For those just getting into Bitcoin, the process can be an intimidating one. But with some guidance and the proper service provider, buying can become simple and enjoyable – the key being finding one with low fees and costs.
For instance, eToro stands out as an effective platform to purchase cryptocurrency because of its user-friendly interface and wallet-friendly fees. Other alternatives to consider are LocalBitcoins and Coinbase.
Buying on the weekend
Bitcoin can be an unpredictable investment, but there are ways to save money when purchasing it. One strategy is purchasing on the weekend when prices tend to be more attractive – the optimal time would be 3 pm-4 pm in the afternoon, or from 11 pm-12 midnight at night (though bear in mind that Bitcoin’s value may fluctuate rapidly). Nonetheless, keep an eye out as prices can rapidly fluctuate!
Trading volumes on crypto exchanges tend to diminish over the weekend due to many banks being closed and thus investors being unable to add funds into their accounts. Furthermore, many people prefer purchasing Bitcoin in cash rather than incurring credit card fees.
There are various theories as to why Bitcoin prices fluctuate so dramatically during weekends, but one prominent explanation is that large holders, or “Bitcoin Whales,” use this time to accumulate or unload large blocks. Such activities have an immense effect on prices and markets alike.
Although prices fluctuate frequently, Bitcoin remains relatively affordable as demonstrated by this graph from Anyblock Analytics. Furthermore, transactions and associated gas fees tend to decrease during weekends – and other means exist for cheaper bitcoin purchases, including using credit cards; but keep in mind that credit card transactions take longer and offer less security compared to blockchain transactions – hence why a crypto wallet should always be preferred over credit cards when purchasing cryptocurrency.
Buying a fraction of a coin
Purchase fractions of coins is one way to invest in Bitcoin without breaking the bank. As Bitcoin is divisible up to its eighth decimal place, individual units called Satoshis may be purchased. A Satoshi is defined as one hundredth of a Bitcoin or equals 0.00000001 BTC; by buying just one Satoshi you’ll own small amount of BTC – making it easier for beginners to start investing!
When purchasing bitcoins, the best method is through a reliable crypto exchange platform that offers competitive exchange rates and fees. But keep in mind that investing in cryptocurrency can be highly volatile; therefore, only invest with money you can afford to lose.
Remittance services offer another means of purchasing bitcoin, at current market prices and online. However, their fees may be higher than traditional currency exchanges; to make an informed decision about where you purchase from it is essential that research be performed beforehand.
As there is no single approach to purchasing Bitcoins, it is crucial that legal, regulatory, and tax status be taken into account when selecting a purchase method. Furthermore, selecting a platform with fast and secure deposits will ensure your purchases are processed swiftly and efficiently.
Considerations should also be given to transaction fees and minimum purchase amounts when buying Bitcoin, as these costs can eat into small investments quickly. Furthermore, its price fluctuation must also be taken into account before making your final decision.
There are various ways to purchase Bitcoin, but the cheapest method is through an exchange. Peer-to-peer marketplaces such as LocalBitcoins may also be an option; however, be mindful when dealing with these as they can be more risky. Finally, be sure to find a site which requires KYC/AML verification so as to prevent money laundering and terrorist financing.
Buying with a credit card
Coinbase, Bitpanda and Wirex all allow users to buy Bitcoin using credit cards easily and quickly – usually within 24 hours of initiating their purchase transaction. Some exchanges require you to first deposit fiat currency into your account before initiating a purchase transaction; others charge directly against your card with crypto delivered at your address once payment has been completed.
Before purchasing Bitcoin with your credit card, make sure that the platform is reputable and that your bank allows it. Certain card issuers consider the purchase of cryptocurrency a cash advance and may charge additional fees. Furthermore, be mindful of its price volatility which can change drastically within short times. Finally, always store your Bitcoins safely once purchased.
Consider whether or not your credit card offers rewards programs. Certain cards offer cash back, travel rewards or merchandise discounts that could offset the costs of buying Bitcoin and other cryptocurrencies – however many only apply when buying at reputable marketplaces with your card.
To buy Bitcoin using a credit card, the first step should be registering an account on a cryptocurrency exchange. Creating this account typically requires providing your email and password; some exchanges also request identification documents as verification for identity purposes if that option is chosen; otherwise it would be wiser to explore alternative solutions.
After creating an account on an exchange, it’s necessary to deposit funds by wire transfer or digital currency such as Bitcoin. When your funds arrive in the exchange account, market or limit orders can be placed – these will be executed once an available seller agrees to sell Bitcoin at your chosen price. Once executed, Bitcoin can then be transferred into either cold or hot wallets; please be aware that this process could take up to one day when buying via credit card.
Buying on an exchange
Purchasing Bitcoin on an exchange is one of the easiest, quickest, and safest ways to invest in this cryptocurrency. Although fast, convenient, and secure, investors should carefully assess any associated risks before investing – cryptocurrency prices are highly volatile and can fluctuate quickly, so before making your decision it’s essential that you research any currencies being considered and consult an investment adviser or professional beforehand.
Different exchanges charge various fees for their services, with some charging a percentage of transaction values and others including them in their spreads. Some even provide insurance against loss to users’ funds. It is crucial that investors choose an exchange that complies with KYC/AML regulations as this will decrease the chances of their account being compromised or used for money laundering activities.
For an optimal Bitcoin buying experience, select an exchange or trading platform that accepts your preferred payment method – popular examples being eToro, Coinbase and BitBuy which all feature high levels of security as well as exceptional user experiences with wide currency support for multiple languages and regulated regulations.
Peer-to-peer marketplaces provide another method for buying Bitcoin, providing an ideal option for those wishing to bypass exchanges or brokers. Such marketplaces usually require proof of identity as a standard requirement in order to prevent money laundering; however, such unregulated marketplaces could prove risky.
When choosing an exchange to purchase from, it is always advisable to conduct due diligence on its customer service. One easy way of doing this is searching Google Reviews; be wary of those with numerous negative reviews as these may have come from disgruntled customers after being locked out or receiving poor service. For a more accurate reflection of its reputation you could ask other Bitcoin investors for recommendations;