Cryptocurrency does not work like traditional cash, so if you want to invest, there are a few things to keep in mind. In this article, we will talk about the things you should know before buying Bitcoin.
We will briefly explain how to buy, sell, and store BTC, and how to protect your funds. Let’s start with the differences from fiat currencies and the top reasons to consider investing.
Bitcoin makes a great investment because it is different from traditional currencies. It does not follow the same price fluctuations and has the potential to grow while traditional currencies tank. But the detachment from regular finance also makes Bitcoin’s price harder to predict.
Here are a few things that make BTC stand apart:
There are several reasons why you should invest in BTC in 2020.
Buying BTC is rather easy. Below is the list of available methods.
For a user, such a wallet is similar to a banking app. To buy BTC, deposit a fiat currency using one of the available methods, and buy bitcoins with it. When choosing a wallet, make sure it’s beginner-friendly and secure.
Our own mobile wallet Channels lets you easily manage and trade over 30 crypto and fiat currencies from your mobile. Channels is fast, easy to use, and overprotective of your funds. Also, you get a built-in encrypted chat as a bonus. Give it a try!
The most popular crypto-fiat platforms include Coinbase, Bitstamp, Coinmama, Gemini, GDAX, and some others. Register on an exchange, pass all the necessary verification procedures, deposit some fiat currency, and place a buy order. Depending on how fast you need BTC, you can opt for a market or limit order.
Find a suitable machine using this BTC ATM map. Then, scan the QR code of your BTC address, put some cash into the machine and press Send. Be ready for rather high buy and sell fees.
At some point, you may want to convert your bitcoins into fiat currencies. For instance, because you need cash urgently. Or because you think the price has reached its peak.
Whatever the reason, you can sell your BTC using mobile wallets like Channels, fiat-crypto exchanges, and P2P exchanges. Another option would be to convert your crypto into stablecoins (USDT, Tether, etc). In this case, the value of your holdings will reflect the value of USD, EURO, or another fiat currency.
Okay, you have bought some BTC and now wonder where to store them.
You can do it using a hot or cold wallet.
This umbrella term covers all wallets, connected to the internet - mobile, desktop, and web. These pieces of software have one thing in common. It’s an internet connection.
It’s a sturdy device that looks like a flash drive or a mini calculator. A hardware wallet ensures top security as it doesn’t expose itself it to the dangers of the Internet. Your funds are 99,99% safe with it.
By design, hot wallets are less secure than cold wallets. Experts often compare hardware wallets to bank vaults — cumbersome, hard to reach, but impossible to crack. So, they would be perfect for storing the bulk of your funds.
It doesn’t mean that you cannot trust hot wallets, though. New-gen payment apps ensure a high level of security, too. At the same time, they are more convenient to use and easy to reach at any time.
So, how it all translates into real life?
If you prefer to manage your bitcoins with the same ease you manage your bank accounts, opt for a reliable mobile wallet. It’s safe when you take all the necessary measures.
Finally, you can always keep most of your crypto in a Ledger-like wallet while using a mobile wallet for your daily payments.
The BTC benefits come with greater user’s responsibility. To protect your funds, you should: