The smart idea is that many crypto speakers say that you should buy some bitcoins every month by adding them to your savings account. Ultimately, your strategy is to unblock this savings account and spend it. For example, 30% of your savings will be unlocked after 20 years, 40% more after 30 years, and then leave at least 30% for your children. This strategy will make you and your family richer.
Obviously, Bitcoin’s high growth may not happen. But what if the amount you will be saving each month is only $ 20 or $ 50, would you be worried about that? For some people, putting aside even $ 1,000 a month won’t make much of a difference. Thus, as a rule, each person must decide how much he or she will be happy to invest in a brighter future. The potential return can be so high that the risk is probably worth it. However, this depends on many factors and may not be so simple:
- Do you really need to understand what Bitcoin is?
- You have to understand how it all technically works.
In this article, we’ll take a look at what Bitcoin is and what you need to know to get to a more advanced level. And then, we’ll look at more practical questions about bitcoins: how to buy them and how to do it in a smart way.
Is it worth investing in bitcoin in 2020?
The opinions of crypto pioneers about whether you should buy bitcoins right now, which we surveyed on Baltic Honeybadger 2019, vary. Most people just say yes, but some of the answers weren’t that simple.
Jimmy Song (author of Little Bitcoin Book ) commented on the question of whether you should invest in Bitcoin – “It depends on whether you really understand it and are you willing to hold it for a long period of time, then absolutely yes. Limited supply and growing demand, this is hedging against central bank cartels and the like, this is very good for long-term investment, but for a lot of people, this is a speculative asset, this is gambling, online poker, something like that, in which case I say: no, in 6 months you are probably going to sell it when it doubles. “
Should you buy Bitcoin right now?
Most people who have never bought bitcoin ask, “Is it too late? The price of bitcoin is currently too high. “
If you’ve previously bought bitcoin or read a book/article about it, you probably already have a bitcoin wallet. In this case, buying bitcoin from Coinbase is not the best option for you, as it is more expensive than with other services.
To buy bitcoins on a wallet, you can go to an exchange service. Once the purchase is complete, the funds will be sent to your Bitcoin wallet. Additionally, in this article, you can find detailed information on how to buy bitcoin in our step-by-step guides.
What’s the fastest way to buy bitcoin?
There are many options to buy bitcoin these days. Some are cheaper, some are more expensive, some are more / less reliable, secure, etc. However, sometimes, you may need to buy bitcoin quickly. For example, to pay for some online services, such as hosting or VPN. Why “it depends”, let’s look briefly at the details.
If you don’t already have a cryptocurrency service account, the fastest way to buy bitcoin is to use a brokerage service like Youhodler and buy bitcoin with a credit card.
Buying bitcoin with a credit/debit card will only take 10 minutes and you will receive bitcoin within the next 20 minutes. This option is the fastest.
What’s the cheapest way to buy bitcoins in 2020?
To buy bitcoin with the lowest fees, you need to compare not only cryptocurrencies but also dive into the fees of payment methods. For example, at Wunderbit, if you buy bitcoin with a credit card, it will cost you about 6% of the exchange rate. The commission includes 5% from the payment processor and 1% from Wunderbit.
However, if you buy bitcoin with bank transfer via SEPA, then the cost is only 1% – the fee for Wunderbit. This is perhaps the best buy bitcoin offer on the market.
Aside from payment method fees, you should keep in mind that some exchanges may include their fees in the exchange rate in order to lower the visible fees and expand their marketing offerings.
To summarize, when buying bitcoins, you should be careful and look not only at the exchange fees, but also the exchange rate and compare it with the most popular and reliable exchanges like Bitstamp or Kraken. The fastest way to compare which exchanger offers the best terms is to compare the total amount of the cryptocurrency you are going to receive.
How to Choose the Best Bitcoin Exchanger?
There are many crypto exchanges on the market, some of which allow crypto to be stored and some not. When it comes to buying Bitcoin, you always want to make sure the exchange rate is the best on the market. However, as we covered this issue in the section above, it is not that simple.
Thus, we have prepared a checklist for you to buy bitcoins at the best rate and with the lowest commission.
Checklist: what to cook for buying bitcoins?
Notes on what you need to buy Bitcoin?
1. Find a reliable exchange, ask friends for reviews, search for exchange aggregators
2. Prepare personal documents (national ID, passport or driver’s license)
3. Determine how you want to pay, select the appropriate payment method
4. Receive cryptocurrency and prepare the address of the cryptocurrency you want to buy
Notes on what to look for when choosing an exchange?
