If you have decided to bite the bullet and want to buy Bitcoin, you are making a great decision! With looming financial crises all over the world, it will pay to invest in Bitcoin today.
Since its inception, Bitcoin has grown in popularity. It’s a great asset to hold as an alternative form of currency and/or as a device for investing at a later stage.
If you’re new to buying Bitcoin, you are going to be wondering how much does it cost to buy Bitcoin. You want to know how much money you should invest in buying the cryptocurrency that has taken the world by storm.
This guide will show you how to get started!
How Much Does It Cost to Buy Bitcoin: All You Need to Know
The first thing to do when with regard to how to buy Bitcoin is to find the right exchange. An exchange is where you buy Bitcoin and other cryptocurrencies.
The price of Bitcoin will always be the same, plus minimal user fees — depending on your exchange.
Here’s what else you need to know about buying Bitcoin:
- Understand How it Works
Before you decide to buy Bitcoin, you want to first understand how the process works. While the technology behind Bitcoin (Blockchain) is complex and technical, you only need to understand the basics when it comes to buying.
There is a finite number of Bitcoins in existence. Bitcoins can be created by Bitcoin mining. However, as there is no central authority that can reproduce Bitcoins at will, one doesn’t have to worry about hyperinflation and the extreme loss of value that comes with fiat currency.
Your cryptocurrency will have a set price based on the supply and demand of that day. If the current price of Bitcoin is $10,000 it means that the price of 1 Bitcoin is the aforementioned price.
However, the advantage of buying Bitcoin is that you don’t have to buy a full Bitcoin. If $10,000 is beyond your budget, you can spend as little as $1 to buy a small fraction of a Bitcoin.
- Storing Your Bitcoin
The cost of Bitcoin is not simply how much you pay for it and how much it rises and falls after your initial purchase. You also have to know that the value of your Bitcoin depends on how well you protect it.
In the early days of buying Bitcoin, many buyers seldom predicted its eventual success. Many people across the globe bought several Bitcoin for a few hundred dollars — without knowing that these few hundred dollars would skyrocket to six figures as the price of Bitcoin soared rapidly. There are numerous stories of would-be Bitcoin millionaires who lost it all.
Use your cryptocurrency exchange as the primary wallet for your Bitcoin. As you accumulate more Bitcoin, you can consider a hardware wallet to store some Bitcoin.
- Bitcoin Wallet
Your cryptocurrency exchange will have a wallet. This wallet is where your Bitcoin (and other cryptocurrencies) are stored. You have the freedom to add as much as you can afford to this wallet. You can also withdraw funds from this wallet or spend your Bitcoin from this wallet.
Your Bitcoin wallet will come with two codes known as keys. One will be a Public Key and the other is a Private Key. These are long and randomly generated codes. Some exchanges might allow you to create a recovery code to retrieve these keys if you ever lose them.
The public key is given if you want to receive Bitcoin and other cryptocurrencies to your wallet. You can think about it in the same manner as you would the routing number of your bank.
The private key, however, should be considered as your private account number. It should never be shared with anyone. Doing so can cause someone to break into your wallet and steal all of your Bitcoin. If this happens, you can never recover it again.
You should write your Public and Private key on a sheet of paper and store it in a safe. Never store it digitally, whether in an email, a text document, or on a cloud server.
- Buy Bitcoin
Now you are ready to buy Bitcoin. Create an account with your cryptocurrency exchange and then add your funds. You can also purchase Bitcoin with a credit or debit card. Buy as much as you are willing to lose.
The cryptocurrency exchange will have a simple step-by-step process to request the number (or shares) of Bitcoin that you wish to purchase. The process will be as familiar as buying any product or service online. Once the Bitcoin has been purchased, it will show up on your portfolio within minutes.
Once you receive a confirmation of the purchase, you can hold onto your Bitcoin, spend it, convert it to other cryptocurrencies, or liquidate it back into cash. You have to think long-term about what you want to use Bitcoin for.
You can use it as an alternative to fiat currency and precious metals. You can use it to hold in the long-term to liquidate at a later time. Or you can just hold it for as long as possible, and then bequeath it to your heirs.
- Earn Bitcoin
Bitcoin started out costing just $10 per Bitcoin. However, we have now seen it cross $10,000 several times. As a result, there’s never a specific answer to how much does it cost to buy Bitcoin.
Since Bitcoin might be more expensive for the average consumer at any given time, you want to try to earn Bitcoin when possible. You can use an online service such as Purse or Lolli to earn Bitcoin while you shop online.
If allowed in your jurisdiction, there are online games (such as casino games, trivia matches, etc.) where you can earn Bitcoin. Buying Bitcoin should be your priority, but you should also consider earning Bitcoin as well.
Start Buying Bitcoin
Now that you know how much does it cost to buy Bitcoin, you are ready to start accumulating your Bitcoins! Make sure to share this article with anyone interested in investing in Bitcoin.
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