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Making investments in Bitcoin (BTCUSD) may appear complicated, but it is much simpler when you cut it in steps. Making investments or trading Bitcoin is easy if you have an account with a company or exchange. However, other safe storage practices are suggested.There are various things potential Bitcoin investors need including a cryptocurrency trading account along with personal identification documentation in the case of an Know Your Customer (KYC) platform with a secure connection the Internet and a means of payment. It is recommended to keep your own private wallet, separate from your exchange account. Alternative payment options for this option include bank accounts that accept debit cards, as well as credit cards. It is also possible to acquire bitcoin using ATMs specifically designed for bitcoin and through exchanges P2P.KEY TAKEAWAYS"The value and value that comes from Bitcoin is derived from its popularity as a storage of value and payment system in addition to its finite supply and diminishing inflation.Although it's almost impossible for Bitcoin to be compromised but it's still possible for your exchange or wallet account to get compromised. This is the reason that implementing appropriate storage and security measures are vital.* You can also buy bitcoin with mainstream companies like PayPal? or Robinhood.* https://www.kityfeed.com/other-market/royal-q.html to acquire bitcoin indirectly is by investing in companies that have bitcoin on their balance sheet.Before You Buy BitcoinSecurity? and privacy are the most important issues for Bitcoin investors. Anyone who gains the private key to a public account that is on the Bitcoin blockchain is able to authorize transactions.1 Private keys must remain secret, as thieves may try to steal them once they know of your large amounts. Make sure that you are aware that anyone could look up the balance for a private address you've registered. The flip side to this public information is that the user can make multiple public accounts for themselves. Thus, they are able to distribute their wealth of Bitcoin across multiple addresses. One good option is to place large sums of money on public addresses that aren't directly connected to ones which are used for transactions.Anyone can access a history of transactions completed on the blockchain -- even you. Although transactions are publicly recorded on the blockchain, identifying individuals' personal details isn't. While on the Bitcoin blockchain only the public keys are visible alongside the transaction, making transactions private but not anonyme. In this way, Bitcoin transfers are much easier to trace and trackable than cash since all of the transactions are publicly available for view, unlike private cash transactions. But Bitcoin transactions also come with elements of anonymity incorporated into their design. It is extremely difficult to find the transacting parties--i.e. the recipient and the sender of Bitcoin--on the cryptocurrency's cryptocurrency's blockchain.Researchers from around the world and the FBI have claimed to be able track transactions done on the Bitcoin blockchain and connect them to other online accounts, including their digital wallets.2 As an example, if the user creates an account through Coinbase and then registers, they need to show their identification.3 When that person purchases bitcoin, it will be linked to their own name. If they transfer it to another wallet, it can be traced to the Coinbase transaction that is tied to the account's owner's identity. This should not concern most investors , as Bitcoin is officially legal within the U.S. and most other developed countries.You should be sure to verify whether there are any legal or regulatory and tax consequences of purchasing and selling bitcoin in the country where you reside before you make any transactions.Buying BitcoinWe?'ve explained the steps for buying bitcoin below. Keep in mind that you will need to do your homework and choose the best solution for you based on the situation.Step 1: Select one of the crypto trading services or a venueThe first step in purchasing bitcoin is selecting an exchange service that is crypto-related or a venue. Most well-known venues and trading services for buying cryptocurrencies are cryptocurrency exchanges, payment providers, and brokerages. The cryptocurrency exchanges are the most convenient option as they provide a number of features and crypto currencies to trade.Making an account with a cryptocurrency exchange can allow you to purchase, sell and hold cryptocurrency. It is generally best practice using an exchange service that allows users to withdraw crypto to their own secure online wallet for their personal. For those who want to trade Bitcoin or other cryptocurrencies, this feature could not be of any importance.There are numerous types in cryptocurrency exchange. Because the Bitcoin principle of independence and personal sovereignty, certain exchanges permit users to remain anonymous and do not demand that users enter private information. They are independent and are generally decentralized which means that they don't have a central source of control.Although such systems can serve evil purposes, they also provide services to large majority of the population who do not have access to banking. Certain categories of people -- refugees or those living in countries with little to no infrastructure for government credit or banking--anonymous exchanges may help bring them into mainstream economy.At present, the top exchanges are not in a decentralized manner and are subject to laws that need users to present identifying documentation. For