Bitcoin, Ethereum, Ripple and some other cryptocurrencies have made investors very rich and they could make many more investors prosperous. The only thing that is crucial for investors is the market analysis. If cryptocurrencies continue to rise at the current burning pace that correspondences big lottery rewards, then it is the perfect investment for anyone.
Buying Bitcoin can be simple and smooth. Users should always remember that they should never expect to make a million dollars overnight. With that said, here’s what you need to know to get started. Usually, Bitcoin or Ethereum can be purchased by using fiat money and after that users can buy other Altcoins with Bitcoin or Ethereum.
Bitcoin is a peer-to-peer network founded in 2009 that utilizes a virtual currency, the bitcoin, to manage transactions. Unlike fiat currencies, BTC is self-governing and is completely digital, with no affections to a principal bank, business, or organization. It is utilized as an investment and a tool of transfer by all affiliates of its network. Getting bitcoins is thus a subject of becoming a part of the BTC network by establishing a bitcoin account and a wallet.
There are three ways of buying a bitcoin:
- Exchanges: Cryptocurrency exchanges are websites that enable clients to purchase cryptocurrencies for other assets like traditional fiat currency or other digital currencies. They typically exercise the bid-ask measures as a transaction commission. Binance, Bittrex, and Coinbase are some of the examples of cryptocurrency exchanges.
Requirement: The exchanges need users to open an account and confirm their credentials. Once users have exchanged fiat for Bitcoins, they can then buy other cryptocurrencies.
- Direct Method: The direct method is to exchange fiat currency like GBP or USD into Bitcoin (BTC). For example, if someone is selling BTC at a decided price and ready to make a bank transfer then the BTC can be held in escrow until payment is received. This practice is not normally advisable because of scams, frauds and security issues involved. If anyone claims they want to buy bitcoins, be cautious. If someone proposes money for bitcoins without requesting any information such as name and bitcoin address then they may be clearly trying to steal bitcoins. Users should not send them any bitcoins unless the confirmation of payment.
- Accept Bitcoin as Payment: Today, many businesses and services have started accepting bitcoins as payment. Accepting payment in bitcoins can be advantageous if users have a small business or freelance profession (like a dentist) because it does not cost money to accept bitcoins as payment. People can also avoid chargebacks, or customer conflicts with their credit card issuer because bitcoin transactions are unchangeable.
- Before starting to exchange, users should always make sure to gather proper information about the website such as reviews from professional investors, traders as well as well-known industry websites.
- Most exchanges will always display fee-related data on their websites. Users should always read the documentation and exchange jargons such as deposit, transaction and withdrawal fees very carefully. Fees may change according to the exchange.
- Users should check the payment methods available. In short, users should check the availability of various payment methods like credit and debit card, Wire transfer, PayPal and others. If a particular exchange has very restricted payment methods then it may not be suitable for users.
- Clients should always remember that buying bitcoin via credit card will always require ID confirmation. Users should always check the fees for using credit or debit cards, as they can be very high. Meanwhile, purchasing Bitcoin by using wire transfer is lengthy as it takes time for banks to process.
Future of Bitcoin
In the month of June 2018, the billionaire investor, Tim Draper, had predicted that Bitcoin will reach $250,000 by 2022. He also stated that “fiat is the past,” and bitcoin is the future. He further said that since cryptographic forms of money will expand the speed of cash, the current $86 trillion worldwide market for cash will develop to be about $140 trillion in the following 10 years, and that development will be in crypto.
Disclaimer: This information should not be interpreted as an endorsement of any cryptocurrency. It is not a recommendation to trade. The crypto market is full of surprises and overhyped assets. Do your research before buying anything. Do not invest more than you can afford to lose.