A GUIDE ON YOUR FIRST BITCOIN PURCHASE

 

Bitcoin is the first cryptocurrency. It has high value and high demand. Earlier, when it was incepted, people did not expect that bitcoin trading would make it this far. However, when you go through the history of bitcoin, you will see many ups and downs.

Last year, bitcoin saw the highest price ever, which was USD 65,000. It started falling after that.As of July 2022, the price is USD 31,384. However, the price was lower even a few days back. So, we can conclude that Bitcoin is highly volatile.The volatility is both good and bad in the case of bitcoin.

It is the volatility that can fetch you great returns on your investment. On the other hand, because of this volatility, you can lose your money also. So, one needs to be cautious about it while investing.

Investing in cryptocurrency is a key task. Before you register yourself, it is important that you must check the crypto trading platform. But what exactly you should check on a crypto trading platform. Here is a brief guide that entails all the points that should be on your radar:

Choose an exchange

One of the easiest ways of buying bitcoin is through the bitcoin exchanges. Bitcoin exchanges are the platforms where anyone can buy or sell bitcoin. So, you need to choose one very carefully because not all the bitcoin platforms are genuine. So, while choosing the bitcoin platform, you need to be careful of some factors such as genuineness, customers, and their reviews. From the social media reviews, you can find whether they are providing good returns or not. Choosing the right crypto exchange is paramount. For example, platforms  there are always a safe choice if you have set your mind. This platform gives you all the news and update on cryptocurrency along with the details of crypto trading along with other details of the cryoto exchange. So, you can register here for a safe trading experience.

Now we know various aspects of bitcoin. So, what we need to know is how can you invest in bitcoin or buy bitcoin.

Types of exchanges

There are various types of exchanges. For example, centralised and decentralised. Centralised exchanges are those where all the transactions and deals are happening under third-party supervision. Also, there are decentralised exchanges where everything is being conducted by software.

 In a centralised exchange, you can have a safe environment because the third party or the exchange party take extra responsibility to keep everything safe. Therefore, the transaction fees are also high on this platform. And when we are talking about the decentralised ones, the fees are higher than the centralised ones.

Bitcoin wallet

In earlier days, a physical wallet used to be so important for carrying money. However, the need is reduced this day because of high digitalisation. And the same way, we need a digital currency to hold our digital money, which is cryptocurrency. Both have different sub versions.

What is more important is that you just need a wallet to operate from an exchange. Using these wallets, one can trade or buy bitcoins and hold them into it. The wallet that is used for the exchangesis known as an online wallet or exchange wallet.

In this regard, it is always advised to use the exchange wallet only for transactional purposes. Otherwise, never store all your bitcoins in the wallet. Always carry a little portion of your asset in the hot wallet for making any kind of transaction. But not more.

Registration

When you open an account on any bitcoin exchange, you need to register. The registration process requires your id proof, address proof and some other information. And as we were talking about the wallet, a wallet will automatically be created as soon as the registration process is complete. After that, you are ready to transact with your exchange wallet.

Order

As you are ready with the wallet, registration process and exchange of your choice, you can make some selling or buying orders. Whenever the exchange finds a suitable match, you will get the transaction done automatically.

Buying bitcoin is a hard process. However, understanding the process is quite necessary for not making any kind of mistake. Also, you need to take all the aspects into consideration while deciding about investing or purchasing bitcoin. So, whenever you are making the investment, keep these simple steps in mind.