How to buy bitcoin in 2020 ?
How to buy bitcoin in 2020 ?
It was 3 years ago in 2017, when most of the people came to know about the existence of bitcoin when the price of bitcoin skyrocketed to nearly $20,000. Although many ups and downs have happened since then in the cryptocurrency market and people have feared in investing in bitcoin thinking of it as illegal and scam. But after the RBI crypto ban was removed it opened opportunities for cryptocurrency market and many people wanted to enter the market but had the question in mind ‘how to purchase bitcoin’
So if you are also planning to buy bitcoin but don’t know how to do that read this complete article and by the end of this article you will know how to buy bitcoin.
In layman’s terms, bitcoin is a currency just like the dollar, the rupee, and other traditional currencies. It can be used to buy goods and services, hold value, and do many other things that a currency typically does.
How to buy bitcoin ?
Although each step does take some consideration, these are the main points you need to think over when it comes to making your first Bitcoin purchase:
- Install an offline Bitcoin wallet and set up a strong password to protect it.
- Set up an account on an exchange
- Buy some Bitcoin
Step 1: Find a good Bitcoin wallet
Storing your Bitcoin in a digital wallet is important in order to keep your coins safe. There are different types of wallets available out there, you should choose your preffered wallet from the list below :-
- Best for Desktop: Electrum – Electrum is a software wallet, which means your Bitcoin is stored in a set of encrypted files on your laptop or desktop computer. It is available for Windows, Mac OS X, Linux, Python, and Android. The big benefit is that you can quickly get up and running and store your Bitcoin on your own computer.
- Best Online: Blockchain – Blockchain is the technology that allows Bitcoin and other digital currencies to exist. Blockchain also allows you to send and receive cryptocurrencies for a small fee. This includes Bitcoin, Bitcoin Cash, Ethereum, Stellar Lumens, and more.
- Best for Intuitive Desktop Use: Exodus – Exodus is a software wallet like Electrum, but much more beautiful and intuitive to use. It offers similar benefits for security but looks a lot different.
- Best for Mobile: Trust Wallet – Trust (Binance’s official wallet) is a mobile wallet that supports Ethereum and ERC20, ERC223 tokens. Currently more than 20,000 tokens that are built on Ethereum are accessible through Trust Wallet app. You can download Trust wallet from the app store or google play.
- Best for Security: Trezor – Trezor is an offline hardware wallet. It was the first physical storage utility for crypto coins. Trezor is a secure cold storage device. It is a trusted device to store private keys. Trezor is compatible with most desktops and Android devices.
Step 2: Choose the right exchange
You can buy bitcoin from a cryptocurrency exchange. There are a lot of exchanges in the market. You can select any one and create an account in order to buy bitcoin.
Step 3: Select your payment method
There are various types of payment method available on exchanges like P2P, UPI, IMPS, etc. Select your preferred mode of payment which is easy for you.
Step 4: Buy some bitcoin and store them in your wallet
To make your first trade, input the amount of Bitcoin you want to buy in the provided field and click the buy button. On an exchange, this will be a basic market buy order, which will purchase Bitcoin at the best market rate. Alternatively, you can place a limit order, which lets you set a price you’re willing to pay for a certain amount, and a trade will only happen if that amount shows up at that price.
Once you’ve made your purchase, your new Bitcoin will be stored in your exchange wallet. You should then seek out the option to transfer these funds to the address of the Bitcoin wallet you have created that’s off the exchange. You will have to pay a small fee to do so, but that is part and parcel of Bitcoin transfers. Fortunately, the fees for such trades are far from their peak.
Risks related to bitcoin :-
- Highly Volatile – Cryptocurrency market is very uncertain, it can make you good profit in less time or lose your all money overnight. The Bitcoin market is constantly rippling back and forth. With such an unpredictable market, there’s no telling if you will get a return on your investment. But offcourse if you keep patience and only invest that much, which you are willing to lose then you can see profits in long term.
- Cybertheft – Bitcoin is technology-based, which leaves this investment open to cyberattacks. You can lose your money if you are not carefull because Exchanges are prone to hacks that is why you should never keep your funds on exchanges. Always store your bitcoins and other cryptocurrency in a digital wallet.
- Little Or No Regulation – Bitcoin is not owned or regulated by an body, it is completely de-centralized which means it is not taxed. However, a lack of taxation could lead to problems should bitcoin pose as competition for government currency and banks.
- Financial Loss – If you don’t do a proper research and do buying and selling of bitcoin at wrong time or thinking that it will make you rich overnight then it can lead to financial loss. That’s why you should never invest money
- Young Technology – Bitcoin and Cryptocurrency is still a young technology. Bitcoin came about roughly 10 years ago, and it has yet to develop into something solid. What is the future of bitcoin of bitcoin is still unknown.
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