How to buy Bitcoin in 2024?

Individuals and businesses now prefer investing their money into stocks, real estate, and Crypto as they can provide excellent returns.

But, the last year brought a series of unpredictable events for crypto enthusiasts, including the Terra Luna crash, BTC losing its market value, macroeconomic conditions and Binance’s guilty plea.

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But then again, since 2024, Bitcoin market volume and capitalisation have started rising, encouraging people to invest in it. But what is Bitcoin? How to invest in Bitcoin? Is it really returning us huge? This blog will help you find all your answers.

Table of Contents

What is Bitcoin?
How to buy Bitcoin?
How to sell Bitcoin?
Is it safe to invest in Bitcoins?
Conclusion

What is Bitcoin?

Bitcoin is a cryptocurrency, the first decentralised digital currency that acts like your money and is a new form of payment that isn’t controlled by an individual or an entity. Thus, bitcoin transactions don’t involve third parties like banks and financial institutions.

You can get a chartered accountant or a financial advisor at your back for Bitcoin investment advice and make data-driven decisions.

How to buy Bitcoin?

If you are to purchase Bitcoin for the first time, it can be a challenging task. You can follow a few steps, like finding an exchange platform, creating an account, purchasing Bitcoin, storing it, and keeping track of your investment. We have listed a few steps on how to buy Bitcoin.

● Decide the platform to buy Bitcoin.

There are several crypto exchanges where you can buy Bitcoin, including Coinbase, Binance, KuCoin, CoinEX, OKX, gate.io, etc. Now that you are deciding the best platform for crypto exchanges, you must check whether they accept customers from your country. There are numerous other factors to consider while choosing a platform.

While some exchanges may be suitable for you to buy Bitcoin and store it, there are others which are ideal for active crypto traders. Finally, ensure the exchange you choose provides all the trading features you need.

● Set your Bitcoin investment budget

When buying Bitcoin or other cryptocurrencies, ensure you have a clear investment plan and a budget. Otherwise, any investment decision from emotional drive can harm your performance.

You can always invest as much as you can afford to lose. It is because the crypto market is volatile and sees massive price changes over time, which may lead to bankruptcy. Additionally, you must practice investment portfolio diversification, especially with risky investments. This ensures that when a single project fails, your entire portfolio still survives.

● Research your investment

No matter where you invest your money, you must research them well. Similarly, for Bitcoin purchases, you must explore reputable projects. They usually have a white paper describing project goals, insights into what it aims for, and the existing real-world problems it tries to solve. Besides focusing on the fundamentals, you must also research the project’s technical aspects.

● Place purchase order

Now, this can be a little different for each exchange platform, but they have some similar steps to follow. This includes creating a free account, making a deposit, or buying Bitcoin with credit or debit cards. You can then go to the trading page to select your relevant crypto trading pair among crypto-to-crypto or crypto-to-fiat trading pairs. Finally, you can buy Bitcoin by using either Market Order or Limit Order.

● Select a place to store Bitcoin

Now, you may not always aim to sell Bitcoin immediately after you buy them. Even if it happens, you must first store Bitcoins; crypto exchanges give you that flexibility. Some exchanges even allow you to generate passive income from multiple yield-generating products with your deposited Bitcoin.

However, you shouldn’t store Bitcoin on exchanges as you may lose it when the exchange goes bankrupt or hacked. For example, FTX went bankrupt after it was found to be misusing user funds.

The best way to store your Bitcoin is to use a cryptocurrency wallet, which can be software wallets (also called hot wallets) or crypto digital wallets (also called cold wallets).

● Keep track of your investment performance.

When investing in something like Crypto, you must track performance. For that, you can use multiple tools that help to check your investment portfolio from one place.

They can alert you on the next price rally or when your Bitcoin reaches its predetermined price limits. These trends give you insights into future price growth, which helps create concrete plans or proper price targets for crypto investment.

How to sell Bitcoin?

If you decide to sell Bitcoin, the process is similar to buying them. You need to decide whether to use a market or limit order to sell Bitcoin and select a trading pair.

However, you must remember that selling Bitcoin has some associated fees. This includes transaction fees and exchange fees. Therefore, you must check the fee structure of the exchange before choosing to sell your Bitcoin.

After selling them, you can either withdraw Fiat from the exchange and transfer it to your bank account or withdraw Crypto and store it in an external crypto wallet. Otherwise, you can transfer Bitcoin between exchanges, especially if you want extra features or a better fee structure.

Is it safe to invest in Bitcoins?

Investing in Bitcoins is risky because of its volatility and frequent price fluctuations. Additionally, it is relatively new in the market, and investors may not know exactly how to use Crypto. Even Bitcoin, the oldest cryptocurrency, is still known to have alarming price swings. Therefore, if you are investing in Crypto, make sure you invest the amount you can afford to lose at the worst.

The second concern with Bitcoin investment is its security features. There are a few security risks that you must be aware of. For example, Crypto has limited legal protections over traditional payment methods, e.g., debit and credit cards. It means losing money to a scammer means you cannot get it back legally. Crypto scams are increasing daily, and you must be careful about them.

The safest way to buy Bitcoin is through online exchanges and marketplaces that ask you to complete a KYC (Know Your Customers) and Anti Money Laundering (AML) policy. Similarly, you must be careful when storing Bitcoins.

The best and most secure way to store your Bitcoin is to keep it offline, where scammers cannot access it online. You can use a hardware wallet (cold wallet or cold storage) that allows offline Bitcoin storage.

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Conclusion

You can invest in Bitcoin as it is the safest option among other cryptocurrencies for its use of decentralised blockchain technology and wider adoption in the marketplace. This makes it less prone to massive fluctuations and less risky than others.

However, ensure you discuss with a crypto advisor before investing in Bitcoin and protect yourself beforehand.

Experlu Editorial Team
The editorial team at Experlu is comprised of seasoned financial professionals dedicated to providing high-quality content on accounting and finance. With a wealth of experience and diverse expertise, the team produces insightful articles that have established the Experlu blog as the UK's leading financial and accounting resource. The team includes accountants, auditors, and business advisors who stay updated with the latest industry developments. Their commitment to excellence ensures that Experlu remains a trusted source of information, helping readers stay informed about audit, business, finance, and tax matters.