How To Buy Bytecoin | Ultimate Guide To Buy BCN
While some cryptocurrencies are popular for many reasons, privacy remains one of the main explanations why some people choose one cryptocurrency over the other. Some help users hide their identities amid growing concerns of disclosures of early cryptos such as Bitcoin. With so many options out there, Bytecoin is one of the cryptocurrencies specialising in an anonymous or private transaction.
In this guide, we will look at this privacy-oriented crypto so that you can have ample knowledge of where to buy, how to buy, and everything else you need to know about Bytecoin.
5 Steps to Buy Bytecoin with eToro Now
Buying any cryptocurrency with eToro is easy, simply follow the steps below:
1Sign up for free with eToro, entering your details in the required fields.
2Fill out the questionnaire, this is both educational for you and eToro.
3Click 'Deposit', you'll then be asked how you want to fund your account.
4Choose your required payment method, follow the simple steps to link your payment.
5Enter the amount you want to deposit and you're good to go!
Our Recommended Platform to Buy Bytecoin
Bytecoin (BCN) is an open-source blockchain that was created in 2012 and anybody can view or edit its code depending on the capabilities. There are various ways you can buy Bytecoin BCN by using fiat currency. However, unlike Bitcoin or Ethereum, it's not possible to buy this altcoin directly. The fact is, you can buy Bytecoin through an exchange with a Bitcoin wallet or other cryptos. If you already know about Bytecoin and wish to purchase it, have a look at our recommended platforms below.
Where to Buy Bytecoin in 2021
There are many advantages to investing in cryptocurrencies, and these include the advantage of accessing a wide variety of investment opportunities. There's also access to information, lower costs and the ease of doing business.
Like other altcoins, a Bytecoin is an alternative to other cryptocurrencies such as Bitcoin. Likewise, it has its risks and investment tools. Bytecoin could be a potential reliable and profitable investment. However, there's also the possibility of running into losses if you don't conduct detailed market research.
Knowing the risk factors before you make your investment is a strategic move. Most people invest in cryptocurrencies to make money both in the short term and long term. You can get an excellent opportunity to gain better income depending on the market dynamics and total percentage. As you venture into the world of crypto, it's important to know that the market can be volatile and conquering the risks requires proper timing.
There is a big difference between buying and owning a Bytecoin, as we shall see in this discussion. You can buy Bytecoin directly from a cryptocurrency exchange, allow it to stay there or transfer it to your digital wallet. Some traders prefer holding their Bytecoin for a longer period, and therefore it becomes a long-term investment. Other people may simply buy the Bytecoin for speculative purposes by buying when prices are low and selling when prices are high. The short-term investment can lead to quick gains or losses.
When buying Bytecoins for long-term investment, you can choose a reputable exchange platform. However, trading through CFDs is also an alternative. Just like the exchange, the CFD offering broker should be a licensed company so as to protect your investment. Registering and trading with a CFD is rigorous since you must provide KYC documentation succh as bank statements, national ID, driving license or passport. Also, it requires setting up a digital wallet where you can transfer your bytecoins after purchase.
Most people choose CFDs since they have market knowledge and are constantly monitoring the prices. When opening an account with a CFD, it's important to conduct extensive market research because online security is paramount to prevent your accounts from falling into the hands of unauthorised people.
How to Buy Bytecoin with a Broker
It's essential to carefully consider your options when choosing a cryptocurrency broker for your Bytecoin investment. The online market is overflowing with several brokerage firms, and it's possible to fall into the hands of an unregulated broker. Consider a reputable broker who has successfully traded with multiple cryptocurrencies.
The advantage of buying a Bytecoin via a broker is to identify the highest liquidity for the assets and consequently split the order across different exchanges. By choosing a broker, you can benefit from a favourable market rate, minimum spillage, and low spread, which increases future profitability.
Several factors come into play when choosing a suitable broker, including security and reviews from other users. Also, the platform should be user-friendly and secure. Here, we have a step-by-step procedure of how to buy a Bytecoin (BCN).
1. Register with the Broker
Before you start trading with Bytecoin, the first step is to register with a broker. It’s worth noting that each experience with a broker is unique and it’s important to carefully consider your options when registering with a broker.
