14 days ago

How to Buy and Invest in Bitcoin

Industry analysis
background

Bitcoin is the oldest and leading cryptocurrency in the world. Over the 15 years of its existence, its price has risen thousands of times. 

The uniqueness of Bitcoin, as well as other crypto tokens, is that its price depends only on how much people are willing to pay for it. This currency is not tied to any country or national fiat money.

Many investors who invested in Bitcoin at the dawn of its launch on the market have long received an impressive profit. A simple example for better clarity is that anyone who bought BTC for 100 euros in 2009 is now a multi-millionaire. Does it awaken a desire to have it? 

In the article, we will consider why investing in Bitcoin is profitable, how to buy bitcoin online and find out the answers to popular questions about BTC.

 

What is Bitcoin?

 

Bitcoin is often called "digital gold" and is the most successful cryptocurrency in the world. 

The first developments of the system appeared in 2008 from creator Satoshi Nakano and developer Hell Finney. In early 2009, or rather on January 3, the official launch of the BTC took place. This day was the birthday of the first digital currency. 

Bitcoin has become a protest tool against traditional money and linking finance to a certain country.

 

Blockchain specifics

 

The reliability of the first cryptocurrency is provided by the blockchain technology on which BTC is built.

Blockchain is a technology that allows you to save and transfer data in the form of a sequence of linked blocks. Each block contains information and a link to the previous one. Thus, together they form a chain.

The data in the blockchain is protected from changes and falsification. It uses the concepts of cryptography, the new way of exchanging money is called cryptocurrency.

The Bitcoin blockchain is open — anyone can use it, and there is no authority inside or outside the network that tracks how do you buy bitcoin. Nodes store information about all completed transactions, and miners or "mining nodes" confirm blocks by creating a transaction registry.

 

BTC benefits

 

The main advantages of Bitcoin can be highlighted as follows:

  • Decentralization. It is a distributed registry without a single control center. No one will be able to block your transaction.

  • Anonymity. All information about transactions is publicly available. However, the data about the sender and recipient are securely classified.

  • Non-stop network uptime. The cryptocurrency network has been operating smoothly for many years. And so far there are no prerequisites for the fact that this situation can change.

  • High level of protection. A proof-of-work algorithm helps to mine new blocks, which requires a lot of computing power. Thus, it is almost impossible to attack the Bitcoin network.

  • Unlimited payments and low fees. The digital money system is not tied to any country or state. So, you can make international payments almost instantly with minimal fees.

  • High profits for investors. The main advantage of investing in bitcoins is stable profits in the long term.

Well, all these advantages prove Bitcoin is a good investment. Now, let's figure out how to purchase it.

 

How to Buy and Invest in Bitcoin

 

How to Buy Bitcoin?

Where and how to buy bitcoin for beginners? The most common place to purchase BTC is the stock exchange. 

It is an online platform that allows you to exchange fiats or cryptocurrencies (Ethereum, USDT, etc.) for bitcoin at the crypto market price. Here, you can buy various cryptocurrencies, trade, and convert BTC into dollars, euros, and vice versa.

Before choosing the best place to buy bitcoin, you should create a virtual wallet. A Bitcoin wallet is more than just storing currency. It is a universal place to send, store, and save digital tokens. BTC wallets may differ in functions and capabilities.

 

Choose BTC wallet types

 

There are five types of BTC wallets for now.

  • Mobile wallet

It is essentially a utility on your mobile gadget that manages your BTC. As the traditional fiat currency becomes more accessible thanks to fast phone payment functionality, it is also the best mobility option for crypto transactions.

  • Online crypto wallet

These wallets store your BTC on the internet.

  • Hardware wallet

They look like USB drives that combine the wallet software with the secure properties provided by the physical hardware.

  • Desktop wallet

The software connected to the Bitcoin network (which allows the computer to verify transactions in bitcoins) must be installed on the computer. Thus, you can use a desktop Bitcoin wallet.

