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In the investment of Bitcoin (BTCUSD) may seem difficult, but it's much easier when you split it into steps. The process of investing or trading Bitcoin only requires an account at a provider or exchange, but additional safe storage practices are recommended.There are https://yogaasanas.science/wiki/What_is_bitcoin_the_most_popular_cryptocurrency_in2019 of things aspiring Bitcoin investors should have in order to invest: a cryptocurrency-exchange account, personal identification documents in the case of an Know Your Customer (KYC) platform in addition to a secure connection the Internet and a method of payment. It is also suggested that you have your own personal account outside of the exchange account. Affordable methods of making payments using this route are bank accounts such as debit cards, bank accounts, and credit cards. It is also possible to make bitcoin transactions at ATMs that are specialized and through P2P exchanges.KEY TAKEAWAYS"The worth of Bitcoin is derived from the fact that it is a popular store of value, as well as a payment method and also its limited supply and declining inflation.* While it's almost impossible to allow Bitcoin itself to be hacked, it is possible for your wallet or exchange system to suffer a breach. This is the reason why implementing proper storage and security is vital.You can also purchase bitcoin using mainstream services like PayPal? as well as Robinhood.* One method of owning bitcoin is to invest into companies with bitcoin in their balance sheet.Before You Buy BitcoinSecurity? and privacy are key issues with regard to Bitcoin investors. Anyone who obtains the private key to a public address within the Bitcoin blockchain is able to authorize transactions.1 Private keys must be kept confidential as thieves could try to take them away when they discover huge holdings. Be aware that anyone will be able to observe the balance of the public address that you have. The flip side to this open information is that individuals can make multiple public accounts for themselves. So, they can share their stash of Bitcoin over many addresses. An effective strategy is to safeguard investments with significant amounts at public addresses that are not directly tied to the ones which are used for transactions.Anyone is able to view a historical record of transactions made on the blockchain -- even you. Although transactions are publically recorded by the blockchain, the identification of individuals' personal details isn't. While on the Bitcoin blockchain, only a user's public keys are visible alongside an activity, which makes transactions secret but not in any way anonymous. In this sense, Bitcoin payments are more transparent, and trackable than cash because all of they are accessible for public scrutiny, unlike private cash transactions. However, Bitcoin transactions also have an element of privacy built into their design. It's extremely difficult to identify the transacting parties--i.e., the receiver and sender of bitcoin--on the blockchain of the cryptocurrency.International researchers as well as the FBI have stated that they can follow transactions made via the Bitcoin blockchain to various online accounts, including their digital wallets.2 In the case of someone registers on Coinbase users must present their identification.3 After that, when the person makes a purchase on Coinbase, it is linked to their account. In the event that they transfer it another wallet, it can still be traced back to the Coinbase purchase that is connected to the account holder's identity. This shouldn't cause concern to most traders since Bitcoin is lawful in U.S. and most other advanced countries.Be sure to look up the lawful, regulatory, and tax regulations for buying and selling bitcoin in the region where you reside prior before making any transactions.Buying BitcoinWe?'ve broken down the steps needed for buying bitcoin below. Remember do your research to select the best option according to the situation.Step 1: Select a crypto-trading service or venueThe first step to purchase bitcoin is choosing a cryptocurrency trading service or a location. A variety of popular services and venues to buy cryptocurrency include exchanges, payment solutions, and brokerages. Of these, cryptocurrency exchanges are a good option due to their wide range of features and exchanges using cryptocurrencies.By signing up to a cryptocurrency exchange will enable you to buy, sell, and keep crypto. It is generally recommended for an exchange to make use of one that lets users withdraw their crypto funds to their personal online wallet for safekeeping. If you are looking to trade Bitcoin or any other cryptocurrency, this feature might not be relevant.There are a variety in cryptocurrency exchange. Since the Bitcoin principle is individual sovereignty and decentralization certain exchanges permit users to remain anonymous and do not have to require specific personal data. They are independent and are generally decentralized that is, they don't have a central source of control.Though these systems can be used for evil purposes, they also be a source of assistance to the vast majority of people without banking. For certain kinds of people--refugees or those who reside in countries which have little or no infrastructure for credit from the government or banking, anonymized exchanges can bring them into mainstream economy.Right now, however, most popular exchanges are not in a decentralized manner and are subject to laws that oblige users to submit identification documentation. As for the United States, these exchanges