How Do I Add Bitcoin to My Portfolio?

August 18, 2023

Bitcoin remains the dominant force, with a market capitalization of $580.14 billion. Sometimes, it’s easy to forget that Bitcoin was worth nothing. The transaction that gave it its monetary value occurred in October 2009, when Martti Malmi, a Finnish software developer, sold 5,050 coins that would now be worth $1.5 billion. At any rate, he gave each bitcoin the value of $0.0009. At present, Bitcoin advocates are pushing for its adoption owing to numerous compelling factors, such as being an effective inflation hedge, its future potential, and the decentralized nature of Bitcoin. Even if it began as a payment network, Bitcoin slowly evolved into an investment asset. There are various ways to add Bitcoin to your portfolio, such as:

Purchase Bitcoin from A Crypto Exchange

You can buy Bitcoin with a credit card or debit card from a cryptocurrency exchange. Just follow the website’s instructions. You may need to provide your wallet address to transfer Bitcoin from the exchange. The device sheltering your Bitcoin stores the private keys, not the coins themselves, and the digital signatures required to authorize each transaction. Some cryptocurrency exchanges make various options available, while others have Bitcoin and other alternatives. The question now is: How do you choose which exchange to use? Selecting a cryptocurrency exchange depends on your preferences, needs, and locations. Remember that each platform has advantages and disadvantages that you should carefully consider before choosing.

All cryptocurrency exchanges have geographic restrictions. Some services aren’t available in the US or have a separate, more limited platform. Alternatively, some cryptocurrency exchanges operate in the US but are unavailable elsewhere. Nothing is more frustrating than creating an account for a cryptocurrency exchange only to learn that it doesn’t operate in your area. Before signing up, you’ll be asked to go through a KYC (Know Your Customer) process to ensure you won’t use the platform for illegal activities (e.g., money laundering). You may have to wait a few hours or days to trade Bitcoin. The reason for this is that the identity verification process doesn’t happen right away. You can instantly transfer your holdings if you want to fund your account.

Buy Bitcoin on The Apps You Already Have

Adding Bitcoin to your investment portfolio will positively impact your long-term success. You can buy Bitcoin on the apps you already have. Maybe you use PayPal. And why not? It’s been established for decades and has officially gained recognition as eBay’s top digital payment option. You can buy Bitcoin directly through PayPal if you don’t already know. It’s just that you need an exchange that supports PayPal. If you don’t mind being able to withdraw, you can buy Bitcoin in a few clicks. You’re given the rights to the cryptocurrency you buy on PayPal, but you won’t receive a private key. The money goes straight to your balance so you can use it as you please.

Take Advantage of Peer-To-Peer Transfers

Peer-to-peer exchanges are gaining popularity because they ensure greater privacy and transactions occur directly between users. An escrow service secures the transaction, so neither the buyer’s nor the seller’s digital assets are at risk; it’s a smart contract that releases the money once predetermined conditions are met. If you want to buy Bitcoin, you can connect to someone who owns and wants to sell coins. It’s up to you to negotiate with the seller. After you’ve agreed on a price, the transaction can take place – you have full control and autonomy over the funds.

P2P networks provide no single point of failure. In other words, everyone is interested in keeping the service alive and kicking. Binance is one of the few exchanges that allow you to buy (or sell) from another person with zero fees. The marketplace is selected to USDT by default, so click on BTC (you’ll need to do the same for any other asset). You don’t have to enter the exact amount of Bitcoin you wish to buy, but it must be within the range others are willing to sell. Once the order is submitted, Binance holds the coins in escrow until the seller confirms receiving the cash payment.

Buy Bitcoin Through a Bitcoin ATM

Finally, yet importantly, you can purchase Bitcoin from one of the many ATMs worldwide using cash or a debit card. ATMs are accessible to everyone, but they may demand customers have an existing account with the ATM operator. Bitcoin ATMs are commonly placed in locations where you’d typically find ATMs, such as grocery stores, hotels, gas stations, etc. Before you carry out a transaction, take the time to understand what fees you’ll be charged. Commissions can be pricey. As a rule, the Bitcoin ATM transaction fee falls between 5% and 15% of the overall amount.

Concluding Thoughts

Bitcoin is one of the most widely used cryptocurrencies, even though there are countless others available. Once you get your hands on Bitcoin, you must store it safely. As mentioned, you can transfer your funds from an exchange to a wallet. Some wallets are based on smartphone apps, while others take the shape of software you can download on your computer. It would make sense to do your homework to find out which best suits your needs. You can use a hardware wallet to store your Bitcoins. Before you jump into investing, take into account the risks and opportunities associated with this cryptocurrency.

Attention must be paid to the fact that transactions are irreversible. The independent nodes of the blockchain network can’t alter past transactions. Ensure you don’t send money to the wrong address – the transaction will go through, but the funds will be sent to the wrong person. The cryptocurrency market is volatile, which translates into the fact that prices fluctuate. Get your timing right when placing trades if you want to make a handsome profit.


You may also like

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}