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It is easy to invest in Bitcoin (BTCUSD) may seem complicated, but it is easy to break it down into smaller steps. In order to invest or trade Bitcoin just requires an account at a service or exchange, but additional safe storage practices are suggested.There are several things that new Bitcoin investors require such as a cryptocurrency exchange account as well as personal identification documents, if you are using the Know Your Customer (KYC) platform, a secure connection to the Internet, and a method to pay. It is also recommended that you have your own individual wallet apart from the exchange account. Methods of payment that work with this path include bank accounts credit cards, debit cards, and credit cards. You can also acquire bitcoin using ATMs specifically designed for bitcoin and also through P2P exchanges.KEY TAKEAWAYS"The value" of Bitcoin comes from its adoption as a source of value and payment system as well as its finite supply and diminishing inflation.Although it's almost impossible for Bitcoin to be hacked However, it is possible that your bank or exchange accounts to become compromised. This is the reason proper storage and security is imperative.You can also purchase bitcoin with mainstream companies such as PayPal? and Robinhood.A way to buy bitcoin in indirect ways is to invest in businesses with bitcoin on their balance and balance sheets.Before You Buy BitcoinSecurity? and privacy are crucial issues with regard to Bitcoin investors. Anyone who gets the private key to the public address that is on the Bitcoin blockchain can approve transactions.1 Private keys should be kept in secret. Criminals may attempt to take them away once they know of your large holdings. You should be aware that anyone is able to be able to see the balance at a public address that you have. Another benefit of having this open information is that the user can have multiple addresses public for themselves. This allows them to spread their wealth of Bitcoin over a variety of addresses. A smart strategy is to keep significant investments at public addresses that aren't directly linked to those which are used for transactions.Anyone can see a record of transactions made on the blockchain -- even you. Even though transactions are recorded publically on the blockchain, data about users isn't. On the Bitcoin blockchain there is only one public key appears alongside an activity, which makes transactions secret however not completely secretive. In this regard, Bitcoin transfers are much easier to trace and trackable as compared to cash because all them are public view, unlike private cash transactions. However, Bitcoin transactions also come with elements of anonymity incorporated in their structure. It's extremely difficult to identify the transacting parties--i.e., the receiver and sender of Bitcoin--on the cryptocurrency's cryptocurrency's blockchain.International researchers and the FBI claim they are able monitor transactions on the Bitcoin blockchain and connect them to other online accountsas well as their digital wallets.2 For example, when you create an account on Coinbase the account holder must verify their identification.3 Then, when that person buys bitcoin, it is tied to their name. Should they transfer the bitcoin to another wallet, it may still be traced back to the Coinbase purchase , which is linked to the account holder's name. This shouldn't cause concern to most buyers since Bitcoin has been legalized in U.S. and most other developed countries.Be sure to research regulations, laws, and tax consequences of purchasing and selling bitcoin based on where you live prior to doing any transaction.Buying BitcoinWe? have broken down the steps needed for buying bitcoin below. Make sure to research the options and select the best option depending on your needs.Step 1: Select an exchange service for crypto or a venueThe first step to purchase bitcoin is to choose the right crypto trading service or a location. The most popular trading venues and services for purchasing cryptocurrency include exchanges, payment providers, and brokerages. Out of these, cryptocurrency exchanges are the most convenient option as they provide a wide range of features and currencies for trading.Registering for a cryptocurrency exchange allows you to buy, sell, and keep crypto. It is usually best to sign up with an exchange that allows users to transfer cryptocurrency to their personal online account for safekeeping. If you are looking to trade Bitcoin and other cryptocurrencies this feature may not matter.There are many types of exchanges for cryptocurrency. Since the Bitcoin philosophy is based on independence and personal sovereignty, certain exchanges allow users remain anonymous and don't have to require their personal details. The exchanges that operate in this manner are autonomous and are often decentralized which means that they do not have a central source of control.Even though these systems have malicious purposes, they also provide services to global population without banks. For certain categories of individuals, like refugees or those who live in countries lacking infrastructure for credit from the government or banking -- anonymous exchanges can integrate them into the mainstream economy.As of now, the top exchanges are not decentralized and follow laws that oblige users to submit identification documentation. The United States, these exchanges include Coinbase, Kraken, Gemini, FTX, and Binance.US, to name a few. These exchanges have grown