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Investments in Bitcoin (BTCUSD) may seem complex, but it's simpler when you divide it up into smaller steps. Making investments or trading Bitcoin just requires an account at a service or exchange, however further safe storage practices are suggested.There are a few things potential Bitcoin investors need in order to invest: a cryptocurrency-exchange account along with personal identification documentation for those who use a Know Your Customer (KYC) platform, a secure connection to the Internet and a means of payment. It is recommended that you keep a private wallet, separate from your exchange account. Valid methods of payment using this method include bank accounts as well as debit cards and credit cards. There is also the option to get bitcoin at specialized ATMs and via P2P exchanges.KEY TAKEAWAYS"The value and value that comes from Bitcoin comes from the fact that it is a popular store of value as well as a payment system and its limited supply, and the decrease in inflation.Although it's almost impossible to allow Bitcoin itself to be compromised but it's still possible that your bank or exchange bank account to have been compromised. That's why proper storage and security measures are essential.* You can also buy bitcoin through mainstream services such as PayPal? or Robinhood.* One method of owning bitcoin in indirect ways is to invest in businesses with bitcoin in their balance financial statements.Before You Buy BitcoinSecurity? and privacy are the most important security and privacy concerns for Bitcoin investors. Anyone who gets the private key to a public address on the Bitcoin blockchain can be authorized to make transactions.1 Private keys should be kept in secret. Criminals may attempt to steal them in the event of learning of huge assets. Be aware that anyone could check the balance on a public address that you have. On the other hand, this public information is that individuals can have multiple addresses public for themselves. Therefore, they could distribute their stash of Bitcoin over a variety of addresses. One option is to store large amounts of money at public addresses that aren't directly connected to ones which are used for transactions.Anyone can view a history of transactions performed on blockchain -- even you. Although transactions are publicly recorded on the blockchainsystem, identifying details about the user is not. With the Bitcoin blockchain users only have their public key is recorded next to any transaction. This makes transactions safe however not completely confidential. However, transactions are not. In that sense, Bitcoin transaction are much more visible and trackable than cash , since all of them are open to public scrutiny, unlike private cash transactions. But Bitcoin transactions also come with the element of anonymity built into their design. It is extremely difficult to discover the transacting parties--i.e., recipients and senders of bitcoins on the cryptocurrency's own blockchain.International researchers and the FBI claim to be able to trace transactions that are made on the Bitcoin blockchain with users' other online accounts, such as their digital wallets.2 As an example, if the user creates an account through Coinbase they have to verify their identification.3 If that individual purchases bitcoin, the transaction is tied to their name. In the event that they transfer it another account, it will nevertheless be traced back the Coinbase purchase that is connected to the account holder's identity. This shouldn't cause concern to most customers because Bitcoin is officially legal within the U.S. and most other developed countries.You should be sure to verify your legal and regulatory, and tax implications of buying and selling bitcoins where you live prior to doing any transaction.Buying BitcoinWe? have broken down the steps needed for buying bitcoin below. You should remember to do your research and make the best choice according to the situation.Step 1: Choose an exchange service for crypto or venueThe first step in buying bitcoin is choosing an online crypto trading platform or venue. Popular venues for trading and platforms to buy cryptocurrencies include transactions, payment options, and brokerages. Out of all these, crypto exchanges are by far the most convenient option since they come with a array of features as well as more than cryptocurrencies to trade.Signing up for a cryptocurrency exchange can allow you to purchase, sell and keep cryptocurrency. It is usually best for an exchange to make use of one that lets its customers cash out cryptocurrency to their personal online wallets to ensure the safety of their. In the case of those wanting to trade Bitcoin or other cryptocurrencies, this feature may not matter.There are various kinds from cryptocurrency-based exchanges. Since the Bitcoin philosophy is based on personal sovereignty and decentralization, certain exchanges allow users to remain anonymous and don't need users to input the personal details of their users. These exchanges operate on their own and are often decentralized meaning they don't have a central point of control.Although such systems are often used to fulfill purposeful purposes, they also provide services to vast majority of people without banking. Certain categories of people -- refugees or people living in countries lacking infrastructure for credit from the government or banking--anonymous exchanges are a great way to bring them into the mainstream economy.At the moment, the most well-known exchanges aren't