Bitcoin has had a rollercoaster ride over the course of its history. While it began life as a digital currency used primarily by techies and libertarians, it has now become one of the most popular forms of investment around the world. And while many people are happy to invest in cryptocurrencies, others are wary of the volatility that can accompany such investments.
But if you’re looking to purchase some Bitcoin, you might be surprised to find out that it’s actually easier than you think. You just need to make sure you use a credit card to pay for your purchases.
Sign up with a crypto exchange
To buy Bitcoin, you’ll likely need to convert some fiat money into digital currency. You could go to a bank, but there are many different ways to purchase Bitcoin. Some people prefer to trade directly with another person; others like buying Bitcoin via online platforms such as Coinbase and Gemini.
There are plenty of options out there, but choosing where to spend your hard earned cash is important. So how do you know which exchange to choose? Here are our tips for finding the best place to buy Bitcoin.
Paying with a credit card
Once you’ve signed up for a cryptocurrency exchange, you’ll need some money to fund your account. You could go to a bank branch and withdraw cash, but there are easier ways to do it. Most major banks now offer a way to pay for things online with a debit card, and many of those cards let you load cash onto them too. This makes it much quicker and cheaper to purchase cryptocurrencies like Bitcoin with plastic rather than paper currency.
You can usually find out how much you’re allowed to spend on a card by looking at the terms and conditions section of the site where you bought your card. If you don’t see anything about spending limits, contact customer support.
Some providers even let you use your existing credit card to make purchases. For example, Revolut lets you use Visa and MasterCard cards. So long as you keep track of what you’re buying, paying with a credit card shouldn’t cause any problems.
However, taking on debt to purchase Bitcoin is not advisable. There’s no guarantee that you’ll ever sell the coins you buy, and while you could lose everything, you could also end up losing less than you invested.
Place an order
You’ve heard about Bitcoin, but it might still seem a little too complicated to use. You don’t want to lose out on potential profits because you didn’t know how to buy some Bitcoins. Here are our top tips for beginners.
Securely store your Bitcoin
If you’re looking to securely store your Bitcoin, here are some options. If you want to withdraw your funds, make sure you read the terms and conditions of each option carefully.
How to sell your Bitcoin
If you want to cash out your cryptocurrency investments, there are several ways to do it. Some exchanges allow you to sell directly into fiat currency, while others require you to convert your funds into another cryptocurrency first.
The most straightforward way is to sell your coins on one of the many exchanges where you can buy cryptocurrencies like bitcoin, ethereum and litecoin. These platforms let you trade digital currencies against each other, meaning you can buy Bitcoin with dollars, euros or pounds sterling.
Once you’ve sold your coins, you can use an online wallet service to move the money into your bank account. Alternatively, if you’re looking to avoid fees, you might prefer to keep your funds in a paper wallet. These wallets store your private keys offline, making them less vulnerable to hackers.
You can also sell your Bitcoin through a peer-to-peer marketplace such as LocalBitcoins.com. Here, people meet up in person to complete trades. To find sellers near you, enter your postcode into the site’s map feature.
Finally, if you’re looking for somewhere safe to hold onto your money, you could consider buying insurance against losses caused by theft or fraud. This protects your assets from being stolen or lost due to hacking attacks or natural disasters.