Organizational structures can take years to establish, and a single misstep in any of these relationships can result in significant operational consequences. Of course, no one wants to panic in the face of unexpected volatility. But there are many legitimate ways for companies to hedge their risk and easily invest in Bitcoin and make an investment with less fear.
Aside from that, there are also articles that tackle how to sell bitcoin and transfer the money to their bank account.
Bitcoin is a digital currency that can be spent online without needing any bank account or physical money transfer, which is why it has become so popular. The below-listed portion breaks down five steps investors should take to easily invest in Bitcoin – and briefly introduces the process of dealing with cryptocurrency transactions.
1. Choose a Cryptocurrency Exchange
Bitcoin is digital money that can be stored in a digital wallet and spent without ever leaving the wallet. Cryptocurrency Exchanges accept PayPal, bank transfers, credit cards, and other payment methods to deposit funds into the account.
Every exchange differs from the next in its interface and fee schedule, though most have a similar process for completing transactions (see below). The best way to choose a fair exchange is to look at reviews or ask for recommendations from friends who have invested in Bitcoin before you buy.
2. Create an Account
The purpose of these passwords is to ensure that only the owner of the account can withdraw funds from it. An alternative is creating an account on an exchange through the decentralized exchange, which encrypts all of your data so that it cannot be intercepted or accessed by third parties. Consider this option if you have privacy concerns.
3. Complying KYC
At this point, you will be asked to provide information regarding yourself because exchanges use a variety of means to verify users. Providing a KYC document may seem like an inconvenience.
Still, it’s good practice for financial security and compliance, as knowing who is using your exchange can mean the difference between success and failure for future investors. Once you’ve provided all of the necessary information for your KYC, you will be asked to set up a Bitcoin address that you’ll use for sending funds.
4. Deposit Funds
After your account has been approved and you have confirmed its existence, you are ready to deposit funds into it. Deposits are usually made in one of two ways on most exchanges: with a bank transfer or by using PayPal or other credit card payment method straight through the exchange’s website.
In addition, most exchanges work with a virtual wallet to store your Bitcoin for you, so you will need to provide this wallet’s address. Remember that exchange credit card payments usually carry a higher fee than bank transfers.
5. Buy and Sell Cryptocurrencies
With Bitcoin transactions, usually, there is no limit on the number of coins you can buy per day or week. Nevertheless, some exchanges have daily purchase limits (usually $500 – $5,000) to prevent malicious activity and money laundering.
Click on the purchase bitcoin button on the cryptocurrency exchange, and you will make your first ever bitcoin purchase. You will get the confirmation for your transaction shortly.
Withdraw Funds
When you’re ready to withdraw funds from your exchange, go back to the main page and click on the withdraw button. Again, you don’t need an account; every single customer can do transactions with their wallet address or email as a username and password for login purposes, just like email service providers do with email addresses in their system.
How to pick a reliable cryptocurrency exchange?
1. Reputation
As with any business where you’re investing, you want to ensure that the exchange is reputable and secure. It means reviewing reviews and recommendations from others who have used the exchange.
2. Volume
You want to go with a reputable exchange with high volume – which people on the order page will indicate, so look for this before making a selection.
3. Fees and Limits
Look at the withdrawal fees, the minimum limits you have to place to be able to withdraw, and whether there are conditions to enter a promotional fee. Again, this will be indicated on the order page.
For example, suppose you’re withdrawing Bitcoin, which can’t be held in a bank account in most countries due to government policy restrictions. In that case, you’ll want to use a wallet service that provides an easy way to send your Bitcoin back out of your wallet and into your personal bank account (such as Coin base or Blockchain ).
Summary
The above-listed portion explains five legit steps on how you can easily invest in Bitcoin and make your initial bitcoin investment. But, first, you must look up the cryptocurrency exchange that provides the best investment features in your locality.