Bitcoin is not a new cryptocurrency. It was founded in 2008 and has gained a lot of eminence. Most of the countries have declared it a legal tender while others are still mulling over it, and what is stopping them from doing so is its decentralised network. Bitcoin relies on an open global network that does not require an intervention of a third-party regulating authority like the central bank to validate the transaction.
There are several other types of cryptocurrencies, but Bitcoin has widely grown, and it provides the safest network. It allows you to take complete control over your money. It is easy to transfer money because it uses an encrypted system, so the chances of theft are very bleak.
“A lot of things are out there that you need to know if you are looking to invest in Bitcoin.”
The number of Bitcoin investors has increased, but it does not mean that you do not need to be careful while investing money. Bitcoin network is extremely volatile. The value keeps fluctuating very rapidly. You will have to be a bit patient to ensure that you get the maximum return from investing in these coins.
Here are some of the questions that you must have an answer to if you are looking to explore the Bitcoin world:
How many bitcoins shall I buy to start investing in them?
“There is no limit to the number of bitcoins you can buy.” You can pay as little as £1. Many people do not know that Bitcoin is divisible. Satoshis is the smallest denomination. One satoshi amounts to 100 millionth of a bitcoin.
If you are new to the Bitcoin world and looking forward to investing money in it, you should start by investing very nominal money.
It is generally advised that you should start with at least £10. You will explore the Bitcoin world at the outset, so it is suggested not to invest too much money in one go. Do not forget to plan around the transaction fees. You can allocate a small amount of money every week or month.
How can you buy bitcoins safely?
There are a couple of exchanges you can use to buy Bitcoins, and the safest exchange is known as Coinbase. “However, it does not matter whether you use this or another one; you should get it off from the exchange as soon as you buy it.” This is a great way to prevent your currency from hacking and withdrawals. A lot of other safety measures are out there that you must consider if you are serious about investing money in the Bitcoin currency.
You should consult an expert to understand how this open network works and what kinds of risks are attached to it. Even though it ensures the smooth flow of transactions, the risk of hacking is still there. You must know how to keep your accounts safer.
Consulting an expert for a piece of advice will certainly cost you some money. In case you do not have enough money to pay for it, you can consider taking out 15 minute loans from direct lenders. Try not to borrow too much money and scrutinise your repaying capacity as they are paid off in full on the due date.
What steps are to be followed to buy a Bitcoin?
You will need an exchange to buy a Bitcoin, and it does not have to be complicated. Here are the steps that you need to follow to buy bitcoins:
- You will have to register to open an account on an exchange using your full name, email address and date of birth. These details are enough to access the exchange, but you will need to provide many other details during the verification process. Those details vary by the service you want to use.
- Once the account is verified, you can transfer money through the card to the exchange to buy bitcoins, but this will cost hefty fees. Opt for a bank transfer as it is cheaper, although it may take a couple of days.
- Depending on the exchange you use, you will have a particular method to buy bitcoins. These methods include instant order, market order, limit order and stop order.
- After buying them, secure them in hardware wallets. They operate offline, so it is virtually impossible to have been hacked.
Now you can sell them and buy more as per your convenience.
What are exchanges exclusively for bitcoins?
Here are the exchanges where you can buy and sell bitcoins:
It provides the safest platform to buy bitcoins. The main difference between River and Swan is the fees. The latter charges fees of 0.99%.
CoinCorner is the most famous exchange that has over 2 million users. This exchange charges a fixed transaction fee. However, it varies based on the amount. If you are operating from the UK and Europe, you do not have to pay any fees for the deposits. Otherwise, you will pay a fixed fee of £25. The withdrawal fee costs £1 and €1, depending on the currency you use.
It is a Bitcoin exchange that came into existence in 2013 and is very simple to use. You will get all information in one place on how to use it. In fact, this platform can help you pay your bills with Bitcoin. The transaction fee starts from 0.5%.
The bottom line
“If you are looking to invest in Bitcoin, you should bear in mind that this is extremely volatile.” The risk is very high as it is a decentralised currency. Make sure that you invest in money only when you can afford to take on that much risk. Some people take out loans with no credit check with no guarantor and no broker to buy Bitcoins. However, you should avoid it.