Buy or Sell Bitcoin: An Easy Guide For Newbies to Trade in Cryptocurrency

“Basketball Players Ask for Bitcoin Salary Option” this becomes the hottest news for all news channels and press releases. Above that,

Guelph Nighthawks’ guard Kimbal Mackenzie, the first CEBL player to receive remuneration in crypto, quoted in a press release, “The opportunity to be paid in bitcoin is something I’m incredibly excited about. I believe cryptocurrency is the future.” It works like topping on the cake.

With this news and statements, anyone can predict the importance of crypto in the near future. If you are a newbie and planning to invest in bitcoins, you will make a great investment deal for your future. The rising share market of cryptocurrency is a clear indicator of its growth.

To help you more, let’s come to the point and discuss a guide on how you can invest or trade in bitcoins.

1. Get a Bitcoin Wallet

Before you start with bitcoin trading, you will need a wallet that stores your funds. It works like a physical wallet that holds your cash and debit cards. When it comes to the wallet, three main options comes;

  • Software wallet, which is stored in your computer’s hard drive. This is one of the most appreciated methods to trade in bitcoins.
  • Online wallet is a widely used wallet by bitcoin users. It is a fast, secure and convenient way to send money to anyone using online banking. You can even buy or sell bitcoin quickly and easily using Interac e-Transfer.
  • The offline mode adds an extra layer of security to your money. This is also regarded as cold storage. But to keep your currency secured, you need a USB drive or paper wallet, and once these are stolen, there is no other way to recover your bitcoins.

2. Choose a Bitcoin Exchange

Once you have selected the wallet, now it’s time to look for exchange options. You must look for a company that accepts your country’s currency like the U.S. Dollars, Euros, or Sterling. Some of the companies also sell you cryptocurrency from their own reserves. For this, they charge some prices and fees from customers. These exchanges are also regarded as “broker exchanges.”

How to Choose an Exchange?

There are mainly two factors affecting your exchange selection.

  • Location of the exchange: Most people look for the same country exchange as they find it a more economical method and have lower bank fees. Whereas, if you invest in foreign country investments, you will have to pay transaction and currency exchange charges.
  • Look for fee options: The next consideration is to look for an exchange fee while buying bitcoins. Like some users pay via credit card and bear high interest rates on their balance. Not to forget, buying fees for bitcoins is a major concern. Hence, look for an option that is more economical to buy bitcoins.

3. Register and Complete Security Checks

Once you have selected your exchange, the next step is to register yourself with an exchange. Remember, exchange conditions vary from exchange to exchange, so read the conditions carefully.

Click on your selected exchange’s “Homepage” and “Register” with the required details. Once you are registered successfully, you will get a verification email. Open your inbox and click on the link. It will take you to the dashboard page of the cryptocurrency account.

4. Complete Security Checks

When the link takes you to the dashboard page, it will begin your security checks step. Again, this information can vary from exchange to exchange. But there are some common steps, like entering your mobile number and identification number, that you have to complete in every exchange. These steps satisfy anti-money laundering and ‘know-your-customer rules. Besides, you will be allowed to set two-factor authentication that prevents your account from a third party.

You will be asked to upload a picture and scan your ID, such as your passport or driver’s license. Some security exchanges also ask to take selfies, and their employees conduct documentation checks over the webcam.

5. Add a Payment Method

Payment methods involve bank account, credit card, and debit card details. Like you are dealing in small bitcoins transactions, choosing a credit or debit card for payment is advisable. Whereas, for large transactions, you should choose bank details. Credit or debit cards carry higher fees and prove unwise decisions for purchasing.

How to Link a Bank Account with an Exchange?

E-transfer is a faster and secure way to transfer your money that contains less than 1% of charges. For this, you just need to

  • Enter your bank account details
  • Send a small amount of money that defines your ownership.
  • Include a reference number so that the exchange can track your deposit transaction.

Debit and Credit Cards

Credit and debit cards do not have complicated setups as bank accounts. You can easily link and start transections. But for this, you have to pay between 3-5% on bitcoins purchased.

6. Deposit Funds to Your Exchange Account

To complete this step, you have to choose an amount and transfer it to your exchange account. Keep in mind, the fee and the changes can vary depending on transaction type and mode of payment. Like credit cards contain more charges whereas bank transfer takes time. You have to look for a convenient option.

7. Buy Bitcoin with Cash, or Get Paid in Bitcoin

This is the final step in the buying process. Once you have cash in your wallet, you can spend it on buying. Just click on the “buy” option and wait for the transaction to be over. You can choose to pay through any wallet mode like online, offline, or from software. It may take 10-20 minutes for a transaction confirmation by the network.

Trade with Bitcoins

Like other methods of the stock exchange, you can also start trading through bitcoins. Remember, the price for bitcoins fluctuates. Therefore you should trade wisely. You can also follow the share market’s golden rule – buy when shares are at the bear and sell at a bull price.

Bottom Line

Buying and selling of bitcoins become easier with various platforms. All you need to do is set up your wallet and start trading. Make sure you must look for reliable exchange and trade only what you can bear in case of loss.

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About FinanceGAB

Ajeet Sharma is a financial blogger and I am blogging since 2017. Financegab is a personal blog dedicated to personal finance. The main aim of this blog to help people to make well-informed financial decisions.
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