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I opened my bitcoin wallet and bought my first bitcoin on March 18th, 2013, when bitcoin was $50. It’s a date I clearly remember as I knew it was a life-changing moment for me. It was the first step to a new world of finance; one I was eager to explore and understand. Back then, it wasn’t an easy process and I fumbled through the purchase, having to overcome some pretty steep technological learning curves along the way.
Fast forward 5 years and buying bitcoin is far easier and more accessible with hundreds of other cryptocurrencies available for purchase. Though the number of cryptos and the purchasing channels available to you have significantly grown, it has not become any easier to know how to take the first step to buying in. To the contrary, with so many scam coins and fraudulent purchasing schemes out there, first-time buyers would be wise to take it one small step at a time.
If you find yourself in this position, the best way for you to determine which step to take first will depend on the answer to one vital question.
So what’s this critically important question?
It may seem like an arbitrary question, but the answer will determine how to go about buying your first batch of cryptocurrency.
You’ve probably read a few articles about Bitcoin, and you’re interested to see how this all works from a buying perspective. You’re likely to use cryptos much like your physical wallet, with a bit of petty cash available for smaller purchases. You’d label yourself a ‘casual user’ and probably be using smaller amounts on an infrequent basis.
For you, buying cryptocurrency is fairly straightforward, but you’ll need to take extra care when it comes to safety and security online.
You can open an online cryptocurrency wallet from a provider such as Bitcoin.com. It’s highly recommended to keep only enough in your online wallet to facilitate smaller purchases, with the majority of your funds stored in a more secure, offline version. In all instances, you should make it general practice to encrypt (apply a secure password) to your wallet file and regularly backup your information to an offline source.
Smaller amounts can be acquired through peer-to-peer marketplaces (exchanges) that connect willing buyers with willing sellers. These are direct person-to-person transactions, and you won’t need to complete any documentation or paperwork to buy cryptos.
Armed with your bitcoin wallet and available balance, you’ll be ready to transact in cryptocurrency in no time at all.
You’re a little more clued up on cryptocurrency, how it works, and you’d like to make more regular trades or purchases than a casual user.
For you, an online exchange is a better option to acquire and trade in crypto. There are several available and in choosing, remember to consider the security protocols, as well as the rates and fees, as these will differ from exchange to exchange.
You’ll be required to register and comply with general KYC documentation, but once that’s out of the way, you’ll be able to buy cryptocurrency with fiat currency, and you’ll be free to trade crypto-pairs.
You’ve studied Bitcoin and the world of cryptocurrency. You understand the benefits and potential, as well as the composition of the technology. You’re confident in making your own investments decisions, and you’re adept with security procedures to protect your crypto holdings. You’re likely to purchase larger amounts of crypto and not sell or use them in the short to medium-term.
Utilising an OTC Trading Desk is a good option to buy large quantities as you’ll be able to take advantage of a trusted, secure corporate seller. (Blatant self-punt here: Bitstocks OTC clients are assured of the highest level of security, and we can assist you with securing your coins in deep cold storage too!)
You’re an investor who understands the importance of diversified assets, and you have sufficient capital to include alternative investments within your portfolio. You’ve read up on Bitcoin and the various other cryptocurrencies out there, and you’re impressed with its potential - as both an innovative movement and a vehicle for financial gain in the medium to long-term. You’re keen to invest in cryptocurrency, but you’d like to leverage broker knowledge and advice on when and how to buy or sell, based on your personal circumstances and investment objectives. If this sounds like you, then you’re best suited to an advisory brokerage firm that can not only provide you with a cryptocurrency investment strategy and portfolio, but also:
To ensure you do have the best cryptocurrency investment experience possible, I encourage you to consider your ‘why’. Your personal purpose will help you choose the optimal method for buying and securing your crypto portfolio, and achieving your overall objective.