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    How to Buy Bitcoin? Top Crypto Exchanges to Buy Bitcoin Online

    Pathik Bhattacharya
    Pathik Bhattacharya
    Published on January 23, 2023 7:48 AM
    Buying bitcoin is simple these days if you know how. Also, learn about how to purchase bitcoin and the best cryptocurrency exchanges to buy bitcoin online.
    How to Buy Bitcoin? Top Crypto Exchanges to Buy Bitcoin Online
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    Bitcoin (BTC) investment may appear complicated at first, but it becomes simpler when broken down into sections. For example, Bitcoin investment or trading BTC necessitates the use of a service or an exchange account, and additional secure storage methods are recommended.

    For ambitious Bitcoin investors, a cryptocurrency exchange account, personal identification documents if using a Know Your Customer (KYC) platform, a secure internet connection, and a payment mechanism are all required. It's also a good idea to keep a separate personal wallet from your exchange account.

    Bank accounts, debit cards, and credit cards are all valid payment options for purchasing Bitcoin. Bitcoin can also be purchased through Bitcoin ATMs and peer-to-peer (P2P) exchanges. However, beginning in early 2020, Bitcoin ATMs will demand government-issued identification.

    This How to buy Bitcoin guide will explore where to buy Bitcoin, what are the steps to buy Bitcoin

    Related Read: What is Bitcoin Halving?

    Choose an Exchange

    Bitcoin cannot currently be purchased through your bank or investment firm, while several institutions are attempting to make this possible in the future. For the time being, you'll have to use a cryptocurrency trading platform to convert your US dollars into Bitcoin or other digital currencies.

    There are hundreds of cryptocurrency exchanges where you may buy cryptocurrency online, but some of the most prominent include Coinbase, Gemini, and Kraken. These are online marketplaces where you may purchase and sell cryptocurrency.

    Also Read: Why do Bitcoin have Value?

    Top-up Your Account

    When you create your account, you may be required to enter information such as your Social Security number, ID, and source of income, depending on the exchange you choose.

    Most exchanges will allow you to transfer US dollars into your exchange account by connecting your bank account or a debit card. Fees may vary based on how you load your account; normally, bank transfers are less expensive than card options.

    Remember that financing your account is not the same as purchasing cryptocurrency. You should never leave uninvested money in your account, just as you would with traditional investments. After you fund your account, you must exchange your dollars for Bitcoin.

    Place an Order

    After you've linked a payment method, you'll be able to place your Bitcoin order. Depending on the exchange, this process may alter.

    In general, if you use a platform like Coinbase or PayPal, you may simply enter the amount in dollars that you wish to trade for Bitcoin and buy at the current rate (after accounting for any fees).

    If you utilize a more active trading exchange, such as Coinbase Pro, you may be able to place both market and limit orders. A market order suggests you want to buy the cryptocurrency right now at the current market price. A limit order indicates that you intend to pay a specific price for the cryptocurrency. When the currency reaches that level, it will be automatically purchased.

    You'll most likely be acquiring a fractional part of a coin using Bitcoin – a single coin has recently sold for over $20,000 following a big crypto market fall in June. Whatever you put in will be reflected as a percentage of the total Bitcoin in the exchange. (For example, if you invested $1,000 at Bitcoin's early July value of around $34,000, you would own 0.029 Bitcoin).

    Storing Bitcoin

    Many exchanges allow you to leave your investment in your account, which is the most convenient option for most newcomers. However, if you want to increase the security of your digital assets, you can store them in a cryptocurrency wallet.

    A cryptocurrency wallet is a storage location for digital currency. There are several types of bitcoin wallets available, each with a distinct level of protection.

    Your exchange may have a wallet option, allowing you to easily transfer your coins from your exchange account to a more secure wallet. You can also utilize third-party software or cold storage on a standalone hardware device.

    Some cryptocurrency purchasing platforms, such as PayPal and Venmo, do not allow you to move your coins to a storage device of your own. Consider whether you want that option before purchasing, whether for offline asset security or to trade on another platform in the future.

    Some other Ways to Buy Bitcoin

    You can also acquire cryptocurrency through digital payment networks such as Venmo, PayPal, and Cash App, as well as the investment app Robinhood. However, they may not be suitable for every investor.

    Paypal and Venmo do not allow you to transfer your assets into your own cryptocurrency wallet, thus your private keys remain on the platform. Robinhood has announced the development of a crypto wallet service to allow clients to take their currencies off-platform. However, for crypto fans who believe in the adage "not your keys, not your coins," these platforms that do not allow you to take your holdings off-platform fall short.

    Conclusion

    As with any investment, it's critical to do your homework and understand what you're putting yourself into. Make sure that any cryptocurrency investments you make do not interfere with other goals, like financing your retirement accounts and paying off high-interest debt. Experts advise keeping bitcoin investments to less than 5% of your overall wealth.

    According to experts, Bitcoin is an excellent place to start for new crypto investors. Bitcoin, as the first cryptocurrency, has the longest track record for investors to evaluate. Bitcoin's value has climbed rapidly over the last decade since its inception in 2009. Many analysts compare it to "digital gold" in terms of long-term value storage.

    Bitcoin FAQs

    What is the minimum Bitcoin to invest?

    In general, investing in cryptocurrency costs only a few bucks. Most cryptocurrency exchanges, for example, have a $5 or $10 minimum trade. Other cryptocurrency trading apps may have a lower minimum.

    When to sell Bitcoin for profit?

    If you held the cryptocurrency for more than 365 days, it is taxed as long-term profits. Long-term capital gains are subject to lower tax rates than short-term gains, which are subject to ordinary income taxation. If you're nearing the end of the year, consider holding off on selling your cryptocurrency until it reaches the long-term gains level.

    Is Bitcoin is a good investment?

    Bitcoin's high liquidity makes it a potentially ideal investment vehicle if you're searching for short-term profit. Because of their great market demand, digital currencies may potentially be a long-term investment. Reduce the risk of inflation.