A Perfect Guide for Beginners to learn the buying process of Bitcoin!

453
Image Source: Bitdegree.org

Want to invest or trade bitcoin? The bitcoin market involves high risk, but it is profitable at the same time. Before you start with the process of buying bitcoins, you probably know that bitcoin’s value isn’t constant. You must check out Immediate Edge to trade bitcoin and be a pro trader. Some factors that drive the price of bitcoin that include:

Supply and demand

The supply and demand for bitcoin are the most significant factors that affect the price of bitcoin. The supply of bitcoin is limited, that is 21 million bitcoins. It cannot be increased or decreased. With a fixed supply of bitcoin, the main factor is the demand for bitcoin across the world. In today’s time, the demand for bitcoin has risen, and it has driven the price of bitcoin to a great extent.

More than 7 billion people across the world and bitcoins are required to be mined; if everyone started mining bitcoins, it would be easy for everyone to acquire bitcoins which will depreciate their value. But not all people are engaged in the mining process; this maintains a high value of Bitcoin.

Mining

Like gold is mined, Bitcoin is also mined. The mining process is complex as it requires solving complicated mathematical problems to verify bitcoin transactions. High processing power and the use of technology is required to solve problems. Not everyone can mine bitcoins, and this increases the value of Bitcoin.

Acceptance of Bitcoin

No currency will have any value if the general public won’t adopt it or use it. There are plenty of Bitcoin uses, and mainly, it is considered a medium of exchange and a store of value. This has led many merchants and businesses to accept Bitcoin as a medium of exchange. People can buy almost everything with bitcoin, which makes it comparable to fiat currencies.

Now you know the factors that affect the price of Bitcoin, you are ready to buy it. Let us learn the steps involved in buying Bitcoin or other cryptocurrencies.

A bitcoin wallet is required.

Bitcoins are mandatory to be stored safely, so before you buy bitcoin from any crypto exchange, set up a wallet. Digital wallets store digital coins, and users don’t have to carry them everywhere like physical wallets. Bitcoin wallets are of various types that include an online or web wallet, a software wallet and a hardware wallet. Software wallets are known to be connected to the internet and store wallets on the computer’s hard drive. Web wallets are online wallets that engage third-parties to handle private keys, and hardware wallets are offline wallets that act as a vault that no one can access.

Software or web wallets are best for users that use bitcoins daily, but these aren’t secure because it involves third-parties and is necessary to be connected to the internet.

Get paid in Bitcoin instead of cash.

Users, who don’t have knowledge about blockchain technology or don’t want to engage in the mining process, can merely buy bitcoins with regular money or debit/credit cards. You can buy bitcoin in small fractions if you don’t have money or need to buy a complete Bitcoin which may cost you in Lakhs. The best facility provided to bitcoin users or enthusiasts is to get paid in bitcoins. If you don’t want to engage in any formalities, you can start getting paid in Bitcoin instead of regular money.

Move bitcoins to your bitcoin wallet.

Now you have set up an account with a crypto exchange and have a bitcoin wallet, you can directly bitcoins using cash and move bitcoins to your wallets. Bitcoin wallets have bitcoin wallet addresses or can be understood as wallet IDs required to deposit or withdraw funds from your account or wallet. You can also send and receive bitcoins quickly through bitcoins wallets. There are no restrictions on the number of bitcoins that you can send or receive.

Trade Bitcoins

Like stocks are traded, you can trade bitcoin. But be careful as trading bitcoin is a risky undertaking. Despite all the risks involved in bitcoin trading, it is one of the best ways to make money and get higher returns by investing in Bitcoin. As bitcoin’s market is highly volatile, its price fluctuates a lot, and therefore proper understanding of the bitcoin market and trading strategies are required to trade bitcoin.