There are several platforms available for users, and here we shall look at the most popular options. With Plus 500, you can trade several CFDs such as Bitcoin and altcoins like Bytecoin. Registration is easy since you only need to sign up with your email and choose a unique password. You'll also fill in other details such as name, year of birth, country, and address. A confirmation link is sent to your email, and you can start trading right away.
Another popular platform is Forex.com for trading cryptocurrencies. In setting up the account, you'll need to key in several details such as name, address, email, phone number, and the account currency type. You also need to fill in your date of birth, country of residence and choose a unique password. It's free to open a forex.com account; however, some brokers may ask for a deposit of $50 before trading.
2. Verify your Identity (KYC Process)
Cryptocurrency brokerage firms operate with valid licenses that enable them to know their clients to prevent several malpractices such as money laundering. Therefore, when opening your account via a brokerage platform, you'll fill in certain information which is part of the KYC or Know Your Customer. KYC verification process enables the brokers to gather detailed information about their clients to protect their interests and third parties. Therefore, this prevents brokers from being used by criminal elements that may launder money and increase trading risks.
Some of the crucial information you may provide includes your national ID, Passport or Driving license number, location, tax details, and bank statements.
3. Deposit Funds with your Preferred Payment Method
After the verification process, you can now proceed to deposit funds with a reliable payment method. There are several factors to consider, such as speed and ease of transfer. Other issues such as availability on different platforms and transaction costs are vital considerations.
If you choose Plus 500 brokerage, you can deposit via electronic wallets such as PayPal and Skirl. Other options include debit or credit cards and electronic money transfers. These payment options also apply to Forex.com and other trading platforms.
4. Open a Position to Long/Short Bytecoin
Long and short positions are crypto industry jargons that form the basis of trading. The crypto market is volatile and prone to a devaluation of cryptocurrencies at any point. Long and short positions reflect likely scenarios that can make a cryptocurrency make money. In a long position, you may expect an increase in price and buy the cryptocurrency. In a short position, you may expect a price decrease and hence decide to sell.
Once you deposit funds into your digital wallet, the next step is to open a position. Your brokerage platform, such as the Plus 500, typically allows you to open a long or short position. As explained above, by buying BCN in a long position, you'll be hoping the price will increase and hence make a profit. On the other hand, a short position enables you to sell the cryptocurrency when you expect the price to fall. Once you get to understand the long/short position, you can now trade Bytecoin. With time you can open long positions as soon as the price dips and sell the Bytecoin when the price becomes stable. However, there are a few other things to consider, such as the volatility of the Bytecoin, market order and limit, trailing stop loss, and more.
5. Close your Position
Professional investors are aware that closing their positions is one of the most vital aspects of trading cryptocurrencies. By observing the market, you can know the exact point when you'll make a move. In managing your risks, you can utilize take profit or stop loss settings to close your position by creating a market or limit order. These situations are automatic; however, you may opt to close early regardless of your profit/loss parameters.
Closing a long position entails selling your crypto, while in a short position, it means buying back. You can close your position when you reach your profit targets and stop levels have been achieved to minimize losses.
How to Buy Bytecoin with an Exchange
If it's your first time buying cryptocurrencies, you'll need to create an account with a cryptocurrency agency. It helps you exchange your fiat currency with crypto. The advantage of crypto exchanges is that they enable investors to buy, hold or sell cryptocurrencies.
Such a platform enables users to buy or sell their cryptos by setting a limit or market order. When choosing a cryptocurrency exchange, look at its reputation by checking online reviews and whether there's insurance for currencies held in the hot wallets. Hot wallets are available online and there’s a high risk of hacking or third party interference.
Cost, security, and compliance with regulations are other factors to consider when choosing a cryptocurrency exchange. Other factors to keep in mind include customer service, user-friendliness, and attractive trading volumes. Also, you can use trading pairs to compare the costs of different cryptocurrencies before making the ultimate decision to buy.
1. Set up a Bytecoin Wallet
The first step when investing in the world of cryptocurrency is to create a digital wallet. It can come in the form of web, desktop wallet, paper, hardware, software, or mobile wallet. Regardless of what you choose, all these work towards a common goal of providing a platform to store, send or receive your cryptos. However, depending on your favourite option, some platforms are better than others.
