Bitcoin has been popular among all Cryptocurrencies but many people get perplexed by the process to buy and use Bitcoins. Cryptocurrency is seen as a tricky concept by many (possibly due to the fact that many people do not understand the technical methods involved), thus considering Cryptocurrency and NFTs a risky investment.
However, many people who invested in Bitcoin at its early stage are enjoying the high returns now. Investing in Bitcoin or any other Cryptocurrency is not a tedious task as it may seem. Let’s start with the procedure of buying Bitcoin which is quite simple!
1. Select A Cryptocurrency Exchange
Although Cryptocurrency Exchanges are more talked about on the internet, brokerage services and Payment services could also be used to buy Cryptocurrency. For newbies, Centralized Exchanges are more useful since they provide a platform that ensures secure storage and transactions of funds. Decentralized Cryptocurrency Exchanges on the other hand allow users to have complete control of Cryptocurrency Wallets and transactions(peer-to-peer systems).
Below are some Cryptocurrency Exchanges that you can choose from:
You might also be interested in reading:
2. Choose A Payment Option
Following your Exchange selection, assemble all your personal paperwork. The information that could be asked to be submitted depends on the place you live and its laws along with Cryptocurrency Exchange policies.
After verification of identity by the Cryptocurrency Exchange, you must connect a payment method. Most Cryptocurrency Exchanges allow you to connect your bank account, debit card, or credit card directly. Credit card-accepting exchanges include Coinmama, Paxful, and CEX.io.
Check that your bank enables deposits at your preferred Cryptocurrency Exchange, as certain banks may not allow deposits to Cryptocurrency-related sites or Exchanges. Lastly, decide the amount of Bitcoin you want to purchase.
How To Ensure Safety Of Your Bitcoin?
Bitcoin presents a new opportunity to diversify one’s portfolio. To secure this new type of asset, an individual needs to understand that Cryptocurrencies like Bitcoin are not like other assets.
Cryptocurrency wallets store Digital Assets securely. Cryptocurrency funds in a self-managed wallet instead of a Cryptocurrency Exchange keep the access details private to you. There are many different sorts of Cryptocurrency wallets, including Hot wallets, Cold wallets, Paper wallets, and so on.
Most Exchanges provide wallets for their users but using these Wallets is not recommended for large Cryptocurrency funds. An individual who has a large amount of Cryptocurrency should start thinking about how they want to distribute it as part of their Estate Planning process. A person can sell their Bitcoin all at once for fiat currency (which could have a huge tax implication) or they can use some basic Estate Planning strategies such as using Trusts and avoiding chances of Probate.