significantly in the number of features they provide.The world of crypto has expanded rapidly over the last decade with a multitude of new tokens that are competing for dollars from investors. Except for Bitcoin as well as a few prominent coins, such as Ethereum there are a few exceptions to the fact that not all these tokens can be found on all exchanges. Each exchange has its own set of criteria in order to decide whether it should include or disallow trading of specific tokens.Coinbase, Kraken, and Gemini provide Bitcoin and a rising number of altcoins. These three are ones of the easiest ways to get into crypto in the whole market. Binance targets a more advanced trader, offering more serious trading functionality and an extensive selection of altcoin options. FTX is a rapidly expanding crypto exchange with an investment of multibillion dollars, offers limited amounts of altcoins to U.S. investors.4 However, customers outside of their home country of the U.S. have a greater variety of coins available on its platform.One of the most important things to remember when creating your cryptocurrency exchange account is the need to employ secure Internet procedures. This is done by using two-factor authentication. one long, unique password with a mix of lowercase characters, capitalized letters or special characters as well as numbers.El Salvador made Bitcoin legal tender on September 7, 2021. The country was the first to do so.5 The cryptocurrency can serve as a form of currency in any transaction where a business can take it. This is why the U.S. dollar continues to be El Salvador's main currency.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. In accordance with the exchange, they could include photos of a drivers license or Social Security card, as in addition to information about your employer and source of money. The information you need may depend on where which you reside and laws in it. The process is almost the same as setting up a typical brokerage account.After the exchange has verified the authenticity of your account, you will be required to connect the payment option. For most exchanges, you can connect to your bank account through the account or connect a credit or debit card. Even though you can use a credit card to purchase cryptocurrency, it's not recommended because the volatility of prices for cryptocurrency can boost the cost of buying a coin.Bitcoin is legal in the United States, but some banks may not allow or make deposits unavailable to crypto-related sites or exchanges.6 It is it's a good idea to make sure that your bank will accept deposits at your preferred exchange.There are various charges for deposits through bank accounts, debit, or credit card. It is essential to study the fees that are associated with any payment option so that you can decide on a payment option or determine which payment option is best for you.Exchanges may also charge fees for each transaction. The fees may be an all-inclusive fee (if the trading amount is minimal) or as a percentage from the trading amount. Credit cards incur an additional processing charge as well as transaction fee.Step 3: Make an orderYou can purchase bitcoin (or other cryptocurrencies) after choosing an exchange and connecting to a payment method. In the past few years cryptocurrency exchanges slowly become more widespread. They have grown considerably in terms of liquidity as well as their features. The technological changes occurring at cryptocurrency exchanges coincide with the change on the perception of cryptocurrency. The industry was believed to be a scam or with unreliable practices is gradually becoming an actual one that is attracting the attention of all major players that are in the business of financial transactions.These days, cryptocurrency exchanges have become so popular that they're almost the same degree of functionality as their counterparts who are stock brokers. They offer various order types and methods to invest. Nearly all exchanges allow limits and market orders. Some even have stop-loss or stop-loss orders. Of the exchanges listed above, Kraken offers the most order types. Kraken allows for market, limit, stoploss or stop-limit take-profit, and take profit limit orders.7Alongside a wide range of purchase types, exchanges provide methods for setting up an investment program that allows investors to create a dollar-cost-average into the investments they prefer. Coinbase for instance, lets users set up recurring purchase for every day, week, or month.8Step 4: Safe storageA cryptocurrency, Bitcoin, or cryptocurrency-based wallet can be an excellent way to store your digital assets with greater security. By keeping your crypto away from the exchange and within your personal wallet means that only you are the only person who has control over the private keys to your accounts. It also gives you option to save your funds from an exchange and eliminate the risk that your exchange's security being compromised and causing loss of funds.Though most exchanges provide wallets to their customers, security isn't their main business. We generally don't recommend using an exchange wallet to manage the long-term, large-scale holdings of cryptocurrency.Certain wallets come with more features than others. Some are Bitcoin exclusive, while others can store several types of altcoins. Some wallets also offer the option of swapping one token with another.When it comes to choosing the best Bitcoin wallet, there are a number of options. First, you'll must know about crypto wallets is the concept of