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It is easy to invest in Bitcoin (BTCUSD) is complicated, but it is simpler when you take it apart into smaller steps. Making investments or trading Bitcoin is easy if you have an account at a third party or exchange. However, further safe storage practices are advised.There are several items that future Bitcoin investors should have the following: a cryptocurrency account for personal identification If you're using an Know Your Customer (KYC) platform with a secure connection the Internet and a means of payment. It is recommended that you keep a personal account outside of the exchange account. Valid methods of payment using this route include bank accounts along with debit cards and credit cards. There is also the option to acquire bitcoin using ATMs specifically designed for bitcoin as well as through P2P exchanges.KEY TAKEAWAYS"The importance of Bitcoin is derived from its usage as a place of value and payment system, as well as its limited supply as well as the decreasing inflation.* While it's virtually impossible for Bitcoin to be compromised in the event of a hack, it's nevertheless possible that your bank or exchange account to get compromised. This is the reason why implementing proper security and storage practices are imperative.* You can also purchase bitcoin via mainstream services like PayPal? and Robinhood.* One way to invest in bitcoin indirectly is by investing in businesses with bitcoin on their balance books.Before You Buy BitcoinPrivacy? and security are important issues in the lives of Bitcoin investors. Anyone who gains the private key to a public address through the Bitcoin blockchain is able to approve transactions.1 Private keys must be kept hidden from thieves, as they could try to steal them after they learn about huge assets. Make sure that you are aware that anyone could examine the balance of a public address you've created. The flip side to the public data is that the user can make multiple public accounts for themselves. They can then distribute their stash of Bitcoin across several addresses. The best strategy is to hold large investments at public addresses that aren't specifically linked to accounts that are used in transactions.Anyone can access a history of transactions that have been recorded on the blockchain, even you. Although transactions are publically recorded by the blockchain, the identification of details about the user is not. While on the Bitcoin blockchain it is the only place where a public key is shown next to the transaction, making transactions private but not in any way anonymous. In that way, Bitcoin transactions can be more easily traceable than cash transactions because all of them are available for public access, unlike private cash transactions. However, Bitcoin transactions also come with certain aspects of anonymity built to their design. It's difficult for anyone to discover the transacting parties--i.e., the party who sent and received the bitcoin on the cryptocurrency's blockchain.International researchers and the FBI have said they are able to trace transactions made through the Bitcoin blockchain with users' other online accounts, which includes their digital wallets.2 For example, when someone opens an account at Coinbase, they must provide their identification.3 If that person purchases bitcoin, it is tied to their personal name. If they send it to another account, it can be traced back to the Coinbase purchase which is tied to the account owner's identity. This shouldn't cause concern to most investors because Bitcoin is lawful in U.S. and most other developed countries.Be sure to look up your legal and regulatory and tax implications of buying and selling bitcoins where you live prior to doing any transaction.Buying BitcoinWe?'ve broken down the steps involved in purchasing bitcoin in the following steps. Always remember to conduct your own research and determine the best option to suit the situation.Step 1: Select one of the crypto trading services or venueThe first step in buying bitcoin consists of choosing an exchange service that is crypto-related or a venue. Most popular venues and trading services for purchasing cryptocurrency include payments, exchanges and brokerages. Out of these, cryptocurrency exchanges are the most convenient option as they provide a broad range of options and than cryptocurrencies to trade.Registering for a cryptocurrency exchange lets you buy, sell, and keep crypto. It is usually best for an exchange to make use of one that allows its users to withdraw their crypto funds to their secure online wallet for their personal. For those seeking to trade Bitcoin or other crypto currencies, this feature might not be relevant.There are several kinds on cryptocurrency exchanges. Because the Bitcoin ethos is about personal sovereignty and decentralization, some exchanges permit users to remain anonymous and do not oblige users to submit specific personal data. Such exchanges operate autonomously and are generally decentralized meaning they don't have a central source of control.Although these systems could serve in a number of ways, they help the global population without banks. For certain categories of individuals, like refugees and those living in countries without a sufficient infrastructure for government credit or banking -- anonymous exchanges can make them part of the mainstream economy.The moment is, however, that the top exchanges are not decentralized , and they follow regulations that demand users submit identifying documentation. To be specific, within the United States, these exchanges comprise