A Guide to Investing in Cryptocurrency: How to Buy Bitcoin

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Basics of Bitcoin Purchase

What Exactly Are You Purchasing?
It’s not a real coin. Carsten Sorensen, an associate professor at the London School of Economics who teaches a course on cryptocurrencies, said: “It’s simply just a number.” You can purchase one Bitcoin, ten Bitcoin, or a fraction of a Bitcoin, depending on how much money you wish to spend. Only 21 million will ever be produced, per the founding protocol.

Smaller portions of a whole can be bought because Bitcoin can be divided out to eight decimal places. Therefore, you would receive approximately 0.0053 of a Bitcoin if you purchased $100 worth of the cryptocurrency while it was going at around $19,000.

I am familiar with bitcoin wallets. Do I require one?
No and yes. You can buy without creating a wallet if you utilise specific brokers like Robinhood. The coins are under the care of Robinhood. However, you need to create a wallet if you wish to purchase Bitcoin on your own.

A wallet is often the location where your Bitcoin is stored. As places to hold money, wallets are exactly what they sound like. However, in the case of Bitcoin, wallets are virtual. Exodus, Electrum, Mycelium, and Blockchain.com are a few well-known wallets. Both your PC and phone may access them. However, if your keys are lost, you risk losing access to your possessions.

Hackers are further kept at bay by hardware wallets, which are locations to keep your Bitcoin that are fully cut off from the internet. The good news is that many wallets can be opened for free. To transfer Bitcoin into or out of a wallet, you might have to pay a small fee.

If you’ve read anything about Bitcoin, you are aware of its reputation for privacy. Wallets make this possible. To transfer Bitcoin, you need a wallet, but you don’t need to connect your name or phone number to lots of wallets.

How Can I Purchase Bitcoin?

Your most likely stop will be a bitcoin exchange, as was already explained. (Yes, you may have observed Bitcoin vending machines in person, but these are primarily novelty items.)

You’ll enter a payment method and establish an account. You may be asked for information like your bank account information or a debit or credit card at trustworthy exchanges. After that, you will have to present identification, such as a passport, driver’s licence, or ID. Once your identity has been confirmed, you may start purchasing Bitcoin using the payment method of your choice, transferring it to your own wallet, and keeping a closer eye on changes in its price.

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