Over the past year, the value of Bitcoin has become one of the main topics of discussion. Experts are competing with each other, predicting unprecedented growth for one cryptocurrency and imminent decline for the other. Despite the volatility, Bitcoin is the first and fundamental coin. Most cryptocurrencies are traded in conjunction with Bitcoin. If you decide to buy Bitcoins , this cryptocurrency overview will tell you how to do it easily and profitably.
How to buy Bitcoins
When the creator of Bitcoin came up with the concept of the first cryptocurrency, he was thinking of a full-fledged replacement for money – a decentralized digital currency available to everyone. Over time, the list of things that can be purchased with Bitcoin has expanded, but Bitcoin has evolved into more of an investment asset traded by traders. There are several options where you can buy Bitcoin to make money, and they are listed below.
Cryptocurrency exchanges
One of the most popular and convenient options for trading is a cryptocurrency exchange. There are many exchanges operating in different jurisdictions, so carefully study all the features of a particular cryptocurrency exchange before you start trading. After that, the most important question arises: will it be profitable to buy cryptocurrency on the chosen exchange?
To answer this question, it is not enough to know how much a Bitcoin is worth on the exchange – you also need to find out the fees. Of course, it is worth looking for options where you cannot lose money. However, fees that are too low should make a trader more cautious. Suspiciously good conditions can mean that you are dealing with scammers.
You should also check the security concept of the crypto exchange. Trading platforms in particular often fall victim to hackers. And don’t forget that the amounts of cryptocurrencies that you do not intend to trade in the near future are best withdrawn to a cold wallet. Once you have chosen an exchange, you will need to register. Usually, the process includes a KYC (pass-through verification) check, where you will have to provide your personal information.
File sharing and P2P
Another way to buy Bitcoin (BTC) is through exchanges. There are two types of exchangers: traditional and P2P. The first works like a regular exchanger – you transfer money to the organization and get the amount back in cryptocurrency. It is a fairly simple way for cryptocurrency exchange . Transactions are usually instant. And many platforms do not require advanced identity verification for small transactions. However, the price of a single bitcoin at an exchange office often differs greatly from the current rate, which makes this option less profitable.
Another option is to buy through a P2P exchange. It is similar to a marketplace. Sellers post ads to sell assets and buyers select the ones that suit them. Sometimes, some of the best prices can be found on such platforms.
But P2P exchanges also have disadvantages. For example, if you are exchanging a large amount, it is unlikely that you will be able to exchange everything with a single seller, as it is usually a regular person whose stocks are exhausted. The most popular service for P2P exchanges is Localbitcoins.
Is it possible to make money with Bitcoin?
Given the volatile performance of Bitcoin over the past year, the question arises whether it is worth buying Bitcoin in Germany in 2022. Unfortunately, there is no clear answer to this. It all depends on your goals and expectations of the exchange rate. There are several ways to make a fortune on the stock market:
- Arbitrage;
- Trade;
- Holdings.