocurrency exchanges such as Coinbase are covered by insurance against crime to protect their infrastructure against hacks. But this insurance will not safeguard individual customers against password theft.21How to Sell BitcoinThe? ability to sell bitcoin is available at the same places where you bought the cryptocurrency including cryptocurrency exchanges, and P2P platforms. In general, the procedure of selling bitcoin through these platforms is similar to purchasing it.For instance, you might only have to click the button and choose the type of order (i.e. and whether or not the cryptocurrency should be traded immediately at the most competitive prices or it is necessary to sell it to reduce losses) in order to conclude the sale. Based on the composition of the market and demand in the area the cost of selling Bitcoin will vary. As an example, the exchanges in South Korea traded bitcoin at the so-called kimchi rate during the run-up in its prices in the year 2018.Coinbase, a cryptocurrency exchange, charges a percentage of the amount sold as fees. For instance, Coinbase charges 2.49% of the transaction total as fees.22Exchanges generally have monthly and daily withdrawal limitations. Thus, cash generated by an enormous transaction may not be available for immediate withdrawal to the seller. There aren't any limits to the amount of cryptocurrency you can sell however.What Are the Steps for Purchasing Bitcoin?The process to buy bitcoin consists with four main steps: selecting an exchange or a location to make your purchase as well as selecting a payment option and then ensuring a secure storage for your bought cryptocurrency. Depending on the place you have chosen for the first step, there are additional steps involved in the procedure. For instance, if, for example, you purchase the cryptocurrency through Robinhood you may need include additional expenses for an online wallet and custody of your bitcoin because the company does not offer these services.What Are the Most Popular Venues for Buying Bitcoin?The most used places for buying bitcoins include cryptocurrency exchanges brokers (crypto and traditional) and payment processing services such as PayPal?. You can also buy Bitcoin by using P2P-based exchanges. If you want to own bitcoin indirectly, you can put money into companies that own bitcoin on their books of accounts, 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 fees per trade and the cost of conversion of a dollar-based currency (generally dollars) to bitcoin. (Cryptocurrency exchanges and payment companies make money from this conversion spread.) Fees per trade are a function of the dollar amount of the trade. The larger the amount of the trade will have higher charges. The total cost for purchase is contingent on the features provided by the venue. For example, Robinhood does not currently provide an online wallet that allows saving bitcoin. So, you'll need be prepared for costs for online wallets for your 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?Yes, your bitcoin purchase is not covered by SIPC.20 At certain exchanges, such as Coinbase the balances of fiat currency in private accounts can be insured under FDIC in the amount of $250,000 per account.21The Bottom LineThe? process of purchasing bitcoin is somewhat more complicated that the process of buying regular stocks or equity. This is due to the blockchain and cryptocurrency infrastructure is not as well-developed as those used for trading in the mainstream.A bitcoin purchase procedure consists of four phases: selecting the service or the location of making the transaction, connecting to the payment method of your choice, placing an order and ensuring safe storage for your purchased cryptocurrency. Each step needs research and an in-depth evaluation of the pros and pros of each service. You can also purchase bitcoin at Bitcoin ATMs or pay services such as PayPal? and more traditional brokerages like Robinhood.<img width="455" src="">