comprise Coinbase, Kraken, Gemini, FTX, and Binance.US There are many others to mention. These exchanges have seen significant growth in terms of the features they offer.The cryptocurrency world has grown quickly in the past decade as a number of new coins have been competing for investor dollars. The exception is Bitcoin as well as a few prominent coins like Ethereum, not all of these tokens are available at all exchanges. Each exchange has their own set of rules for determining whether to accept or exclude trading of specific tokens.Coinbase, Kraken, and Gemini offer Bitcoin and a growing number of altcoins. They're probably the easiest on-ramps to crypto within the entire crypto industry. Binance is for an advanced traderand has advanced trading tools and more altcoin options. FTX has been a rapid-growing crypto exchange that has earned an investment of multibillion dollars, offers the limited number of altcoins for U.S. investors.4 However, buyers outside these countries U.S. have a greater range of cryptos available on its platform.An important thing to note when creating a cryptocurrency exchange account is to make use of secure Internet methods. This includes two-factor authentication as well as an extensive, unique password that includes a wide range of lowercase letters, capitalized or lowercase letters or special characters as well as numbers.El Salvador made Bitcoin legal tender on September 7, 2021. It was the first country to do so.5 Bitcoin is able to serve as a currency for any transaction where the business can accept it. For now, the U.S. dollar continues to constitute El Salvador's primary currency.Step 2. Make sure your exchange is connected to the payment optionAfter you've picked the exchange option, you'll require your personal documents. In accordance with the exchange, the documents could include a photo of a driver's permit or Social Security card, as additionally, information about your employer and the source of your funds. The information you require may vary based on the state you reside in and laws within it. The process is the same as opening a traditional brokerage account.Once the exchange has confirmed your identity, you will be asked to connect the payment option. In the majority of exchanges, you can connect to your bank account without a hassle or you can connect a debit or credit card. Although you can utilize a credit card to buy cryptocurrency, it is not a wise choice because the volatility of cryptocurrency prices could increase the price of buying coins.Bitcoin is legal within the United States, but some banks may be suspicious of or make deposits unavailable to crypto-related sites or exchanges.6 It is recommended to verify to see if your bank allows deposits at the exchange you choose.There are various charges for cash deposits from a bank account or debit card. It is vital to look into the costs associated with each payment option in order to make a decision on an exchange or choose which payment option works best for you.Exchanges may also charge fees for each transaction. These charges could be in the form of a flat charge (if the amount traded is not large) or as a percentage from the trading amount. Credit card transactions incur a processing fee in addition to transaction fees.Step 3: Make an orderYou can buy bitcoin (or other cryptocurrency) when you select an exchange provider and connecting the payment option. In the past few times bitcoin exchanges have steadily become more popular. They have risen significantly both in terms liquidity and their breadth of features. Changes in the operations at cryptocurrency exchanges coincide with the change in the perception about cryptocurrencies. An industry that was once believed to be a scam or one with questionable practices is now slowly becoming legitimate, and has attracted the attention of every major player in the financial sector.Today, cryptocurrency exchanges have become so popular that they're able to provide nearly the exact range of features that they have as their counterparts in the stock brokerage industry. There are now crypto exchanges that offer many different kinds of orders and options to invest. All crypto exchanges will offer both market and limit orders. A few have stop-loss or stop-loss orders. Out of the exchanges mentioned above, Kraken offers the most order types. Kraken accepts market, limits, stop-loss orders, stop limit take-profit, and take profit limit orders.7Alongside the variety of options for orders, the exchanges offer methods to set up indefinite investments, allowing customers to add a dollar-cost average to the investments they prefer. Coinbase, for example, lets users create recurring purchases for each week, day or month.8Step 4: Secure storageCryptocurrency and Bitcoin wallets provide places to store digital assets in a more secure way. By keeping your crypto away from the exchange but in your own wallet, you can be sure that only you have control over the secret key to your cash. It also gives you option of keeping your money away without an exchange and protect yourself from the risk of your exchange being compromised and causing loss of funds.Although most exchanges offer wallets to their customers, security isn't their main business. We generally do not recommend the use of an exchange wallet for massive or long-term holdings of cryptocurrency.Certain wallets come with more options than other wallets. Some are Bitcoin exclusive, while others offer the ability to store numerous types of altcoins. Some wallets additionally offer the ability to exchange one token with another.When it comes to choosing a Bitcoin