Hardware and software crypto wallets store data that allows easy access to your cryptocurrencies on the blockchain. They hold your private as well as public keys.
Hardware or cold wallets are objects or physical things that you can hold without your hands, such as the USB drive and hardware chips. They are the most secure options, especially if you're planning to invest huge amounts of money. Also, you may choose hardware wallets if you plan to hold your money for long without trading.
On the other hand, software or hot wallets are downloadable apps on your PC or mobile phone. Hot wallets use encryption that protects the cryptos, such as special keys or passwords. These enable you to gain access as long as you have an internet connection.
Online platforms don't require downloading since the information is stored in the cloud. These rely on an online server that you have no control over whatsoever. They have different levels of protection and may require third-party insurance. However, they are prone to hackers and hence not suitable when trading a lot of money.
2. Choose and Join an Exchange that sells Bytecoin
The next step is to open an exchange account that accepts bytecoins. Binance and HitBTC are some of the popular cryptocurrency exchanges that support Bytecoin.
However, it's important to analyse the different aspects of your preferred exchange fully. Look at the fees, reputation, and ease of registration, KYC guidelines, and whether you can trade large volumes. Remember, Bytecoin is relying on a private payment scheme that allows untraceable transactions. Therefore, consider an exchange with a high level of security and one that protects the privacy of the investors.
3. Choose Your Payment Methods to Buy Bytecoin
After deciding and opening a cryptocurrency exchange account, you can now choose your preferred payment method for buying the Bytecoin. Most platforms accept PayPal, electronic transfers, debit or credit cards.
With PayPal, you need to ensure there's a fund always in your balance to enable you to buy the Bytecoin. For debit and credit cards, depending on the authorisation setup, you may receive a verification notification on your phone or email.
Also, electronic funds transfer is acceptable; however, you may have to contact your bank for authorization. Most reputable exchanges require verification before trading.
4. Place an Order to Buy Bytecoin
By now, we know that a wallet is a place to store cryptocurrency, while an exchange is where to place an order and buy. A Bytecoin is an altcoin, and you can access it on an exchange that accepts altcoins. With some cryptocurrency exchanges, you may not be able to purchase with USD or Euro and hence the need to use a digital currency such as BTC or Ethereum and trade it with Bytecoin. Therefore, first buy Bitcoin fiat currencies and then use it to place an order.
For HitBTC, visit the exchange and place an order for the altcoin. After purchase, now transfer the Bytecoin into the digital wallet for holding or selling.
5. Safely Storing Your Bytecoin in a Wallet
HitBTC allows investors to trade cryptos with fiat currency, and also it can hold your coins for the long term. However, you can choose to store your Bytecoin in a personal digital wallet. As we mentioned earlier, there are several wallets where you can keep your Bytecoin such as hardware, software and online wallets. Whatever option you choose, it should be highly secured to protect your investment.
On your cryptocurrency exchange website, visit the wallet option and click on the cryptocurrency and amount you want to transfer. There's no limit on the number of wallets you can have. If you choose a hardware wallet, you'll need to enter the wallet address, and after the verification process, the funds will reflect in the wallet. There's no difference in other types of wallets since 2 Factor authentication is an essential process of securing your coins.
Should you Buy or Trade Bytecoin?
Buying a Bytecoin and trading a Bytecoin are two different things. Likewise, trading via an exchange and a broker are two various aspects. When you join the world of cryptos, it's important to distinguish these two and choose the right option that will meet your expectations. There are two ways through which you can trade Bytecoin. The first method is through a reliable cryptocurrency exchange such as Binance and HitBTC where you need to first buy fiat money for major cryptocurrency and then buy your Bytecoin. You can choose to have it stay there in the exchange or transfer it to your digital wallet.
The other method is to buy the Bytecoin via a registered cryptocurrency broker. In this approach, you must first open an account with the broker and then begin trading. Plus 500 and Forex.com are some of the professional brokers where you can create a profile and begin trading. When you join the world of cryptos, it's important to distinguish these two and choose the right option that will meet your expectations.
What’s the Difference between a Bytecoin Exchange and a Broker?
