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In the investment of Bitcoin (BTCUSD) can seem complicated, but it is easier to understand if you split it into steps. When you invest or trade, Bitcoin does not require an account with a service or an exchange. additional storage methods that are safe are advised.There are several things that future Bitcoin investors need such as a cryptocurrency exchange account along with personal identification documentation when you use the Know Your Customer (KYC) platform an encrypted connection to the Internet, and a method to pay. It is also suggested that you establish your own private bank account separate from the exchange account. Payment methods that are accepted on this route are bank accounts as well as debit cards and credit cards. You can also acquire bitcoin using ATMs specifically designed for bitcoin and P2P transactions.<img width="366" src="">KEY TAKEAWAYS"The significance of Bitcoin is derived from the fact that it is a popular store of value and payment system and its finite supply and decreasing inflation.Although it's almost impossible for Bitcoin to be hacked in the event of a hack, it's nevertheless possible that your bank or exchange accounts to become compromised. This is why practicing proper safe storage and security measures is imperative.* You can also purchase bitcoin via mainstream services like PayPal? as well as Robinhood.One way to get bitcoin in indirect ways is to invest in companies that have bitcoin on their balance accounts.Before You Buy BitcoinSecurity? and privacy are key issues regarding security, privacy and confidentiality for Bitcoin investors. Anyone who acquires the private keys to a private address through the Bitcoin blockchain is able to authorize transactions.1 Private keys must be kept secret as criminals may try to steal them after they learn about huge assets. Remember that anyone is able examine the balance of a public address that you have. But the upside to this open information is that individuals can create multiple public addresses to themselves. Thus, they are able to distribute their wealth of Bitcoin among several addresses. A great strategy is keeping large investments in public addresses that are not directly connected to addresses which are used for transactions.Anyone can review a log of transactions conducted on the blockchain--even you. Although transactions are publically recorded on the blockchainplatform, identifying personal information of the user isn't. When using the Bitcoin blockchain there is no public key appears alongside the transaction. That makes transactions confidential, however not completely confidential. However, transactions are not. This is why Bitcoin transactions are more transparent and traceable than cash due to the fact that all of transactions are public inspection, in contrast to private cash transactions. However, Bitcoin transactions also include an element of privacy built as part of their design. It's very difficult to find the transacting parties--i.e., those who send and receive bitcoin - on the blockchain of the cryptocurrency.Researchers from around the world and the FBI claim they are able track transactions done on the Bitcoin blockchain back to users' other accounts on the internet, including their digital wallets.2 As an example, if anyone creates an account on Coinbase, they must provide their identification.3 After that, when the person buys bitcoin, it is tied to their personal name. If they decide to transfer it to another wallet, it may still be traced back to the Coinbase purchase , which is linked to the account holder's identity. This shouldn't worry most investors since Bitcoin will be legal in U.S. and most other developed countries.Make sure you check what is legal, regulatory, and tax requirements for buying and selling bitcoin based on where you reside prior to making a transaction.Buying BitcoinWe?'ve detailed the steps to buying bitcoin below. Always remember to research the options and make the best choice to suit the specifics of your situation.Step 1: Select a cryptocurrency trading service or a venueThe first step in buying bitcoin consists of choosing a crypto trading company or venue. The most popular options for trading and venues for purchasing cryptocurrencies include cryptocurrency payments, exchanges and brokerages. From these, cryptocurrency exchanges are the most reliable alternative because they have a variety of features and cryptocurrencies for trading.Registering for a cryptocurrency exchange allows you to buy, sell, or keep crypto. It is generally best practice to choose an exchange that allows users to cash out cryptocurrency to their secure online wallet for their personal. In the case of those wanting to trade Bitcoin or other crypto currencies, this feature isn't crucial.There are various kinds of cryptocurrency exchanges. Since the Bitcoin philosophy is based on the individual sovereignty and decentralization, some exchanges allow users to remain anonymous and don't require users to enter specific personal data. They are independent and are typically decentralized, which means that they do not have a central point of control.While these systems are able to serve some nefarious ends, they also offer services to the poorest of the world's inhabitants. For certain types of people - refugees or those in countries without a sufficient infrastructure for credit from the government or banking, anonymized exchanges can bring them into the mainstream economy.As of now, many of the major exchanges aren't controlled by a central authority and require users to submit identifying