wallet, you can choose from several choices. The first thing you will be able to comprehend about crypto wallets is the concept of hot wallets (online wallets) and cold wallets (paper or hardware wallets).Hot walletsThe online wallets can also be referred to by the name of hot wallets. Hot wallets function on Internet-connected devices such as computers, phones or tablets. This poses a risk because these wallets store the private keys to your money on these devices with Internet connectivity. While a hot wallet could provide convenience in the manner it allows you to connect to and perform transactions with your assets swiftly, the fact that you store your private keys via an Internet-connected device could make it more vulnerable to attack.This may sound farfetched however, hot wallet owners who haven't set up enough security could be at risk of losing money due to theft. It's not a rare event, and it could happen in a number of ways. For example, you could boast on forums like Reddit about the amount of bitcoins you've got, even though your wallet is essentially zero security and placing it inside a hot wallet will not be the best idea. It is true that these wallets could be secure so you take the proper precautions. Secure logins that require two authentication, and secure Internet browsing are as minimum requirements.The best wallets for hot wallets are for small amounts of crypto or cryptocurrency that you are currently trading on an exchange. You could liken a hot wallet to a checking account. According to conventional wisdom, you should that you should only keep money for spending in a checking account while most of your money is in savings account or other investments accounts. The same is true for hot wallets. Hot wallets cover mobile, desktop, web, and exchange account custody wallets.As previously mentioned, exchange wallets are custodial accounts offered by the exchange. The user of this wallet sort is not owner or owner of the keys to the cryptocurrency stored in the wallet. If an event should happen where the exchange gets breached or your account is compromised, you'd be liable to lose the funds you have invested. The expression "not your key, not your coin" is often repeated on cryptocurrency forums and communities.Cold walletsThe most straightforward description of the term "cold wallet" is that it is not linked to the Internet and therefore has much lower risk of being affected. They can also be known as offline wallets or even hardware wallets. These wallets store a user's private key on something that isn't connected to the internet. They may also come using software that works in parallel so users can access the portfolio of their choice without putting their personal key at risk.The most secure way to store your cryptocurrency offline is to use a paper wallet. Paper wallets are wallet that you can create from specific websites. Then, it generates private and public keys that you print out on a piece of paper. Access to bitcoin and other digital currencies is only possible if you've got the piece paper that is protected by the private key. Many people laminate these paper wallets and store them in safe deposit boxes at their bank or even in a safe at home. They are intended for higher security and longer-term investments since they are not able to quickly sell or trade bitcoins stored in the way.The most common kind of cold money wallet is a hard-copy wallet. A hardware wallet is generally a USB drive that can store your private keys offline. These types of wallets have distinct advantages over hot ones since they are unaffected by viruses that can infect a computer. With hardware wallets, private keys don't come in contact with your computer's network or other software that is potentially vulnerable. They're also usually open source, which allows people to check their security via an audit of the code instead of a firm declaring that they're secure to be used.A cold-wallet is by far the most secure storage option for your bitcoin or any other cryptocurrency. But they require more technical understanding to setup.<iframe src="https://www.youtube.com/shorts/wYJhUGVaeyk" width="560" height="315" frameborder="0" allowfullscreen></iframe>An excellent way to set up your wallets is to include three items that you need: an exchange account for trading and buying as well as a hot wallet that can store small or moderate amounts of cryptocurrency that you plan to trade or sell and a cold hard-copy wallet to keep larger quantities over a longer period of time.How to Buy Bitcoin With PayPalYou? can also buy bitcoin through payment processor PayPal? Holdings, Inc. (PYPL). There are two methods to buy bitcoin with PayPal?. The first and most convenient method is to buy cryptocurrencies by using your PayPal? account, which is linked to a payment method such as a debit card or bank account. Another option is to make use of the balance of funds in your PayPal? account to purchase cryptocurrency from a third-party provider. This isn't as convenient as the first since only a handful of third-party sites allow users to purchase bitcoin by clicking their 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 purchase goods or services using"Checkout with crypto "Checkout With Crypto" feature.10To set up a crypto account through PayPal?, the following information is needed for registration: name, physical address (where applicable), birth date, the tax identification number.11It is not possible to use a credit or debit card to buy Bitcoin using PayPal?. During the buying process, PayPal? will display a price for the cryptocurrency. However, this price is subject