  • Offline (paper) wallet

Many people use paper BTC wallets for long-term storage of bitcoins.

Since you have chosen the wallet, you should choose an exchange.

 

Pick an exchange

 

Choosing the best website to buy cryptocurrency is an important step. Wiex.io platform offers a wide range of virtual currencies, including BTC, with a high level of security and compliance, simplifying the purchase and sale of digital tokens.

Buying Bitcoins on Wiex.io is beneficial for you because:

  • Simply. Registration goes fast, and it is easy to receive, transfer, and exchange funds from your card or bank account.

  • Safely. The platform cooperates with Fire Blocks, a top-level security leader.

  • Reliability and legitimacy. The exchange is controlled by FCIS (Financial Crimes Investigation Service) in Lithuania.

 

Steps to buy Bitcoin

 

Well, how to buy Bitcoin online? To buy Bitcoins, do this:

  1. Create an account on the selected exchange by providing the necessary information.

  2. Go through the verification process according to the requirements of the online platform.

  3. Choose a convenient way to top up your account and send the money. 

  4. Go to the crypto markets section on the stock exchange.

  5. Find Bitcoin here and specify the amount you want to purchase.

  6. Confirm the purchase and complete the transaction.

Remember that you can store crypto on an exchange, but the safest way is to transfer it to an external address you have access to.

 

How to Invest in Bitcoin?

 

To start investing in Bitcoin, you can follow the steps described above — create a crypto wallet, select an exchange, and so on. But that's not all. It would help if you also had a strategy:

  • Long-term strategies. This method of action is similar to sowing seeds for future growth. It offers the potential to generate substantial profits but requires patience. 

  • Short-term strategies. By acting in this way, you will be able to make a quick profit. However, there are higher risks here due to market volatility.

So, how to invest in bitcoin and choose a particular method? The choice between long-term and short-term strategies depends on your direct goals and willingness to take risks.

 

Main risks and potential rewards

 

Risk management is necessary if you want to survive by investing in cryptocurrency, and this is one of the best ways to ensure that you have a good chance of making a profit. In practice, this will mean keeping the volume of positions under control and selecting an investment object based on the correct indicators. As always in investing, never spend more than you can afford (and are willing to) lose, and never put all your eggs in one basket.

Common crypto investment risks

  • High volatility. All cryptocurrencies feature the unpredictability of their exchange rate.

  • Regulation. The cryptocurrency trading field remains relatively unregulated, which can lead to unfair practices and fraud.

  • Technical risks. You should be aware of existing technical means (wallets, keys). If you work with them incorrectly, there is a risk of asset loss.

 

Conclusion

 

There is no doubt that Bitcoin is the most popular cryptocurrency today. Of course, from time to time, some turbulent shocks may occur on their way, but most experts predict that bitcoin will dominate the market as the most valuable cryptocurrency for a long time.

It means investing wisely in Bitcoin today may become your best financial decision.

A simple and most understandable way to make money for a novice investor is to buy BTC on the exchange, store it, and sell it. For this, it is necessary to monitor the crypto industry dynamics. To earn income, purchase coins at the moment of the lowest price and then sell at the highest price. And always remember the high volatility of the digital currency and the associated risks!

Invest in Bitcoin on Wiex.io! These investments will change your financial being for the better!

 

Frequently Asked Questions

 

Is it worth buying Bitcoin now?

 

The answer is Yes. But before you start investing in BTC, do not forget about the risks. The first rule for all investors is not to buy Bitcoin with the last money and always act prudently and carefully.

 

How can I convert Bitcoin to cash? 

 

There are four popular ways to turn Bitcoin into cash:

  1. Use a Crypto Debit Card 

  2. Sell cryptocurrency for cash on stock exchanges 

  3. Use a P2P currency exchanger

  4. Find a Bitcoin ATM

 

Can I use Bitcoin for everyday purchases?

 

Of course, you can! BTC can be used for everyday purchases. You can buy almost anything with BTC. The main point is that the seller accepts payment in digital currency as well.

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