documents. For instance, in the United States, these exchanges include Coinbase, Kraken, Gemini, FTX, and Binance.US, to name a few. These exchanges have risen significantly in terms of the features they offer.The world of crypto has expanded quickly in the past decade There are many new crypto tokens to compete for investors' dollars. With the exception of Bitcoin as well as some well-known coins, such as Ethereum however, not all of these tokens are accessible on all exchanges. Each exchange has its own set of criteria for determining whether to accept or not allow trading of specific tokens.Coinbase, Kraken, and Gemini provide Bitcoin and a broader range of altcoins. They're among the most accessible on-ramps into crypto in the entire market. Binance is for an advanced trader, offering the most sophisticated trading features and more alternative cryptocurrency options. FTX is a rapidly-growing crypto exchange with a multibillion-dollar valuation, offers only a limited amount of altcoins for U.S. investors.4 However, customers outside of their home country of the U.S. have a greater range of cryptos available on its platform.A crucial thing to keep in mind when setting up an account on a cryptocurrency exchange is to ensure that you are using secure Internet methods. This is done by using two-factor authentication. a long, unique password with a mix of lowercase, capitalized, and capital letters in addition to special characters, as well as numbers.El Salvador made Bitcoin legal tender on September 7, 2021. It was the only country to do so.5 The cryptocurrency is used as a substitute for currency for any type of transaction in which a company is willing to accept it. It is the U.S. dollar continues to be El Salvador's primary currency. https://bvphusanct.com.vn/Default.aspx?tabid=120&ch=20410 : connect your account to your payment optionWhen you've selected the exchange option, you'll have to collect your personal documents. In accordance with the exchange, they could include photos from a driver's license and/or Social Security card, as together with details about your employer and the source of your funds. What information you'll need could depend on the specific region you reside in and the regulations that are in place within it. The procedure is mostly the same as opening a traditional brokerage account.After the exchange has verified the authenticity of your account, you will be asked to connect the payment option. At most exchanges, you can connect your bank account directly or you can connect a debit or credit card. Even though you can use a credit card to purchase cryptocurrency, it's not recommended as the volatility of cryptocurrency prices could increase the total cost of purchasing a coin.Bitcoin is legal in the United States, but some banks may deny or make deposits unavailable to crypto-related sites or exchanges.6 It's an excellent idea to confirm to confirm that your bank will accept deposits at your chosen exchange.There are various costs for payments made via bank accounts or debit card. You should research the costs that come with each payment method in order to choose an exchange and decide which method of payment is best for you.Exchanges also charge fees per transaction. The fees may be in the form of a flat charge (if the trading amount is small) or an % of the trading amount. Credit cards are charged fees for processing, as well as transaction charges.Step 3. Place an orderBitcoin can be purchased (or other cryptocurrencies) after selecting an exchange and connecting a payment option. In the past few years Bitcoin exchanges have slowly becoming more prevalent. They have grown substantially in terms if liquidity and their variety of features. The operational changes of crypto exchanges have been accompanied by a change in how they are perceived by the public. The industry was seen as a fraud or with questionable practices is slowly turning into legitimate and is attracting the attention of every major player in the field of financial services.Nowadays, cryptocurrency exchanges' have been able to reach a point at which they offer the same range of features that they have as their stock brokerage counterparts. Crypto exchanges today offer numerous types of order as well as ways to invest. All crypto exchanges will offer limit and market orders. Some offer stop-loss-orders. Of the exchanges discussed above, Kraken offers the most orders of all types. Kraken permits market, limits, stop-loss orders, stop limit takes-profit, take-profit and limit orders.7Apart from the various order types, exchanges also provide methods for setting up the possibility of recurring investments. This allows customers to integrate a dollar cost average into their chosen investments. Coinbase, for example, lets users create recurring purchases for every day, week or month.8Step 4: Safe storageBlockchains, cryptocurrency or Bitcoin provide a place to store digital assets more safely. Having your crypto outside of the exchange and stored in your personal wallet means that only you control the private key to the funds. It also gives you ability to keep your funds separate from an exchange and eliminate the risk that your exchange is hacked and thereby losing your money.While the majority of exchanges have clients with wallets, security isn't their main business. We generally don't recommend the use of exchange wallets for larger or longer-term holdings in cryptocurrency.Certain wallets feature more options than other wallets. Some are Bitcoin only, while some are able to hold numerous types of altcoins. Some wallets also offer the ability to swap