hot wallets (online wallets) and cold wallets (paper or physical wallets).Hot walletsDigital wallets also referred to by the name of hot wallets. Hot accounts run with Internet-connected devices, like phones, computers, or tablets. The risk of vulnerability is that they create private keys to your coins through these internet-connected devices. Although a mobile wallet can be extremely convenient in method that you can gain access to and complete transactions using your assets swiftly, the fact that you store your private keys in an internet-connected device can make it more susceptible to a hack.It may sound odd, but hot wallet holders that don't put in place enough protection run the risk the loss of funds due to theft. It's not a rare event, and it could happen in a number of ways. For example, you could boast on a public forum like Reddit about how much bitcoin you've got while you're using very little to no security and storing it in a hot account would certainly not be safe. These wallets are safe as long as the necessary precautions are in place. Strong usernames, two-factor authentication and secure Internet browsing should be considered the minimum necessities.They are great for small amounts of crypto or any cryptocurrency that you're active trading on exchanges. You can compare a hot wallet to a checking account. Conventional financial wisdom would say to keep only your spending money in a checking account , whereas the majority of your cash are in savings and other investments accounts. The same could be said to hot wallets. Hot wallets can be described as mobile, desktop, web and exchange account custody wallets.As was mentioned earlier, exchange wallets function as custodial accounts supplied by exchanges. The person who uses this wallet sort is not holder in the case of the private keys for the cryptocurrency stored in the wallet. If an event were to take place where the exchange is compromised or your account gets compromised, you'd be liable to lose the funds you have invested. The phrase "not your key, not your coin" is often used in cryptocurrency forums and communities.Cold walletsA simple description of"cold" wallets is that it isn't associated with the Internet and is therefore at less risk of being compromised. These wallets are also described as offline wallets or hardware wallets. They store the user's private keys on a device that isn't connected to the internet. They come with software working in parallel, so that users can see the portfolio of their choice without putting their private keys in danger.Perhaps the best way to store digital currency offline is by using a paper wallet. A paper wallet is a account that can be generated via certain websites. It generates both public and private keys that can be printed on paper. Access to the cryptocurrency contained in these addresses is only possible when you have that piece of paper that contains the private key. A lot of people laminate their money wallets made of paper and store them in safe deposit boxes in their banks or even in a safe at home. These wallets are designed to be longer-term, secure investments as you can't quickly sell or trade bitcoins stored in using this method.A more typical type of cold money wallet is a hard-copy wallet. A hardware wallet is usually an USB drive that can store personal keys of the user offline. The benefits of such wallets are substantial when compared to hot wallets as they are immune to virus that could infect your computer. With hardware wallets, your private keys do not come in contact with your computer's network or any software that may be vulnerable. These devices are typically open source, which allows users to test their safety via code audits instead of a company declaring that they are suitable for use.Cold wallets are the best and most safe method of keeping your bitcoin or any other cryptocurrency. However, they require more technical knowledge to setup.An ideal way to set your wallets is to include three things such as an exchange account for trading and buying with a hot or hot wallet that will hold small to moderate amounts of cryptocurrency that you intend to trade or sell in the future, and a cold wallet to hold 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 first , and the most convenient method is buying cryptocurrencies with your PayPal? account, which is linked to a payment system, such as a check or debit card. The second option is to use the balance in account balances in your PayPal? account to purchase crypto by a third party. This isn't quite as user-friendly as the previous because very few third-party providers allow users to purchase bitcoin using that PayPal? button.Four cryptocurrencies--Bitcoin, Ethereum, Litecoin, and Bitcoin Cash--can be purchased directly through PayPal?.9 With the exception of those who live in Hawaii, residents of all states can either use their existing PayPal? accounts or set up new ones. It is also possible to use the cryptocurrency you own to purchase products as well as services via PayPal?'s "Checkout With Crypto" feature.10To establish a Crypto account through PayPal? The following information is required such as name, physical address along with date of birth along with a tax identification number.11It is not possible to use a credit or debit card to purchase Bitcoin through PayPal?. During the buying process, PayPal? will display a price for the cryptocurrency. However, the price is subject change rapidly due to the volatility of the cryptocurrency market. It is a good idea to ensure that you've