Bitcoin remains the top cryptocurrency despite its ups and downs in the past decade. This cryptocurrency has recovered and become stronger. That is why it is still one of the most trusted by traders and investors. It remains the top choice even when new cryptocurrencies have been launched.
There is no doubt that you see an increasing number of investors looking for more details about investing in Bitcoin. If you are new to Bitcoin investing and looking for a helpful guide, this article is for you.
Investing in Bitcoin – Step-by-Step Process
Investing in Bitcoin is a pretty straightforward process. All you need is a guide to walk you through it. Yes, it can be a bit complex for beginners, but this guide will make it a whole lot easier for you. This can help kickstart your Bitcoin investing journey.
There are a few things you need to ensure that you have a successful Bitcoin investment experience. Once you have everything, proceed to the next steps to begin your Bitcoin trading or investing journey. You need the following to start trading:
- A cryptocurrency exchange account.
- Form of personal identification.
- Crypto wallet.
- A device and a reliable internet connection.
- Preferred payment method.
Select A Bitcoin Trading Platform
Start by selecting a reliable crypto trading platform. There are several for you to choose from. The most popular choice is the cryptocurrency exchange. It offers better features compared to other options. To give you an idea, here are the different trading platforms to consider. Each is unique and serves a different purpose.
- Bitcoin ATMs. These are physical machines allowing users to buy/sell Bitcoin using cash.
- Brokerage Platforms. It’s a user-friendly service where you trade Bitcoin without the need for direct ownership.
- CEXs or Centralized Exchanges. This is a company-run platform that manages crypto trades and accounts.
- DEXs or Decentralized Exchanges. This is a peer-to-peer crypto trading without the need for intermediaries or centralized control.
- Peer-to-Peer Platforms. Connects buyers and sellers online to directly to trade Bitcoin.
Sign Up for an Account
You will need to provide proof of personal identification when signing up for an account. This is often required for the Know Your Customer (KYC) verification. The required documents will often vary based on your location.
Link Your Preferred Payment Method
After you sign up for an account with a trading platform, you can start setting up your payment method. Make sure that you provide all the necessary documents. Choose a payment method that you are most familiar with. The following are the most commonly used for Bitcoin trading:
- Credit and debit cards
- Bank transfers
- E-wallet payments
- Prepaid cards
- Cash payments
- Cryptocurrency payments
Place Your Bitcoin Order
After you sign up and get your KYC approved, you can start buying Bitcoin. There are several places where you can purchase this cryptocurrency. Cryptocurrency exchanges are very popular. They have also become the go-to option for traders. You can use your chosen payment method for purchasing Bitcoin.
Find a Secure Bitcoin Storage
Keeping digital assets is simple. All you need is a Bitcoin wallet. You have to keep them outside of the exchange platform space. This ensures that you have complete control over them. Your Bitcoin wallet will have a private digital key that only you know. This allows you to keep your Bitcoin safe. Make sure not to share the key with others to prevent the risk of losing it or being hacked.
Conclusion
More people are becoming more interested in investing in Bitcoin. Keep in mind that achieving success in crypto trading will not be simple. This is not an overnight success. You have to be open to keep learning.