Buy bitcoin methodology and tutorial With the plethoric number of these platforms and the diversity of their method of purchase, it is however tedious to make a good choice. Fortunately, there are bitcoin exchanges that are secure and easy to use. Here is a guide that, in addition to presenting the reasons for investing in bitcoin, explains the steps to follow to buy it on the best exchanges.
What is bitcoin?
The invention of the mysterious Satoshi Nakamoto, bitcoin, commonly known as BTC, is a virtual currency that has emerged since 2008. The latter is a form of blockchain or nodes through which bitcoin exchange operations pass. Specifically, unlike the conventional currency, bitcoins are stored in digital wallets on a computer, tablet, or smartphone.
To fill a wallet, it is possible to buy bitcoins directly online on a platform by following the guide found on purchase-des-bitcoins.fr. In fact, the exchange of bitcoin between two people is done under the control of miners. Unlike a traditional transfer system, bitcoin transactions are not governed by a regulatory authority. However, people are needed to validate the exchange operations: these are the minors. To validate transactions, miners perform mathematical calculations for each transaction. As a reward, they receive cryptocurrencies in return.
What are the advantages of buying Bitcoin?
Bitcoin has many advantages, which is why it is very popular with investors.
It is the network itself that, through mining operations, ensures the validation of exchange operations. It is this particularity that allows this digital currency to operate on the basis of a decentralized system.
Unlike banking transactions, which incur transfer fees, bitcoins are mostly free of charge.
Bitcoin is free from all the risks associated with a bank account. Indeed, there is no holding limit, no penalty fees, or overdraft risks. In addition to that, it is immediately available for all possible uses.
No inflation risk and probable future safe haven
Above all, bitcoin resists financial crises more than conventional currencies. This makes it a stable currency which also inspires more confidence. In addition to this, the machines and computer programs that control bitcoin manage the inflation rate as well as possible, unlike conventional banking.
Etoro: the best bitcoin buying platform
It is practically the best platform that offers bitcoin via a CFD in France. This means that not everyone who buys bitcoin through this platform automatically owns their digital currency.
In addition to cryptocurrencies, it offers indices, stocks, commodities, and ETFs.
The steps to buying bitcoin on Etoro
To buy bitcoin via Etoro, here are the steps to follow:
- Create a user account by registering on the website www.etoro.com: you will have to provide some personal information about your identity;
- Validate the user account: for new subscribers, this step is mandatory. You will have to provide a copy of one of your valid identity documents;
- Choose bitcoin: as a reminder, etoro offers several cryptocurrencies. Choose bitcoin from the list of available cryptocurrencies;
- Validate the operation.
Focus on other online cryptocurrency purchase platforms
Besides Etoro, other platforms also offer the sale of bitcoin online:
- com: like etoro, crypto.com offers several cryptocurrencies, including Bitcoin. This exchange platform has the particularity of offering relatively cheaper transaction fees;
- Revolut: revolution is a kind of online bank that offers a diversified range of investment products including cryptocurrencies, in particular bitcoin, via a payment card;
- From this platform, you can buy your token and pay instantly by credit card. Note that it is also possible to pay for your transactions via bank transfer.
What strategies should be adopted to invest in Bitcoin?
There are generally three main investment strategies in all cryptocurrencies, including Bitcoin:
- Purchase for return on investment: this is the classic strategy that is also the most used by investors. It consists of buying bitcoin and keeping it for years. Even if it means reselling it as soon as it has gained in value;
- Speculation: still called trading, this is a strategy that consists of buying bitcoin at the right time and reselling it very quickly to make some profits on the operation;
- Investment in ICOs: this strategy aims to invest in bitcoin for the creation of another new currency. The investor will realize a profit on his investment as soon as the currency created increases in value.
What future of bitcoin?
Bitcoin is a highly volatile asset due to its reliance on market forces. Thus, an increase in the demand for this digital currency will induce its appreciation. In times of economic uncertainty, it acts as a safe haven. This encourages investors to invest more in it. Although it is currently declining, many investors continue to buy it. This therefore means that they are anticipating a return to the upside of this digital currency. Until then, nothing yet proves this eventuality.
If the potential gain with bitcoin is considerable, we must not hide the losses which are not so negligible. Before investing in bitcoin, we must consider the factors that determine its variations. Regardless, dating back to 2008, bitcoin is arguably the most successful cryptocurrency. It works on the basis of blockchain which is a decentralized technology. To buy bitcoin, there are several platforms to consult, one of the best of which is Etoro.