got more than the cost you estimated for the purchase in your account at the bank.When you purchase bitcoin directly through PayPal? the company earns money from the spread of crypto or the difference between the market price of Bitcoin in addition to its conversion rate with USD. PayPal? additionally charges you a transaction fee per transaction. These charges are based on amount in dollars of the purchase. For example there is a flat rate of $0.50 is applied to purchases between $100 and $200. After that, the fee is in the form of a percentage of total dollar amount. For instance, a charge of 2 percent of the amount total is due for transactions between $100 and $200.12One drawback of purchasing cryptocurrency through PayPal? is that you can't transfer the cryptocurrency out of the pay processor's website. This means it's not possible to transfer your bitcoin purchase from PayPal?'s account to an additional crypto wallet, or your personal wallet.11The second disadvantage of using PayPal? is that only a few trading platforms and exchanges allow using the processor in order to buy payments. eToro is one of the very few online merchants that permit the use of PayPal? to purchase bitcoins through its platform.13How to Buy Bitcoin With a Credit CardThe? procedure to purchase bitcoin using credit cards will be similar to the process for buying it with debit cards or by automatic clearing houses (ACH) wire transfers. You'll have to input your credit/debit card details to the exchange or online trading firm , and then sign off on the transaction. In general, however, it's not the best decision to buy bitcoin using credit cards. There are several reasons why this is.First of all, the majority of exchanges don't allow bitcoin purchases with credit cards because of the processing costs as well as the risk of fraud. This could work in the best interests of the customers. This is since credit card processing can include additional charges to these transactions. As a result, instead of the transaction fee you'll be left having processing charges that the exchange will pass on to you.The other reason is that buying credit card products can be expensive. Credit card issuers view bitcoin transactions as cash advances, and apply hefty fees as well as high interest rates on such advances. For example, American Express and Chase both count purchases of cryptocurrencies into cash advance transaction. Thus, if you purchase $100 worth in bitcoin using the American Express card, you are required to pay $10.00 (current cash advance fee for these transactions) plus an annual percentage rate of 25 percent. What's more, the credit card provider also restricts you to $1000 worth of bitcoin purchases per month.14Another way to buy bitcoin by using a credit card is to purchase the Bitcoin rewards credit card. These cards function in the same manner as your typical rewards credit , but they reward you in the way of bitcoin. Also, they invest cash-back earned from purchases into Bitcoin. One example of an Bitcoin rewards card is the BlockFi? Bitcoin Rewards Credit Card.15 Beware, however that the annual fee for these cards could be expensive and there may be additional charges for the conversion of fiat currency into crypto.Although exchanges such as Coinbase or Binance remain among the most popular options to purchase Bitcoin, they are not the only means.Alternative Ways to Buy BitcoinBitcoin? ATMs<iframe src="https://www.youtube.com/shorts/wYJhUGVaeyk" width="560" height="315" frameborder="0" allowfullscreen></iframe>Bitcoin ATMs act like in-person bitcoin exchanges. Customers can simply insert money into an ATM and use it for the purchase of bitcoin, which is later delivered to online wallets of users. Bitcoin ATMs are more famous in recent months. Retail industry giant Walmart Inc. (WMT) is testing a trial program that will offer its customers the possibility of buying bitcoin. Coin ATM Radar can help to find the closest ATMs.However ATMs can be costly option. There are two costs that come along with ATM bitcoin transactions one of which is a purchase cost and the other one for conversion fees to convert a fiat currency to bitcoin. The fees for both are quite steep when compared to other alternatives. For instance, worldwide, the typical purchase cost at Bitcoin ATMs is 8.4 percent (of the purchase amount) and 5.4 percent for sales made at ATMs.16Be aware that Bitcoin ATMs have increasingly required government-issued IDs by the start of 2020.Exchanges between P2PThe decentralized exchanges connect sellers and buyers anonymously as well as facilitate all aspects of the transaction, there exist peer-to-peer (P2P) exchanges which offer a more direct communication between users. LocalBitcoins? is one of these exchange. After registering for an account users are able to post requests to purchase or sell bitcoin. It also includes information about payment methods and prices. Customers can then browse through lists of offer to buy or sell before selecting the traders with whom they wish to do business.LocalBitcoins? facilitates some aspects of trading. While P2P exchanges may not provide the same security as decentralized exchanges, they give users the possibility of shopping around to find the most affordable deal. Some of these exchanges have rating systems that allow users to have a way to evaluate possible trade partners before committing to.Mainstream brokeragesA small percentage of the major brokerages offer bitcoin purchase and trading capabilities due to the uncertainty surrounding the status of