Bitcoin is like a fine wine - over the years it is gaining in taste and popularity. Its fame no longer applies only to a closed circle of cryptocurrency market regulars, but has taken by storm the hearts of ordinary citizens who are looking for an alternative to traditional currencies, still suffering from high inflation and low interest rates. Wondering - how and where to buy bitcoin? In this article, you will find the answer to every question you ask yourself before investing in cryptocurrencies.
There are many ways to start an adventure with cryptocurrencies, but for a successful investor there is only one way - in-depth research of the asset in which he plans to invest. Therefore, before you decide to buy Bitcoin, learn what the investment asset is, whose properties are often compared to gold.
Bitcoin is the first cryptocurrency to break through to wider awareness. Created in 2009 as a response to the financial crisis of 2007-2009, the idea behind Bitcoin, created by anonymous creator Satoshi Nakamoto, is to decentralise money transfers. In the Bitcoin network, there is no overarching authority, like a central bank, that has the power to block or cancel transactions.
The problem that Bitcoin's creators had to solve is a democratic system where, despite the lack of a central authority, there is no problem of double spending or, more simply, fraud. The remedy to this problem turned out to be a decentralised network where a few confirmations from independent Nodes are needed to complete a transaction.
Bitcoin is as it is created by a huge community of hundreds of millions of people around the world. Because of some inadequacies when it comes to money transfers - handling few transactions per second (just 7 transactions per second) and high transfer fees in this cryptocurrency - Bitcoin has evolved, taking on the role of store of value as the primary one.
At the moment, more than anonymous transactions, Bitcoin tempts with its low inflation and ever-increasing - in a broad perspective - value. Bitcoin has long had the label of digital gold attached to it. Bitcoin's properties undoubtedly resemble those of gold, causing many investors to go a step further, suggesting Bitcoin's superiority over gold and precious metals.
Bitcoin, as the oldest of the cryptocurrencies, has gained the most trust. Time rushes inexorably, many projects disappear from the market and new ones appear in their place. For that, Bitcoin, has been the biggest since its creation - it is responsible for the cryptocurrency phenomenon and it is thanks to it that many investors have decided to buy cryptocurrencies.
If you want to buy Bitcoin, you also need to know that its popularity has two faces. Being the most popular cryptocurrency, it also means it is extremely susceptible to media attacks, which have a big impact on the fluctuation of the exchange rate.
Bitcoin can be bought either through an exchange or a cryptocurrency exchange. In the market, we have many different platforms that offer buying and selling Bitcoin and other cryptocurrencies, so choosing a good and proven platform is an important decision.
Bitcoin exchange, is by far the easiest way to buy bitcoin. At a Egera exchange, you simply deposit money via bank card or wire transfer and then buy Bitcoin in a swap, which only requires you to enter the amount you want to buy the cryptocurrency for.
At one time, cryptocurrency exchanges did not require identity verification, but under current regulations, any user who wishes to exchange traditional currencies for cryptocurrencies is required to verify identity.
The obligation to implement this process is imposed by the legislator through the Anti-Money Laundering and Countering the Financing of Terrorism Act, of 1 March 2018.
To buy bitcoin on a cryptocurrency exchange, you need a minimally higher level of sophistication than you would with a currency exchange. A cryptocurrency exchange allows you to set the price you want to buy or sell cryptocurrencies for yourself.
The stock exchange provides you with many useful tools, such as automatic selling or stop loss, which increase the trader's mental comfort and allow you to minimise your losses to a certain level.
Cryptocurrency exchanges offer users more freedom to choose their prices, which in the case of buying Bitcoin at a currency exchange are set top-down by the platform operator. A feature for which many users choose to use a cryptocurrency exchange is also lower commissions than with an exchange office.
The essential features of the exchange office are speed and simplicity. All you have to do is enter the value for which you realise the purchase of Bitcoin, and making the first exchange transaction will be behind you. In contrast, a cryptocurrency exchange requires more time and commitment.
Which is a better choice for buying Bitcoin?
If you're just starting out in investing and haven't used an exchange before, a better choice is probably the Egera exchange, where buying Bitcoin is a pleasure.
As an alternative to institutions that observe financial supervision, where you are legally protected, you can buy from BTC holders. In buying from other users you are unfortunately not protected, so we recommend buying from an account on a cryptocurrency exchange embedded with local laws that protect your interests.