instance, in the United States, these exchanges include Coinbase, Kraken, Gemini, FTX, and Binance.US just to mention a few. These exchanges have risen significantly in terms of features they offer.The cryptocurrency universe has grown exponentially in the past decade There are many new crypto tokens that are competing for dollars from investors. Except for Bitcoin and a few other prominent coins like Ethereum but not all of these tokens are listed on all exchanges. Each exchange has its own set of criteria in order to decide whether it should include or exclude the trading of certain tokens.Coinbase, Kraken, and Gemini provide Bitcoin and a rising number of altcoins. They're among the most convenient on-ramps to cryptocurrency across the whole industry. Binance is designed for the more advanced trader, and offers an enhanced trading experience and an array of alternative currency options. FTX is a rapidly expanding crypto exchange that has garnered an impressive multibillion-dollar valuation, is offering only a limited amount of altcoins to U.S. investors.4 However, traders outside those from the U.S. have a greater choice of cryptocurrency options on the platform.One important aspect to take into consideration when creating accounts for cryptocurrency exchanges is to use safe Internet practices. This means two-factor authentication, as well as the use of a unique, long password that includes a range of lowercase letters, capitalized or lowercase letters as well as special characters and numbers.El Salvador made Bitcoin legal tender on September 7, 2021. It was the only country to do so.5 Bitcoin is able to serve as a means of payment for all transactions when a business accepts it. There is no substitute for the U.S. dollar continues to be El Salvador's main currency.Step 2. Link your Exchange to an alternative payment methodAfter you have chosen an exchange, you'll have to collect your personal documents. In accordance with the exchange, the documents could include a photo of your driver's license or Social Security card, as well as information about your employer as well as the source of your funds. The information you'll require will vary depending on the area that you reside in, as well as the laws that apply to it. The process is largely the same as creating a typical brokerage account.After the exchange has verified the authenticity of your account, you will be asked to join the payment option. In most exchanges, you can connect your bank account to the exchange directly, or connect a credit or debit card. However, if you want to use a credit card to buy cryptocurrency, it is not a good idea because the volatility of prices for cryptocurrency can boost the overall cost of purchasing coins.Bitcoin may be legal throughout the United States, but some banks may not allow or restrict deposits to crypto-related sites or exchanges.6 It is a good idea to check whether your bank will accept deposits at the exchange you choose.There is a variety of fees that apply to cash deposits from a bank account as well as debit and credit card. It is essential to study the costs associated with each option of payment to help select an exchange option or decide which option is most effectively for you.Exchanges also charge fees per transaction. These charges could be an all-inclusive fee (if the trade amount is small) or a percentage of the trading amount. Credit cards are charged the processing fee in addition to transaction charges.<img width="311" src="">Step 3. Place an orderYou can buy bitcoin (or other cryptocurrency) when you select an exchange option and connecting a payment option. In the past few times bitcoin exchanges have steadily become more commonplace. They have seen a significant increase both in terms liquidity and their features. The operations of crypto exchanges have been accompanied by a change in the way people perceive cryptocurrencies. The business once believed to be a scam or with unreliable practices is slowly turning into legitimate, and has drawn interest from the top players in the industry of financial services.Now, cryptocurrency exchanges are progressed to the point where they're almost the same quantity of features available as their stock brokerage counterparts. The cryptocurrency exchanges of today provide various types of orders as well as ways to invest. Many crypto exchanges have both market and limit orders. A few offer stop-loss orders. Of the exchanges mentioned above, Kraken offers the most sorts of orders. Kraken is able to accommodate market limit, stop-loss, stoplimit, take-profit, and take-profit limit orders.7In addition to offering a range of sorts of orders, exchanges offer ways to set up ongoing investments, allowing investors to incorporate a dollar-cost average into their preferred investments. Coinbase for instance, allows users to make recurring purchases for every day, week or month.8Step 4: Secure storageCoins and crypto wallets provide an excellent way to store your digital assets more safely. Your crypto is kept away from the exchange and within your own wallet will ensure that only you are the only person who has control over the private key for your funds. This gives you the ability to keep your funds separate from an exchange , and reduce the possibility that your exchange's security being compromised and thereby losing your money.Although many exchanges offer wallets to their customers, security is not their primary business. We generally do not recommend using an exchange wallet to manage huge or long-term crypto holdings.Some wallets have more features than other wallets. Some are Bitcoin only, and some can store many different altcoins. Some wallets