Today a large number of small investors want to invest in Bitcoins but the lack of technical knowledge stopping them to do it? Maybe you are one of them.
Well, this guide will show you how to start investing in Bitcoins even you are a beginner in cryptos.
Bitcoin is now 11 years old and in these 11 years journey, it’s transformed from just nothing to everything. I remember that time when first encountered this cryptocurrency in 2011. In 2011 it was not more than a penny. But today when I see Bitcoin’s history I really amazed how the value of this cryptocurrency skyrocketed. It’s such an unbelievable phenomenon.
But if you are thinking that the price will not rise afterward, let me tell you – according to cryptocurrency experts, it’s just a beginning. The value of Bitcoin will always increase because it’s just like Gold – Limited in quantity.
So, NOW it’s the right time to start investing in Bitcoin.
This digital decentralized cryptocurrency will keep rising over the several coming years. Chances are it would be one of the alternative currency for daily transactions among people- just like any fiat currency. There are thousands of Bitcoin ATMs are already there to make the transaction process easy.
And the best thing is, once you know how this currency works the further process is damn easy. Even a no-brainer can handle all the cryptocurrency transactions without any hassle.
As I said it’s limited in quantity ie; 21 million total in the world, you should have few of them in your wallet right?
I’ve seen many people who want to invest in Bitcoins but afraid of the technology that they don’t know how to handle. So, I came up with this blueprint on investing in Bitcoins that will help you to start investing in Bitcoins without any worry.
Just follow the process you’ll read in this guide.
Tools needed to start investing in Bitcoins
Just as any other investment options it needs some tools.
- Cryptocurrency-Fiat Exchanges
- Bitcoin Wallet
Here I want to warn you that if you transact through unreliable exchanges chances are you would end up with losses. This rule applies with crypto wallets too. It’s not a physical wallet that you keep in your locker. If you use any unreliable crypto wallet you can lose your Bitcoins.
However, not all Bitcoin exchanges and wallets are scams. So, no need to to worry as long as you chose the reliable tools. In this guide, I will provide you with the list of best exchanges and wallets which can be trusted.
The first thing you need to know, Bitcoin is not a physical currency which can be stored in Banks. It’s like keeping money with you. There is no bank or third party service between you and Bitcoin that can save your money on your behalf and take the risks of theft. The only responsible person is you who buy, sell and securely store it in the respected wallet.
Let us know these two tools first…
Cryptocurrency Exchanges to buy Bitcoins
Cryptocurrency exchanges are great for those people who live in the countries where they are directly permitted to buy Bitcoins from their bank accounts. If you live any of those countries you don’t have to worry about investing in Bitcoins. Only one thing you need ie; a bank account with internet banking facility and you will be able to buy Bitcoins from crypto exchanges supported in your country.
Below is the country-wise list of the crypto exchanges
- India: BitBNS, Koinex
- UK, Europe: CEX.IO
- Australia: CoinSpot
- Russia: Yobit
- USA: CoinBase, Kraken
- Israel: CoinMama
- South Korea: Bithumb
- Japan: Coinmama
- Nigeria: Luno
- South Africa: Luno
Note: From 2018 Supreme court of India banned Bitcoin in India so you are not able to buy Bitcoins using your bank account if you live here.
As you’ve read above there are some countries where Bitcoin is banned or not supported directly by the local banking services. In those countries, you won’t find any Bitcoin exchanges to invest in Bitcoin. As the price of Bitcoin is skyrocketing with each passing day, probably you will be losing the golden opportunity due to your government policies. And when the government will wake up from the sleep it would be too late.
In this situation what should you do?
There are a number of other options to buy Bitcoins apart from the exchanges.
- Investing in Bitcoin with Debit/Credit Card
- Buying Bitcoin with P2P Services
Buying Bitcoin with Debit/Credit Card
If your country’s laws do not directly support investing in Bitcoins you cannot buy Bitcoins from exchanges but if you have an account with private bank and you have a debit/credit card with that bank you can try to buy Bitcoin with the cards.
Here is a guide to buying Bitcoin with Debit/Credit Cards that will help you in that.
Here are few exchanges that support purchasing Bitcoin via Credit/Debit Cards
Buying Bitcoin with P2P Services
If your Debit or Credit card does not support buying Bitcoins you can use another option called P2P Bitcoin exchange. In this type of exchanges, you can buy Bitcoins directly from sellers with several payment options including cash payment.
