With the rising popularity of Bitcoin and other cryptocurrencies, it’s no surprise that there are more people looking into buying and investing in Bitcoin. It is now accepted as payment in many different places around the world and can be a great way to invest as the value continues to increase. But, for the first-time investor, cryptocurrencies can be a bit confusing.
Those who want to get started can follow this guide to learn everything they need to know for their first investment. This includes setting up virtual and offline wallets to store the Bitcoin, setting up an account to purchase Bitcoin, and choosing a preferred payment method. Once the bitcoin has been purchased, it’s then a matter of knowing how long to hold and when to sell.
Choosing and Using Bitcoin Wallets
Also known as a digital wallet, Bitcoin walletsare a way to hold onto the bitcoin purchased until it is time to sell them or spend them. Everyone who has bitcoin will need a wallet to store them. This is the first step that needs to be done before purchasing bitcoin, as the wallet is needed to hold onto any bitcoin that is purchased. Each wallet is different, so it is important to choose the right wallet before moving onto the next step. Online wallets are the best option, but there are other options for those who want to provide added security for their bitcoin.
Find a Trading Platform to Purchase Bitcoin
Next, it’s necessary to choose a trader or exchange to be able to purchase Bitcoin. This is the actual website that will be used to buy the bitcoin, so it’s crucial to find one that’s secure and that’s going to use the payment methods preferred by the buyer. It’s also a good idea to check out the speed of purchases, as some exchanges do take longer for trades to occur compared to others. New investors should check out the options to find out how to order bitcoin online and ensure the exchange does have the options they’re looking for as well as robust security measurements in place.
Select the Preferred Payment Method
After signing up for a trader or exchange, the buyer can then go ahead and purchase the amount of Bitcoin they want. This is going to vary based on the value of Bitcoin compared to US dollars at the time of the purchase as well as what the investor prefers. In most cases, the buyer is going to purchase a fraction of a bitcoin, as the value is high right now. Depending on the exchange chosen, the buyer may be able to purchase the bitcoin with a credit card. Some exchanges also allow for bitcoin to be purchased using PayPal and other payment methods.
Purchase Bitcoin and Store in the Wallet
Next is to go ahead and purchase the bitcoin, then store them in the wallet. The platform being used will provide information on how much bitcoin can be purchased with the amount of money the buyer wants to invest. Start by deciding on the amount of bitcoin to purchase, then click to purchase it. The specific exchange will provide more detailed instructions if needed. Once the bitcoin is purchased, it will be stored in the wallet, where it can be held or used as needed. For investors, holding onto the bitcoin for a while may be a good idea as that can allow them to get more money back when they decide to sell. Depending on the exchange, there may also be ways to loan bitcoin to earn interest.
Consider Storing Bitcoin in Offline Wallet for Security
Investors who are not planning on selling anytime soon may want to consider transferring the bitcoin to an offline wallet. Once this is done, they cannot lend the bitcoin and earn interest with it. However, if they have a significant amount of bitcoin and want to keep some or all of it more secure, they may want to look into offline wallets, also called cold storage. It is important to look into this carefully to ensure the exchange allows for offline storage and to find out the process needed to move the bitcoin back to the online wallet when needed.
How Long to Hold onto the Bitcoin
How long to hold onto a bitcoin investment will vary based on the preferences of the investor. Some investors will buy and sell quickly, using the fluctuations in bitcoin to make some money from every purchase and sale. However, though the value does fluctuate throughout the day, it does grow over a long-term basis. Those who are interested in a long-term investment will want to hold onto their bitcoin a lot longer. For these investors, it’s a good idea to watch the bitcoin values carefully to know when it might be a good time to sell. It’s also important to remember that all of the bitcoin purchased doesn’t need to be sold at once, so investors can try both short-term and long-term strategies to see what works best for them.
How to Use the Bitcoin
Even if someone is purchasing bitcoin as an investment, they may want to spend some of what they purchase or some of the interest they make from their investments. Right now, there are tons of stores that do accept Bitcoin or other cryptocurrencies as a payment method. Investors can look into the different options for payments when they’re buying anything online to find out where they can spend the bitcoin and to learn a little bit more about how it works. It is important to plan this out carefully, however, as the value of Bitcoin does fluctuate quickly, which could have an impact on any purchases.
Have you been thinking about investing in Bitcoin? With the value fluctuating quickly and continuing to rise overall, now is a fantastic time to get started. Use the information here to purchase Bitcoin for the first time and to determine what you’d like to do with it after it has been bought.