one token with another.If you are looking to select a Bitcoin wallet, you can choose from many options. The first thing you be required to know about crypto wallets is the idea of hot wallets (online wallets) and cold wallets (paper or hardware wallets).Hot walletsThe online wallets can also be known as "hot" wallets. Hot wallets are those that run with Internet-connected devices, like computers, phones or tablets. This poses a risk because these wallets produce private keys to the coins through these internet-connected devices. Though a hot wallet can be extremely convenient in ability to gain access to and complete transactions using your assets swiftly, the fact that you store your private key in a device that is connected to the Internet makes it more vulnerable to attack.This might sound a bit absurd and a bit naive, but wallets with inadequate security run the risk of having their money stolen. This is not an infrequent occasion, and could be triggered in many ways. For example, you could boast on a forum such as Reddit about the amount of bitcoin you hold while the wallet has little to no security and keeping it in a wallet that is hot would not be prudent. Although, these accounts can be made secure so you take the proper precautions. Secure secure passwords, 2-factor authentication, and safe Internet browsing are essential standards.These wallets work best for small amounts of cryptocurrency or other currencies you are already trading on an exchange. You can compare a hot wallet to a bank account. The conventional wisdom of finance is to put only money you spend within a bank account that is a checking one, while the majority of your funds is in savings account or other investments accounts. This is also true of hot wallets. Hot wallets include mobile, desktop, web and exchange account custody wallets.As we have mentioned before, exchange wallets are custodial accounts provided by exchange. The user of this wallet form is not holder for the secret key to the cryptocurrency stored within the wallet. In the event that an incident would occur in which the exchange was damaged or your accounts are compromised, you'd have to forfeit your funds. The phrase "not your key, not your coin" is frequently heard in cryptocurrency forums, and communities.Cold walletsThe simplest description of"cold" wallets is that it isn't tied to Internet which means it is at the lowest risk of being in danger of being hacked. These wallets can also be called offline wallets or even hardware wallets. They keep a user's private keys on a device that isn't linked to the internet. They come with software that functions in parallel so users are able to look over the portfolio of their choice without putting their private keys at risk.The most secure and secure method for storing cryptocurrency offline is by using a physical wallet. A paper wallet is a paper wallet that you create from specific websites. It then generates private and public keys which are printed out on a piece of paper. The ability to access cryptocurrency in these addresses is only possible when you own the piece of document with the private number. Many people laminate these paper wallets and store them in safe deposit boxes at banks or even in a safe at home. These wallets are intended for longer-term, secure investments as they are not able to quickly sell or trade bitcoin stored on this type of wallet.A more common type of cold card is a a Hardware wallet. The typical hardware wallet is one that is a USB drive that can store users' private keys offline. These types of wallets have distinct advantages over hot wallets because they are immune to viruses that could be infected by computer. With hardware wallets, your private keys don't come in contact with your computer's network or software that could be vulnerable. The devices are usually open source, which allows the community to verify their security through audits of code rather than a company that declares that they're acceptable to make use of.A cold-wallet is by far the most secure method to store your bitcoins or other cryptocurrencies. However, they require a greater amount of technical knowledge to set up.A good method of setting your wallets is with three items three things: an exchange account to use to purchase and sell items as well as a hot wallet that can hold small to moderate amounts of cryptocurrency you want to trade or sell as well as a cold hardware wallet for holding larger sums that will last longer.How to Buy Bitcoin With PayPalBitcoin? can also be purchased through the payment processor PayPal? Holdings, Inc. (PYPL). There are two ways to buy bitcoin with PayPal?. One, and probably the easiest method is to buy cryptocurrencies with your PayPal? account that is connected to a payment device like a banking account, debit card or credit card. The other option is to use the balance of funds in your PayPal? account to purchase cryptocurrency through a third-party vendor. This option is not more convenient than the first due to the fact that very few websites permit users to buy 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. It is also possible to use your cryptos to pay for products or services by using"Checkout with crypto "Checkout With Crypto" feature.10In order to open a crypto account through PayPal? it is necessary to provide the following details is required include: name, physical addresses and date of birth the tax identification number.11It is not possible using credit cards to buy Bitcoin using PayPal?. During the purchase process, PayPal? will display a price for the cryptocurrency. But that price is subject