The exchanges perform the role of mediator between you and the seller. It’s a great option as you can also find a seller from your town.
The best P2P exchange that I personally use is
- Local Bitcoins
There are some other online services that you use to buy Bitcoins. Such as,
- Using PayPal
To use these services you need to transfer the amount to the account created with them and then use the money to buy Bitcoins.
Note: If you are from the country where Bitcoin is investing in Bitcoin is not directly accepted, comment below so that we could help you in that.
Bitcoin Wallets to Store Bitcoins
The second tool we need to invest in Bitcoin is Wallets. Just like we use wallets to take physical currency, digital wallets are used to hold Bitcoins and other cryptocurrencies.
There are tons of options available if you search in Google for Bitcoin wallet, but not all are trustworthy. You need to be extra careful when choosing the wallet for holding your Bitcoins.
People make mistakes by choosing any random wallet to hold their coins and end up with fraud. They think as the wallets ate listed in Google search and android play store these are trustworthy but actually, they are not.
Bitcoin world is not free by fraud. As the price is skyrocketing the Bitcoin fraud is increasing in numbers.
The other mistake that experienced Bitcoin investors make is holding their coins on the wallet provided by the exchange. Which is a very wrong approach. Most of the crypto exchanges provide wallet facility to make the exchange process easy. But you should know that their wallets are built just for temporary transactions. There are a number of problems in holding your coins on exchange’s wallets.
- As there is no regulation of Bitcoin and Cryptocurrency in general, the exchanges can be shut down and you would end up with the loss.
- Sometimes exchanges get hacked and if that happens you will lose all your coins holding in the exchange’s wallet.
Choose Secure Bitcoin Wallets
So, always choose secure wallets. As I’ve told you above Bitcoins are not like fiat currencies that you can deposit to banks and then banks will take care of its security. It’s a digital currency save via a private key on the hard disk and other memories. You need to take care of its privacy and security yourself.
When you buy Bitcoins you are provided with a password called private key – This key stores the amount of the Bitcoin you have purchased. Bitcoin Wallets store this key in the memory and protect it with 2-factor authentication and passwords. This seems to quit geeky to handle all these technical processes but it’s not. When you will be used to the wallets and private keys you can easily manage your Bitcoins.
For now, you should know that you have to choose the wallet on that only you keep control. By doing this you will minimize the danger to get your private keys stolen by others.
If you want to choose the best wallets for you, read this article.
If we talk about the Bitcoin wallets there are several types you can choose from.
- Mobile wallets – Basically mobile apps in which are used to save your private keys. (Moderately Secure)
- Desktop wallet – Desktop software that is installed on your computer. (Moderately Secure)
- Web wallet – Basically websites that save your Bitcoins on the server. (Least Secure)
- Hardware wallet – Hardware Wallets are USB devices like memory sticks used to store Bitcoins and other cryptocurrencies in the memory (Most secure)
- Paper Wallet – another most secure way to hold your Bitcoins but not easy to set up.
If you want to invest a fair amount on Bitcoins then I would suggest you buy a hardware wallet which is the most secure way to hold your Bitcoins. Hardware wallets like Ledger Nano S and Trezor are most reliable hardware wallets today.
Important Points You Should Know Before Start investing in Bitcoins
- Bitcoin is one of the best investment options today. The limited availability makes it a great investment asset for years.
- The price of Bitcoin will rise in the future for sure.
- As the price of 1 Bitcoin is very high you can buy Bitcoins infractions such as 0.002 BTC etc.
- Always use secure wallets to store your Bitcoins.
- Learn the aspects of Bitcoin to gain the necessary knowledge and get updated with the latest news.
- Always keep the wallets in secure places and never do negligence.
- As I know even a single dollar is hard earned money by you I recommend trustworthy exchanges only. Never blind trust in any exchange or wallet.
Conclusion: Start Investing in Bitcoins
Well, this is a guide to start investing in Bitcoin. Hope you get something valuable information from this guide that would help you in learning the things.
If you have any question, ask me in the comments section below. It will be my pleasure to answer your questions. Share this article with other Bitcoin enthusiasts on your social networks.
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