Where & How to Buy Bitcoin (BTC) in 2023
The first thing you need to keep in mind when you choose to buy and sell Bitcoins is that you need to prepare a secure place to store it. The most popular choice is using an online digital wallet. These are frequently available as part of the account on the platform that you are buying or selling cryptocurrency on. Other options include specialized computer programs or even physical devices which you can plug into your PC or laptop.
There are multiple Bitcoin platforms available on the market, and there are different advantages to each of them.
3 Things to Consider Before Buying Bitcoin
Since its conception, Bitcoin has had a very specific goal in mind in terms of its place in society. It arose as a response to the 2008 financial crisis and was initially intended as an alternative for people looking to separate from centralized banking. Its role is only becoming more and more relevant around the world through times of financial and societal crisis and declining trust in governmental and financial institutions.
There are only 21 million Bitcoins in existence. Miners will one day reach the limit and there will be no more Bitcoin left to add. Furthermore, roughly every four years, a Halvening occurs. This is when the speed at which new coins are mined is cut in half, further decreasing the influx of new coins into the market. This way, Bitcoin is designed to remain available but limited, securing a healthy growth in value over time.
Loyal & Dedicated Community
Perhaps most of all what makes Bitcoin stand out is that it has no centralized system of control. It is truly a peer to peer network of individuals who choose to partake in the maintenance and improvement of the crypto space to secure a strong and viable alternative to fiat currencies and institutionalized finance. This community consists of developers and cryptographers, but also financiers, traders and enthusiasts from all walks of life.
Where to Buy Bitcoin in 2023?
There are two major but diverging approaches to handling Bitcoin. Some users see it as the future of money and wish to buy and own as much BTC as possible because they believe it will pay off in the long-term. Others see the volatile exchange markets as a golden opportunity to earn money through trading off of predictions in Bitcoin price changes. There are advantages and disadvantages to both, but it’s important to be aware of the differences so that your approach matches your ultimate goals.
If you wish to focus on owning and keeping Bitcoin as a security and future investment, then you need to first make sure you intimately understand how to keep your funds secure. The biggest advantage Bitcoin has is its absolute dedication to security above all else, but if users aren’t careful they are liable to open themselves up for scams and weaknesses in their systems. Even though its price can be highly volatile, Bitcoin’s average value is steadily rising over time. If you are willing to dedicate yourself to setting up a secure wallet and have a thorough check of your online security, then owning Bitcoin might be the best choice in the long term.
If you are less interested in the larger world implications of the blockchain, trading off of price predictions can be a great way to make an additional income. With its many opportunities for unpredictable changes, all you need to do is set up an online account and you are ready to start trading and earning from home. The most important thing to remember about trading cryptocurrencies is to always practice responsible risk management. It is easy to get carried away when things are going well, but you must always remember that no matter how sure you are of your prediction, there is always the chance that it will be wrong.
Our Tutorial to Buy Bitcoin in 5 Steps
In the following few paragraphs we will cover how to get started in buying Bitcoin with brokers or by using a cryptocurrency exchange. This will give you a complete overview of all the most important steps and help you decide which path is right for you.
Step 1: Find an Appropriate Platform to Buy Bitcoin
When deciding which platform to use for trading, it’s important to get acquainted with their particular focus, as well as strengths and weaknesses. Since Bitcoin draws in people from all walks of life, there are many platforms available to cater to all these differing needs. It’s important to examine closely what your own personal goals are and match those up from the start. The platform you choose should match your level of experience in trading, as well as be able to facilitate your goals.
For example, Binance and Coinbase are among the most popular trading platforms available. Although they both highly value security and have a mobile app available, the fees on Coinbase are significantly higher than on Binance. It also has much higher trading limits, so if you are looking to trade in larger volumes of coins Binance might be the better choice.
Step 2: Registration / Create a New Account
Once you have decided which platform is right for you, you’ll need to sign up. There are some variations in terms of what requirements platforms have from their users, but in general, you will have to provide documentation such as proof of ID and bank account information.
Although there are platforms available that ask for fewer KYC documents and therefore provide greater anonymity, it usually means they are not regulated by the proper authorities.
Step 3: Deposit Funds
The next step is to securely deposit the funds you wish to use for trading into the account. Different platforms will have varying limits and fees on these transactions, as well as be compatible with different forms of payment. For example, many platforms have a $250 minimum deposit, but Skilling’s is only $100 and Pepperstone doesn’t have a minimum at all. Transactions fees also vary wildly among the exchanges, so if you plan to frequently withdraw funds from the account choose a platform like Binance which offers the lowest fees.
Step 4: Start Trading or Buying Bitcoin
Once your account has been set up and your deposit is in place, you have everything you need to get started. If you have a broker they will likely offer you contracts in the form of CFDs or futures. If you choose to take a more direct approach and wish to trade in the coins directly, exchanges will be offering this service alongside wallets for storage.
However, as the demand is so large and varied there are other options as well. While eToro offers direct trading, they are also brokers. Additionally, certain exchanges such as Binance and BitMEX offer their users the tools to trade in futures contracts, margins, leveraged tokens and crypto loans. Some of these involve sophisticated trading techniques and can be very risky if done carelessly, so make sure to do your research beforehand.
Step 5: Optional Steps
Now that you have begun trading you need to decide what you will do with your Bitcoin and how to keep it safe. Below are some of the most popular options for Bitcoin users:
Moving funds to a wallet:
As discussed, most platforms provide a Bitcoin wallet where users can keep their funds secure while inactive.
Participate in staking:
If you wish to support the miners and developers who keep Bitcoin running, there are wallets that users can put their funds into which serve to help support the operations and security of the network.
Sell high, rebuy low:
If your main goal is to maximize profits from the exchange, then ideally you want to keep your eye out for a high price to sell at. Once it drops, you buy in again and in that way keep your profits growing.
Available Payment Methods for Buying Bitcoin
Depending on availability and your own preferences, you may find that there are payment methods that work better for you than others. Below we will outline some of the most common methods people use.
Buy Bitcoin with Cash
Buying Bitcoin with cash is a popular option because it’s easy, quick and private. It is, however, more and more difficult to do so these days. You can buy Bitcoin with cash privately or through a Bitcoin ATM.
Buy Bitcoin with Credit / Debit Card
Buy Bitcoin with Bank Transfer
This methodology is the one most frequently affected by the country of origin of the trader. Coinmama has the widest reach and has been known to work in almost all countries. Other platforms like eToro and Coinbase also offer the possibility of bank transfers.
Buy Bitcoin with Cryptocurrency
If you are trading in multiple cryptocurrencies then you have this possibility as well. This option provides the best prices and safe storage, as well as the fastest processing times.
Buy Bitcoin with PayPal
The possibility to use PayPal to buy Bitcoin is still rather new compared to the other options. There has been a high demand from users and companies are paying attention and bringing the possibility forward.
What Are the Fees for Buying Bitcoin?
Due to its decentralized nature, upkeep and smooth operations of the network are kept up and only paid for through the transaction fees which keeps them comparatively high. Additionally, varying platforms and exchanges will decide on what their own fees for these transfers are going to be.
Usually, exchanges will either have a flat fee which they will charge for each trade, or it will be expressed as a percentage of the trading volume over a period of thirty days. If you plan on day trading, low fees should be of high priority and a platform like Binance would be a good choice.
Expert Tip to Buy and Sell Bitcoin“ The key to successful trading, in the long run, is to keep your emotions in check. If you missed a trade, don’t chase it. Let the right price come to you and take advantage while the iron is hot, or move on to the next one. There will always be another trading opportunity on the cryptocurrency markets, so remember to practice the strictest risk management strategies. ”- Shameel Kazi
How to Find the Best Time to Buy Bitcoin
If you plan on actively trading with your own funds, you need to keep up with your research and news events. Listening to the analysis and predictions of experts within the space is helpful, as you can learn from their mistakes and how they recovered. Most importantly keep a watchful eye on the charts. You will start noticing trends and improve the accuracy of your predictions.
What Drives the Coin’s Price?
As Bitcoin is only more relevant in times of crisis, political and social events influence the price greatly. This year has seen a large influx of Bitcoin users shaken up by the social and financial instability brought on by the COVID-19 crisis. Political problems with integrating digital exchanges with established financial institutions around the world have in the past caused problems. As such, fundamental analysis is a key component of successful Bitcoin trading in the long run.
How to Sell Bitcoin
Selling your Bitcoin online can be done in three different ways. These are using an exchange, a direct trade or you could have a peer-to-peer transaction. Exchanges are the most direct choice as they are created specifically to facilitate the buying and selling of cryptocurrencies.
However, if you wish to sell it outside the exchange and sell it to a person directly, this can be done through a website once you register as a seller. Be careful as the process on these websites can at times be more time consuming than expected. A peer-to-peer exchange involves the use of a marketplace which is a relatively new development in the crypto space.
It is more flexible for users who wish to use their Bitcoin for different purposes. When deciding how to sell your Bitcoin, the most important thing is to have a clear understanding of what your intended result is and pick one of these options accordingly.
Frequently Asked Questions
No, it’s a peer to peer network whose top priority is improving the security, functionality and accessibility of Bitcoin.
Yes! Integration to daily life is growing.
If you have set up your online security and wallet correctly, your funds could not be more secure than in Bitcoin.
Not necessarily. The average value of Bitcoin has steadily been growing and proving to be a worthwhile investment.
The volatility of the market lends itself to many opportunities for profit and growth. The only limitation is how much you are willing to invest, both in terms of funds but also time.
Depending on where you live, chances are there are certain regulations in place for taxation of digital assets such as Bitcoin.
Supply/Demand. As more users are entering the crypto market, simultaneously the influx of new Bitcoins is slowing down. This encourages the price to grow over time.
No one can ever guarantee what the future holds in the markets, but unless Bitcoin were to completely disappear, your investment will always hold some value.