5 Best Ways Of How To Buy Bitcoin Safely

How to buy bitcoin cryptocurrency is a widely asked question, In this article we will learn the 5 best ways about how and where to buy bitcoin safely

 

5 Best Ways Of How To Buy Bitcoin Safely

Bitcoin is a cryptocurrency that is becoming increasingly popular but has had some major price fluctuations along the way. The previous several years have been particularly wild, and many traders have entered the bitcoin market, some of whom have gained millions.

There are several ways to purchase bitcoins if you're thinking about using this decentralized type of digital money. They are available through a few established brokers as well as some more recent upstarts, either directly or indirectly. In reality, purchasing bitcoins is now simpler than ever, and you'll probably pay a lesser fee than in the past.

Here are five different ways to purchase bitcoins along with some important considerations.

1. Financial applications

You may now trade cryptocurrencies on several banking applications, including PayPal and Venmo.

Using the same interface you've come to rely on for your online payments, PayPal makes it incredibly simple to immediately purchase or sell bitcoins. For trades involving less than $5, you will be charged $0.50; after that, the costs increase. Trades between $200 and $1,000 cost 1.8 percent, while transactions beyond $1,000 cost 1.5 percent. You won't be charged a fee for keeping bitcoin in your account, but there is a spread markup on trades. You may also trade for as low as $1 at a time. Additionally tradeable here are Bitcoin Cash, Litecoin, and Ethereum.

Considering that PayPal owns Venmo, the fee costs are the same.

2. Bitcoin exchanges

Another well-liked choice for people wishing to purchase Bitcoin is cryptocurrency exchanges. A few important benefits of exchanges for traders. First off, the finest cryptocurrency exchanges provide the most affordable all-in trading expenses. They are therefore your best option if the price is your main concern. Second, spread mark-ups, which are unstated charges incorporated into the trading prices, are frequently waived by exchanges. Third, a lot of exchanges provide wallets that enable you to keep your bitcoin in a safe place.

It's recommended to shop around to discover the exchange that gives the most value for money in terms of pricing, coin selection, and service because the fees at different crypto exchanges can vary significantly. Kraken, Crypto.com, Binance, and Coinbase are a few well-liked alternatives.

3. Applications for trading

By utilizing a trading software like Webull or Robinhood, you can buy a few bitcoins without paying a direct fee, but you'll have to make up the difference in spread markup.

Robinhood uses its finest trick—no commissions—to provide cryptocurrency trading, but it does impose a spread markup, the details of which it withholds. In contrast to the other brokers on our list, you will be able to immediately purchase bitcoins and have access to other digital currencies. Of course, while using the user-friendly interface, you may purchase stocks, ETFs, and options. Discover more about Robinhood.

You may trade more than 25 cryptocurrencies on Webull, including Bitcoin. However, there will be a 1% spread markup added to each transaction. Additionally, you may trade options, ETFs, and stocks. Study up on Webull.

4. Standard brokers

A few conventional brokers, like Interactive Brokers and TradeStation, have also entered the bitcoin market.

You may trade Bitcoin directly at Interactive Brokers in addition to purchasing futures contracts on the cryptocurrency. Each futures contract, which offers you exposure to five bitcoins, costs the broker $10.02. Depending on your monthly volume, you'll pay a competitive charge of 0.12–0.18% of your transaction value if you wish to trade Bitcoin directly. Additionally, you'll have access to Litecoin, Ethereum, and Bitcoin Cash. You may access a variety of different tradable assets with Interactive Brokers, allowing you access to stocks all across the world. See more information about Interactive Brokers.

5. ATMs for bitcoin

Another choice is to purchase bitcoins straight from a bitcoin ATM, although you'll probably end up paying considerably more commission fees than you would elsewhere. You may purchase bitcoins and, in certain cases, sell them at ATMs using cash or a debit card. To complete the transaction, though, you might require a Bitcoin wallet. The cost of commissions can be high; some ATMs charge approximately 7% for each transaction, while rates at others could reach the teens.

Care before buying

The following variables should be taken into account when you think about how to purchase Bitcoin since they should have an impact on where you decide to buy it from or if you decide to stay away from it entirely.

  • Ownership. What precisely do you desire to possess? You have the option of directly owning Bitcoin or a derivative that pays you based on the direction the currency takes, like a futures contract.
  • Cost. Depending on how you buy Bitcoin, commissions might vary greatly. While some brokers may charge you several percent to buy directly, futures contracts give you a significant piece of the action for relatively little money. Even while a few percent may not seem like much, if you often enter and exit the market, it will soon reduce your winnings.
  • Security. Making ensuring investment is secure is one of the major worries. Some more recent bitcoin users have had significant security issues. Thousands of bitcoins were stolen from Binance, a well-known cryptocurrency exchange, in 2019. Because they have dealt with the problem for a longer period of time, more established brokers may provide greater security.

Where can I keep my bitcoins safely?

Depending on what you plan to do with your bitcoins, you should decide where to store them. For instance, if you want to trade them, it could be advisable to maintain them with the cryptocurrency exchange or broker you use, especially if you expect to trade regularly or soon.

Others could use a bitcoin wallet if they want to spend the cryptocurrency or perhaps just lock it away for storage. Your bitcoin can be stored and protected in a crypto wallet, but if you're in charge of your assets, you're fully responsible for them and risk losing them if you're careless.

Bottom line

It's crucial to keep expenses to a minimum if you're trying to buy Bitcoin or other digital currencies as an investment. Many brokers would like to maximize their compensation given the novelty of the cryptocurrency industry (in contrast to the stock market where trading fees have gone to zero). Look for a strategy to reduce those frictional expenses because those fees reduce your earnings.

Even while the price of Bitcoin has suddenly decreased, it still contains significant risks, making it unsuitable for everyone. Avoiding Bitcoin or only dealing with money you're prepared to lose are two options for those searching for cautious investments or who can't afford to lose money.


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