to rapid change due to the volatility of cryptocurrency markets. It's a good idea to make sure that you have more money than the amount which you budgeted in your savings account.When you buy bitcoin directly via PayPal?, it makes money off the crypto spread or the differential between Bitcoin's market rate plus its price of exchange USD. The company also charges a transaction fee for each purchase. The fees are based on the dollar amount of the purchase. For example, a flat fee of $0.50 is applied to purchases between $100 and $200. The fee thereafter is in the form of a percentage of total dollar amount. For instance, a fee of 2 percent from the total amount due for transactions between $100 and $200.12The disadvantage of buying cryptocurrency via PayPal? is that you can't transfer the crypto outside of the processing platform of the payment processor. Therefore, it is not possible for you in order to transfer your Bitcoin purchase from PayPal?'s wallet to your external wallet for crypto, or your personal wallet.11The third disadvantage of PayPal? is that not many merchants and exchanges allow you to make use of the payments processor to purchase payments. eToro is one of the few online trader that allows users to use PayPal? to purchase bitcoin on its platform.13How to Buy Bitcoin With a Credit CardThe? process for purchasing bitcoin with credit card is the same as the method when buying it through debit cards or via computerized clearinghouse (ACH) transfer. It is necessary to enter your credit card's details into the exchange or online trading firm and sign the transaction. In general, however, it's not a wise choice to buy bitcoins using credit cards. There are several causes for this.First, not all exchanges allow bitcoin transactions using credit cards due to processing fees and the potential for fraud. This option could be to be in the best interest of the customers. This is because credit card processing can be able to add additional charges to transactions. So, in addition to the transaction fee and transaction fees, you'll also be charged paying processing costs that the exchange might charge you.The second reason is that purchasing credit cards is costly. Credit card issuers consider bitcoin transactions as cash advances, and they charge huge fees and charges on these advances. For example, American Express and Chase both count purchases of cryptocurrencies like cash transactions. If you purchase $100 worth of bitcoin using the American Express card, you must pay at least $10 (current cash advance charges for the transactions) and an annual percentage of 25%. Furthermore, the credit card's provider limits your purchase to $1,000 of bitcoin transactions per month.14An alternative method of purchasing bitcoin with a credit-card is to obtain one of the Bitcoin rewards credit card. The cards function the same way as your regular rewards credit card, but they pay rewards in cryptocurrency bitcoin. This means that they invest profits from purchases into Bitcoin. One illustration of an Bitcoin loyalty card, which is also known as the BlockFi? Bitcoin Rewards Credit Card.15 Be aware, however, that annual fees for these cards may be steep as well as the costs associated with the conversion of fiat currencies to cryptocurrency.Although exchanges , such as Coinbase or Binance remain as the most popular method to buy Bitcoin but they're not the only options.Alternative Ways to Buy BitcoinBitcoin? ATMsBitcoin? ATMs act like in-person bitcoin exchanges. Individuals can plug cash into machines and use it to buy bitcoin. It is then sent to digital wallets for users. Bitcoin ATMs have been more well-known in recent years. Retail huge Walmart Inc. (WMT) is testing a pilot program which will give its customers the option of purchasing bitcoin. Coin ATM Radar can help to locate the closest machines.However ATMs are a costly alternative. There are two fees that are associated with ATM bitcoin purchases that include a fee for purchase and an exchange fee to convert a fiat currency to bitcoin. Both of these fees are quite expensive as compared to other options. In the case of Bitcoin, for instance, the average cost for purchases with Bitcoin ATMs is 8.4% (of the purchase amount) and 5.4 percent for sales made at ATMs.16Be aware, however, that Bitcoin ATMs have increasingly required Government-issued IDs starting in 2020.Exchanges P2PContrary to decentralized exchanges, which provide buyers and sellers with anonymity while facilitating all aspects the transactions, there are peer-to-peer (P2P) exchange services that facilitate a better communication between users. LocalBitcoins? is one such exchange. After registering for an account users can submit requests to buy Bitcoin, or sell it, along with information about payment methods and prices. After that, they can browse through the lists for buy-sell offers, choosing the trading partners with whom they want to do business.LocalBitcoins? can facilitate certain aspects of the trade. While P2P exchanges don't have the same level of anonymity as decentralized exchanges however they do provide users the option of shopping around to find the most affordable deal. Many of these exchanges also offer rating mechanisms so that their users have the ability to evaluate prospective trade partners prior to committing.Mainstream brokeragesA few major brokerages provide bitcoin-based trading and purchasing capabilities because of the uncertainty around the regulation status of crypto currencies. Robinhood Markets, Inc. (HOOD) the app, which is very popular among investors from retail, is an exchange that has crypto trading