Coinbase, Kraken, Gemini, FTX, and Binance.US, to name a few. These exchanges have seen significant growth in terms of the features they provide.The crypto market has grown rapidly in the last decade With a variety of new tokens offering investor dollars. With the exception of Bitcoin as well as a few prominent coins like Ethereum there are a few exceptions to the fact that not all these tokens are accessible on all exchanges. Each exchange has their own set of rules for determining whether to accept or exclude trading in specific tokens.Coinbase, Kraken, and Gemini provide Bitcoin as well as a growing array of altcoins. They're among one of the most simple on-ramps that crypto has in the entire industry. It caters to an advanced trader, offering an enhanced trading experience and a better variety of altcoin choices. FTX is a booming crypto exchange that has earned an estimated value of more than a billion dollars, provides an limited selection of altcoins for U.S. investors.4 However, buyers outside the U.S. have a greater selection of tokens on its platform.A crucial thing to keep in mind when creating accounts with cryptocurrency exchange companies is to adhere to safe Internet procedures. This is done by using two-factor authentication. having a unique and long password that includes a wide range of lowercase, capitalized, and capital letters, special characters, and numbers.El Salvador made Bitcoin legal tender on September 7, 2021. It was the first nation to do so.5 Bitcoin can be used as a currency for any transaction that the company can accept it. This is why the U.S. dollar continues to be the primary currency in El Salvador.Step 2: Then connect the exchange your payment optionWhen you've selected an exchange, you'll require your personal documents. If you are using an exchange, these may include pictures of your driver's license or Social Security card, as also information regarding your employer and the source of money. The information you may need can depend on the region you reside and the regulations within it. https://www.lastgreatliar.com/cryptocurrencys-difficult-street-chinas-ico-ban/ 's basically the same as opening a traditional brokerage account.Once the exchange has confirmed your identity, you will be required to connect the payment option. For most exchanges, you can connect your bank account with a single click or connect a credit or debit card. Although you are able to use your credit card to buy cryptocurrency, it is not a good idea because it could cause volatility in the overall cost of purchasing the coin.Bitcoin exists in legal form in United States, but some banks may question or make deposits unavailable to crypto-related sites or exchanges.6 It's recommended to verify to ensure that your bank will allow deposits to the exchange you prefer.There are varying fees for deposits through bank accounts (debit, credit) or credit card. It is essential to study the costs for each payment option to help decide on a payment option or select the payment method that works most effectively for you.Exchanges can also charge fees per transaction. These charges could be in the form of a flat charge (if the trading value is minimal) or as a percentage from the trading amount. Credit cards are charged the processing cost as well as transaction costs.Step 3: Place an orderYou can buy bitcoin (or other cryptocurrencies) by selecting an exchange and linking a payment method. In the past few years the cryptocurrency exchanges have gradually become more commonplace. They have grown substantially in terms of liquidity and their array of features. Changes in the operations at cryptocurrency exchanges mirror the changes on the perception of cryptocurrency. A business that was considered to be a scam or with unreliable practices is slowly morphing into an honest one which has drawn interest from all the big players in the world of financial services.In the last few years, cryptocurrency exchanges have become so popular that they're nearly offering the same amount of features as their counterparts at stock brokerages. Exchanges for cryptocurrency today offer a number of order types as well as ways to invest. Nearly all exchanges allow both market and limit orders. Some even offer stop-loss-orders. Out of the exchanges mentioned above, Kraken offers the most possible types of orders. Kraken can accommodate market, limits, stop-loss orders, stop limit take-profit, and take profit limit orders.7Aside from a variety of options for orders, the exchanges allow users to set up periodic investments, and allow customers to incorporate a dollar-cost average into their investment options. Coinbase for instance, allows users to set up recurring purchases for every day, week, or month.8Step 4: Secure storageA cryptocurrency, Bitcoin, or cryptocurrency-based wallet provide an excellent way to store your digital assets in a more secure way. By keeping your crypto away from the exchange and within the personal wallet of yours ensures only you hold the private keys to your accounts. Also, it gives you ability to store funds away out of an exchange. This will help you avoid the possibility that your exchange could be hacked and the loss of your funds.While the majority of exchanges have clients with wallets, security is not their primary business. We generally do not recommend the use of exchange wallets for big or long-term cryptocurrency investments.Certain wallets come with more options than others. Some are Bitcoin only, and others can store multiple types of altcoins. Some wallets also offer the ability to exchange one token for another.When it comes down to picking the best