How to Buy Bitcoin – A Guide to Investing in the Cryptocurrency
Investing in the Bitcoin Cryptocurrency, also known as Bitcoin, can be a tricky endeavor. Fortunately, there are many guides available that can help you learn how to buy, hold and invest in the digital currency. However, there are a few common mistakes that can cost you money.
Coinbase
Whether you are a first timer or a seasoned investor, Coinbase is a great place to buy, sell, and store your cryptocurrency. The exchange has been around for over two years, and has a solid track record when it comes to customer support and security.
The Coinbase interface is very user friendly. It is easy to navigate, and there are a handful of trading options. It is also very simple to set up your account. You need to sign up with a name, phone number, and an email address. You then need to verify your identity with a verification code. You can also add a debit card or bank account to your account.
Coinbase also offers a mobile app. The app is simple and easy to use, and the interface is clutter free.
Stockbroker
Buying Bitcoin with a stockbroker is an intriguing proposition. You’re able to leverage their deep bench of investors to get in on the ground floor of this nascent currency exchange, and the fees are reasonable. But it’s not always easy to find a stockbroker that offers you the best deal.
The best place to start is with the big three, and their respective competitors: Firstrade, TradeStation, and XBOT. The first two are well known for their ability to find the best deals for their clients, while XBOT has a bit more of a sales mentality.
Bitcoin ,TradeStation, meanwhile, is a US-based stockbroker that has been around for a while. The eponymous company is a member of the Financial Industry Regulatory Authority, which is responsible for regulating all US financial institutions. The name might ring a bell for you, as its parent company is listed on the Tokyo Stock Exchange. The best part is you’ll get to invest up to $250k, and the company has a storied track record.
Exchanges
Using exchanges to buy Bitcoin crypto is a convenient and secure way to buy and sell digital currencies. Cryptocurrency exchanges are online platforms that allow you to buy and sell cryptocurrencies, and store them in your own wallet.
The best exchanges to buy cryptos are ones that have a range of payment options, including ACH, bank wire, and credit cards. You should also check out the site’s rating system, which will help you find the best possible deals.
Buying crypto is a bit more complicated than buying traditional stock or bonds, so it’s important to do your research. The best exchanges will offer a variety of features, including commission-based pricing, substantial volume trading discounts, and instant payments.
One of the best places to buy crypto is Coinbase, which supports more than 100 cryptocurrencies. The platform also allows you to hold your coins in a vault, which is a secure location to store digital assets.
Cold wallets
Using cold wallets to store your cryptos will help you keep your coins safe from theft. Basically, cold wallets are offline wallets that keep your private keys secure. The wallets can be hardware, software, or paper. However, they all have one thing in common – they are more secure than online wallets.
Generally, the wallets will require you to have a pin number to access your funds. Depending on the wallet, this may be difficult for someone else to get. But there is also the risk that someone could hack your account. You must consider these issues before buying a wallet.
Cold wallets are safer, but they may also be more expensive. If you plan to store your coins for a long time, then a cold wallet is the best choice.
Pump-and-dump schemes
Investing in a pump-and-dump scheme involves buying an asset in a small number of volumes, hoping to make big gains in a short period of time. This is not a new strategy, as it has been used for years in the equity markets. The trick is to buy the asset at the lowest possible price, and then sell it at the peak of demand.
A pump-and-dump scheme is not necessarily illegal, but it is a scam that will inevitably cost you money. To avoid being scammed, you should know what to look for when you are dealing with thinly traded assets.
A pump-and-dump is not as simple as it sounds. These schemes work by taking advantage of FOMO (fear of missing out). When FOMO hits, people will buy a new crypto coin for the promise of big gains. This makes them a perfect target for scammers.
