How to Invest in Bitcoin – 4 Simple Steps Investing in Bitcoin

Investing in bitcoin can be complicated for some people. However, the profits offered make it worth to try. If you are new with bitcoin investment, knowing the basics will be a good start to take. The following page will show you how to invest in bitcoin in 4 easy steps. Check them out.

4 Easy Steps Investing in Bitcoin

1. Get a Wallet to Store the Bitcoin

First of all, you need to get a bitcoin wallet to start the investment. As bitcoin is not a physical coin, you need to store it in a digital wallet. There are several wallet options you can take to store the bitcoins, including software and hardware wallets. As software wallets, they come with mobile applications that will enable you to connect with your conventional bank account for quick and easy access to bitcoin. However, a third-party company is needed to operate this software wallet. Meanwhile, the hardware wallets are considered a bit old-fashioned in the industry. However, they are more secure due to the absence of an online connection. Most of the time, users will need a private key utilized on a physical hardware device to avoid hackers.

2. Connect the Bitcoin Wallet to Your Bank Account

The next step on how to invest in bitcoin is connected to your bank account to buy it, either by a credit or debit card. You can purchase or sell bitcoin simply by linking your wallet to your traditional bank account. Not only that you can also directly deposit the money into your account by doing it. The transaction process itself might take up to 5 days to complete. Connecting to your bank account is mostly suggested especially if you are dealing with a large amount of money for safety reasons. Meanwhile, using a credit or debit card will make it possible for you to purchase bitcoin almost instantly. The only downside of the debit card is that it can only be used to buy a small number of cryptocurrencies. When your wallet is connected to a debit card, you can’t deposit money or sell bitcoin in your bank account.

3. Join a Bitcoin Exchange

Joining a bitcoin is the next thing you should do. It is an online marketplace that will allow you to trade bitcoin for conventional currencies such as USD or BTC. There are a lot of bitcoin exchanges you can find out there. Some of the most popular bitcoin exchanges now are Coinbase, Robinhood, and CoinbasePro. So, make sure to find the one that stands out in reputation, security, reliability, cryptocurrency availability, exchange rates, and processing fees to trade your bitcoin. This will be very helpful if you look around and do some research just before deciding a bitcoin exchange that you will join in.

4. Place Your Order

Once you have selected an exchange to trade your bitcoin, it is time to place your order and start the buying process. For a beginner, it will be better to start with the smallest unit of bitcoin to minimize the risks. You can increase your purchase once you get used to bitcoin trading and improve your skills.