Think of a Bytecoin exchange like a stock market where there are traders and brokers who cannot influence the price of the stock. A Bytecoin exchange is where you get to sell your crypto directly or by exchanging fiat currency to major cryptos such as BTC or Ethereum. For instance, you may use the platform to trade various cryptocurrencies or get cryptos for fiat currency. It's like an online market where buyers and sellers of cryptocurrencies meet to buy and sell the BCN at the current market.
On the other hand, BCN brokers act as an intermediary between you and the cryptocurrency market. They act on your behalf and observe market dynamics when selling and buying. A brokerage is more suitable since they expose you to several opportunities, such as leverage positions and CFDs. A Bytecoin exchange may be suitable if you want a long-term investment with your cryptos. A broker is more speculative since they want to make short-term gains.
Bytecoin: Long vs. Short Term Investment
Long-term investment in Bytecoin means buying coins via a cryptocurrency exchange to hold and sell in the future. The concept of buy and wait is applicable here since you'd want to sell the coins when prices increase. Most people with hardware wallets prefer buying the coins for long-term investment considerations.
Short-term investment means buying the coins for speculative purposes. Some people may buy when prices are low and sell as soon as prices increase, even on the same day.
3 Tips to Buy Bytecoin
The following tips are valuable when buying ByteCoin.
1. Choose the Right Time and Do Your Own Research on Bytecoin
Like any other cryptocurrency, it's essential to do research first and decide on the best time to place your order for ByteCoin. The market can be volatile, and it's vital to buy when you feel the price is stable. Research online and see what other investors are saying about the coin.
2. Compare Costs to Buy Bytecoin
As earlier mentioned, there are several platforms where you can trade your Bytecoin. It's vital to consider the reputation of your preferred cryptocurrency exchange and the fees charged. Likewise, if you decide to go the broker way, it’s vital to research their reputation and costs charged. Remember, trading with crypto is an investment, and you'd want to keep your costs and risks low.
3. Safety and Security when Buying Bytecoin
Trading with Bytecoin requires a high level of security to protect your investment. Nobody wants to lose their hard-earned money. Therefore, choose a platform where security is crucial. You can also customize your profile by adding the 2 Factor Authentications for extra protection.
What is the Best Payment Method for Buying Bytecoin?
- Buy ByteCoin with Cash: Some Bitcoin ATMs allow users to buy BCN with cash.
- Buy ByteCoin with Credit Card: The majority of altcoin exchanges allow users to buy BCN with credit cards.
- Buy ByteCoin with Bank Transfer: Electronic transfers or wires are popular when buying BCN seamlessly.
- Buy ByteCoin with Bitcoin: Bitcoin allows users to exchange Bitcoin for BCN.
- Buy ByteCoin with PayPal: Users can open PayPal wallets and deposit money to buy BCN.
Other Ways to Buy Bytecoin
We've looked at cryptocurrency exchanges and brokerages as popular ways to buy Bytecoin. However, there are other options through which you can buy Bytecoin (BCN), as explained below.
Another way to acquire BCN is by using the Proof-of-Work mechanism like major Cryptocurrencies such as Bitcoin and Ethereum. Bytecoin uses Egalitarian Proof-of-Work, which enables investors to mine using regular CPUs or GPUs.
Also, you can get BCN through a master node which is a platform that manages the Blockchain network and enables users to acquire the cryptos.
Finally, you can stake your Bytecoin through your digital wallet and earn rewards. It's a profitable way of adding to your Bytecoin mining pool.
Our comprehensive research is based on vital aspects of the cryptocurrency market, with particular mention of the Bytecoin. By exploring the above options, you'll get to decide on the best time to invest, hold and sell. Most importantly, you can confidently choose the suitable cryptocurrency exchange and brokerage for your ByteCoin investment.
Frequently Asked Questions
A ByteCoin is an altcoin, and you can buy from exchanges that support altcoins. In our review, we mentioned Binance and HitBTC, which accept altcoins.
After buying, you can choose to have the Bytecoin stay in the cryptocurrency exchange as a long-term investment. However, you can also transfer to a hardware or software wallet.
Yes, you can mine Bytecoin using a CPU or GPU, just like major cryptos.
No, brokers are players in the market and can't determine the price of the Bytecoin. The price depends on market dynamics such as demand and supply.
Quite often, most platforms don't accept altcoins to trade in USD, and therefore you'll need to change the Bytecoins BCN into fiat currency of BTC or Ethereum before trading.