decentralized and follow laws that oblige users to submit identification documentation. To be specific, within the United States, these exchanges comprise Coinbase, Kraken, Gemini, FTX, and Binance.US Just to name a few. The exchanges have seen a significant increase in the range of services they provide.The crypto market has grown rapidly in the last 10 years There are many new crypto tokens that are competing for dollars from investors. Except for Bitcoin and a few of the more well-known ones like Ethereum, not all of these tokens are accessible on all exchanges. Each exchange has specific criteria which determine whether to add or exclude trading on certain tokens.Coinbase, Kraken, and Gemini provide Bitcoin and a growing number of altcoins. They're the most straightforward on-ramps for crypto across the industry. https://www.comoqueporque.com/what-are-prime-5-cryptocurrencies-other-than-bitcoin/ is geared towards an advanced trader, and offers more sophisticated trading options and a better variety of altcoin choices. FTX is a fast-growing cryptocurrency exchange that has earned an investment of multibillion dollars, offers limited amounts of altcoins for U.S. investors.4 However, traders from outside that U.S. have a greater selection of options on its platform.One important point to remember when creating the account for a cryptocurrency exchange to adhere to safe Internet procedures. This is done by using two-factor authentication. a long, unique password that includes lowercase letters, capitalized and capitalized letters along with special characters and 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 form of currency in any transaction in which businesses are able to accept it. There is no substitute for the U.S. dollar continues to be El Salvador's main currency.Step 2. connect your account to an option for paymentAfter you've picked the exchange option, you'll have to collect your personal documents. Dependent on the exchange, it could be necessary to have photos of a driver's license or Social Security card, as together with details about your employer and the source of your funds. The details you'll need depends on the place you reside in and laws within it. The process is generally similar to setting up a typical brokerage account.Once the exchange has confirmed the authenticity of your account, you will be asked to join a payment option. The majority of exchanges can connect your bank account with a single click or you can connect a debit or credit card. Even though you can use a credit card to buy cryptocurrency, it's not recommended as the price fluctuations of cryptocurrency could raise the overall cost of purchasing coins.Bitcoin is legal in the United States, but some banks might be suspicious or refuse deposits to crypto-related web sites or exchanges.6 It is a good idea to check whether your bank will allow deposits to the exchange you prefer.There are various charges for cash deposits from a bank account as well as debit and credit card. You should research the costs associated with each payment method so you can decide on a payment option or choose which payment option works most effectively for you.Exchanges may also charge fees for each transaction. The fees may be an unrestricted fee (if you trade at a lower) or a percentage of the trading amount. Credit card transactions incur the processing fee in addition to transaction fees.Step 3: Make an orderBitcoin can be purchased (or other cryptocurrencies) by selecting an exchange and linking a payment method. In the past few years crypto exchanges have slowly become more popular. They have grown substantially by virtue of their liquidity, and their breadth of features. Changes in operation at cryptocurrency exchanges match the change on the perception of cryptocurrency. The industry was dismissed as a fraud or one with unsound practices is slowly morphing into an honest one which has attracted interest from the top players that are in the business of financial transactions.These days, cryptocurrency exchanges have progressed to the point where they are able to offer nearly the same quality of features as their stock brokerage counterparts. These exchanges provide an array of different order types and options to invest. All crypto exchanges will offer both limit and market orders. A few offer stop-loss options. From the above exchanges, Kraken offers the most available order types. Kraken lets you place market, limit, stoploss, stop-limit takes-profit, take-profit and limit orders.7Alongside the variety of order types, exchanges also provide ways to create ongoing investments, allowing investors access to a daily cost average of their chosen investments. Coinbase for instance, lets customers set recurring purchases for every day, week, or month.8Step 4: Secure storageDigital wallets such as Bitcoin or Cryptocurrency are a place to store digital assets with greater security. When you store your cryptocurrency outside of the exchange and inside your personal wallet ensures that only you are the only person who has control over the private key that you have to your funds. Additionally, it allows you to have the option of keeping your money away from an exchange and eliminate the risk that your exchange is hacked and thereby losing your money.Though most exchanges provide user-friendly wallets, security isn't their main business. We do not generally recommend using an exchange wallet for huge or long-term crypto holdings.Certain wallets have more features than other wallets. Some are Bitcoin only, while others allow the storage of various altcoins. Some wallets also provide the ability to swap one token with another.When it comes time to choose the right Bitcoin wallet, there are many options. First, you'll need to learn about crypto wallets is hot wallets (online wallets) and cold wallets (paper or physical wallets).Hot walletsThese wallets may also be known as "hot" wallets. Hot wallets operate using Internet-connected devices such computers, phones or tablets. This is a security risk since they create private keys to the coins in these devices connected to the Internet. Although a digital wallet can be extremely convenient in the way you are able to access and conduct transactions on your financial assets fast, storing your private keys in a device that is connected to the Internet makes it more susceptible to a attack.This may seem a bit nebulous even to some, but people who aren't putting in enough security could be at risk of losing money due to theft. This is not an infrequent incident, and it can be triggered in many ways. For instance, bragging in a public forum, such as Reddit about the amount of bitcoins you have in your account when you're using little to none security and storing it in a hot wallet would make sense. But, these wallets can be secured as they are protected by the appropriate measures. Secure encryption, strong passwords and two factor authentication and safe Internet browsing are minimum standards.These wallets can be used for smaller amounts as well as cryptocurrency that you are active trading on exchanges. One could compare a hot wallet to a checking account. A common sense financial advice is to hold only spending money with a check-book account while most of your money is stored in savings accounts or other investments accounts. The same can be said to hot wallets. Hot wallets include mobile, desktop, web, and exchange account custody wallets.As we have mentioned before, exchange wallets are custodial account that is provided by the exchange. The person who uses this wallet type is not the owner on the personal key to the cryptocurrency held in the wallet. If an incident should happen where the exchange gets stolen or your wallet is compromised, you'd have to forfeit the funds you have invested. The phrase "not your key, not your coin" is frequently frequented in cryptocurrency forums and communities.Cold walletsThe most straightforward description of the cold wallet is that it's not attached to an Internet which means it is at lower risk of being affected. The wallets may also be called offline wallets or hardware wallets. These wallets are used to store a customer's private key on something that isn't linked to the internet and can come with software that operates in parallel so that users can see their entire portfolio without putting private keys in danger.<img width="304" src="">Perhaps the best way to store digital currency offline is to use a paper wallet. Paper wallets are paper wallet that you create from specific websites. Then, it generates private and public keys that are printed out on paper. The ability to access 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 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 long-term and secure investments since they cannot be sold or trade bitcoins stored in on this type of wallet.The most common kind of cold device is a hardware wallet. Hardware wallets are typically one that is a USB drive that can store the private keys of a user offline. Hardware wallets have significant advantages against hot wallets due to the fact that they aren't affected by viruses that can infect a computer. With hardware wallets, private keys never come into contact with your computer's network or any software that may be vulnerable. The devices are usually open source, allowing the community to gauge their security by conducting code audits instead of a firm declaring that they're acceptable to make use of.The cold wallet is the most safe method of keeping your bitcoin or any other cryptocurrency. But they require more technical knowledge to setup.An excellent way to set your wallets is to have three items that you need: an exchange account to sell and buy with a hot or hot wallet that will hold small to medium amounts of crypto which you'd like to trade sell along with a cold and secure hardware wallet to hold larger amounts to last for a long time.How to Buy Bitcoin With PayPalBitcoin? can also be bought through payment processor PayPal? Holdings, Inc. (PYPL). There are two methods to buy bitcoin with PayPal?. The first and simplest method is to purchase cryptocurrencies with your PayPal? account that is connected to a method of payment such as a deposit card or a bank account. The second option is to use the balance of an existing PayPal? account to purchase cryptocurrency from a third-party provider. This option is not as easy as the first due to the fact that very few websites allow users to purchase bitcoin by using PayPal?. 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 and services through"Checkout with Crypto" feature "Checkout With Crypto" feature.10To set up a bitcoin account with PayPal? 