offer the option of swapping one token for another.When it comes down to picking an Bitcoin wallet, you have several options. First, you'll have to be aware of about crypto wallets is hot wallets (online wallets) and cold wallets (paper or physical wallets).Hot walletsInternet-connected wallets have also been known as "hot wallets. Hot wallets are those that run with Internet-connected devices, like phones, computers or tablets. These wallets can pose security risks because these wallets generate the private keys that you use to access your funds on devices that have Internet connectivity. Although a mobile wallet can be extremely convenient due to the ways that you can gain access to and complete transactions using your assets swiftly, the fact that you store your private keys via an Internet-connected device could make it more susceptible to a hack.This might sound a bit absurd, but hot wallet holders who don't have sufficient security could be at risk of losing their money to theft. It's not a rare situation, and it may occur in a variety of ways. One example is boasting on a popular forum like Reddit about how much bitcoins you've stored while you're using little to the minimum security and stashing it in a wallet that is hot would not be wise. It is true that these wallets are safe as you take the proper precautions. Secure encryption, strong passwords and two factor authentication and safe Internet browsing are as minimum standards.These wallets are best for small amounts or any cryptocurrency that you're currently trading on an exchange. It is possible to compare a hot wallet to a checking account. Financial wisdom is generally believed that you should only keep money for spending in a checking or savings account while most of your money is saved in savings or other investments accounts. The same is true regarding hot wallets. Hot wallets comprise mobile, desktop, web and exchange account custody wallets.As we have mentioned before, exchange wallets are custodial accounts offered by exchange. The owner of this sort is not owner for the secret key to the cryptocurrency within the wallet. If a situation were to occur wherein the exchange is stolen or your wallet is compromised, you'd end up losing your money. The expression "not your key, not your coin" is heavily frequented in cryptocurrency forums and communities.Cold walletsThe simplest description for the term "cold wallet" is that it isn't connected to the Internet so it has less risk of being breached. They can also be known as offline wallets or even hardware wallets. These wallets store a user's private keys on a device that isn't connected the internet. They are also equipped with software working in parallel so that users can see the account without putting his private keys at risk.Perhaps the most secure option to store digital currency offline is using a paper wallet. Paper wallets are paper wallet that you create via certain websites. It creates both public and private keys that can be printed on paper. The ability to access crypto currency in these wallets is only possible when you possess the piece of sheet of paper with a private key. A lot of people laminate their paper wallets , and then store them in safe deposit boxes in their banks or even in a safe at home. These wallets are designed for higher security and longer-term investments since they cannot be sold or trade bitcoins stored in using this method.A more common type of cold device is a hardware wallet. Hardware wallets are usually an USB drive that is used to store key information of the user offline. They offer a significant advantage over hot wallets in that they are immune to viruses that could be infected by computer. With hardware walletsyour private keys are not in contact with your network-connected computer or software that could be vulnerable. These devices are typically open source, which allows the community to verify the safety of these devices by performing audits of code rather than a company claiming they are appropriate for usage.They are by far the most secure storage option for your bitcoin or other cryptos. But they require additional technical knowledge to set up.A great method to set your wallets is to include three items that you need: an exchange account for trading and buying in hot wallets, a hot account to keep small to medium amounts of crypto you'd like to trade, or sell along with a cold and secure hardware wallet to keep larger quantities for long-term durations.How to Buy Bitcoin With PayPalYou? can also buy bitcoin through payment processor PayPal? Holdings, Inc. (PYPL). There are two ways to purchase bitcoin using PayPal?. The first , and the most convenient method is to buy cryptocurrencies through your PayPal? account that is connected to a payment device like a cash card or debit card. Another option is to utilize the balance of funds in your PayPal? account to purchase cryptocurrencies through a third-party vendor. This option is not more convenient than the first since only a handful of third-party sites allow users to purchase bitcoin through the 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 cryptocurrencies to buy goods and services through"Checkout With Crypto. "Checkout With Crypto" feature.10To open a crypto account with PayPal? you need the following information is needed in order to set up a PayPal? account: name; physical address, date of birth, along with a tax identification number.11It isn't possible to make use of a credit card to purchase Bitcoin using PayPal?. In the process of buying, PayPal? will display a price for the cryptocurrency. But , the price can be subject to rapid changes because of the fluctuation of