Bitcoin is the highly preferred cryptocurrency for investment. Its highest market capitalization among all popular cryptocurrency and value fluctuations attracts short-term traders whereas the supply-demand ratio and future potential attract many long-term investors. Investing in bitcoin has become a trend now and newbies are also entering the market to have a taste of it. however, not everyone is sure about how to do it. here are the processes:
1. Buy bitcoin from a centralized cryptocurrency exchange:
Centralized crypto exchanges let you purchase bitcoin as well as invest in them. These platforms are third-party operated, but they are safe to use as they have certain rules and regulations. These platforms are used for buying bitcoin as well as trading and investing in it.
- There are many exchanges that you can choose from. You just have to register with an exchange.
- Then you have to open an account on the platform by going through a short verification process. This is a bitcoin account from where you will buy, sell, and trade bitcoin.
- Then you need to link the account with your existing bank account and transfer the fund to the bitcoin account. For the first time use, you need to transfer the fiat money of course.
2. Direct from bitcoin wallet:
Some wallet applications are facilitating direct buying from the market. Here also you need to register with them first. If you are using them for the first time there is a short verification process that is just for the first time. The wallet here can also be linked with the bank account. You need to now choose the buy option and buy bitcoins.
If you are willing to use this direct buying option, there are facilities where you can hold multiple wallets for different cryptocurrencies at a time and can any crypto in exchange for fiat money or other cryptos. Once you get your cryptos you can use them for short-term trading or long-term investments.
3. Bitcoin website using credit or debit card:
Online websites that allow bitcoin exchanges by using a debit card or credit card are popular in use now. After buying, you have to store it in bitcoin wallet. Sometimes the website can provide you with a bitcoin wallet or you can have a wallet app that we have just described before. With the wallet, there is a wallet address that is the destination address that you will need in the process of buying.
- After the required registration part is done the first thing you have to choose on the website is the payment medium you are going to spend to buy bitcoin.
- Next, choose one payment method for completing the transaction. You can choose credit card payment, debit card payment, or other online transaction methods like PayPal payment.
- Then you have to choose the wallet where you want to store your purchased bitcoins.
- Next, the website will ask for the wallet address and you will get the address from the wallet application.
- At last, by pressing the buy button the transaction will be executed.
- Now you can use your bitcoin as you want. You can pay them for buying goods or invest in them.
4. Peer-to-peer trading platform:
These platforms are also known as decentralized trading platforms and are mostly used for trading and investing in bitcoins. These platforms allow peer-to-peer transactions as they are not controlled by a third party. That is because most people prefer using these platforms.
The processing is very simple here. The time you press a buy order you have multiple offer rates from the sellers. Once the deal with your selected seller is finalized, you need to send money to the seller and the seller will transfer the bitcoins to your account.
Now, you can trade your bitcoins by selling them. The process is quite similar to the buying process. Or, you can hold the coins and take them for long-term investment.
5. Bitcoin ATMs:
Bitcoin ATMs are an incredible innovation. From the ATMs, you can directly buy bitcoins and can sell them too. This is done by matching a QR code that you will find on the screen when you are trying to purchase. The fund will go to your bitcoin address or wallet from where you can invest in it.
However, bitcoin buying and investing must be done with some precautions. For that, you have to choose your investment platform wisely. The Bitcoin Era is a good and popular platform for that purpose.