changing rapidly due the fluctuation of markets for cryptocurrency. It's best to make sure you have more money than the amount you had budgeted to purchase in your bank account.If you purchase bitcoin straight from PayPal? it earns profit by selling the crypto spread, or the differential between Bitcoin's market rate in addition to its conversion rate with USD. PayPal? can also charge you a fee for each purchase. These fees depend on the amount in dollars of the purchase. For example, a flat charge of $0.50 is assessed for purchases between $110 to $200. In the following instances, the fee will be determined by a percentage percentage of the dollar amount. For instance, a rate of 2% on the total amount is per transaction for crypto transactions between $100 and $200.12One disadvantage of purchasing cryptocurrencies through PayPal? is that it is not possible to transfer the cryptocurrency outside of the company's platforms for payment. This means it's not possible for you to transfer your bitcoin purchase from PayPal?'s account to the external cryptocurrency wallet, or your personal wallet.11Another drawback of using PayPal? is that a small number of trading platforms and exchanges allow using the processor for payment. eToro is among the few online traders that allow PayPal? to be used on PayPal? to purchase bitcoin on its platform.13How to Buy Bitcoin With a Credit CardThe? process for purchasing bitcoin with credit cards is similar to the one used to purchase it using debit cards or via the automated clearing house (ACH) payments. The buyer must enter the credit card information to the exchange or online trading firm and they will then authorise the transaction. In general, , it's not the best decision to buy bitcoin using credit cards. There are several reasons to this.First of all, not all exchanges allow bitcoin purchase with credit card due to processing charges and the risk of fraudulent transactions. The decision could be in the best interests of customers. This is because credit card processing can charge additional fees to transactions. So, in addition paying transaction fees you'll end up with processing fees that the exchange may pass onto you.The second reason is because transactions made with credit cards may be expensive. Credit card issuers view bitcoin transactions as cash advances and they charge huge fees and rates on such advances. For example, American Express and Chase both view purchases of cryptocurrency in cash-advance transactions. Thus, if you purchase $100 worth of bitcoin on the American Express card, you are required to pay $10.00 (current cash advance cost for the transactions) plus an annual fee of 25%. Furthermore, the credit card company also limits the amount of bitcoin purchases per month.14An alternative method of purchasing bitcoin with credit card is to acquire one of the Bitcoin reward credit card. These cards function similar to your typical rewards credit credit card except they offer rewards in the form of bitcoin. Therefore, they invest profits from purchases into Bitcoin. One example of a Bitcoin points card for rewards is the BlockFi? Bitcoin Rewards Credit Card.15 Beware, however, that the annual fee for these cards might be high and may also be added expenses associated with the exchange of fiat currencies to cryptocurrency.Although exchanges such as Coinbase or Binance remain among the most used methods to purchase Bitcoin but they're not the only means.Alternative Ways to Buy BitcoinBitcoin? ATMsBitcoin? ATMs act like in-person bitcoin exchanges. Customers can put cash into an ATM and use it for the purchase of bitcoin. It is then moved to online accounts of users. Bitcoin ATMs have grown increasingly well-known in recent years. Retail giant Walmart Inc. (WMT) is testing a pilot program which gives customers the possibility of buying bitcoin. Coin ATM Radar can help locate the nearest machines.However ATMs are expensive option. There are two costs associated with ATM bitcoin transactions they charge a cost for the purchase as well as an additional fee for conversion of the fiat currency into bitcoin. Both are quite high when compared with other options. For instance, the global standard purchase price for Bitcoin ATMs is 8.4% (of the amount of purchase) and 5.4% for sales at ATMs.16Be aware, however, that Bitcoin ATMs are becoming increasingly dependent on identification cards from the government since early 2020.P2P exchangesContrary to decentralized exchanges, which provide buyers and sellers with anonymity and facilitate all aspects of the transaction, there's peer-to-peer (P2P) exchange services that facilitate a better relationship between users. LocalBitcoins? is an example of such an exchange. After registering for an account users can post requests to buy or sell bitcoin, including information about payment options and prices. Users can then search through lists of both buy and sell deals, choosing the trading partners who they would like to conduct business.LocalBitcoins? simplifies certain aspects of the trade. Although P2P exchanges aren't able to provide the same level of privacy as decentralized exchanges do, they offer users the possibility of shopping around for the best deal. A majority of these exchanges offer rating mechanisms so that their users are able evaluate potential trade partners prior deciding to do business.Mainstream brokeragesFew major brokerages provide bitcoin trading and purchase capabilities due to the uncertainty of the status of cryptocurrencies in the eyes of the regulators. Robinhood Markets, Inc. (HOOD) the app, which is loved by retail investors, is an exchange