A Guide to Buying and Storing Bitcoins

One of the biggest investment opportunities in the past decade has been cryptocurrency. People have heavily invested in cryptocurrencies and raised their values. This has opened doors for new investors. However, navigating the crypto exchange world can be very difficult for such new investors. Therefore, this article can be a guide to provide you with the correct understanding of how to buy and store bitcoins safely. If you are into Bitcoin trading, you might consider knowing how Bitcoin Affects Fossil Group.

Buying bitcoins:

As said previously, buying bitcoins can be tricky if you are not fully aware of the different options that you have. Let us have a look at all the options available for buying bitcoins.

Cryptocurrency exchange platforms

One of the most common methods by which most people buy or trade-in bitcoins is the cryptocurrency exchange platforms. Cryptocurrency exchange platforms are essentially just mobile applications or desktop versions of such applications that people can log on to trade or buy bitcoins. It is very easy. All users have to do is create an account on the platform, link their credit or debit card or any other type of payment information, and proceed to transfer funds to their wallet in the application itself. This enables users to have money to use in the app from which they can buy or sell cryptocurrency. Not only this but users can also convert their bitcoins to cash and withdraw the cash for use. Therefore, as you can see these are pretty popular methods.

These platforms have not only made trading easier but have also introduced the different types of cryptocurrencies to new investors. The reason for the boom of cryptocurrency may also be attributed to these cryptocurrency platforms. However, there are certain drawbacks to it. One major drawback of using such platforms is that most platforms are dupes taking people’s money without exchanging it for any type of cryptocurrency. This had created a frenzy amongst the general public. They are trusting fewer and fewer websites which are causing a problem.

However many platforms offer you the amount of safety you need. Hence, if you are a new investor looking for cryptocurrency investment options using such crypto exchange platforms may be easier for you. This platform is user-friendly and users are also given a tutorial on their first time navigating through the app. Therefore, choose your platform wisely and begin your journey of investment.

Peer-to-peer platforms:

Another common method of buying cryptocurrency has been by using peer-to-peer platforms. Here one can trade easily with their peers on the internet. All you have to do is look for platforms that allow you to exchange bitcoins with each other in exchange for cash. For example, if you are someone looking to buy bitcoins and you come across someone else willing to sell bitcoins you can easily approach them. All you have to do is transfer the cash to their account and they can proceed with transferring the bitcoins to you. This is one of the trusted methods of buying bitcoins. Originally when we did not have many cryptocurrency exchange platforms offering peer-to-peer transactions was the only way of circulating bitcoins.

There is also some risk involved with this method as well. Many people have come across fake sellers who pretend to send you bitcoins in exchange for money. Hence, choosing your sellers is also important.

Therefore, as you can see these are the two methods by which one can buy bitcoins. These are commonly practiced methods but ever since the increase in popularity we see most people using exchange platforms as means to buy and sell bitcoins.

Storing bitcoins:

There are mainly two methods of storing bitcoins. One can be using hardware wallets or cold storage as we call it and the other is software wallets.

Hardware wallets are not always internet-connected and they are physical devices that store bitcoins and are encrypted with a key. Similar to hardware wallets, software wallets also store bitcoins by encrypting with a key but they rely heavily on the internet. They are constantly connected to the internet and have no physical existence.

Depending on your usage you should choose hardware or software wallets. If you are someone who needs access to your cryptocurrencies on a daily basis then software wallets are perfect for you. However, if you are someone who has invested in cryptocurrencies for a long time and wish to save them for the future then hardware wallets are perfect for you.

Hence, these are some important aspects of buying and storing bitcoins.