According to the market, Bitcoin remains on top of the crypto world, overwhelmingly exceeding all other cryptocurrencies in price and popularity. It has climbed up the crypto ladder so high that it now easily defines market performance and influences the prices of other crypto assets. Its power has become so strong that many now consider Bitcoin to be a rival against state banking systems, governmental regulatory bodies, and national currencies (just like gold is correlated with USD). Of course, this approach should be treated with its fair share of criticism and proper calculation. Bitcoin is only taking its first steps in entering national legislatures, banking systems, and payment infrastructure.

Bitcoin’s integration into globally used banking technologies is stiffed by its highly risky nature and sometimes extremely volatile behavior. Cryptocurrencies are a very young phenomenon, and many people aren’t ready to trust them as real money because holding and trading virtual coins requires specified knowledge and skills. For example, trading with leverage—a commonly used trading method among bitcoin holders—is very difficult to handle and quite tricky to make 100% profitable. Still, short selling is a technique that allows investors to derive profits from Bitcoin investments quite often. Without knowing how to short, it is impossible to be fully effective in trading.

Guide to Investing in Bitcoin

The first step in investing is buying bitcoin. Bitcoin is sold on many exchanges, such as Binance, or can be bought directly from other traders on a peer-to-peer network. You can buy bitcoin with fiat money through a bank card, with a crypto card, with electronic money, or with other crypto assets. Usually, the way you pay for Bitcoin is defined by your place of residence, the seller’s demands, and how soon you’d like to have the coins. Still, buying Bitcoin is becoming more and more available with the goal of spreading the currency widely. Thus, some large retail and wholesale corporations have started to sell bitcoin. The most illustrative example here is Walmart. It has developed a technology that allows money transfers via its mobile app, which serves as a bitcoin payment method, as well.

If you want to buy bitcoin via Walmart, here’s a short guide:

• Get an electronic wallet to store bitcoin. (You will find some details below.)
• Buy some bitcoin. You can choose to buy the coins from traders located near your area on a peer-to-peer platform. Numerous exchanges work this way, such as Local Bitcoins or Paxful.
• Define the desired amount of bitcoin you want to purchase. Sign up on the platform with your e-mail address.
• Choose your payment method. The left side menu contains payment variations. Choose Walmart2Walmart.
• Deposit money in Walmart and fill in the seller’s Walmart details on the peer-to-peer platform.
• Authenticate the payment by sending your receipt from a Walmart cash register.
• Wait a few hours and receive the bitcoin in your electronic wallet.

Step One: Get a Wallet

Investing in bitcoin does not necessarily mean trading bitcoin. If you lack essential trading skills and forecasting expertise, you can buy bitcoin and “long” or “hold” it, which means keeping it in your wallet for an indefinite period of time with the expectation that the price will go up in the future. This choice is long-term investing.
The best place to store the coins is in an electronic wallet rather than on a third-party platform, such as an exchange. Many hardware and software wallets are available.

One more reason to store bitcoin in a wallet rather than on an exchange is that blockchain technology means that all the trading information, such as addresses and balances, is available to the public. Addresses with considerable balances are at a high risk of being hacked by those hunting for easy profits.

There are many digital wallets to choose from. Some are designed to store Bitcoin only, while others support numerous currencies and digital assets, allow users to exchange currencies, and give straight access to an exchange. Many wallets have integrated chats, customer support systems, and even techniques to manage your investment portfolio.

Step Two: Pick an Exchange

Crypto exchanges can offer many benefits and built-in features for traders. They can have their own currencies, web pages, wallets, and other infrastructure. Many exchanges provide users with offline access to their assets to facilitate the use. Some platforms support newbies by giving them access to instructions and educational materials.

Most of BitForex’s traders are from the United States, the United Kingdom, and Canada, but it is very popular around the globe, as well. Those who want a wallet specifically developed for bitcoin holders, love using Mycelium, a well-secured, cutting-edge technology with a user-friendly interface and solutions designed specifically for the bitcoin network, but it may seem quite complicated to beginners.

There is a variety of ways to pay for bitcoin. You can choose from fiat money, a bank card, a crypto card, electronic money, or other crypto assets. Usually, the way you pay for bitcoin is defined by your place of residence, the seller’s demands, and how soon you’d like to receive the coins.

While all exchanges are created for the same purpose—to allow currency trades—they tend to differ in the services they offer. Some exchanges are more secure than others, so exchanges have different levels of reliability among the traders. Some exchanges take higher fees and commissions, as well as differences in the currencies listed. There are a lot of factors to consider before making up your mind about a certain exchange.

Step Three: Make an Order

There is a tremendous number of ways to purchase bitcoin, and the most popular ones are usually less complicated and safer. Apart from actually exchanging currencies, digital exchanges offer selling and buying opportunities. You can buy bitcoin with fiat money stored in your bank account or a bank card, or you can sell it and receive fiat money in exchange.
There are even automated teller machines for faster operations with bitcoin. They can usually be found in large shopping malls or any other public places. As a rule, they charge a larger fee than digital exchanges, but they provide faster access to bitcoin operations. It is worth mentioning that users must still possess an electronic wallet and address to use the machine.

Of course, such easy access to the Bitcoin network is only allowed in those countries where it is legal. There are still many countries where financial operations and trading with bitcoin are prohibited, so investing in bitcoin is unavailable to many potential investors.

To be continued...