1. Exchange rate
2. Exchange commission of the exchange/broker
3. Commissions of service partners, for example, for processing a payment card (may be hidden)
- The fastest way to buy bitcoins or other cryptocurrency is to use a credit card, it may not be the cheapest way, but the proven and fastest one for sure. For example, at Changelly, the commission is 5% from the broker + 5% from the card processing operator, for a total of 10%. The exact same service can be obtained at Wunderbit, where the commission is 1% + 5%, which is 4% cheaper.
- The cheapest way to buy bitcoin is by bank transfer. This is understandable because in this case there is no intermediary in the form of a payment service processor that allows you to accept credit/debit cards or electronic money, only the broker’s commission remains.
- Buying bitcoins is still an investment for many, it is a good idea to buy bitcoins worth at least $ 50 or $ 100 per month and accumulate them. Bitcoin’s macroeconomic model is built to make it more valuable over time as supply is limited.
How to buy bitcoin without identity verification?
Buying Bitcoin with a credit card is not possible without identity verification. At least none of the regulated exchanges will allow this. However, some services allow you to buy a prepaid voucher that can be converted to bitcoin. This method allows sellers to skip identity verification. However, the amount for which cryptocurrency can be bought is negligible in most cases.
Which Bitcoin wallet should you use?
There is no perfect solution in the market right now for everyone to agree to be the only crypto wallet. In our roundup of the best bitcoin wallets, you can find more information on the most widely recognized, most secure, and reliable bitcoin wallets on the market.
However, the best wallet may not necessarily be the most used. Thus, we made a summary from the Bitrefill report that was presented at Baltic Honetbadger 2019.
How do I buy Bitcoin with a credit card?
Time: 10 minutes
At Youhodler, you can instantly buy Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH) Ripple (XRP), Binance Coin (BNB) and XLM (Stellar) with your credit or debit card … You will receive cryptocurrency in your wallet within 10 minutes under normal circumstances. Registration is required, but you will need to verify your phone number, email address, and provide proof of identity.
This guide will explain how to buy cryptocurrency using a Visa or MasterCard credit card. Your first credit card purchase o can take up to 10 minutes due to verification of contact details. Further purchases will take even less time.
Here’s a shortlist of what you’ll need to buy a cryptocurrency for the first time with a credit card:
• Address of the selected cryptocurrency that you are going to buy: Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH), Ripple (XRP), Binance Coin (BNB) and Stellar (XLM);
• Credit or debit card issued by Visa or MasterCard;
• Scanned image of your personal identification card (both sides), driver’s license (both sides) or passport;
• Access to email to verify rights;
• Mobile phone to check the mobile phone number.
Users can choose one of 17 currencies to pay for their purchases. Full list of supported fiat currencies:
AUD – Australian dollar
CAD – Canadian dollar
CHF – Swiss Franc
CZK – Czech Koruna
DKK – Danish Krone
GBP – Pound Sterling
HUF – Hungarian Forint
ILS – Israeli New Shekel
JPY – Japanese Yen
KRW – South Korean Won
NOK – Norwegian krone
NZD – New Zealand dollar
PLN – Poland zloty
RUB – Russian ruble
SEK – Swedish krona
TRY – Turkish lira
ZAR – South African rand
Hint: Using a debit card may be better than using a credit card, as banks are more likely to approve such transactions. Please note that some banks do not allow their customers to buy cryptocurrencies.
What do you need to have for verification?
- Scanned image of your personal ID card (both sides), driver’s license (both sides) or passport
- Selfie with ID / Passport and current date written on paper
- Access to email, for verification
- Mobile phone to verify the mobile phone number
- Statement from the bank
- Selfie with account statement and current date written on paper
- If you don’t have a verified account yet, just follow the instructions below. Registration and verification will only take a few minutes of your time!
How to Buy Bitcoin with Bank Transfer?
Time: 3 minutes
Bank Transfer via SEPA is the cheapest way to buy Bitcoins on Wunderbit and most other cryptocurrency exchanges. The only caveat to this method is that you must have a bank account in Europe, and the waiting time can be up to two days.
What do you need to sell Bitcoin?
Confirmation of previous purchase / exchange trading / trading activity / mining. In other words, you must prove the origin of your cryptocurrency.
Many buyers don’t care about the exchange when they buy bitcoins, but when the need arises to sell them, it turns out that few are allowed to sell bitcoins. Those who do this are very careful, including to avoid dirty bitcoins.
That is why we recommend Youhodler, a government-licensed cryptocurrency exchanger. Enjoy the security of working with an official, compliant financial institution!