4 Tips To Know When Buying Bitcoin

By Casper Brown
Published February 1, 2021 Updated February 4, 2021
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4 Tips To Know When Buying Bitcoin

By Casper Brown
Published February 1, 2021 Updated February 4, 2021

Arguably the trendiest investment of the past decade, Bitcoin has increased by anything from around 800,000% to almost one billion percent in the last 10 years. This makes Bitcoin one of the best-performing assets in modern times. 

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People who invest in Bitcoins have different motives. Some want to put their savings on Bitcoins, while others want trading adventures and a quick buck. Some want to get in on a completely different investment adventure and want to be a part of what may very well be the future of finance, albeit digital. 

Tips For Buying 

While some may be inexperienced in cryptocurrency trading, one can hardly blame them if they’re eager to join in the USD$13.8 trillion annual cryptocurrency trading volume—assuming, of course, that they already know how to buy bitcoin. Here are some buying tips:

1. Mind Your Wallet

Your digital ‘wallet’ works like your real-life wallet. If you purchase digital currency, you must have a digital wallet to put it in. There are two types: the light wallet and the heavy wallet. 

If you’re going for a token amount, a light purse you can access from your phone is enough. There are several wallets to choose from, so pick one with good ratings and reviews. Make sure it allows you to transfer the account to another device. 

If you’re thinking of transferring a significant portion of your savings to Bitcoins, get a heavy wallet. Read the instructions carefully and allocate space on your hard drive. It’s what experts consider the safest choice, as you can download all coins to your computer for storage. Your cryptocurrency can communicate regularly with the server for verification. 

If you’re buying from an exchange, don’t keep bitcoins there. They’re vulnerable to hacker attacks.     

2. Don’t Purchase At ‘Take-Off’

Don’t rush to register a wallet and search for an exchange because you heard Bitcoin set a new growth record. After a spurt, all cryptocurrencies go through an adjustment period; the same happens after a precipitous crash. A correction always follows. It’s better to wait for a moment of decline and buy at bargain prices. 

3. Pick A Reliable Buying Method

Lately, Bitcoin is becoming increasingly difficult to buy. Exchanges have burdensome requirements, plus some states have restrictions that encumber potential buyers. Some countries altogether ban them. 

If you’re determined, pick a suitable platform with convenient payment methods. You can choose another exchange for trading after the purchase. 

If you’re looking to convert money into bitcoins, use an exchange catering to local traders. Choose a seller geographically close to you and set up a face-to-face meeting. However, be careful of risks. Make sure the seller has good and authentic reviews.

4. Buy And Chill  

After purchasing, sit back and relax. Don’t panic at sudden price swings. Cryptocurrencies are like that. In the past 11 years, there have been 722 instances where Bitcoin prices changed by 5% or greater, and 227 occurrences of price swings by at least 10%. Bitcoin had also moved by at least 20% 47 times. 

Such volatility can make any conservative money managers leery and may issue dire warnings. Understandably, new investors tend to panic at sudden price drops. Don’t worry as the market will take care of itself. Rates will eventually stabilize.

Conclusion

Buy bitcoins only from trusted sites. The cryptocurrency world is filled with scammers, so be very careful, especially when it comes to your credit card or bank account number. Follow these tips, read further on the subject. Be aware of what’s happening in the field, learn from other people’s mistakes, and make the right choice.   

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Casper Brown
381 Articles
I am an associate content producer for the news section of Coingape. I have previously worked as a freelancer for numerous sites and have covered a dynamic range of topics from sports, finance to economics and politics.

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