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 is not possible to use a credit card to purchase Bitcoin using PayPal?. During the buying process, PayPal? will display a price for the cryptocurrency. But , the price can be subject to rapid changes because of the volatility of the cryptocurrency market. It is a good idea to ensure that you have more than you estimated for the purchase in your account at the bank.When you purchase bitcoin directly from PayPal? they earn money through the crypto spread or the difference between the market price of Bitcoin and its exchange rate USD. The company can also charge you a fee for every purchase. The fee is based on the dollar value of the purchase. For example the flat rate of $0.50 is payable for purchases of between $100 and $200. Following that, the cost is determined by a percentage percentage of the dollar amount. For instance, a rate of 2 percent of the total amount is payable for purchases of crypto between $100 and $200.12The main drawback of buying cryptocurrencies through PayPal? is that it isn't possible to transfer the currency outside the company's platforms for payment. Therefore, it is not possible to transfer bitcoin purchased from PayPal?'s wallet to another crypto-wallet or your personal wallet.11The other disadvantage of using PayPal? is that only a handful of marketplaces and online retailers allow payments through the PayPal? processor to make payment. eToro is one of the very few online marketplaces that allow the use of PayPal? to buy bitcoin on its platform.13How to Buy Bitcoin With a Credit CardThe? process of buying bitcoin using credit cards is the same as for purchasing it through debit cards as well as through the automated clearing house (ACH) and transfers. You will need to enter your credit card information with the online trading or exchange company, and then you can authorize the purchase. However, generally speaking, it's not the best idea to purchase bitcoin with credit cards. There are a couple of factors to consider.First, the majority of exchanges don't allow bitcoin transactions using credit cards due to processing charges and the threat of fraud. This could work to be in the best interest of customers. This is since credit card processing can be able to add additional charges to transactions. This means that in addition to the transaction fee the customer will be charged with processing fees that an exchange might charge you.The other reason is that the purchases made using credit cards are expensive. Card issuers see bitcoin transactions as cash advances, and charge hefty fees and interest rates for these advances. For example, American Express and Chase both consider purchases of cryptocurrencies being cash advance purchases. In other words, if one purchases the equivalent of $100 in bitcoin using the American Express card, you are required to pay $10.00 (current cash advance fee applicable to the transactions) plus an annual percentage cost of 25%. What's more, the credit card firm also limits the amount you can spend on bitcoin purchases per month.14A second method of buying bitcoin with credit card is to apply for one of the Bitcoin reward credit card. These cards function similarly to your typical rewards credit credit card except they also offer rewards in way of bitcoin. Also, they invest cash back from purchases into Bitcoin. One illustration of the Bitcoin rewards card could be called the BlockFi? Bitcoin Rewards Credit Card.15 Beware, however, that annual fees for the cards could be hefty as well as the costs associated to the conversion between fiat and crypto currencies.While exchanges like Coinbase and Binance remain among the most sought-after ways to buy Bitcoin however, they're not the only choice.Alternative Ways to Buy BitcoinBitcoin? ATMsBitcoin? ATMs act like in-person bitcoin exchanges. Customers can simply insert money into machines and use it to buy bitcoin that is then sent to digital wallets for users. Bitcoin ATMs have been increasingly popular in recent times. Even retail giant Walmart Inc. (WMT) is developing a pilot project that gives customers the option of purchasing bitcoin. Coin ATM Radar can help locate the nearest machines.However, ATMs are an expensive option. There are two costs that come along with ATM bitcoin purchases including a charge for purchasing the item and an additional fee for conversion of Bitcoin into fiat currency. Both of these fees are quite expensive as compared to other options. For instance, the world average charge for purchase at Bitcoin ATMs is 8.4% (of the amount of purchase) and 5.4 percent for sales at ATMs.16Be aware, however, that Bitcoin ATMs are becoming increasingly dependent on IDs issued by the government as of 2020.Exchanges between P2PIn contrast to decentralized exchanges that offer buyers and sellers a secure way to communicate and allow for all aspects of the transfer, there's a few peer-to-peer (P2P) exchanges which offer a more direct relationship between users. LocalBitcoins? is one such exchange. Once an account is created, users can place requests to purchase or sell bitcoin. It also includes details about payment methods, as well as prices. After that, they can browse through the lists of buy and sell offers selecting the trading partners with whom they want to transact.LocalBitcoins? allows for certain aspects of the trading. While P2P exchanges can't offer the same level of anonymity as decentralized exchanges, they give users the option of shopping around for the best deal. Many exchanges have rating tools so that users are able to assess prospective trade partners prior to committing.Mainstream brokeragesA small percentage of the major brokerages offer bitcoin trading and purchase options due to the uncertainty of regulations for cryptocurrencies. Robinhood Markets, Inc. (HOOD) the app, which is which is popular with investors in retail, is an exchange that provides cryptocurrency trading services. It charges no commissions for cryptocurrency transactions