Although it may seem difficult to invest in Bitcoin (BTCUSD), it is easy when you break it down. Although an account is not required to invest or Buy Bitcoin, it is recommended that you have additional safe storage. An aspiring Bitcoin Investor will need a cryptocurrency exchange account, personal ID documents, if you’re using a Know Your Customer platform (KYC), a secure connection to internet and a method for payment. A personal wallet is recommended in addition to the exchange account. This path allows you to pay using bank accounts, debit cards, or credit cards.
- Bitcoin’s value is derived from its adoption in the form of a store of value, payment system, and finite supply.
- While it’s almost impossible to hack Bitcoin, it’s possible to compromise your exchange or wallet account. It is important to take proper security and storage precautions.
- You can also buy Bitcoin using mainstream services such as PayPal or Robinhood.
- You can indirectly own Bitcoin by investing in companies with bitcoin in their balance sheets.
Before You Buy Bitcoin
Bitcoin investors are concerned about security and privacy. Anybody who has the private key to a public Bitcoin address can authorize transactions. It is important to keep private keys secret. Criminals may try to steal them if they find large holdings. Anyone can see the balance of any public address you use. This public information can also be used to create multiple public addresses. They can then distribute their Bitcoin stash to many addresses. It is a good idea to hold large investments at public addresses that don’t directly connect to those that are used to transact.
Below are the steps required to buy bitcoin. You still have to do your research and choose the right option for you based on your needs.
Step One: Choose a Crypto Trading Service or Venue
First, you need to choose a cryptocurrency trading service or venue. The most popular trading venues and services for buying cryptocurrencies include cryptocurrency exchanges, brokerages, and payment services. The most convenient option is cryptocurrency exchanges, which offer more features and allow you to trade more cryptocurrencies than other places.
Step Two: Connect Your Exchange to a Payment Option
Once you have selected an exchange, gather your personal documents. These documents may include photos of your driver’s licence or Social Security numbers, information about your employer, and details about where you got the funds. It is possible to need different information depending on where you live and what laws are there. It is similar to setting up a brokerage account.
Step Three: Place an Order
After connecting to a payment method and choosing an exchange, you can purchase bitcoin or other cryptocurrency. The popularity of cryptocurrency exchanges has increased over the years. They have seen a significant increase in liquidity and the breadth of their features.
Step Four: Safe Storage
You can store your digital assets more securely in bitcoin and cryptocurrency wallets. Your crypto will be kept separate from the exchange and in your private wallet. This ensures you retain complete control of your private keys. You can also store your crypto away from the exchange to avoid losing your funds.
How to Buy Bitcoin With PayPal?
You can also Buy Bitcoin using the payment processor PayPal Holdings, Inc. You can purchase bitcoin with PayPal in two ways. First, you can Buy Bitcoin Using PayPal. This account must be connected to a payment method such as a bank account or debit card. You can also use your PayPal balance to buy cryptocurrencies from a third party provider. This isn’t as easy as the first option, as very few third-party websites allow users to buy Bitcoin with the PayPal button.