Since Bitcoin launch in 2009, it has experienced meteorological growth: for example, from October 2013 to the beginning of June 2021, its price has risen by about 30,000%. And while that development alone is unbelievable, some analysts say the value of bitcoin can go up even further as cryptocurrency and blockchain technology that power them becomes more mainstream and integrates into people's daily lives.
Buying bitcoin comes with a major buyer, however: although it experiences much, it has also fallen to a devastating low.
For example, after reaching a high of about $20,000 in 2017, its value fell and by 2020 it did not exceed almost half. Although it has been moving upwards since then, it is a very volatile investment, and Elon Musk has an incorrect time tweet. It can reduce its value. Therefore, experts do not advise you to invest a small percentage of your money in Bitcoin.
With all that, if you still want to get involved in the action, here is how to buy your own bitcoin.
There are 4 steps, How to buy Bitcoin:
- Choose a Crypto Exchanger-
To buy Bitcoin or other cryptocurrency you'll need to choose a crytpto exchanger plateform, where buyer & seller meet to exchange your currency Dollar or other coin.
There are hundreds of exchanges, but as a start, you would like to opt for an option that balances ease of use with low fees and high security. If you do not already have any exchange in mind, make sure to look at our top selections for the best crypto exchanges like Unocoin, Wazirx, ZabPay and CoinDCX.
You can transfer your cryptocurrency from one exchange to another. For example, if you need to transfer your bitcoin from your Wazirx wallet to another crypto exchange, you will have to go through the process of withdrawing your bitcoin from your Wazirx account. Get a deposit address from the crypto exchange that you want to transfer your cryptocurrency. Once your deposit address is ready, you are set to transfer your funds.
2. Decided a Payment Option-
After selecting an exchange, you will have to fund your account before you start investing in Bitcoin. Based on the exchange, you can fund your account through bank transfer, net banking, MobiKwik, a cryptocurrency wallet or UPI.
However, keep in mind that platforms can charge higher transaction charges for some funding options. For example, if you use UPI and bank transfers, CoinDCX does not charge any fee. However, it charges 0.5% on net banking and 1% above INR 2,000 through MobiKwik wallet. On the other hand, through Wazirx charges INR 23.6 (including all taxes) through the net banking or you have to top up your MobiKwik wallet using UPI or bank transfer before transferring funds. Credit cards are not supported for wallet transfers and fees depend on the plateform you use.
Because the fee reduces how much you can invest (and therefore how much you have to increase and quadruple), it makes sense to use electronic transfers from bank account instead of other methods.
3. Place an Order-
Once your account is funded, you can place your first order to buy Bitcoin. Depending on the platform you are using, you can buy it by pressing a button, or you may have to enter a Bitcoin ticker symbol (BTC). Then you have to input the amount that you want to invest.
When the transaction is complete, you will own a part of the bitcoin. This is because a large advance investment is now required to buy a bitcoin. For example, if the current price of bitcoin was $38,000, you will need to invest so much to buy bitcoin. If you have invested less, like $1,000, you get a percent, in this case, 0.026% of a bitcoin.
4. Select a Safe Storage Option-
The crypto exchange you use probably has an integrated bitcoin wallet or at least a preferred partner where you can safely place your bitcoin. However, some people are not comfortable connecting their crypto to the Internet, where it can be easily stolen by hackers.
Crypto exchanges are storing most of the customer assets in offline so-called cold storages. If you want final security, you can store your bitcoin in your preferred online or offline bitcoin wallet. But keep in mind that if you remove crypto from the exchange, you may have to pay a small withdrawal fee. Also, if you use a third-party crypto wallet custodian, if you lose a private key that acts as your wallet password, you may be permanently unable to access your coins. This has left some bitcoin millionaires out of their fortunes.
Selling Bitcoin-
When you decide that you are ready to sell your bitcoin, you can place a sale order through your exchange, just as you did when you originally bought your BTC. Most exchanges provide multiple order types, so you can only decide to sell when the bitcoin reaches a certain price, or you can place an order that happens immediately.
You can opt to sell your entire holding of bitcoin or only a specified amount. Once the sale is done, you can transfer money to your bank account. However, there could be a holding period of your exchange before transferring it back to your bank account. This is not a cause for concern; it only takes some time to make sure the transactions are clear.
When you sell your bitcoin, you can make profits. If you do, you will be on the hook for capital gains taxes because cryptocurrency sales should now be reported on your taxes.
