A Bitcoin Guide – Buying the Popular Cryptocurrency
What are the best cryptos to invest in? How do you buy Bitcoin? Read this Bitcoin guide from Queensway to learn more about investing in BTC.
Is Bitcoin a good investment? Why should you invest in this popular digital currency? How can you get BTC tokens? Which wallet should you use to store your coins?
If you’re wondering how to invest in crypto and want to bet on the most popular cryptocurrency in the market, here’s a quick and thorough Bitcoin guide for beginners.
A Beginner’s Guide to Bitcoin
There’s no doubt that Bitcoin remains the crypto king, having led the crypto revolution since its launch in 2009. It currently represents more than 65% of the total crypto-market and its price movement often affects the performance of altcoins (alternative coins).
Developed during the economic and financial crisis of 2007/2008 and launched in 2009, Bitcoin represented the first 100% digital monetary alternative for those who didn’t trust international financial institutions in keeping their money safe.
Bitcoin has quickly become a way for users to have control over their money again, become their own banks and use a decentralised system that allows cheaper, faster, and more transparent and secure transactions. This, of course, is all thanks to its underlying technology – the Blockchain.
While the Bitcoin network allows peer-to-peer transactions, all transfers are tracked and integrated on the Blockchain – a giant public ledger that anyone can access. All Bitcoin transactions in a block are validated and encrypted. This prevents users from changing or deleting transactions and corrupting the Blockchain.
So, Wondering How to Join the Revolution?
The good news is that anyone can buy cryptocurrency, nowadays. You don’t have to be a crypto analyst or a Blockchain expert to invest in crypto like Bitcoin.
If you want to invest in crypto and don’t know how — here’s a clear and easy step-by-step guide.
Step 1: Find a Good Crypto Wallet
Any cryptocurrencies you purchase are delivered straight into your digital wallet – it’s therefore essential to make sure that you open a wallet before buying any digital coins.
Crypto wallets enable you to access your digital assets. They allow people to “save” their cryptos in a safe and secure place before deciding to sell or exchange them.
There are different types of crypto wallets that vary in terms of features, protection, platforms they can be used on, and assets they support. Their main differences are determined by whether or not they connect to the internet.
Hot wallets vs. Cold wallets
Hot wallets are connected to the internet, which means they are vulnerable to theft. Cold wallets, on the other hand, are not connected to the internet, which is why they are considered much safer.
Some experts might recommend setting up a wallet that is not connected to any of the existing crypto exchanges (hot wallets). Why? If the crypto exchange closes or becomes incapable of processing requests in the predetermined timeframe, you can still have simple and instant access to your cryptos.
The choice of your wallet will mainly depend on your goals. In this particular industry, it is common to compare hot wallets to ‘checking accounts’ and cold wallets to ‘saving accounts’.
Here is a list of some of the most popular crypto wallets in the market.
#1 Bitcoin Core
- Original Bitcoin wallet
- Provides better protection against scams
Bitcoin Core supports Windows, Mac, and Linux. How does it work? Bitcoin Core can easily download the current version of the Blockchain (approximately 160 GB). This wallet connects to other nodes and will keep downloading and processing data connected to Bitcoin and its transactions.
One of Bitcoin Core’s major advantages is its strong security. It is almost impossible to connect a BTC payment address to a specific identity.
- Lightweight, simple to download and use
- BTC recovery is available via the wallet seed
Supports Android, Windows, Mac, and Linux. Electrum is one of the most widely used lightweight wallets. You don’t need to download the entire Bitcoin Blockchain as Electrum connects to other servers to verify your BTC balance and process payments. This wallet may be downloaded in minutes and it takes up very little space on your hard drive.
Step 2: Open an Account with a Trustworthy Crypto Exchange
To avoid scams and be sure to get the best services possible, you should always carefully select your crypto-exchange platform. Make sure to pick one that has been around for a while with a good reputation. In other words, select an exchange that is trustworthy.
But what is a trustworthy crypto exchange? Consider the following key features it should offer:
✓ Anti-Money-Laundering (AML) and Know-Your-Client (KYC) policies,
✓ European General Data Protection Regulation (GDPR),
✓ 3D Security for online transactions to fight fraud,
✓ SSL and DDoS-attack protection for credit card transactions, data transfers and logins,
✓ Account verification via document collection to prevent identity theft,
✓ The strictest financial European regulations.
We strongly recommend that you research the web and find a crypto exchange that suits you the most according to these criteria.
Of course, there are many other things to take into consideration when choosing the best platform to get your tokens. You need to compare and have a look at:
- the fees,
- the liquidity,
- the payment methods offered,
- the maximum daily or monthly payments or withdrawal limits,
- the fiat currencies accepted,
- the user experience and interface,
- the quality and availability of the customer support team.
Step 3: Verify Your Account
Your identity needs to be verified in order to secure your newly created account and future transactions. Information that is most likely needed; Name, date of birth, address, city, proof of residence, proof of ID, selfie verification.
Step 4: Use Fiat Money to Buy Bitcoin
Once your account is verified, you can buy Bitcoin tokens using your preferred payment method. The most popular ones are often credit card and Bank Wire transfer:
- Choose cryptocurrency: Bitcoin
- Enter the amount you wish to buy
- Choose your preferred payment method: CC/ Bank Wire
Is Bitcoin a Good Investment?
Bitcoin is perhaps the best crypto to invest in, as it is the most popular and oldest one on the market.
After more than 10 years of existence, the Bitcoin network is still going strong. Many worldwide financial institutions such as the CME Group, Bakkt, Fidelity, and Julius Baer are developing financial products around it to meet the growing demands of their clients.
Despite it still being a relatively new currency, Bitcoin is often seen as a digital safe-haven asset during times of worldwide geopolitical tensions or high global uncertainty in traditional markets. Moreover, it is safe to say that Bitcoin’s fundamental Blockchain technology will surely support its growth in the coming years.