Bitcoin wallet, you have many options. First, you'll be required to know about crypto wallets is the notion of hot wallets (online wallets) and cold wallets (paper or physical wallets).Hot walletsThese wallets may also be known under the term hot wallets. Hot wallets are those that run using Internet-connected devices such phones, computers or tablets. This poses a risk because hot wallets create private keys for your coins using these devices that are connected to the Internet. While a hot wallet could be quite convenient in the way it lets you access and make transactions with your funds quickly, the storage of your private keys via an Internet-connected device could make it more susceptible to a hack.It might sound like a lot of work however, hot wallet owners who haven't set up enough security have the chance of losing money to theft. This is a frequent possibility, and can occur in a variety of ways. For example, you could boast on a platform such as Reddit about how much bitcoin you hold while the wallet has little to nothing secure and storing it in a hot vault would not be wise. Although, these accounts may be secured as long as precautions are taken. Strong credentials, two-factor authentication, and secure Internet browsing are as minimum requirements.The best wallets for hot wallets are for smaller amounts of cryptocurrency or cryptocurrency that you're active trading on exchanges. You can compare a hot wallet to a checking account. Financial wisdom is generally believed to keep only your spending money in a savings or checking account, but the majority of your savings is in savings account or other investments accounts. Similar advice can be made in the case of wallets that are hot. Hot wallets include mobile desktop, web, and exchange accounts custody wallets.As stated previously, exchange clients are custodial wallets that are offered by the exchange. The person who uses this wallet of this type does not hold the holder of the public key for the cryptocurrency in the wallet. In the event that an incident would take place where the exchange is damaged or your accounts are compromised, then you'd lose the funds you have invested. The phrase "not your key, not your coin" is often heard in cryptocurrency forums, and communities.Cold walletsA simple description of the cold wallet is that it isn't connected to the Internet and , therefore, has greater risk of being affected. These wallets can be known as offline wallets or hardware wallets. These wallets are used to store a customer's private keys on a device that isn't connected to the internet. They can also come with software that operates in parallel, so that the user can look at their portfolio without placing their private keys in danger.The most secure way to store your cryptocurrency offline is via a paper wallet. A paper wallet is a wallet that you can generate using certain websites. It creates both private and public keys which are printed out on paper. The ability to access the cryptocurrency within these addresses is only possible if you own the piece of paper with the private keys. Many people laminate these paper wallets , and then store them in safe deposit boxes at their bank or even in a secure in their home. These wallets are meant for higher security and longer-term investments since it is impossible to quickly sell or trade bitcoins stored in through this method.A more commonly used kind of cold device is a hardware wallet. Hardware wallets are usually made up of a USB drive that holds key information of the user offline. The advantages of these wallets are significant over hot wallets in that they aren't affected by viruses that could infect one's computer. With hardware wallets, private keys don't come in contact with your network-connected computer or software that could be vulnerable. They're also usually open source, allowing users to test the security of their devices through code audits rather than a business stating that it is acceptable to make use of.Cold wallets are the most secured way to store bitcoins or other cryptocurrencies. However, they require more technical expertise to set up.A good way to set your wallets is with three items including an exchange account that can be used to buy and sell in hot wallets, a hot account to store small or medium amounts of crypto you'd like to trade, or sell and a cold physical bank account to store larger amounts for long-term durations.How to Buy Bitcoin With PayPalBitcoin? can also be purchased via the payment processor PayPal? Holdings, Inc. (PYPL). There are two ways to buy bitcoin with PayPal?. The first , and the most convenient method is to purchase bitcoin with your PayPal? account, which is linked to a payment mechanism that accepts checking account with a debit or credit card. Another alternative is to use the balance in that PayPal? account to buy cryptocurrencies through a third party service. This isn't as convenient as the first due to the fact that very few websites allow users to buy bitcoin by using this 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 cryptocurrency to buy products or services using"Checkout With Bitcoin" or the "Checkout With Crypto" feature.10To establish a cryptocurrency account with PayPal?, the following information is required for registration: name, physical address or address, birth date along with a tax identification number.11It isn't possible using a credit/debit card to buy Bitcoin using PayPal?. In the course of purchasing, PayPal? will display a price for the cryptocurrency. However, the price is subject changing rapidly due the volatility of the cryptocurrency market. It