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The average daily trading volume of cryptocurrencies is $111 billion. Bitcoin, being at the forefront of digital currencies, is an asset that more and more people are looking to invest in.
If you’re new to Bitcoin or to digital currencies, you might have some questions about how to get going with your investment. Keep reading as we walk you through the simple steps of how to invest in Bitcoin.
1. Choose an Online Exchange
To get started with crypto, your easiest option is to use an online exchange. Some of the biggest names in the industry include Coinbase, Bisq, Cash App, and Binance.
These exchanges are effectively the middlemen of Bitcoin investment. There are many to choose from, and each has its own priorities and limitations. You’ll find that many offer the chance to invest in other cryptocurrencies in addition to Bitcoin.
When setting up your account with the online exchange, be sure to use a secure and complex password.
If you don’t want to use an online exchange, you’ll be issued a public key when you join the Bitcoin network. This works as an identifier and allows you to receive Bitcoin transfers.
2. Set Up Your Virtual Wallet
Now that you’ve signed up for an online exchange, the next step is to get an online wallet. When managing digital currency, it’s possible to have a hot or cold wallet.
Hot wallets are accessed via software or a website. This is what most Bitcoin beginners will start their investing with. Hot wallets are less secure than cold wallets, which are pieces of physical hardware, such as a flash drive.
Most online exchanges will automatically issue you with a hot wallet when you sign up with them. You can connect your virtual wallet to your bank account to make it easy to withdraw your cryptocurrency to your savings account.
3. Place Your Order
Before placing your order, make sure you’re aware of the bitcoin tax rules in your country. Then, it’s time to start your first Bitcoin investment!
You’ll need to think carefully about how much you want to invest. Remember that it’s possible to buy tiny fractions of bitcoins, as well as whole units. Your first investment could be worth as little as $20.
Bitcoin is a fast-growth currency and can be a risky investment. Make you consult online trading advice and develop an investment strategy before getting started.
Once you’re a Bitcoin owner, you’ll then be able to manage your new investment!
That’s How to Invest in Bitcoin – Simplified
Now that we’ve shared how to invest in Bitcoin, it’s time to start developing your cryptocurrency portfolio. After you’ve invested in Bitcoin, you might be ready to explore other digital currencies such as Litecoin, Ethereum, Polkadot, and more.
Or, you might even find yourself using Bitcoin to carry out your everyday purchases thanks to the privacy and flexibility it allows.
If you found this article helpful, make sure you take a look at our other finance-related blog posts.
