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Things To Learn Before Buying Your First Bitcoin

Know Before Buying Your First Bitcoin

Background

Bitcoin was introduced in 2009 with the idea of making it the currency of the future, and recent trends suggest that the future has arrived. The value of Bitcoin is setting new records every day, topping all the known cryptocurrencies and has come to be known as “digital gold”. Bitcoin’s price is driven by volatile and finite supply of Bitcoin. As Bitcoin grows in popularity and legitimacy, you may be considering it as an investment. If you are planning to invest or trade in Bitcoin, the Bitcoin Pro App is an innovative way to trade in Bitcoin; it is a fully automated trading app that uses an intelligent trading algorithm & makes a trade on behalf of its users. To know more in detail, you can check Bitcoin Pro reviews. Investing in Bitcoin can be an exciting and lucrative venture but there’s a bit of a learning curve when it comes to understanding how it works. 

5 Key Things You Really Need To Know Before Buying Bitcoin

Thinking of investing in Bitcoin? Bitcoin is not just a financial instrument and can be used to buy products and services too. Bitcoin is a radically different payment system that is here to stay. As such, there are certain things you need to educate yourself about, beforehand. Before you dive in, and start buying here are five things you need to know:

  • How And Where To Buy Bitcoin?

The most legitimate way to buy Bitcoin is through a Bitcoin exchange. Since not all the platforms are trustworthy, it would be wise to buy them from the leading international Bitcoin exchanges, such as Binance, Coinbase, or Gemini. You can buy the desired amount of Bitcoin using fiat currencies, credit or debit cards, wire transfers, or PayPal.  There might be slight variation in Bitcoin price at different exchanges but stay away from those platforms where price gaps are significant.

  • Bitcoin trading isn’t totally free

Each bitcoin transaction includes a fee paid to bitcoin miners so that they can add your transaction to the blockchain. This fee is generally around $1.67 but it varies with network conditions at the time and the data size of your transaction. You’d also have to pay fees for deposits and withdrawals made at an exchange. These could be as high as 3.5 percent and you can spend as much as $50 to send your dollars back to your bank account. 

  • Get A Wallet To Store Bitcoin and Secure it

Investing in bitcoin is no joke, and securing your investment should be your top priority. You must have a Bitcoin wallet to store your Bitcoin. You should regularly back up your entire wallet and encrypt your backups to keep your wallet safe from thefts and malicious software. It is also best practice to store your Bitcoin in an offline or hardware wallet like USB keys, papers and CDs. TREZOR and Ledger Nano X are popular “cold wallets.”

  • Decentralized Currency

Bitcoin’s most defining feature is that it is decentralized. This can prove to not only be an advantage but also a challenge, because if you lose your Bitcoin by being hacked or scammed, you’ve lost them for good. There’s no central authority or service you can complain to or seek assistance from. You and you alone, are solely responsible for the security of your bitcoin. This is why we can’t stress how important it is to be careful with all your Bitcoin dealings. 

  • Bitcoin is traceable

Bitcoin has a reputation for being the black market’s currency of choice. It’s not linked to local bank accounts so governments can’t demand the owner’s details. But the blockchain is a public ledger of every transaction ever made in bitcoin. Anyone can see it. We can see exactly where each bitcoin is at any moment and who owns it. That information is anonymous. We can only see that the bitcoin is associated with a number; we don’t know who owns that number… until the bitcoin is converted back into fiat. Then everything becomes open again. Bitcoin might sound sleazy but it’s cleaner and less anonymous than it looks.

The Takeaway

You stand to gain a considerable amount from investing in Bitcoin. Given its unique nature and developing status, though, you should go into it with understanding and caution.

If you know what to expect beforehand, you’ll have an easier, safer time managing your Bitcoin. Understand these aspects of the cryptocurrency before you dive into buying and selling it. With this knowledge, you can invest in Bitcoin wisely.

Jonathan Murphy

Jonathan Murphy is editor in chief at currentbitcoin.news. He has 7 years of experience with our firm. He has keen interest in news reporting and reads crypto news in his free time.