that has cryptocurrency trading services. It charges 0% commissions on cryptocurrency trades as well as purchases and makes money from the flow of orders, passing its trading volume onto any other platform for trading, as well as brokerages.17The absence of a commission charge is a tempting option for those just starting out, but there are some catches to that offer. In the beginning, Robinhood isn't equipped with the number of features or the coins offered by some of the top crypto exchanges like Coinbase. Robinhood had made trading possible on its platform for seven different cryptocurrencies: Bitcoin, Bitcoin Cash, Ethereum, Bitcoin SV, Dogecoin, and Ethereum Classic.18 In contrast, you can trade more than 100 currencies with Coinbase.19 It also offers different types of orders to reduce potential risk and limit losses when trading.The Robinhood platform doesn't have a hosted wallet. So, if you wish to buy cryptocurrency through Robinhood the platform, you'll have take into account additional charges for an online wallet provider.Bitcoin and other cryptocurrency investments aren't covered by insurance offered by Insurance companies such as the Securities Investor Protection Corporation (SIPC). In the case of regular brokerages and brokerages, the agency protects against the loss of cash and securities brokerage accounts with a maximum of $500,000, with a $250,000 cash limit.20 This isn't available to customers from cryptocurrency exchanges. Coinbase and other cryptocurrency exchanges Coinbase offer insurance against crime to guard their infrastructure against hacks. But that insurance does not guarantee protection for individual customers against password theft.21How to Sell BitcoinBitcoin? can be sold at the same locations where you bought the cryptocurrency, like cryptocurrency exchanges or P2P platforms. Usually, the process of selling bitcoin through these platforms is similar to purchasing it.For instance, you might only be required to click the button and choose an order type (i.e. that you must specify whether the cryptocurrency is to be sold immediately for the best prices or it is sold to be able to limit losses) to make the sale. Based on the composition of the market and the demand at the location the selling price for Bitcoin can be different. For instance, exchanges in South Korea traded bitcoin at the so-called kimchi rate during the run-up in its prices in the year 2018.A percentage of cryptocurrency exchanges will charge you a fraction from the cryptocurrency sold amount in the form of fees. For example, Coinbase charges 2.49% of the total transaction amount as fees.22Exchanges typically have monthly and daily withdrawal limitations. Thus, cash from an enormous transaction may not be available immediately to the buyer. There aren't any limitations on the amount of cryptocurrency that you can sell however.What Are the Steps for Purchasing Bitcoin?The process to buy bitcoin is comprised of four steps: deciding on the best location or exchange to make your purchase by selecting a preferred payment method and then ensuring a secure storage for your purchased cryptocurrency. The type of venue selected in the initial step, there could be additional steps needed in the process. For example, if you buy the cryptocurrency via Robinhood it is possible to add additional charges for an online bank account and custody of your bitcoin , as it doesn't provide these services.What Are the Most Popular Venues for Buying Bitcoin?The most popular options to purchase bitcoins are exchanges, brokerages (crypto along with mainstream) as well as payment solutions like PayPal?. You can also purchase Bitcoin by using P2P-based exchanges. For the indirect ownership of bitcoin You can purchase shares of companies that hold the cryptocurrency in their balance sheets. For instance, Tesla, Inc. (TSLA) or MicroStrategy? Incorporated (MSTR).2324How Much Should I Expect to Pay to Purchase Bitcoin?Typically, the price for buying bitcoin is a transaction fee plus the cost for converting a cash currency (generally dollars) to bitcoin. (Cryptocurrency exchanges and payment processing services make money through this conversion spread.) The amount charged per trade is a function of the dollar amount of the trade. The larger the amount of the trade will be charged more. Also, the total cost for purchasing is contingent upon the features offered by the company. For example, Robinhood does not currently offer an online wallet for storage of bitcoin. Therefore, you'll need to plan 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 ATMs* Through online payments services like PayPal?* At mainstream brokerages like RobinhoodIs? My Bitcoin Purchase Protected by SIPC?No, your bitcoin purchase is not covered by SIPC.20 At certain exchanges, like Coinbase accounts, the balance of your fiat in individual accounts are FDIC insured to the tune of $250,000 per account.21The Bottom LineThe? process for purchasing bitcoin is slightly more complicated as compared to buying traditional equity or stocks. This is due to the infrastructure and ecosystem for cryptocurrency isn't as well developed that those of traditional trading.A bitcoin purchase process comprises of four phases: selecting a venue or service to complete this purchase. Connecting to an acceptable payment method, making an orderand providing secure storage for your bought cryptocurrency. Each of these steps requires thorough research and an analysis of the pros and negatives of each service. You can also purchase bitcoin through Bitcoin ATMs or pay services such as PayPal? as well as traditional brokerages such Robinhood.