is a good idea for you to check if you have more than the amount that you planned for the purchase in your account at the bank.When you buy bitcoin online via PayPal? the company earns money on the crypto spread or the difference between the market price of Bitcoin and its exchange rate with USD. The company adds a transaction cost per transaction. The fee is based on the amount of money spent. For example the flat rate of $0.50 is applied to purchases between $100 to $200. After that, the charge is an amount that is a percentage of the total dollar amount. For instance, a rate of 2% of the purchase price is applicable for purchases that range from $100 and $200.12A disadvantage to buying cryptocurrency through PayPal? is that you can't transfer the crypto away from the pay processor's website. So, it's not possible to transfer the bitcoin you purchased through PayPal?'s bank account to an additional crypto wallet, or your personal wallet.11The downside of using PayPal? is that a small number of online and offline traders permit it to be used to make payments. eToro is one of the few online marketplaces that allow users to use 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 one used for purchasing it via debit or credit cards. You can also purchase it through Automated Clearing House (ACH) wire transfers. You'll have to input the credit card information to the online trading or exchange company and then approve the transaction. However, generally speaking, it's not a wise option to buy bitcoin using credit cards. There are a couple of causes for this.First of all, most exchanges will not allow Bitcoin transactions using credit cards due to associated processing fees and the risk of fraudulent transactions. This decision may work out in the best interests of customers. This is due to the fact that credit card processing may add additional charges onto transactions. In addition to paying transaction fees you'll be left being charged processing fees which the exchange may pass onto you.The other reason is that transactions made with credit cards may be costly. Issuers of credit cards view bitcoin purchases as cash advances, and they charge huge fees and rates on these advances. For instance, American Express and Chase both count purchases of cryptocurrencies in cash-advance transactions. Thus, if you purchase 100 dollars worth of bitcoin with the American Express card, you will be charged $10 (current cash advance fees for such transactions) plus the annual percentage rate of 25 percent. Additionally, the credit card's company also limits customers to only $1,000 worth of bitcoin purchases per month.14An alternative to buying bitcoin with credit card is to buy one of the Bitcoin reward card. These cards function in the same manner as your regular rewards credit or debit card, however, they grant rewards in type of bitcoin. In other words, they convert the money earned from purchases into Bitcoin. One illustration of one Bitcoin loyalty card, which is also known as the BlockFi? Bitcoin Rewards Credit Card.15 However, be aware that the annual costs for these cards could be quite high and there could be additional costs associated to the conversion between fiat and crypto currencies.Even though exchanges such as Coinbase or Binance remain among the most sought-after ways to purchase Bitcoin They aren't the only options.Alternative Ways to Buy BitcoinBitcoin? ATMsBitcoin? ATMs act like in-person bitcoin exchanges. People can deposit cash into the machine and use it to buy bitcoin, which is later stored in online wallets for users. Bitcoin ATMs are increasingly popular in recent years--even retail major Walmart Inc. (WMT) is trialling a pilot program that gives customers the possibility of buying bitcoin. Coin ATM Radar can help to find the closest ATMs.However ATMs are a costly alternative. There are two fees that are associated with ATM bitcoin purchases one of which is a purchase cost and the other an additional fee for conversion of the fiat currency into bitcoin. Both of these fees are quite expensive when compared to other options. For instance, the global standard purchase price for Bitcoin ATMs is 8.4% (of the amount of purchase) and 5.4 percent for sales made at ATMs.16Be aware that Bitcoin ATMs are becoming increasingly dependent on government-issued IDs as of early 2020.Exchanges P2PWhile decentralized exchanges are able to match sellers and buyers anonymously while facilitating all aspects the transaction, there are peer-to-peer (P2P) exchange services that facilitate a better connection between users. LocalBitcoins? is one example of such an exchange. After registering for an account users can submit requests to buy or sell bitcoin. It also includes details regarding payment methods as well as costs. After that, they can browse through the lists of offers to buy and sell to select the trading partners who they would like to transact.LocalBitcoins? assists in certain aspects of the trade. While P2P exchanges don't provide the same level of privacy as decentralized exchanges, they do give users the chance to shop around to find the most affordable deal. Many of these exchanges also offer rating mechanisms so that their users are able evaluate potential trade partners before transacting.Mainstream brokeragesOnly a handful of mainstream brokerages have bitcoin trading and purchase options due to the uncertainty of the status of cryptocurrencies in the eyes of the regulators. Robinhood Markets, Inc. (HOOD), an app highly regarded by investors at retail, is an exchange that has cryptocurrency trading facilities. It charges 0% commission for cryptocurrency