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Many of the people I speak to are keen to buy Bitcoin but are nervous about taking the plunge.
However, buying crypto is actually incredibly straightforward and, once you’re familiar with a few basic processes, you’ll be building your crypto portfolio in no time.
So, if you’re a Bitcoin beginner and are looking for easy to follow, step-by-step instructions on how to buy crypto, you’ve come to the right place!
Most people buy Bitcoin, Ethereum and other tokens through what’s called a cryptocurrency exchange as it’s a quick and simple way of investing in crypto.
All you need to do is:
- Choose a cryptocurrency exchange – Coinbase is a good place to start.
- Make sure your bank supports transactions to and from the exchange.
- Sign up for an account on the exchange – you’ll need ID and it could take a couple of days.
- Once approved, fund your account by transferring cash from your bank account. You can also use a debit/credit card on many exchanges.
- Select the crypto you wish to buy and the amount.
- Confirm the purchase and the fee attached to it.
- That’s it! Your coins will now appear in your portfolio.
You can now decide whether you want to simply sit on your coins, known as ‘hodling’, in the hope they’ll go up in value, or trade them and attempt to profit from price fluctuations.
If you decide to keep hold of your crypto you may need to consider whether you want to leave them on the exchange or transfer them to a secure hardware wallet or app. There are pros and cons to both which I talk about here.
Trading crypto can be profitable but also risky and it takes a lot of hard work and skill to succeed and make a regular profit.
Buying cryptocurrency – what you need to know
There are certain important things you need to remember when you take the plunge and decide to buy crypto.
They include:
- Cryptocurrency exchanges charge a fee each time you buy or sell coins.
- The value of your coins can go up and down and crypto is notoriously volatile. You could lose your entire investment.
- Keeping coins on an exchange comes with certain risks, such as hacking and insolvency.
- Your crypto investment is not protected in any way, unlike a bank deposit. In the UK, money in a bank account is protected by the Financial Services Compensation Scheme (FSCS).
- Regulations may be introduced that change the ability for you to buy and sell cryptocurrencies in the way that is currently possible.
- Your bank may decide to restrict access to the cryptocurrency exchange you’re using in the future.
- You should only keep a small percentage of your investment portfolio in high-risk assets such as crypto.
Buying crypto through a spot Bitcoin ETF
Another easy way of buying crypto is through a spot Bitcoin ETF bought via a share dealing account.
There is a plethora of accounts to choose from that will give you access to stocks, shares and indices around the globe.
Buying Bitcoin via an ETF is a simple way of gaining exposure to the asset without having to actually buy and store the coins yourself.
You can read more about spot Bitcoin ETFs here.
Help with buying Bitcoin
I hope that these instructions are easy to follow and will get you started on your crypto journey.
But if you’re still struggling to get started and would like some guidance along the way then we can help you.
We can assist you with all aspects of buying crypto, including using exchanges, safely storing your coins and selling your coins when you wish to exit the market.
Also, we can help you avoid some of the pitfalls that crypto novices sometimes make and ensure you steer clear of the many scams that unfortunately plague the cryptosphere.
If you’d like to discuss how we can help, please get in touch.