With a userbase over 5 million, Bitcoin has grown from a fringe technological oddity into an economic powerhouse. However, the question of how to buy bitcoins safely remains intimidating and inscrutable for those out of the loop. The lingering fears of extortionate fees or even outright scams are enough to put many off – and the vast array of bewildering terms certainly does not help.
If you are looking to make the first steps into the world of cryptocurrency but are wary of potential risks, then this article will guide you through and allow you to avoid the common pitfalls for first-time investors.
Where To Buy BTC?
There are two options for obtaining bitcoins: you can use your computer to ‘mine’ them, or you can sign up for one of the many cryptocurrency wallets on offer.
Assuming you do not have a literal supercomputer in your home, then the latter is the only possible way to start.
Signing up to these is as easy as any other website, often requiring just your email and choice of password to get started.
Popular starting options include Coinbase and Bitmex, but we encourage spending some time researching the perfect choice for you. The plethora of wallet services may seem daunting, but it is recommended for beginners to stick to digital rather than physical systems.
With this account set up, you can now safely link your preferred method of payment, whether this is a debit card, credit card, or a bank account.
One way to ensure added security is to establish two-factor authentication on your account.
Experienced traders recommend avoiding using your personal phone number for this, given the security risk if a hacker gets hold of it.
Instead, you should opt for external verification methods like YubiKey or Google Titan.
If you are looking to avoid physical hardware altogether, Google Authenticator is a great digital alternative.
After inputting your payment details, you are ready to make your first purchase!
Given the often huge exchange rate between bitcoins and physical currency (and the intimidating spiky value graph), it is highly encouraged to begin by buying fractions of bitcoins rather than entire coins.This option allows first-time buyers to spend only how much they are comfortable with.
Each wallet service has its own straightforward process for trading, and once you’ve followed it, you will officially hold your first (fraction of) bitcoin!From then on, it’s just a case of watching the trends and keeping track of your investments.
Speculate On Bitcoin Price
There is an alternative to outright ownership of Bitcoin however.Traders can speculate on the price going up or down, without actually owning cryptocurrency.
Our Cryptocurrency page list the brokers that can make this possible in your region.In the UK and the EU, leverage is either banned or severely restricted – but elsewhere you might be able to gain larger leverage on your trades with a CFD broker.
How To Buy Bitcoin – Quick Tips
Don’t be too anxious if the value makes a sudden drop – Bitcoin is an extremely volatile currency, and a dip in the graph might quickly become a jump.To help relieve some worry, many wallets such as Coinbase can send you price change notifications.
Phishing is a very common scamming tactic in any technological system, and cryptocurrency is no different.
Hackers send users fake emails that replicate official communication, prompting them to input their credentials.
Often these come in the form of fake security alerts, so it is safe to avoid clicking links within emails and to always ensure you are on the right website.
Remember, as with all investments, good things usually come to those who wait. The stories of lucky individuals suddenly earning hundreds of thousands in profit can present cryptocurrency as a sort of lottery, where rapid rewards are the rule and not the exception.
As the bitcoin market rapidly enters the mainstream, its value will continue to wildly fluctuate for a long time, so often holding on to your coins may be the safest way forward.
Finally, the trading options of Bitcoin don’t end with ‘buy’ and ‘sell’. For instance, investors may choose to have leverage on a particular trade, allowing themselves to purchase a higher stake than your account balance could afford.
The potential for profit is astronomical, however, it carries an extreme risk and should only be attempted by an experienced trader.
Experts encourage beginners to use it with maximum care, or better yet to avoid it wholly. They recommend prioritising a more thorough understanding of the market and its trends before tackling the system.
Overall, the potential for cryptocurrency is limitless. The Bitcoin ship has only really just begun to sail, and the earlier one jumps onboard, the sooner the rewards can be reaped. With caution and a little preparation, you can easily set yourself up for crypto success.