Everybody is suddenly talking about the Bitcoin; this is not unjustified given the astronomical rise in Bitcoin prices since the beginning of this year. So, it is only natural that you would want a slice of the Bitcoin pie. But how do you go about it if you are a newbie?
One of the first things that you must know when it comes to buying Bitcoins the first time is that you will need to know a place where you can buy it, like an exchange, and a place where you can store it, like a wallet. Here are the steps to start buying Bitcoins If You Are A Beginner:
- To start with, you need to get yourself a Bitcoin wallet for securely storing your coins. You can choose from a variety of wallets, both cold and hot wallet. Most experts recommend Coinbase for newcomers because this is relatively easier to use. You can install Coinbase app on your phones to trade on-the-go. In terms of security, the good news is that it has still not been embroiled in any major controversy, but the biggest reason to choose it is because it a wallet and exchange rolled into one, making your first Bitcoin-buying experience much smoother and hassle-free. Unlike many wallets, Coinbase will store your private key that actually gives you exclusive access to your funds. This way even if you lose your private key, your money can be retrieved. However, in most wallets, you alone will have access to this private key and on losing it; your money cannot be retrieved. Exchanges like Coinbase that have private keys are risky because if the exchange gets hacked for some reason or the government forces it to discontinue operations, you can lose the money.
- Your next step after finding a wallet is to sign up for your exchange account to start trading Bitcoins. You are required to type details into the boxes just like regular paper forms and verify your email address. Some exchanges like Coinbase will demand strict ID verification proof just like banks.
- Once you have an account, you must link this with a bank account. This is similar to adding payment method to your Uber account, so that money to pay for the Uber can be debited from this account.
- Now you can start buying your crypto coins. When you click on “accounts” located right at the app bottom you will see a list of cryptos being offered at Coinbase. In case you cannot find the one you wish to trade, you can navigate to another exchange. When buying, remember to invest only an amount that you can afford to lose. Moreover, cryptos are taxable just like income; so, it is better to track your buys and sells right from the start.
These are some simple steps to start buying Bitcoins. You have to remember that prices of the Bitcoin are extremely volatile and the risks of losing money are very high, even with the best of trade strategies.