Bitcoin (BTC) is not only the original & first cryptocurrency, it was also the first ever blockchain project. It’s arguably the most popular form of cryptocurrency on the market, with the number of investors interested in this lucrative coin clearly not set to slow down any time soon. So, why should you buy Bitcoin?
Bitcoin’s aim was to completely decentralize the monetary system, meaning middle-men such as banks would no longer control the process of transferring money. The idea was to create a system where the people were incentivize to upkeep the accounting as a group, and no one person was a failure point. After blockchain’s conception, Bitcoin was born. In this guide, you’ll learn all the secrets to buy and invest in Bitcoin so, keep reading!
7 Days Change
eToro is the leading CFD provider when it comes to cryptocurrencies and buying Bitcoin. They were one of the first to launch Bitcoin on their trading platform and continue to be a market leader in the cryptocurrency space. If you’re looking to buy Bitcoin, then look no further than eToro, see below our 3 step process to getting started!
eToro is free to sign up and has a demo account that you can use to practice before buying bitcoin for real. To sign up, click the button below and fill out the form; name, email, phone and then you’ll need to create a password. Next you’ll be required to verify your account by clicking the link in your confirmation email.
Once you’re account is verified, you’ll need to deposit funds into your account to make it live. We recommend starting with the minimum of $250, start small to get used to it and then begin to add more over time. Choose your payment method, eToro offers several options, pick your favoured and then fill out your details and click submit.
Once you have funded your account, it’s time to buy bitcoin. eToros platform is easy to use, to find Bitcoin, click ‘Trade Markets’ on the left, then you’ll see ‘Crypto’ at the top. Once in this section, you will see eToros full list of cryptocurrencies. Hit Bitcoin and then ‘Trade’. A ticket will open, manage your risk and then ‘Open Trade’.
Even if you’re not actively involved in the cryptocurrency markets, it’s likely you’ve heard of Bitcoin. As the original cryptocurrency, Bitcoin boasts the highest trading value of the whole cryptocurrency market, and overall, it is used as the benchmark for all other cryptocurrency pricing.
Many other cryptocurrencies can’t even be purchased through traditional fiat currencies, and Bitcoin is the go-to currency of choice for most exchanges out there. This means that Bitcoin isn’t going anywhere any time soon, with its value being the one thing that really swings the whole cryptocurrency market.
Although being first to market has some serious advantages, it also has some serious drawbacks as well. Bitcoin first launched back in 2009, when blockchain technology was not even in existence. Since then, there have been huge improvements to the blockchain methodology, and now Bitcoin’s method for processing payments has been left to look a bit sluggish in comparison to more modern blockchains (such as Ethereum and Ripple).
However, this isn’t to discourage a purchase, Bitcoin is still the most used cryptocurrency in the world. Whether buying plane tickets or purchasing clothing from a virtual retail outlet, the possibilities for crypto are continuing to expand. This is also one of the reasons why Bitcoin has grown in such prevalence and popularity since its introduction in 2009.
While the coin is purely based within the digital community, it is still considered a tangible asset. It can, therefore, be used for both short- and long-term investment strategies, and can even be used as a ‘hedge’ against open-market volatility (for example, when the signs of a global recession begin to appear). In other words, Bitcoin profits can offset another holding that suddenly loses value, which makes it similar to commodities or Forex trade decision.
As a liquid form of investment, Bitcoin can be bought and sold relatively easily – unless you need to buy/sell a very, very large quantity. It is, therefore, an excellent addition to portfolios that might otherwise be focused upon long-term holds. Indeed, savvy investors have turned sizeable profits within a short amount of time due to the anonymity and quick trade times associated with blockchain-based cryptocurrencies.
Additionally, thanks to real-time trading capabilities and a growing number of dedicated smartphone applications, Bitcoin may very well be poised for an impressive amount of further growth in the future. While many new cryptocurrencies are entering into the marketplace, Bitcoin is by far the most well-known trading instrument. It will therefore likely continue to serve as a benchmark indicator and, as a result, other investment possibilities such as futures contracts are now being offered.
