Cryptocurrency is the phenomenon of digital money, which is quickly garnering acceptance in society globally. Bitcoin, ethereum, ripple, litecoin, bitcoin cash, etc. are some of the most prominent cryptocurrencies that are synonymous with a country’s currency. They are getting used in trading, in exchange for funds, at legal bidding and betting houses, online financial trading, and in many more domains of the financial market.
Interestingly, among all, Bitcoin is the most recognized digital or cryptocurrency. Ever since the sojourn of 2017, where it peaked all-time high, the currency’s acceptance has surged to the next level. It works on blockchain technology. Hence, it is secured to the hilt.
How and where to buy cryptocurrency bitcoin?
Investing in bitcoin is a no more complicated way. All one needs is a broker, exchanges, and a platform that can enact as a mediator for a trader.
Before investing in bitcoin, a trader should know the nitty-gritty or a piece of cardinal information about the ways of investments, exchanging, news and tips to draw profits. Anyone candidate who is ambitious to invest in bitcoin can navigate the waters through cryptocurrency exchanges. With due diligence, one can put up with cryptocurrency exchanges.
Gemini: This US-based bitcoin exchange is a secured and exuberant platform that charges fees between $0.99 to 1.49% of the trader’s order, fluctuating due to the size of purchase or sell. Besides, a Levi of 0.5 percent gets charged on it. Gemini packs crypto tools for active and new traders for buying, selling, and hoarding cryptos.
For crypto custodians, it identifies as the provider of the most extensive insurance coverage.
Coinbase: It complies in linking with bank accounts effortlessly. And because of that suave, it is popular in superpower USA. Apart from bitcoin, the exchange is compatible with other cryptocurrencies like litecoin, ethereum, ripple. The online platform charges a spread of 0.5 percent along with the fees.
Coinmama: Traders need to spend at least $60 as a minimum purchase before becoming eligible to trade on this exchange. The platform trades eight cryptocurrencies, including bitcoin being the biggest (naturally). It has a transaction fee of 5.9 percent and an additional five percent charges for the purchase by credit cards.
Binance: When it comes to volumes, it is holier than thou in comparison to all other bitcoin or cryptocurrency exchanges. It is larger but charges merely 0.1 percent fee for all trades related to the digital currency. However, it also demands a withdrawal fee but also offers discounts on its cost to compensate. It has gathered reputation among crypto-traders, and to maintain that, it added the facility of payment through credit cards to draw the attention of other users. Though, investors have to shell out extra money to avail it.
Different ways to spend in bitcoin
Grayscale funds:- It is an asset manager of digital currency. It has two investment trusts, namely, ETCG (Grayscale Ethereum Classic Trust) and Grayscale Bitcoin Trust (GBTC). They get traded publically OTC (Over counter)
Interestingly, GBTC trades higher than bitcoin. However, bitcoin is its mere holding. The point is, some investors want to keep things hassle-free and do not wish to get into wallets and other peripheries. Hence they opt for paying more.
Bitcoin futures:- There are online trading brokers like Oinvest that facilitate traders with bitcoin futures, allowing them an extra option to make money. However, it is advisable to touch it down only when an investor is a learned one. An amateur practitioner may end up losing all funds.
Bitcoin ATMs:- These types of ATMs are gaining popularity like a jungle fire. However, currently, they are limited to selling and buying bitcoin. Though there’s a possibility, it may expand its arena for other currencies.
Bitcoin owners:- Just like any other item, a person does not need to visit a shop or a showroom. Sometimes with mutual understanding, things can be purchased and sold. Likewise, traders can directly contact bitcoin owners using peer-to-peer instruments or tools. However, the discretion of investors is advised.
Precautions for buying bitcoin
Before taking a plunge into buying stakes in bitcoin, investigating the risk factors may salvage from plummeting deep into a den and emerging as a loser.
Secured internet connection:- Multiple online poachers are looking for an opportunity to pounce and siphon off funds of people during transactions. Hence, bitcoin buying must be done with a secured internet connection, not randomly with the internet at some coffee shop or a parlor.
Don’t use a credit card: They may look viable and fancy as an option, but they also charge a fee additionally for their services. So, their use while purchasing bitcoin will lead to extra expenses. Plus, they are more susceptible to online fraud.
Aggregate essential information:- Before setting up an account to acquire bitcoin, one should be wary of terms and conditions. They may differ and deceive at times. Plus, keeping the password and other essential details like name, address, bank account number, etc. is a task and must ring the bell of the concerned authority participating in the game of trading.
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Disclaimer: Cryptocurrency trading involves high risk, and is not suitable for all investors. Before deciding to trade cryptocurrencies, tokens or any other digital asset you should carefully consider your investment objectives, level of experience, and risk appetite. TaxGuru does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions. . By the use of the above information, you agree that Author / TaxGuru is not responsible or liable in any manner for the authenticity, accuracy, completeness, errors or any kind of omissions in this piece of information for any action taken thereof. This is not any kind of advertisement or solicitation of work by a professional.
Author Bio
As of now there is no regulation for the issue(mining), use etc., for crypto currencies and hence nobody knows the volume in circulation, vlaue etc., In these circumstances to trade in crypto currencies is nothing but gambling wherein common man will loose money and some computer savy will become ricch. Hence till it is regulated by an ACT, trading is dangerous. The author himself has hinted about the risk at the end.