Cryptocurrencies, such as Bitcoin, are completely digital currencies that may be used as digital currency. A crypto trading platform or an online exchange may be used to buy and sell them.
Table of contents
- Calculate how much cryptocurrency to purchase.
- Choose where you want to purchase cryptocurrency.
Calculate how much cryptocurrency to purchase.
The first step is to choose how much money you wish to invest in Bitcoin. Buying as much as you’re willing to lose is generally the quickest solution. When you trade Bitcoin, you have the potential to earn a lot of money—or lose a lot of money. Many individuals have lost a lot in Bitcoin, while others have become millionaires overnight.
Bitcoin used to be worth fractions of a penny, but its value rose to approximately $20,000 in 2017, and it was worth over $50,000 by the start of 2021.
Before investing a cent in Bitcoin, make sure you have enough money to feed the cat, an emergency fund, and a strong retirement plan. After that, decide how much money you wish to put into Bitcoin.
Choose where you want to purchase cryptocurrency.
Here’s how to get your hands on Bitcoin after you’ve chosen you want to purchase it and calculated how much you want to invest:
A platform for Crypto Trading
You can purchase and sell cryptocurrencies quickly and inexpensively using a crypto trading platform. These companies often combine various exchanges to provide their customers with the best Bitcoin pricing. Normally, crypto trading services do not enable you to send your Bitcoin to another person. To get your money back, you’ll usually have to sell your Bitcoin. Wealthsimple Crypto is an example of a Canadian crypto trading platform that lets you buy and sell Bitcoin. You may create an account in minutes and take advantage of our affordable, transparent pricing.
Exchanges on the Internet
A cryptocurrency exchange is a digital marketplace where users may buy and sell cryptocurrencies for other cryptocurrencies. This is where 99 percent of all bitcoin transactions occur. Hundreds of cryptocurrencies are available for trading, including “stablecoins,” which are coins that are tethered to fiat currencies like the US dollar.
When trading using exchanges, however, there are a few points to keep in mind: Exchanges technically own the Crypto kept in their exchanges even if it’s in your wallet on the exchange; therefore, the owners could empty the exchanges of user monies if they so desired. Binance, Gemini, and Coinbase are examples of popular, regulated exchanges that may be safer than unregulated or unknown exchanges: Last year, Binance, for example, established a “Secure Asset Fund for Users,” which could be used during an emergency.
Peer-to-Peer (P2P) Trading is a peer-to-peer
On marketplaces, you may purchase Bitcoins directly from other people and trade them for whatever you wish. However, be wary of con artists: It’s feasible to trade Bitcoin for Xbox Live gift cards on sites like Paxful and others; however, sellers typically get useless cards in return. Use caution when handing over money since some systems are not completely safe.
In Canada, choose a Bitcoin exchange or trading platform.
The easiest, safest, and most convenient method to acquire cryptocurrency is via exchanges or trading platforms. There are several exchanges and platforms available, each with its own set of benefits and drawbacks. Learning about the differences between them can make your first Bitcoin experience much easier.
It’s not only the Bitcoin price that has to be considered; fees come in all shapes and sizes: Exchanges may charge a fee for depositing or withdrawing cryptocurrency, as well as extra trading costs.
The two main types of trading fees are market maker fees paid when you add liquidity to an exchange’s order book and taker fees paid when you remove liquidity from our order book. The more Bitcoin you trade, the lower your trading costs become, enticing you to invest more.
Some exchanges have lower prices than others, but this usually comes at the expense of privacy, security, or insurance. As a result, it’s critical to get a more comprehensive understanding of exchanges before trading on them. You could get a horrible bargain if you don’t have enough knowledge.
Even though hundreds of exchanges exist, first-time purchasers should adhere to established, well-known exchanges and trading platforms if you trade a volatile, new currency like Bitcoin. Here’s a quick guide to three main cryptocurrency exchanges to help you figure out what’s the best bargain for you.
Binance is a cryptocurrency exchange that is one of the biggest in the world. Although it has subsidiaries for various nations, it services the majority of the world’s countries. It’s situated in Malta, a country noted for its cryptocurrency-friendly policies. Binance is a cryptocurrency exchange that offers over 500 currencies, including Bitcoin, and trades about a billion dollars every day. Changpeng Zhao, the CEO of Binance, tweets with investors and offers his thoughts daily.
Headquartered in San Francisco, Coinbase is one of Binance’s primary rivals, and the two companies are vying for first place in the cryptocurrency exchange market. It has approximately 30 million users and has transacted over $150 billion in total. Andreessen Horowitz and the New York Stock Exchange are among Coinbase’s backers.
Choose a Wallet for Bitcoin
Cryptocurrencies should be housed in wallets, which are similar to bank accounts for cryptocurrencies, wherever feasible. Importantly, if you keep your Bitcoin on a cryptocurrency exchange, the exchanges have technical authority over your Bitcoin. Withdrawing to a wallet, on the other hand, gives you total control over your digital assets. This is critical: if you store your money in an exchange, there’s a danger the exchange may go bankrupt, or the proprietors will flee with the money.
Make a Crypto Purchase
Remember to proceed with caution: only invest in the quantity of Bitcoin in which you are comfortable losing money, and begin slowly. Accept that you won’t become a millionaire overnight, and set aside time to study the market before making any major investments.