Transparency is always important when considering any form of investment and the same holds true in terms of those who are looking to buy Bitcoin. Like any form of investment, there are both benefits and possible drawbacks to examine;
As Bitcoin was both the original cryptocurrency and has been around the longest, it also has the most payment options available to purchase. There are multiple different ways to buy bitcoin with varying payments methods;
There are some other alternative methods for buying Bitcoin including ATM purchases, e-wallets, specific debit cards and even CFD and trading derivatives.
As Bitcoin is a globally based cryptocurrency, there are literally hundreds of different trading platforms to choose from. It is nonetheless prudent to become involved with an exchange or broker that offers both content and functionality in the language you speak.
Also, some countries have either restricted or completely banned the purchase of cryptocurrency, so you may not actually be able to buy any Bitcoin if that’s the case. For example, New York still has very strict rules around the purchase of Bitcoin and there are other countries around the world that just flat out ban the buying or selling of the cryptocurrency.
Yes. Buying Bitcoin normally means the exchange of fiat currency for that of cryptocurrency, and in this case for Bitcoin. Trading Bitcoin is slightly different, and you may not own the digital currency, but instead, you’ll have a contract that’ll trade on its value.
Most people that are looking to buy Bitcoin are either investing in a very long term asset, or they are more likely looking to support the Bitcoin blockchain, and to use the coin to purchase things online. As the industry is completely unregulated, purchasing Bitcoin and owning the asset is not covered by any regulatory body, so if the cryptocurrency was lost, or stolen then you would not have any of your funds covered at all.
People that are looking to trade are looking for quick gains and want to gain on the market valuations. Really, people that want to earn a profit off of the increase (or shorted decrease) of the price of Bitcoin find it much easier to trade the coin rather than deal with the difficult buying process. Fortunately, an added benefit of trading the coin is
There are some other nuanced differences, but there are both advantages & disadvantages to each method of obtaining Bitcoin.
Much like any other form of the underlying asset and trading vehicle, those who wish to get Bitcoin will need to take into account the associated transaction fees. These can generally be broken down into a handful of primary categories:
Transaction fees can be common on some exchanges when you buy bitcoins. Market makers (those who create a new Bitcoin order that cannot be immediately matched by another seller or buyer) will normally incur lower fees than a “taker” (those who place instant orders that can be immediately fulfilled). Transaction fees can likewise be offered at a flat rate per execution or they might lower as the amount of the trade increases.
These are another way for exchanges and trading platforms to earn a slight income off of account holders. The good news is that these will vary between different providers. It is worth mentioning that hubs which do not charge any type of deposit fee could very well hike up their withdrawal charges or the fees associated with each transaction.
Many traders are likely to encounter some type of withdrawal fee if they wish to sell a Bitcoin holding. For example, some providers will charge a variable rate (normally between 2% and 4%). Others might have fees which are capped at a specific amount regardless of the size of the trade. A handful of cryptocurrency exchanges are not associated with any type of withdrawal fee. Still, keep in mind that third-party charges such as those implemented by e-wallets such as PayPal may still apply.
There may be times when spreads or commissions are attached to a transaction anytime you buy BTC. Spreads are often encountered by those who are enacting CFD (contract for difference) trades in order to speculate on a rising or falling market. The spreads themselves can vary depending upon the provider. Average spreads of 80 pips are generally considered amenable for most transactions.
Those who are involved with leveraged positions should keep a close eye on the spread, as small movements can often have a considerable impact on profit and loss margins. Commissions might also be charged on a per-trade basis although a growing number of providers are offering commission-free positions in order to keep abreast of the growing competition.
Exchanges essentially act as the middlemen between a trade, so they are likely to charge moderate to high fees (depending upon the amount as well as the applicable terms and conditions). Brokerage houses tend to deal with larger positions through a dealer marketplace. In other words, they pair similar buyers and sellers with one another, merely acting as the host. Fees tend to be lower and there can be a greater degree of flexibility. However, the trade-off here is that individual investors who might hold only small amounts of Bitcoin may not be able to leverage such mechanics.
These various fees and transactions are important to address by anyone who is looking to buy Bitcoin for short- or long-term requirements. The good news is that many third-party comparison sites will provide a breakdown of such details in order to obtain the clarity and insight needed to make a firm decision.
There are various platforms that act as intermediaries in the purchase of Bitcoin online. Before you buy Bitcoin directly you must own a wallet, which will involve getting a Bitcoin address.