cryptocurrencies in the eyes of the regulators. Robinhood Markets, Inc. (HOOD) is an app popular with retail investors, is one platform that offers crypto trading facilities. It charges no commissions on cryptocurrency trades as well as purchases . It makes money from cash flow for orders, transferring its trading volume to others trading platforms or brokerages.17The absence of a commission charge can be a enticing option for newbies, but there are some problems with this offering. To begin, Robinhood doesn't have an array of features and coins offered by well-known crypto exchanges such as Coinbase. Robinhood has enabled trading on its platform with seven cryptocurrencies: Bitcoin, Bitcoin Cash, Ethereum, Bitcoin SV, Dogecoin, and Ethereum Classic.18 Contrary to Coinbase, you can trade more than 100 different cryptocurrencies through Coinbase.19 It also has various order types to lower the risk of loss and protect against losses during trading.The Robinhood platform does not offer an online wallet. So, if you wish to buy cryptocurrency on Robinhood, you will have to consider additional fees for an online wallet provider.Bitcoin and other cryptocurrency investments do not come insured by SIPPC. Securities Investor Protection Corporation (SIPC). The regular brokerages of the corporation protects against loss of cash and securities in brokerage accounts containing up to $1 million, with a $500,000 cash limit.20 The insurance isn't accessible to clients from cryptocurrency exchanges. Cryptocurrency exchanges such as Coinbase are covered by insurance against crime to safeguard their infrastructure from hacks. However, that policy does not protect individual customers from password theft.21How to Sell BitcoinYou? can sell bitcoin in the same outlets where you purchased the cryptocurrency including cryptocurrency exchanges, and P2P platforms. Usually, the process of selling bitcoin through these platforms is similar to the process for purchasing it.For instance, you might only have to click the button and choose an order type (i.e. how much, if the cryptocurrency should be sold instantly at the most competitive prices or it should be sold in order to stop losses) to conduct the sale. Based on the composition of the market and the market demand at the event the cost of selling Bitcoin can vary. For example, exchanges in South Korea traded bitcoin at a so-called kimchi premium during the price increase back in 2018.Exchanges for cryptocurrency charge a percentage of the crypto sale amount as fees. For instance, Coinbase charges 2.49% from the total transaction amount as fees.22Exchanges generally have daily and monthly withdrawal limitations. Thus, cash from the sale of a significant amount may not be available immediately to the seller. There aren't limits on the amount of cryptocurrency you are able to sell however.What Are the Steps for Purchasing Bitcoin?The process of purchasing bitcoin consists of 4 steps: deciding on an exchange or a location for your order and selecting a payment method, and ensuring safe storage for your purchase. Depending on the type of venue chosen in the first phase, there will be additional steps in the procedure. As https://telegra.ph/Wall-St-Week-Ahead-Crypto-investors-face-more-uncertainty-after-rocky-start-to-2022-02-13-3 , if choose to purchase the cryptocurrency through Robinhood you may need to calculate additional costs for an online account as well as custody of your bitcoin because it doesn't provide these services.What Are the Most Popular Venues for Buying Bitcoin?The most popular options for buying bitcoins is through cryptocurrency exchanges as well as brokerages (crypto and mainstream) as well as payment services such as PayPal?. You can also buy Bitcoin through P2P trading platforms. To own bitcoin indirect 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 an amount per transaction plus the cost of conversion of a foreign currency (generally dollars) to bitcoin. (Cryptocurrency exchanges and payment providers earn revenue from this conversion spread.) A fee for each trade is a function of how much money is involved in the trade. The larger the amount of the trade will bring higher costs. Cost of purchasing is contingent on the features provided by the venue. For instance, Robinhood does not currently provide an online wallet for storing bitcoin. This means that you'll have to budget online wallet costs for your purchase.Besides Cryptocurrency Exchanges, Where Else Can I Buy Bitcoin?Bitcoin can also be purchased at these locations:* Through Bitcoin ATMs* Through online payment services such as PayPal?* At mainstream brokerages like RobinhoodIs? My Bitcoin Purchase Protected by SIPC?No, your bitcoin purchase is not protected by SIPC.20 In certain exchanges, like Coinbase bitcoin, balances in fiat on individual accounts may be FDIC-insured in the amount of $250,000 per account.21The Bottom LineThe? process of buying bitcoin is somewhat more complicated than buying regular equity or stock. This is due to the fact that the ecosystem and infrastructure for bitcoin are not as well developed as the traditional trading.The bitcoin purchase process is made up of four phases: selecting the service or the location of payment, connecting with an option for payment, placing an order and ensuring that your purchase is safe in cryptocurrency. Each step requires research and a careful assessment of the pros and disadvantages of each method. You can also buy bitcoin at Bitcoin ATMs or by using payment services such as PayPal? or major brokerages like Robinhood.