How to purchase Bitcoin via a cryptocurrency exchange
Trading Bitcoin is offered by numerous companies. However, their concerns about providing exposure or real ownership differ. A reliable place to start if you’re wanting to purchase Bitcoin is via a cryptocurrency exchange like Coinbase or Gemini, or with a trading app like eToro.

Remember that there are trading costs and other considerations, such storage, when buying Bitcoin.

Step 1: Select a cryptocurrency trading website
Purchasing Bitcoin from an individual is most easily done through a cryptocurrency exchange, like Binance.US or Kraken, to mention a couple.

Customers of online stockbrokers like SoFi and Robinhood can also purchase Bitcoin and other cryptocurrencies.

Reminder: You should also remember that you will need to store your cryptocurrency wallet. Although exchange account wallets are provided by cryptocurrency trading platforms, cold wallet storage is generally more secure.

Step 2: Create a profile
The majority of accounts demand that users register a payment method and verify their identification.

Although several decentralized exchanges (DEXes) permit users to maintain their anonymity, the majority of well-known exchanges, like Coinbase, Kraken, and Binance.US, demand identifying identification.

The setup process is virtually the same as what is necessary for brokerage accounts as many centralized exchanges follow Know Your Customer (KYC) rules. The following are a few of the documents you could be required to submit:

official identification from the government.
Taxpayer identification number or Social Security number
ID verification using video or photo.
documentation proving the address
You should be aware that different exchanges accept different payment methods and that costs will vary when choosing a cryptocurrency trading platform.

Step 3: Make a purchase
Many of the order types offered by online brokers are also available on cryptocurrency exchanges. The most well-known cryptocurrency exchanges support the following sequences:

Market order. When a trade order is placed, that is the price.
Put a limit on the order. This is the time to establish a price cap on the purchase or sale of cryptocurrency.
Limit stop order a pending order that doesn’t execute until the market reaches the price you’ve set.
Step 4: Keep your cryptocurrency

Bitcoin can be stored in a variety of ways. Using a hot wallet or a cold wallet are two well-liked approaches.

warm wallet. Bitcoin can be kept in an exchange account or online wallet. The popularity of these “hot” wallets stems from their accessibility and ease of use. But they also entail downsides.
Online hackers may target hot wallets, and users may lose access to their account funds if the cryptocurrency company suspends withdrawals while filing for bankruptcy. Since cryptocurrency investors are not given the same protections as those offered by traditional financial institutions, this is the situation with FTX and BlockFi customer funds.

Chilly pocketbook These wallets are portable, tiny, encrypted gadgets that resemble USB drives at times. Since “cold” wallets remain offline, typical hacking methods are hindered, leading to a common perception that they are more secure.

Alternative ways to buy Bitcoin Trading apps. Users can buy Bitcoin through Robinhood, eToro, and a few other financial and banking apps including PayPal and Revolut. It is advisable for anyone considering this option to carefully verify the information. Contracts for differences (CFDs) are offered by certain companies. Your profit or loss with CFDs is based on the terms of the contract. The actual coin will not be yours. Therefore, holding the coins in a cryptocurrency wallet or opening an account with a Bitcoin exchange is not necessary while using a CFD.
ATMs for bitcoin. These ATMs provide consumers with an unusual way to purchase virtual money. Buyers should be aware that having a Bitcoin or cryptocurrency wallet is frequently necessary. ATM commissions might also be very hefty. Coin ATM Radar’s research indicates that the average charge for a crypto ATM transaction is approximately 15%.
brokers online. Not every conventional broker has access to Bitcoin. However, as the market for cryptocurrencies has expanded, some have begun to enter the market. Derivative items are also offered by some. Companies will charge different amounts for commissions and other fees.
mining bitcoins. Instead of buying Bitcoin outright, you can buy Bitcoin-related assets like mining stocks, which will expose you to Bitcoin in addition to other factors.
Bitcoin reserves. Another choice is to invest in funds like the Grayscale Bitcoin Trust (GBTC). As of the time of writing, each share owned by GBTC represented approximately 0.00049 BTC.

SEE ALSO: How is the price of Bitcoin determined?

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