Getting a wallet involves deciding on a provider to use and then either downloading a wallet or using a web browser version. Most exchanges offer you the opportunity to use their wallet or you can normally get a wallet via the cryptocurrency directly.
There are two main places to buy Bitcoins:
You can also buy them directly from another person in cash, or make some kind of exchange. This currency is still readily available and has as many possibilities are those offered by cash.
Finding Bitcoins exchanges in the USA is relatively easier than in other jurisdictions of the world. Most companies dealing in Bitcoins have operational activities in most states of the US.
As there are many companies that deal with bitcoin throughout the US, it is unsurprising that some of these may be false or scam companies. Before you buy bitcoin with USD, you should always do your due diligence about the company in question.
There are now many exchanges and banks throughout the world that allow you to make the conversion, bitcoin to USD.
There are plenty of brokers and exchanges that let you buy bitcoin with USD, we would always recommend you sticking to a broker because of the regulation that helps protect the users. See below for a list of the best places to buy with dollars:
If this article has given you the confidence to start investing in cryptocurrencies and you want to buy Bitcoin, click the button to get started.
In terms of ease and clarity, the quickest way to buy Bitcoin is to use regular money from a standard account such as PayPal or a bank. Once the purchase has been made, the holdings can be transferred to your e-wallet for subsequent use. Speed and efficiency will also depend upon other variables such as the software utilised by the exchange platform as well as the strength of your Internet connection. This is why it is a good idea to ensure that you have high-speed access and that 4G connectivity is available if you happen to be using a mobile device.
Many users are wondering whether it is possible to buy Bitcoin completely anonymously. Keep in mind that the majority of platforms will ask you to provide various forms of identification such as a photo ID, a physical address, a valid email, and your full name. Utilising private transactions to buy Bitcoin in cash is one possible option. The only potential issue is that dealing directly with a seller can be dubious if their reputation is not verified. Try to find a service which provides a trust score for each seller in order to avoid any issues.
The selling process is very straightforward. Simply log into your account and select the amount of BTC you want to sell. Selling through the exchange that you bought them from is recommended for new traders as you’ll understand the specific processes involved. Alternatively, sell them through any exchange or trading platform that supports them.
The process for bulk buying is different from your ‘standard’ purchase as the methods used by most investors aren’t always suitable for high volume trades. To ensure the best price, look for OTC (Over The Counter) exchanges. These refer to companies or individuals willing to sell directly rather than through a potentially costly (but regulated) trading platform.
If you are looking to buy with a credit card, both Coinbase and eToro offer similar procedures to buying Bitcoin. Again there is one advantage eToro has over Coinbase, it’s verification process is considerably quicker. If you do not have an account but want to buy Bitcoins quickly, Coinbases verification process is very long. It can take a few weeks before you are verified and able to buy Bitcoin, unlike eToro where you can almost buy immediately. In fact, you can deposit a small amount of funds with no verification to quicken up the process. Larger amounts do require more thorough checks.
If you are looking to buy Bitcoin with Paypal it is very easy when using providers like eToro, however, if you wanted to actually buy the asset, it is a bit more difficult. Coinbase only allows you to buy Bitcoin with Paypal if you are a US citizen, which obviously is not ideal if you do not live in the US. They do intend to roll out this across all countries but currently, it is not available. Find more information here: Buying BTC with PayPal.
The tax implications of buying a Bitcoin vary, depending on where in the world you live. But usually you don’t pay taxes for buying a Bitcoin; instead, you’ll pay taxes for trading or selling Bitcoin you already own. Bitcoin value exchanges of many types are taxed. Consult local Bitcoin value tax law, or talk to a Bitcoin value professional/tax consultant.
Fast exchanges like Shapeshifter and Changelly are perhaps the best way to buy Bitcoin instantly.
No one is sure if the Bitcoin value will grow, but if history is any indication, then the Bitcoin value will definitely grow.
Just make sure you study how to buy Bitcoin safely, and don’t invest more than you could lose without being in huge trouble.
There are many exchanges that allow you to buy Bitcoin in the UK. All the methods described in this guide are available in this country.
Bitcoin can be stored on Coinbase, or on an external wallet like Exodus, or on a hardware wallet like Ledger Nano S. If you have many Bitcoin, at this high Bitcoin value you’ll certainly want them protected. Please check our BTC wallets page for more information.