When most people hear about how you can have bitcoin now, it is usually with the explanation that it is easier and safer than traditional methods of having such an important virtual asset. After all, it is anonymous and virtually risk-free. This is true, but this benefit comes at a high price. To understand why you need to follow a few simple steps before you start to have such an asset, you need to understand the three most important factors that influence such a financial instrument’s market price. They are demand, supply, and psychology.
Buying Bitcoin
The first step to buy BTC is to find a good wallet that will store your private key, enabling you to make transactions with the cryptocurrency. Traditional payment methods like credit cards, wire transfers (ACE), or debit cards are going to allow you to purchase bitcoins on exchanges, but they will often charge you higher fees. The higher fees reflect the fact that there are more potential buyers than sellers. The buyers will pay more to obtain the same amount of bitcoins as the seller. This transaction will also carry more risk because if the buyer does not pay the money back in the specified time frame, then the trader is at risk of being shut out of the exchange. After all, it was created in the name of a bad buyer.
Buy through an Online Broker or Trader
The second step to have bitcoin is to look for a good online broker or trader who can facilitate your transactions. Popular brokers or traders who have high commissions for their services will require you to pay a monthly fee. These fees are transferred to the buyer’s account that they use to conduct their transactions. Therefore it is ultimately the buyer’s responsibility to pay the corresponding monthly fee if they want to conduct a certain number of its transactions during the year. The trick is to look for a broker or trader who charges a lower fee and charges no monthly fees. There are many brokers and traders online, and you may need to search until you find someone who charges a low rate and does not charge any fees.
If you do not want to use a broker or trader, then the next best thing that you can do to have bitcoins is to get yourself a wallet or an account that can be used to conduct your trades. This is where you will keep your personal information, such as your private key, password, and other security-related information. If you use an intermediary to have bitcoins, they will likely charge you a commission for their services, and this will include their service fees, so it would be better if you did not use them at all.
One other consideration is the payment method used to have bitcoins. You will need to find an exchange where you can have them so that you do not need to use a third party to have them for you. People use two types of payment methods when they have anything online, including using a traditional money transfer method like a credit card or a check. You can also use your debit or credit card to have anything online, but these methods usually come with fees that could eat up most of your profit. A better payment method is to use a wallet or digital wallet because they act like a bank account from which you can withdraw your money anytime you like. The digital wallets are highly secured because they are password-protected, so you cannot steal from them.
Familiarize Yourself with Cryptocurrency
One of the first things that you will want to familiarize yourself with is the factors that influence the cryptocurrency value known as bitcoin. One of the most well-known factors is called the bitcoin price. The bitcoin price acts as a sort of thermometer as it can relay accurate information to both buyers and sellers of this digital currency. Another factor that influences the value of this currency is referred to as the supply and demand condition. If more users decide to have bitcoins, the supply will increase, which will drive up the price. The great thing about this particular aspect is that there is no physical product attached to the cryptocurrency. The only tangible thing you can obtain when you have bitcoins is a specialized software program known as a hardware wallet.
Understand Fees
Fees are also another major concern for anyone who wants to have bitcoins. The fees associated with transactions are much lower than they would be for a traditional bank transaction, but there are still fees associated with certain transactions. Digital wallets do not incur fees, so you will be able to have smaller amounts of bitcoins with each transaction. This means that there will never be a point in time where you cannot have some of the bitcoins that you desire to have.