markets for cryptocurrency. It's a good idea to make sure you have more than the cost you planned for the purchase in your savings account.If you purchase bitcoin directly through PayPal? it earns you money from the crypto spread. This is the difference between Bitcoin's market price as well as its rate of exchange with USD. The company additionally charges you a transaction fee for each purchase. The amount of the fee depends on the price of the purchase. For example it is possible to pay a flat amount of $0.50 is applied to purchases between $100 and $200. The fee thereafter is in the form of a percentage of total dollar amount. For example, a fee of 2% from the total amount due for transactions between $100 to $200.12One drawback to purchasing cryptocurrency via PayPal? is that you are unable to move the crypto beyond the payments processor's system. So, it's not possible for you to transfer the Bitcoin you bought through PayPal?'s bank account to the external cryptocurrency wallet, or your personal wallet.11Another disadvantage to using PayPal? is that a small number of online and offline traders permit the use of the payment processor in order to buy payment. eToro is one of the few online retailers that allow for the usage of PayPal? to buy bitcoin on its platform.13How to Buy Bitcoin With a Credit CardThe? procedure to purchase bitcoin with credit card is similar to the procedure of buying it with debit cards or an automated clearinghouse (ACH) funds transfers. You will need to enter your credit card's information into the online trading or exchange firm and then authorize the transaction. In general, , it is not a good decision to buy bitcoin using credit cards. There are a couple of factors to consider.First, the majority of exchanges don't allow bitcoin purchase with credit card due to the associated processing fees and the risk of committing fraud. This option could be for the benefit of customers. This is since credit card processing can add additional charges onto transactions. This means that in addition to paying transaction fees you'll be left having processing charges that the exchange will pass on to you.The third reason is transactions made with credit cards may be expensive. The issuers of credit cards treat bitcoin purchases as cash advances, and are able to charge large fees as well as interest rates on advances. For instance, American Express and Chase both consider purchases of cryptocurrencies as cash advance transactions. Thus, if you purchase $100 worth of bitcoin on the American Express card, you will be charged the amount of $10 (current cash advance charge for such transactions) plus an annual rate of 25%. Additionally, the credit card's company also limits the amount of bitcoin transactions per month.14A second method of buying bitcoin with a credit card is to get a Bitcoin rewards credit card. The cards function the same way as your traditional rewards credit card however they pay rewards in way of bitcoin. They invest the cash back that is earned from purchases into Bitcoin. One example of the Bitcoin rewards card could be called the BlockFi? Bitcoin Rewards Credit Card.15 Be aware, however, that annual fees for these cards could be high as well as the costs associated to the conversion of fiat currencies into cryptocurrency.Although exchanges such Coinbase as well as Binance remain among the most popular methods to purchase Bitcoin But they're by no means an all-inclusive solution.Alternative Ways to Buy BitcoinBitcoin? ATMsBitcoin? ATMs act like in-person bitcoin exchanges. Individuals can plug cash into machines that can be used to purchase bitcoin. Then, the bitcoin is transmitted to web-based wallets of users. Bitcoin ATMs have been increasingly well-known in recent years. Retail industry giant Walmart Inc. (WMT) is testing a trial program that provides customers with the option of buying bitcoin. Coin ATM Radar can help locate the closest ATMs.However ATMs aren't cheap option. There are two costs associated with ATM bitcoin purchases one of which is a purchase cost and the other an exchange fee to convert money from fiat into bitcoin. Both are quite high when compared to other options. In the case of Bitcoin, for instance, the average cost for purchases of Bitcoin ATMs is 8.4 percent (of the amount of purchase) and 5.4% for sales at ATMs.16Be aware that Bitcoin ATMs increasingly require government-issued IDs as of early 2020.P2P exchangesInstead of decentralized exchanges, that match buyers and sellers anonymously and manage all aspects of the transaction, there's peer-to-peer (P2P) exchanges that offer a closer relationship between users. LocalBitcoins? is an example of such an exchange. After signing up, customers can post their requests to buy and sell bitcoin, as well as information about payment methods and costs. Then, users can look through the list of sell and buy offers as well as select the partner with whom they wish to do business.LocalBitcoins? simplifies certain aspects of the trading. While P2P exchanges don't provide the same level security and anonymity as traditional exchanges they give users an opportunity to shop around to find the most affordable deal. Some exchanges have rating systems, so that customers are able to review potential trade partners prior deciding to do business.Mainstream brokeragesThere are very few brokerages that offer bitcoin purchase and trading capabilities due to the uncertainty surrounding the regulatory status of cryptocurrencies. Robinhood Markets, Inc. (HOOD) is an application that is popular among retail investors, is an exchange which offers crypto trading facilities. It charges 0% commissions for cryptocurrency