How to Easily Buy Bitcoin for Online Trading and Investment
Bitcoin is the most popular digital currency in the world and has experienced significant price fluctuations since its introduction in 2009. Bitcoin has been an exciting means of investment in recent years, and it is widely accepted for use in most online trading. Moreover, some investors have made millions trading Bitcoin, while others have experienced significant losses.
Nevertheless, the success of online traders and investors of crypto depends on how they buy, sell, and hold the digital currency. However, you must know the practical and straightforward ways to buy Bitcoin before engaging in its investment. Therefore, this article will analyze the best way to buy Bitcoin for online trading.
What is Bitcoin?
Bitcoin is a type of cryptocurrency, or digital currency, used to pay for things virtually. This digital currency broke into relevance with its introduction in 2009, and Bitcoin experienced its highest rise in 2017. People mine these digital coins when a computer processes transactions with the currency.
Bitcoin manages everything using a decentralized computer network, and a ledger is known as a blockchain that records every transaction. This ledger is a significant public record that shows every transaction process line in the currency.
How to easily buy Bitcoin
If you want to buy Bitcoin, there is no need to worry because there are several options. In addition, there may be no need to open a particular account to buy Bitcoin because many good brokers have ways of buying them. Some top brokers are Binance, Kraken, and Coinbase; individuals can also buy Bitcoin through apps and PayPal.
Depending on your choice, you can buy Bitcoin for a long-term hold or trading. Every method we discuss has security, cost, potential advantages, and some disadvantages.
Some financial applications like Venmo and PayPal allow users to trade Bitcoin. Using their financial service, PayPal has made it easier to purchase and sell Bitcoin. Traders need to pay about $0.43 for a trade of less than $5, and the transaction fees increase from there. Any work up to $1,000 requires 1.8%, while a transaction above $1,000 is 1.5%.
There is a markup spread on trades, although PayPal will not charge you for holding Bitcoin in your account. A work of $1 can take place at a time; the tradable coins are Bitcoin, Ethereum, Bitcoin Cash, and Litecoin.
If you are looking at buying Bitcoin for trading, a crypto exchange is another exciting option. Traders tend to enjoy many advantages on the best crypto exchanges. Firstly, the best exchanges do not charge high fees for all crypto trading. The exchange will be your best choice if you are looking at cutting costs. The best exchanges don’t collect hidden fees whenever you are trading on their platform. Exchanges provide wallets to store your Bitcoin and other digital assets.
Although the fees are different for all crypto exchanges, finding the one that will suit your needs is essential. Some businesses have good services, and other excellent features are Binance, Coinbase, Kraken, and Crypto.com.
You can buy some Bitcoin without any direct commission when using trading apps like Robinhood or Webull. However, you will end up paying for a commission with spread markup.
Robinhood has a trick of no commission, but you will end up paying the charge in spread markup, and they don’t reveal the exact cost. You can buy Bitcoin directly and other digital currencies, too; they have some features that are not on conventional exchanges. Individuals can also be able to purchase stocks and NFTs on this platform.
Webull allows you to trade over 25 cryptocurrencies, including Bitcoin. However, you must pay a 1% spread markup commission on every transaction. You can also buy stocks and sell your digital assets on this platform.
Many traditional brokers have jumped into the crypto industry, which includes TradeStation and Interactive Brokers. You can trade a coin and buy Bitcoin directly from an interactive broker. You will be charged $10.02 on every futures contract on this broker.
For direct Bitcoin trading, you have to pay a commission of 0.12-0.18% of your trade, depending on the monthly volume. You can also access coins like Ethereum, Bitcoin, and end Bitcoin cash. In addition, interactive brokers offer an extensive range of securities across the globe.
Buying Bitcoin directly from Bitcoin ATMs is another option, although you will likely pay more commissions than anywhere else. You can purchase Bitcoin, and you will be able to sell them by using your debit card. Although, you may need a crypto wallet to carry out any transaction. The commission can be significant with some ATMs; some charge 7% for every transaction, while others may charge 10%.
What you need before buying Bitcoin
When you create an account with exchanges or traditional brokers, you must provide personal information. The platform will need your name to continue, but some applications will ask for your address, Social Security number, phone number, and account details.
This information will enable the platform to verify you. The platform can also use that information to prepare your tax information. The exchanges can also prepare documents on your losses and gains with accuracy.
The best place to store Bitcoin
The place to store your Bitcoins depends on your intention of using the coin. For instance, if you want to trade the currencies, keeping them in a crypto exchange will be good. However, you can also leave them in a broker, especially if you are a frequent trader.
Some people may choose a crypto wallet if they want to spend their Bitcoin or for safekeeping. Crypto wallets are capable of holding and securing your digital assets. However, remember that you are responsible for the custody of your assets, and you can lose all your Bitcoin if you are not careful.