Choosing a cryptocurrency wallet is as important a decision as choosing the right platform to buy and sell them. Cryptocurrencies that are theoretically stored in your wallet, in practice, never end up there. A cryptocurrency wallet is an intermediary between you and the cryptocurrency network you own. The wallet uses your address, and public and private keys, to determine that the funds actually belong to you.
You can hold bitcoins in cold and hot wallets, but also in full and light wallets. What do these categories mean?
Cold (cold) and Hot (hot) are the two basic categories of wallets.
A cold wallet is characterised by remaining offline until the transaction is executed, i.e. until the device is physically allowed to connect to the network. Cold wallets are most often devices that look like a memory stick, but unlike a memory stick, they have highly specialised software that protects the data and makes it possible to dispose of the funds.
Hot wallets are the most common way to store cryptocurrencies. This type of wallets is characterised by a constant connection to the network, which makes them marginally more vulnerable to malicious attacks than cold wallets, which are completely devoid of this threat.
The closest example of a hot wallet is a cryptocurrency exchange or bureau de change, where many investors store their funds. In addition, there are also wallets in the form of mobile and desktop applications, but also wallets available in browsers that do not require the installation of additional software.
Lightweight and full wallets, a category that divides wallets due to the synchronisation of blockchain blocks in local memory. Currently, Bitcoin's blockchain weighs about 400 GB, which means it takes up half the space of an average personal computer hard drive.
Full wallets synchronise all blocks. They usually take a long time to sync, making uninitiated users perceive the constant syncing of a newly downloaded wallet as a bug. The most popular full wallet, is Bitcoin Core, dedicated to nomen omen BTC.
Lightweight wallets are a more common type of wallet, the synchronisation with blocks takes place outside the user's device - in the cloud. These types of wallets are... lightweight. They don't take up a lot of disk space, nor do they need constant synchronization to function. This type is most often recommended to users who are looking around for a wallet to store cryptocurrencies.
Buying cryptocurrency is not the only way to get it Alternatively, there are
faucets, airdrops - commonly used for young projects and cryptocurrency mining, which is not a direct purchase of cryptocurrency but requires much more money than buying bitcoin.
There are still sites that offer
free cryptocurrencies. As a reward for completing simple tasks, faucets offer a certain number of cryptocurrencies - analogous to reality - these are usually drops.
The first cryptocurrency taps, which appeared in 2010, offered as much as 5 BTC for performing simple actions like solving a captcha! 11 years ago, the value of Bitcoin was obviously much lower than it is today, while this curiosity shows the potential of such solutions.
You need to be extra cautious when using taps - they are sensitive sites that can be used to steal personal information or deposited funds, but by keeping the basics of cyber security in place you will avoid any dangerous incidents.
Are faucets, airdrops and buying the only ways to get your hands on BTC? Of course not! A rather exotic way, because it requires a lot of calculation and a lot of investment, is to dig up BTC on your own.
Digging cryptocurrencies is still a profitable activity, but you have to spend tens of thousands to get a satisfactory return on your investment. An equally big problem is know-how, i.e. knowing what equipment to buy, how to configure it and how to dig.
It is definitely not an activity for people who are just starting their adventure with cryptocurrencies, although it is definitely an interesting alternative to investing funds. The profitability of digging cryptocurrencies is a calculation that takes into account factors such as the price of the equipment, the cost of electricity, hashrate (i.e. the efficiency of the diggers) and the difficulty of digging the cryptocurrency.
Before you buy Bitcoin, or any other cryptocurrencies, plan your investment strategy carefully. Determine exactly how much you will invest and what return you expect on your investment. When buying an investment asset, also determine how much risk you are willing to bear and set a stop loss to prevent it.
Tools that automate trading - such as stop loss - also have another very visible benefit. They provide greater psychological peace of mind for the trader. Averaging information from many sources, an acceptable risk is most often a 5% loss of capital, which means that most traders configure stop losses in this way.
When buying bitcoin, pay attention to its valuations. Tracking the rate and analysing it will allow you to accurately estimate the ideal time to buy the cryptocurrency, so you can maximise the potential returns on your investment.
Egera is a platform that is both an exchange and a cryptocurrency exchange. By accepting transactions in many different ways - BLIK deposits, bank cards and express transfers - you can buy cryptocurrencies on Egera whenever you need them.
Egera is a lightning fast platform, from the start of registration, to account verification takes an average of 3 minutes, after which users have full access to the benefits of the fastest cryptocurrency platform in Europe.
Already today Buy Bitcoin on Egera!