transactions and transactions and earns revenue from cash flow for orders, transferring its trading volume to any other platform for trading, as well as brokerages.17The absence of a commission charge might be an appealing option for those who are new to crypto, however there are some catches to that offer. For one, Robinhood doesn't have the wide range of features or the coins offered by some of the top crypto exchanges such as Coinbase. Robinhood allowed trading on its platform for seven currencies: Bitcoin, Bitcoin Cash, Ethereum, Bitcoin SV, Dogecoin, and Ethereum Classic.18 As a contrast, you can trade more than 100 cryptocurrencies with Coinbase.19 It also offers various order types to lower the risk of loss and protect against losses during trading.The Robinhood platform does not offer a hosted wallet. So, if you wish the purchase of cryptocurrencies via Robinhood however, you'll need add on additional costs to an online wallet service.Bitcoin and other cryptocurrency investments do not come insured by an insurance company like Securities Investor Protection Corporation (SIPC). The regular brokerages of the organization protects against the loss of cash and securities brokerage accounts that contain up to $500,000, with a $250,000 cash limit.20 The insurance isn't available to customers that use crypto exchanges. Cryptocurrency exchanges such as Coinbase are covered by insurance against crime to guard their infrastructure against attacks. However, that insurance won't guarantee protection for individual customers against password theft.21How to Sell BitcoinYou? can sell bitcoin at those same places that you purchased the cryptocurrency like cryptocurrency exchanges or P2P platforms. In general, the process of selling bitcoin on these platforms is similar to the process for purchasing it.For instance, you might only have to click in a button to specify the type of order (i.e. to decide if the cryptocurrency will be sold immediately at the current price or if it should be sold in order to make sure that losses are not incurred) for the sale. Depending on the market composition and the demand at the location and location, the sale price for Bitcoin can be different. Exchanges for example in South Korea traded bitcoin at the kimchi price during the upswing in Bitcoin's prices in the year 2018.The cryptocurrency exchanges charge a portion percent of the price for crypto as fees. For example, Coinbase charges 2.49% of the total transaction value as fees.22Exchanges typically have monthly and daily withdrawal limitations. Thus, cash generated by the sale could never be available immediately to the buyer. There aren't limits on the amount of cryptocurrency that you can sell, however.What Are the Steps for Purchasing Bitcoin?The process of buying bitcoin is comprised consisting of four steps: selecting an exchange or venue for your order choosing a payment method, and ensuring safe storage for your bought cryptocurrency. Based on the location chosen in the very first stage, there could be additional steps involved in the procedure. If, for instance, you choose to purchase the cryptocurrency through Robinhood there may be a need to calculate additional costs for an online wallet as well as the custody of your bitcoins since the company does not offer these services.What Are the Most Popular Venues for Buying Bitcoin?The most used places for buying Bitcoin are cryptocurrency exchanges as well as brokerages (crypto and traditional), and payment services like PayPal?. You can also buy Bitcoin through P2P platforms. To own bitcoin indirect it is possible to invest in companies that have the cryptocurrency in their books of accounts, such as Tesla, Inc. (TSLA) or MicroStrategy? Incorporated (MSTR).2324How Much Should I Expect to Pay to Purchase Bitcoin?Typicallythe cost for buying bitcoin is comprised of an amount per transaction plus the cost of conversion of a dollar-based currency (generally dollars) to bitcoin. (Cryptocurrency exchanges and payment providers earn revenue through this conversion spread.) A fee for each trade is a function of what amount in dollars is the trade. A greater amount of trades will carry higher fees. Also, the total cost for purchasing is dependent on the features offered by the retailer. For instance, Robinhood does not currently offer an online wallet for keeping bitcoin. So, you'll need to budget costs associated with an online wallet purchase.Besides Cryptocurrency Exchanges, Where Else Can I Buy Bitcoin?You can also buy bitcoin from the following stores:* Through Bitcoin ATMs* With online payment services like PayPal?* At mainstream brokerages like RobinhoodIs? My Bitcoin Purchase Protected by SIPC?There is no way to ensure that the purchase you make with bitcoin is not covered by SIPC.20 In certain exchanges, like Coinbase bitcoin, balances in fiat on individual accounts can be insured by FDIC to the tune of $250,000 per account.21The Bottom LineThe? process of purchasing bitcoin is a bit more complex in comparison to the purchase of common equity or stock. This is mainly because the ecosystem and infrastructure for bitcoin is not as well-developed similar to the one used in traditional trading.A bitcoin purchase procedure consists of four steps: selecting an appropriate location or service for this purchase. Connecting to an acceptable payment method, making an order, and then ensuring an appropriate storage space for your cryptocurrency. Each of these steps requires extensive research and careful examination of the pros as well as cons of each service. You can also buy bitcoin through Bitcoin ATMs or via payment services like PayPal? and more traditional brokerages like Robinhood.