trades and purchases . It also earns money from payments for order flow passing its trading volume onto another trading platform or brokerages.17The absence of commission fees is a tempting option in the beginning, but there are a few catches to that offer. The first is that Robinhood doesn't have the variety of features and currency offered by major crypto exchanges such as Coinbase. Robinhood has made it possible to trade on its platform with seven cryptocurrencies: Bitcoin, Bitcoin Cash, Ethereum, Bitcoin SV, Dogecoin, and Ethereum Classic.18 While Coinbase is a different story, you can exchange more than 100 cryptocurrency through Coinbase.19 The exchange also has various order types to minimize the risk and minimize losses when trading.The Robinhood platform does not offer an online wallet. Therefore, if you intend the purchase of cryptocurrencies via Robinhood you'll need to factor in additional costs for an online wallet provider.Bitcoin and different cryptocurrency investments aren't secured by insurance provided by an insurance company like Securities Investor Protection Corporation (SIPC). In the case of regular brokerages and brokerages, the SIPC protects against the theft of cash and securities in brokerage accounts that have a total of $500,000, with a $250,000 cash limit.20 The insurance isn't accessible to clients trading on crypto-currency exchanges. Exchanges for cryptocurrency like Coinbase have insurance for crime to guard their infrastructure against hacks. However, the insurance does not ensure that customers are protected from password theft.21How to Sell BitcoinBitcoin? can be sold at the same places where you purchased the cryptocurrency like cryptocurrency exchanges or P2P platforms. The process of selling bitcoin on these platforms is similar to purchasing it.For example, you may only have to press in a button to specify the type of order (i.e. what type of order, whether the cryptocurrency can be sold instantly for the best prices or it is necessary to sell it to make sure that losses are not incurred) for the sale. Depending on the market composition and demand in the area the price of offering for Bitcoin could vary. In the case of exchanges, for instance, South Korea traded bitcoin at Kimchi's premium, also known as the run-up in its prices in the year 2018.Cryptocurrency exchanges charge a percentage percent of the price for crypto in fees. For instance, Coinbase charges 2.49% of the overall transaction amount as fees.22Exchanges generally have daily and monthly withdrawal limits. Therefore, cash from large sales may not be available immediately to the buyer. There is no limit to the amount of bitcoin you can sell however.What Are the Steps for Purchasing Bitcoin?The procedure to buy bitcoin is comprised of four parts: selecting the best location or exchange to place your order as well as selecting a payment option and then making sure you have a safe place to store for your purchase. It is dependent on the location chosen in the very first step, there might be additional steps that are involved in the process. For instance, if, for example, you make a purchase of the cryptocurrency through Robinhood there may be a need to take into account additional costs for an online bank account and custody of your bitcoin , as it does not offer these services.What Are the Most Popular Venues for Buying Bitcoin?The most popular places to purchase bitcoins are exchanges and brokerages (crypto and mainstream) and payment providers like PayPal?. There is also the option of buying Bitcoin through P2P exchanges. To acquire indirect ownership of bitcoin you can also be a shareholder in companies who hold the cryptocurrency in their bilan sheets, including Tesla, Inc. (TSLA) or MicroStrategy? Incorporated (MSTR).2324How Much Should I Expect to Pay to Purchase Bitcoin?In general, the cost of buying bitcoin usually includes a fee per trade plus the cost to convert money that is fiat (generally dollars) to bitcoin. (Cryptocurrency exchanges and payment providers earn revenue by converting this spread.) The cost per trade is a function of the dollar amount of the trade. The larger the amount of the trade will carry higher fees. The total purchase price also depends on the services offered by the site. For example, Robinhood does not currently provide an online wallet for the storage of bitcoin. Thus, you'll have to budget costs for online wallets for your purchase.Besides Cryptocurrency Exchanges, Where Else Can I Buy Bitcoin?Bitcoin can also be purchased in the following locations:* Through Bitcoin ATMs* Through online payment providers like PayPal?* At mainstream brokerages like RobinhoodIs? My Bitcoin Purchase Protected by SIPC?The purchase of bitcoin is not protected by SIPC.20 On certain exchanges like Coinbase bitcoin, balances in fiat on individual accounts are insured by the FDIC in the amount of $250,000 per account.21The Bottom LineThe? process of buying bitcoin is more involved than purchasing normal equity or stock. This is due to the fact that the cryptocurrency's infrastructure and ecosystem are not as well developed as the traditional trading.The process for buying bitcoins consists of four phases: selecting the right service or location for this purchase. Connecting to the payment method, placing an order, then ensuring that your purchase is safe in cryptocurrency. Each of these steps will require research and a thorough analysis of the pros and benefits of each choice. Bitcoin can be purchased at Bitcoin ATMs as well as through payment service providers like PayPal? and mainstream brokerages like Robinhood.<img width="336" src="">