Many years ago, gold was considered the perfect hedge against volatile markets and inflation. Today, business moguls have their eyes set on something different, and it is called cryptocurrency or Bitcoin (BTC), to be precise. Investing in crypto is the major trend in the financial landscape. In fact, it is touted as the currency of the future. If you don’t own any BTC yet, you should consider buying.
You can buy Bitcoin online by following few simple steps: register with an exchange, select a payment option and make the order.
If you are a novice and you wish to know more about BTC, including how it works, its creator, why people embrace the investment option, and of course, how to buy some online, it is best you read this article to the end.
Can International Wire Transfers Between Banks Be Traced?
How to Buy Bitcoin Online?
If you are conversant with the term cryptocurrency, you should know what BTC is or be familiar with the name. Bitcoin is the first major cryptocurrency created in 2009 by Satoshi Nakamoto, the pseudonymous creator. It is also the best known of the over 5,000 cryptos in existence today.
Financial media actively cover each new breath taking high and heart-breaking decline, making it a key part of the landscape. While the ferocious volatility might yield an attention-grabbing headline, it hardly makes it ideal for novice investors or individuals looking for a stable mechanism to hedge their funds. Understanding how it works can be tricky; let’s take a closer look at what BTC really is.
What Is Bitcoin (BTC)?
BTC is a decentralized digital currency that can be bought, sold, and exchanged directly without the help of a middle man like a bank. Bitcoin’s creator, the revered Satoshi Nakamoto, originally described the need for “an electronic payment mechanism based on cryptographic proof instead of trust.”
All transaction that is yet to happen can be found on a public ledger open to everyone, making transactions difficult to reverse, and of course, fake. That is by design: thanks to their decentralized nature, BTCs aren’t in any way supported by the government or any issuing institution, and there is nothing to guarantee their value aside from the proof baked in the core of the system.
Since it was introduced in 2009, it has gained prominence thanks to its rapid rise in value. Although it was once valued below $150 per coin, as of November 19, 2021, one BTC now sells for around $58,000. Because its supply is restricted to 21 million coins, many expect its price to continue the upward trend as time goes by, particularly as more huge institutional investors start seeing it as a type of digital gold to hedge against market volatility and inflation.
How Does Bitcoin (BTC) Work?
Each BTC is a computer file kept in a “digital wallet” application on a smartphone or a computer. Individuals can send coins to your wallet, and you can also send this digital currency to others.
Unlike the typical money transfer method, its transactions are stored in a public list known as the blockchain, thus making it easy to track the history of all transactions to prevent people from spending coins they don’t own.
Why Do People Crave Bitcoin (BTC), and Why Should You?
People have different reasons why they invest in BTC. For some, it’s because the government or banks don’t control it, like the normal government-issued fiat. For others, it is because of the anonymity it offers. Although all transactions are recorded, nobody would know which account number was yours unless, of course, you reveal it to them.
Several business moguls and rich folks have come out to profess their love for BTC, and one of them is Elon Musk. In an online chat with social media Tesla CEO, Elon Musk said he was a big fan of BTC. In fact, he went as far as to change his Twitter bio to “bitcoin”. He has continuously thrown his weight behind BTC and other cryptos in recent years and caused major movement in their value due to his influence and wealth. This particular endorsement of BTC saw a huge rise in its value until it plummeted drastically in May.
How Do People Get Bitcoin (BTC)?
- Buying it using fiat money
- You can sell things and get paid in BTC
- Or you can create BTC using a computer (mining).
Buying Bitcoin (BTC) Online:
You have finally made up your mind to join the bandwagon and invest in BTC. However, you don’t know how to buy digital currency online. Here is are a few tips to do that:
- Select an exchange:
To purchase BTC, you’ll need a cryptocurrency exchange where buyers and sellers meet to exchange fiat for coins. There are several crypto exchanges out there. But as a novice, you’ll want to go for one that is easy to navigate, boast low fees, and high security. Popular crypto exchanges that fit such descriptions are Binance, Coinbase, etc.
- Choose a payment option:
After selecting an exchange, the next step is funding your account before starting to invest in BTC. Depending on the crypto exchange, you can fund your account via bank transfers from a checking or savings account, wire transfer, or through platforms like PayPal, etc. Have it in mind that platforms may charge higher transaction fees for some funding options. For instance, Coinbase doesn’t charge a fee if you use electronic transfer from a bank account. But, it charges $10 on wire transfers and 2.5% of the transaction amount if you go for PayPal.
- Make the order:
As soon as your account is funded, you can place your first order to purchase BTC. Depending on the platform you are using, you may be able to buy it by clicking a button, or you may have to input Bitcoin’s ticker symbol (BTC). You will then have to input the amount you wish to invest. Upon the completion of the transaction, you’ll become an owner of a portion of a BTC.
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Is Bitcoin a Good Investment?
A competent financial advisor like myself would always advise individuals to do the necessary research before embracing an investment option. Do you want to invest in stocks? Do the necessary legwork to determine if it’s a good investment. The same applies to BTC. Before investing, ensure you figure out if it’s a good investment.
Bitcoin (BTC) is a very good investment, however, before investing in this investment vehicle, you must understand its wild volatility. As a rule of thumb, always ensure you invest only what you can afford to lose.
If you want to invest in BTC, ensure you use money that you don’t urgently need due to its volatility.