and transactions and earns revenue from cash flow for orders, passing its trading volume onto different trading platforms, or brokerages.17The non-existence of a commission cost could be a tempting proposition for novices, but there are a couple of catches to that offer. Primarily, Robinhood hasn't got the broad range of features and currencies offered by prominent 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 But, in contrast, you can trade more than 100 crypto currencies through Coinbase.19 The exchange also provides several types of orders to limit risk and offset losses during trading.The Robinhood platform doesn't have an online wallet. In other words, if one wants to buy cryptocurrency through Robinhood and you want to purchase cryptocurrencies, you'll need to consider additional fees to an online wallet service.Bitcoin and other cryptocurrency investments are not protected by insurance from SIPPC. Securities Investor Protection Corporation (SIPC). At regular brokerages, the insurer protects against losses of cash or securities account with brokerages that are up to $500,000, which includes a $250,000 cash limit.20 This service isn't accessible to clients who use cryptocurrency-related exchanges. Cryptocurrency exchanges such as Coinbase offer insurance against crime to guard their infrastructure against hacks. However, that policy does not shield individual customers from password theft.21How to Sell BitcoinIt? is possible to sell bitcoin on the same places where you bought the cryptocurrency, such as cryptocurrency exchanges and P2P platforms. In most cases, the process for selling bitcoin through these platforms is the same as the buying process.In this case, for instance, you could only have to press on a button, and then specify an order type (i.e. to decide if the cryptocurrency will be sold immediately for the best prices or the sale should be made to make sure that losses are not incurred) to conduct the sale. Based on the composition of the market and demand at the place the pricing for Bitcoin can be different. The example is that exchanges in South Korea traded bitcoin at a so-called kimchi premium during the price increase in the year 2018.Coinbase, a cryptocurrency exchange, charges a percentage of the crypto sale amount as fees. For example, Coinbase charges 2.49% of the transaction total as fees.22Exchanges generally have daily and monthly withdrawal limits. This means that cash earned from an enormous transaction may not be immediately available to the trader. There aren't any limits to the amount of bitcoin you can sell, however.What Are the Steps for Purchasing Bitcoin?The process of purchasing bitcoin is made up in four stages: selecting an appropriate exchange or location to place your order as well as selecting a payment option and ensuring that your data is safe for your newly purchased cryptocurrency. Depending on what location chosen in the very first phase, there will be additional steps to follow in the process. As an example, if acquire the cryptocurrency using Robinhood you may need take into account additional costs for an online wallet and custody of your bitcoins since it doesn't provide these services.What Are the Most Popular Venues for Buying Bitcoin?Most popular locations for buying bitcoins are cryptocurrency exchanges as well as brokerages (crypto along with mainstream) along with payment services like PayPal?. It is also possible to purchase Bitcoin through P2P platforms. To acquire indirect ownership of bitcoin it is possible to invest in companies that have the cryptocurrency on their balance sheets. Examples include Tesla, Inc. (TSLA) or MicroStrategy? Incorporated (MSTR).2324How Much Should I Expect to Pay to Purchase Bitcoin?Typicallythe cost for buying bitcoin is one fee per trade in addition to the cost to convert fiat currency (generally dollars) to bitcoin. (Cryptocurrency exchanges and payment providers earn revenue through this conversion spread.) The amount charged per trade is dependent on how much money is involved in the trade. A higher trade amount will result in higher costs. The total cost for purchase depends on the services offered by the venue. For instance, Robinhood does not currently offer an online wallet for saving bitcoin. This means that you'll have to plan for expenses for an online wallet purchase.Besides Cryptocurrency Exchanges, Where Else Can I Buy Bitcoin?You can also purchase bitcoin in the following locations:* Through Bitcoin ATMs* Through online payment providers such as PayPal?* At mainstream brokerages like RobinhoodIs? My Bitcoin Purchase Protected by SIPC?Yes, your bitcoin purchase is not covered by SIPC.20 On certain exchanges such as Coinbase that accept fiat funds, balances on individual accounts may be FDIC-insured to the tune of $250,000 per account.21The Bottom LineThe? process for purchasing bitcoin is somewhat more complicated when compared to purchasing common equity or stock. This is due to the fact that the cryptocurrency's infrastructure and ecosystem aren't as advanced as those used for trading in the mainstream.The process for buying bitcoins consists of four steps: deciding on the best option for a location or service for this purchase. Connecting to a payment option, placing an order, then ensuring that your purchase is safe in cryptocurrency. Each step will require research and a thorough analysis of the pros and pros of each option. Bitcoin can be purchased through Bitcoin ATMs as well as through payment service providers like PayPal? as well as traditional brokerages such Robinhood.