Before you start buying cryptos like Bitcoin, do your research, and do it well on the world‘s biggest and favorite digital currency. Have a plan for how you want to use it, how much money to invest, and don’t forget factors like taxes if you plan to sell at a later date.
11 min read
The world’s original and most popular type of cryptocurrency ist he Bitcoin. Some say it’s the future of finance, some say it’s just a bubble and has no future at all. Over time people learn about this type of payment/financial method. It’s decentralized, a peer-to-peer version of electronic cash. People are learning how to buy Bitcoin and how to handle its roller-coaster price fluctuations.
Important things to know before buying Bitcoin
Before starting with crypto, let’s have a quick introduction to Bitcoin.
Cryptocurrency is one type of digital currency or payment method that uses cryptography for 100% secured transactions. Due to these cryptographic, there is no further need for a bank or some other third party to oversee the transactions.
Bitcoin was the first cryptocurrency that promised a “purely peer-to-peer version of electronic cash,” to its customers. Bitcoin was a kind of pioneer for all following cryptocurrencies that we have nowadays.
If you still didn’t get it, here are some facts to know about BTC:
- It’s not physical money. Instead, it’s a type of digital token, accessible and transferable through a digital, decentralized network.
- BTC has no intrinsic value, its value is based on supply and demand.
- Bitcoins are limited, there are only 21 million in total.
- Bitcoin is built on a technology called the blockchain. A blockchain is a type of digital ledger that securely records transaction information.
- Among thousands of different cryptocurrencies, Bitcoin is the biggest and most popular one. The biggest increase in its value, the Bitcoin experienced between 2013 and 2021 with a breathtaking 30.000 %.
Ways to spend or keep your BTC!
So, right now you already know quite a lot about the most popular cryptocurrency and also bought it – what‘s next? Well, you have several options. You can:
- Just hold onto it. There are plenty of people out there who see the value of bitcoin at 100k+ $ in the future.
- Trade it for other currencies, but be aware of the taxes.
- At some stores or online shops you can already pay with it, so you also can spend it like this.
Do you want to sell BTC? Here is how to do it!
You have the BTC in your wallet on a trusted and secure crypto exchange platform. From that point on you just need to place a sell order there. You can split up your BTC and just sell a portion, or if you want to you can sell the whole one.
Once sold, there may be a slight delay before receiving your money. As soon as the money lands in your exchange account, you can transfer the money back into your bank account. Alternatively, if you don’t want to use an exchange, you can also sell your Bitcoin via a Bitcoin ATM or peer-to-peer trading.