Digital assets attract more and more people every year. The cryptocurrency market is still relatively young, so many novice investors do not know how to buy crypto coins correctly. Buying BTC and other digital assets is a very responsible task, so before spending your money, it is better to study all the details and pitfalls from the very beginning.
This article will be helpful for beginners just starting their journey in the world of cryptocurrencies. Here we will explain how to buy and sell cryptocurrency in simple terms. If you read the article carefully, you will have a clear algorithm of what cryptocurrency to buy and how.
Does It Make Sense to Buy Cryptocurrencies in 2023?
Of course, Bitcoin is the flagship and locomotive of the entire cryptocurrency industry. Most beginners and experienced investors choose BTC as their first investment. But isn’t it too late to buy BTC in 2023? And is it still possible to make money on it?
Before answering all these questions, you need to make an analysis on your own. Before buying BTC, you need to decide on the time frame, that is, for how long you are ready to freeze your investments. If you are not in a hurry and plan for the long term, then the first cryptocurrency is perfect for these needs. However, if you want to profit here and now, then it is not necessary to limit yourself to BTC. A sufficient number of worthy projects on the market have a small capitalization but, at the same time, a massive potential for growth. Bitcoin is unlikely to grow 1000 times from its current value since, in this case, the capitalization of the first cryptocurrency alone will be 440 trillion US dollars. On the other hand, coins with a capitalization of tens or even hundreds of millions of dollars have every chance to multiply their price in the future.
A Brief Summary of BTC Price Change
The first mention of Bitcoin was in October 2008, but at that time, the coin itself did not yet exist. The blockchain of the first cryptocurrency was launched only in January 2009. The first fixed rate of BTC was 1 dollar – 1,309.03 BTC; in October 2009, the first public trading began on the New Liberty Standard stock exchange. As of the time of writing, the BTC all-time high was fixed in the fall of 2021 – more than 68 thousand US dollars.
Bitcoin Supply
Unlike fiat currencies, Bitcoin has a limited supply. The total number of coins that will be mined for all time is 21 million. Even if someone wants to change this and issue more coins, it will be impossible. All due to decentralization, that is, to make changes to the program code, the consent of 51% of coin holders is required.
Fiat currencies are printed by a central authority, and their quantity cannot be influenced by ordinary people in any way. Due to the transparency of the supply and the deflationary model, digital currencies are popular among investors. Investing in cryptocurrencies is like investing in gold: the demand is greater than the supply, increasing assets’ value.
So far, there are about 19.2 million BTC in circulation, and the last Satoshi will be mined in 2140. Therefore, if you decide to buy Bitcoin, you should understand that over time, their number will only decrease, and the number of people wanting to buy will increase, on the contrary. For this reason, buying BTC is an excellent long-term investment.
Fast and Decentralized Transactions
Sending money abroad can be a problem for both the sender and the recipient. In addition to being a slow process, it is usually costly. If you decide to buy Bitcoin and use its blockchain network as a method of sending money across borders, you should know that everything will be decided within 10 minutes. In addition, you and the recipient will be the only persons to know about this transaction because it is entirely decentralized. No intermediaries, such as a bank or financial authority, take part in this process.
How to Buy Bitcoins?
Now that you know some of the benefits of buying and investing in Bitcoin, you may wonder how to invest in cryptocurrency? In the United States, there are several ways and means to buy Bitcoin. We offer them below.
Buy Bitcoin with PayPal. More and more brokers and exchanges allow buying cryptocurrency with PayPal, such as eToro, which charges no fees for purchases in US dollars. Besides, it allows you to start buying Bitcoins for as little as $10. Another innovation of PayPal is that you can now buy cryptocurrencies from its own platform without addressing a broker.
Buy Bitcoin with a credit or debit card. Buying with a credit or debit card is the most popular online shopping method and one of the best ways to buy Bitcoins online. Many brokers offer this payment method because it is safe and popular but not particularly cheap. Brokers usually charge high fees when buying cryptocurrency with a card.
If, for example, you want to buy Bitcoin on Binance or Coinbase with a credit card, you should be aware that the fee you should pay ranges between 3% and 4.5%. On the other hand, platforms like eToro in the US charge no fees when buying Bitcoins with a card if the purchase is made in US dollars.
Which is the Best Way to Buy BTC?
After learning about the benefits of buying bitcoins and the most recommended payment methods, we will tell you where and how to buy them.
Regulated exchanges. One of the most popular ways is to go to a cryptocurrency exchange where you can buy Bitcoins. Such platforms act as intermediaries between buyers and sellers. Exchanges are companies that use their platform to connect a person who is interested in buying cryptocurrency with US dollars, for example, and a seller who wants to get rid of their Bitcoins. Exchanges charge a small commission from every operation for providing the technological infrastructure and hosting the operation. Of course, such services are safe as long as they are regulated. Therefore, we recommend that you never enter an unregulated exchange. Do not be tempted by Internet ads promoting platforms to buy Bitcoins anonymously – don’t risk your money in unregulated services.
One of the most worthy exchanges where you can buy crypto is WhiteBIT. It is the largest platform in Europe with the necessary license to operate, and it is also regulated by the relevant financial institutions. If you are looking for a safe, convenient, and multifunctional tool for working with digital assets, then the WhiteBIT cryptocurrency exchange is exactly what you need.
Bitcoin brokers. For users entering the world of cryptocurrencies, it may be better to start with a Bitcoin broker. Unlike the exchange, a broker is an intermediary between the client and the cryptocurrency market. Thus, it is possible to buy Bitcoin directly from a broker. Using a broker is the easiest way to buy Bitcoin and possibly the safest. For example, brokers like eToro are regulated by the US Securities and Exchange Commission so your funds are always safe.
Decentralized exchanges. It is a decentralized alternative to traditional exchanges and brokers that are ultimately the middlemen in sales. Decentralized exchanges allow to buy and sell cryptocurrency directly between the buyer and the seller, without the presence of a third party. The problem with these platforms is that they do not allow for large transactions and, above all, that they are not regulated. We do not recommend them for people who are starting crypto investments.
When to Buy and Sell Cryptocurrency?
The internet is full of BTC price analysis and predictions. If you want, you can find predictions that claim that the price of Bitcoin will rise in the coming months along with forecasts that it will go down, so that one or the other will be right.
Given forecasts ambiguity, we recommend that if you are investing in Bitcoin, forget about short-term forecasts and make purchases to maintain a long-term strategy. This will allow you to ride the waves of price volatility.
In investments, you always need to have a cold mind and be reasonable. The best time to buy cryptocurrencies is a bear market. The golden rule of investors is: buy when everyone is selling and sell when everyone is buying.
Conclusion
In addition, you need to remember to be careful and invest only the sum you can afford to lose. Any investment is a risk, and with cryptocurrencies, it is an increased risk. If you neglect the security rules (buy on a dubious website or a little-known coin), then you can easily lose all your money.
If you are starting with cryptocurrency, it is better to buy the most famous coins and only on the most popular platforms. Following all the simple rules we mentioned in this article, you can safely count on a good profit for several years.