capabilities. It charges no commissions on cryptocurrency trades as well as purchase and makes profit from payment for order flow, passing its trading volume onto additional trading platforms as brokerages.17The absence of commissions can be a enticing option for novices, but there are some issues with that. To begin, Robinhood isn't equipped with the variety of features and the coins offered by some of the top crypto exchanges such as Coinbase. Robinhood offered trading on its platform for seven cryptocurrency: Bitcoin, Bitcoin Cash, Ethereum, Bitcoin SV, Dogecoin, and Ethereum Classic.18 However, you can trade over 100 cryptocurrencies through Coinbase.19 It also has several types of orders to limit the risk of losing money during trading.The Robinhood platform doesn't offer an online wallet. If you are looking to purchase cryptocurrencies using Robinhood, you will have to account for additional costs to an online wallet service.Bitcoin and other cryptocurrency investment options are not covered by insurance under insurance companies like the Securities Investor Protection Corporation (SIPC). For regular brokerages, the firm is responsible for the loss of cash and securities in brokerage accounts with up to $1 million, with a $500,000 cash limit.20 The insurance isn't available to customers that use crypto exchanges. Exchanges for cryptocurrency like Coinbase are covered by insurance against crime to safeguard their infrastructure from attacks. However, it does not guarantee the security of individual users against password theft.21How to Sell BitcoinYou? can sell bitcoin at similar places to where you bought the cryptocurrency for instance, cryptocurrency exchanges and P2P platforms. In general, the procedure of selling bitcoin on these platforms is the same as the buying process.For instance, you might only be required to click one button and indicate an order type (i.e., whether the cryptocurrency is to be sold immediately at available prices or whether it is to be sold to stop losses) for the sale. Based on the composition of the market and demand at the venue and location, the sale price for Bitcoin may differ. Exchanges for example in South Korea traded bitcoin at a so-called kimchi premium during the time of the increase in prices in the year 2018.A percentage of cryptocurrency exchanges will charge you a fraction of the total amount sold as fees. For example, Coinbase charges 2.49% of the total transaction amount as fees.22Exchanges generally have daily and monthly withdrawal limits. Therefore, cash from the sale could not immediately be available to the seller. There are no restrictions on the amount of cryptocurrency that you can sell however.What Are the Steps for Purchasing Bitcoin?The process of purchasing bitcoin is comprised of 4 steps: choosing an exchange or a location for your order and selecting a payment method and then making sure you have a safe place to store for the cryptocurrency you purchased. Depending on what venue selected in the initial stage, there could be additional steps required in the process. For example, if make a purchase of the cryptocurrency through Robinhood you may need to calculate additional costs for an online bank account and custody for your bitcoin because it doesn't offer these services.What Are the Most Popular Venues for Buying Bitcoin?Most popular locations for buying Bitcoin are cryptocurrency exchanges brokers (crypto and traditional) as well as payment services like PayPal?. You can also buy Bitcoin through P2P trading platforms. For indirect ownership of bitcoin it is possible to purchase shares of companies that hold bitcoin on their balance sheets, like Tesla, Inc. (TSLA) or MicroStrategy? Incorporated (MSTR).2324How Much Should I Expect to Pay to Purchase Bitcoin?Typically, the cost of purchasing bitcoin includes one fee per trade in addition to the cost of converting a conventional currency (generally dollars) to bitcoin. (Cryptocurrency exchanges and payment service providers make money by converting this spread.) Fees per trade are a function of the dollar amount of the trade. A higher trade amount will attract higher fees. The total cost for purchase is contingent on the features provided by the vendor. For instance, Robinhood does not currently provide an online wallet to depositing bitcoin. This means that you'll have to budget the costs of a wallet online for your purchase.Besides Cryptocurrency Exchanges, Where Else Can I Buy Bitcoin?Bitcoin can also be purchased at the following places:* Through Bitcoin ATMsBy? using online payment services like PayPal?* At mainstream brokerages like RobinhoodIs? My Bitcoin Purchase Protected by SIPC?There is no way to ensure that the purchase you make with bitcoin is not covered by SIPC.20 At certain exchanges, like Coinbase bitcoin, balances in fiat on personal accounts could be FDIC-insured to the tune of $250,000 per account.21The Bottom LineThe? process of buying bitcoin is somewhat more complicated as compared to buying stock or shares in the normal way. This is due to the cryptocurrency's ecosystem and infrastructure is not as well-developed similar to the one used in traditional trading.The process for buying bitcoins consists from four steps: choosing the right service or location for buying, connecting with a payment method, putting in an order and ensuring secure storage for your bought cryptocurrency. Each of these steps requires research and a careful analysis of both the pros and benefits of each choice. You can also purchase bitcoin through Bitcoin ATMs or from payment services like PayPal? as well as traditional brokerages such Robinhood.