Increased awareness among private investors, increased adoption, and investment of hedge funds have all led to a rising demand for Bitcoin. As more factual information is disseminated, more people are responding positively to the cryptocurrency market. Many people remain unclear on how to buy Bitcoins though.
So, here are 3 simple steps on how to buy Bitcoins:
Step 1: Setup a wallet
You will need a digital wallet for storing and managing the Bitcoin. You can either use an online wallet or an offline one. Using an online wallet makes it easier to make the purchases. This is especially so if you are using a wallet from the exchange you will use to buy the Bitcoins. For enhanced security, you could also set up a wallet on your computer or on your phone. Setting up your wallet on your computer is just a matter of installing the software from the source website.
Step 2: Setup and fund an exchange account
The next step is to set up and fund your exchange account. An exchange is an intermediary service that helps you buy and sell digital currencies. Go for an exchange that offers deposit options that best suit your needs. You will typically find tutorials for how to buy Bitcoins on their websites too. Most support credit card, bank wires, as well as PayPal deposits. Once you have signed up and verified your account, go ahead and fund your account with the amount you wish to invest in Bitcoin.
Step 3: Make the purchase
After funding your exchange account, the next thing to do is to buy Bitcoin. For maximum returns, study the chart to establish the best time to buy. It’s always advisable to buy the dip. This will give you more Bitcoins for the same amount of money and you will also have better profits when the prices start rising.
The rule of thumb when investing in Bitcoin is to avoid making emotional investments. This is how investors lose money. For instance, an event in the crypto market always makes people panic and they sell their coins en masse. More experienced buyers hold on to their coins because they know the prices will eventually rise.