Did you know that there are digital tokens you can purchase and store that are based on blockchain technology? These tokens, known as cryptocurrencies, can be used like cash to pay for goods and services or even traded as an investment. But what are these cryptocurrencies and how do you buy them? Keep reading to learn everything you need to know about investing in Bitcoin and other virtual currencies.
What Is Bitcoin?
Bitcoin is a digital asset and a payment network. It is the first decentralized digital currency and it was invented back in 2009 by a mysterious programmer or group of programmers using the alias “Satoshi Nakamoto.” Think of Bitcoin like this: It’s the first “currency” that exists purely online. It is not controlled by any financial institution or government. It is decentralized, which means that no single entity owns or controls the network. And it is digital, which means it is purely a digital asset that exists in a virtual environment.
How to Buy Bitcoin?
When you want to invest in Bitcoin, the first thing you need to do is buy it. Before you buy Bitcoin, you need to know if you want to buy it with cash or if you want to use another cryptocurrency like Ethereum or Litecoin. Here’s how to buy Bitcoin with cash or credit in 4 easy steps:
Find an online exchange
There are many different exchanges where you can buy Bitcoin, Ethereum or any other type of cryptocurrency. Some examples are Coinbase, Binance, and Kraken. Different exchanges will have different buying and selling fees and other rules or regulations, so shop around to find a cryptocurrency exchange that suits your needs.
Sign up and create a digital wallet
Once you find an exchange, you will need to create a digital wallet where you will store your Bitcoin after you buy it. Make sure you store your wallet’s digital “private key” somewhere safe. This is how you will access your Bitcoin in the future.
Buy the amount of Bitcoin you want
Find the “buy Bitcoin” section at the exchange and enter the amount you want to purchase. Be careful to select the “amount” first and then select the “Bitcoin” option. Otherwise, you might end up purchasing that amount in another type of cryptocurrency.
Pay for your purchase
The next step is to buy and pay for your purchase. Exchanges accept many different payment options and will have different buying and selling fees. Shop around and find one that suits your needs.
How to Store Bitcoin?
One of the most important steps when purchasing Bitcoin or any other type of cryptocurrency is to make sure you store them safely. The best way to do this is in a hardware wallet. A hardware wallet is an electronic device that stores your cryptocurrencies offline in a way that is almost impossible to hack.
Where to Spend Bitcoin?
Because it is a digital asset that exists purely online, you can use Bitcoin to pay for anything. That said, there are very few places where you can use Bitcoin as payment. Some airlines are starting to accept Bitcoin payments for flights. Many hotels are also accepting Bitcoin payments. Different companies sell gift cards with a Bitcoin value attached to them. Tesla, Amazon, and iTunes gift cards are some of the most popular brands.
Why Invest in Bitcoins?
Many people are curious about Bitcoin because they want to know what the hype is about. They want to know if it’s an investment that’s worth their time and money. Here are some reasons why you should consider investing in Bitcoin or another type of cryptocurrency: It’s easy to buy: You can use a credit card to buy Bitcoin, Ethereum, or other cryptocurrencies. There are no “account minimums” and you do not need to be a “qualified investor” like you do with stocks. It’s easy to store: There is no central authority that controls cryptocurrencies, so you can store them in a digital “wallet” that you control. It’s easy to sell: You can easily sell your cryptocurrencies for cash on an online exchange.
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