Since its launch just over a decade ago, Bitcoin has gained a lot of popularity that still continues to rise to this day. Though it has been a bit of a roller coaster ride in terms of wild price swings, many traders have still managed to generate millions from the experience.
If this happens to be your first time looking in the direction of investing in Bitcoin, then you may be curious to find out what options you have when it comes to the different ways that you can go about buying Bitcoin. Therefore, since bettors can find a lot of use in looking at point spread data for betting purposes, we believe that you can certainly learn quite a lot from this detailed guide on what alternatives you may have.
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Five Simple Ways To Buy Bitcoin
Today, there are many financial apps like Venmo and PayPal that allow traders to trade cryptocurrencies. When you look at these platforms, they offer traders an easy and direct way to buy and sell Bitcoin using the very same online payment apps that have been around for years.
Crypto exchanges are a popular option that most traders use to purchase Bitcoin. With exchanges, there are key advantages to look forward to as a trader. These include:
- Being offered low all-in costs whenever a cryptocurrency is being traded on the best crypto exchanges available online. This makes it an affordable option to explore.
- Most exchanges don’t have fees apply to spread mark-ups and this is something that you may find to be hidden in the trading prices.
- Exchanges offer traders wallets that will allow them to store their Bitcoin safely and securely.
By using a trading app, you can easily buy Bitcoin with no direct commission even though you may end up having to make up for it with a spread markup. When you look at trading apps like Robinhood, you’re able to get no commission with its cryptocurrencies, however, you do get charged a spread markup that isn’t necessarily revealed. You can purchase your Bitcoin directly and still access other currencies which is a feature that many other brokers don’t offer. You can also buy stocks, ETFs, and many other options as well.
There are some traditional brokers that you can now find venturing into the cryptocurrency space. These brokers host several advantages to them, some of which include:
- Being able to purchase futures contracts on various cryptocurrencies like Bitcoin
- Being offered the option to trade Bitcoin directly
- Having access to competitive commission rates for all your trade values
- Access to other leading cryptocurrencies like Ethereum and Litecoin
- Being offered a range of other tradable securities that will offer any trader access to securities anywhere in the world
You can buy Bitcoin directly from a Bitcoin ATM, however, it’s worth noting that you may end up paying more in commissions when you compare it to other alternatives that you may have. With some ATMs, you will be provided with the option to sell Bitcoin through the use of a debit card or via cash. Expect the commissions to be a little on the pricey side, as most ATMs charge roughly 7% per transaction, however, you can also find ATMs that will stretch this fee into the teens.
What To Look Out For
Ownership, the upside and downside, costs, and security are all factors that you should take into careful consideration when choosing the best alternative to buying Bitcoin. Not only can they provide you with the guidelines you need to pick the best ones, but they’re also beneficial for providing you with points you can use to identify any red flags along the way.
What You Need To Buy Bitcoin
When you’re registering an account with a crypto exchange or traditional broker, you will need to disclose basic personal information. This includes information like your:
- Full names
- Social security number
- Phone number
- Bank account details
- Trading experience
- How comfortable you are with trading depending on the platform you’re signing up with
All this required information is used for nothing more than identification and verifications. It’s also important for tax times during times when exchanges and brokers are preparing documents on your profits and losses.