How to Buy Bitcoin Online?

Once, I asked one of my friends what Bitcoin was, as I had no idea about it. He told me that it's open source, but its design is public. He added that no one could own or control it. However, He advised me to buy Bitcoin online. As I didn’t know the procedure and its pros and cons, so I was confused a little bit. Then I started to do my research and found out that it is too easy to buy Bitcoin online, just through a payment processor like PayPal Holdings Inc. Bitcoins are digital currencies that facilitate cheaper and faster money transfers. Also, it is a decentralized system. Hence, Everyone can buy Bitcoin by following some steps.

Bitcoin investors only require a cryptocurrency exchange account, KYC documents, a digital wallet, a secure internet connection, and a payment method. You need to know the valid processes of Bitcoin payment which include bank accounts, debit cards, and credit cards. You can also get Bitcoins at specialized ATMs and via peer-to-peer exchanges.

Bitcoin investors have to keep in mind two important issues that are privacy and security. Before buying bitcoins you need to consider these 6 things.

• Choose a Crypto-Trading Service or Venue Exchange to place your order
• Select a Payment Method or connect your Exchange to a Payment Option
• Ensure safe storage for your purchased bitcoins.

• Cryptocurrency exchanges, brokerage firms, and payment services like PayPal.
• In some companies like Tesla Inc.(TALA) or MicroStrategy Inc. (MSTR), you can invest in indirect ownership of Bitcoin.

You can purchase Bitcoin through PayPal Holdings Inc.(PYPL). Either connect your account to a debit card or bank account or use the balance of the PayPal account to buy Bitcoins from a third party.

You may use PayPal directly to buy Bitcoins except the inhabitants of Hawaii. You can either use your existing PayPal accounts or the new ones you can set up for buying bitcoins. However, you can buy products and services with your bitcoins through the ‘Checkout with Crypto’ feature.

You can send Bitcoins from PayPal to your external digital wallet or your friends and family, by providing the wallet address to where you are sending your bitcoins.

TIP: You must use a destination wallet address that is designated for Bitcoin. Among the few online traders, eToro allows the use of PayPal to buy Bitcoins on its platform.

Use your credit cards to purchase bitcoins instantly in the same way you are using debit cards. But, all exchanges don’t allow credit cards while buying bitcoins because of their associated processing fees and risk of fraud. In that case, extra charges can be added by credit card processing if you buy bitcoins with your credit card.

Some top brokers and exchange platforms permit you to buy Bitcoin with a credit card, such as eToro, Binance, Coinbase, etc.

The other name of an online wallet is Hot Wallet, which is an app on devices like tablets, phones, computers, etc. On these internet-connected devices, Hot Wallets generate the private keys to your coins. However, strong passwords, safe internet browsing, and two-factor authentication are minimum requirements here.

The phrase “not your key, not your coin” is very commonly used within cryptocurrency communities. The Hot Wallet users are not the holders of the private key to the bitcoins which are held in it. If the Hot Wallet holders have not made sufficient security, They will have the risk of losing funds.

Hot wallets are suitable for a small amount of cryptocurrency that is trading actively on an exchange platform and one can use it like a checking account.

As compared to Hot Wallets. A Cold Wallet is not connected to the internet and your fund is at less risk of being compromised or lost. These wallets are also known as offline wallets or hardware wallets, which store a user’s private key offline. These appear with software that allows investors to view their portfolios without risking their private keys.

These hardware wallets are USB-driven devices that have advantages over hot wallets as they are free from viruses that may affect your computer.

Peer-to-peer(P2P) exchange services provide an online platform for buyers and sellers to connect directly. Firstly, you have to create an account here, and then users can post requests to purchase or sell Bitcoin. They offer the opportunity to the users to browse for the best deal so that they can evaluate the potentiality of the transactions. It generally works on the fundamental concept of blockchain, i.e. decentralization.

You may visit the page: 6 Best P2P Crypto Exchanges

However, it’s not as complicated to invest in bitcoins as it seems. Rather it is relatively easier. From the above discussions, it is quite clear now. Investors can buy less than a whole bitcoin and are exposed to its ups and downs. You should expect to pay for Bitcoin the price consists of a fee-per-trade and a cost to convert the currency to Bitcoin. Generally, the fee is rising with the trade amount.

Whether you are a beginner trader or a professional, you should remember that Bitcoins are not protected by SIPC. However, the agency prevents the loss of securities and cash in brokerage accounts holding up to $500,000 with a cash limit of about $250,000.