You can find thousands crypto currencies in the market, but ETH and BTC is the most popular coins available online. When we talk about the Bitcoin for Trading investment market, it is, no doubt, highly volatile in nature. As a result, the price of Bitcoins can fluctuate anytime.
So, you need to invest your funds in secured crypto and Bitcoins is the best option in this regard. Investing in bitcoin is a good decision if you afford to lose your funds because if you do not know how to trade bitcoin then you cannot gain any profit from your investment.
So, before you invest in Bitcoins, there are certain important steps that you need to follow. Read on to know more in detail the steps to have an overall better understanding!
The  Golden Rules Of Investing In Bitcoin – Safely And Effectively
- You cannot purchase crypto coins from your bank or a firm, because it is a decentralized currency that is available online only. There is no physical presence of such coins and you cannot carry such coins in your wallet. So, you need to choose a secured exchange to buy bitcoin and you can find such platforms online. You can find many exchanges online, but choosing the right one is important. For example, Coinbase, Gemini, and Kraken are some of the popular online platforms from where you can buy cryptocurrencies. Else, you can also try Yuan Pay Group to buy Yuan Pay Coin, which is crypto approved by the Chinese Government. As a citizen of China, you cannot invest your funds in other cryptocurrencies, except this approved Chinese coin.
- You must take the risk while you invest your funds in bitcoin and other cryptocurrencies because these digital coins are not regulated by any government. Bitcoin accounts and exchanges are not insured and you cannot claim any refund if you made a transaction mistake. Therefore, your chosen exchange platform should be highly secured and encrypted. Apart from that, you must choose an exchange that has different types of wallet options. You can keep your coins safe in a cold wallet because these wallets are secured compared to hot wallets. There are some exchanges available that offer independent insurance coverage to their customers and you can avail of such facilities to keep your crypto account secured.
- You need to pay a fee for your bitcoin trading and transactions, and such fees can vary from exchange to exchange. For example, a reputed exchange can charge higher fees because they have some security features and they can provide complete flexibility to their customers. A few exchanges can charge a fee based on a spread or the market price of the BTC. On the other part, you can find some exchanges that can charge you based on your payment method and location. So, you can visit their website and check their charge before you open your trading account.
- How would you diversify your portfolio? Investing in bitcoin is a wise decision, but you must add some other cryptos to your portfolio to diversify your investment plan. In this case, you can choose some popular cryptocurrencies like ETH to reduce your risk of loss. Along with that, you can invest your funds in stable coins and Altcoins too.
- You cannot open an account on a crypto exchange without verifying your KYC. In this case, you need to submit your documents like residential ID proof and income proof. Besides this, you are required to fund your account with the use of fiat currencies. After that, what you need to do is link your bank account with your chosen crypto account. Some exchanges accept credit cards, but you need to pay a transaction fee to use your credit card to buy bitcoin.
- Once you open an account on an exchange, you need to place a purchase order. Depending on the exchanges, you need to wait for some days to validate your transactions. There are some direct purchase methods available and you can buy bitcoin from Coinbase and PayPal with dollars instantly.
Conclusion
After buying Bitcoins, you cannot leave your coins in your exchange account and you need to store them in a wallet. Choosing a secured wallet is very important and you can choose a cold wallet connected with a hardware device to keep your funds protected.
