Things You Need To Know Before Purchasing Your First Bitcoin

Interest in Bitcoin (BTC) has skyrocketed in the last few years. According to Nasdaq, a recent study has shown that around 46 million US citizens own at least a fraction of this crypto. And more individuals, corporations, and entire nations are accepting its use as an alternative currency. This guide will provide everything you need to know before you decide to trade or buy Bitcoin.

Things to Consider Before Buying Bitcoin

Before diving into the market and purchasing BTC, there are several things you should consider, including:

Don't let the current price of BTC scare you

Bitcoin has risen from obscurity to impressive all-time high prices of over $63,000 in a little over a decade. This feat and the current prices often have misled some potential buyers into believing they cannot afford to own BTC. What you should know is, although BTC is quite pricey, you don't have to purchase an entire coin. If you are working with a limited budget, you can simply buy a fraction of BTC worth your money as a new investor. 

You may have to pay a small fee to purchase Bitcoin  

Many cryptocurrency platforms won't charge transaction fees when you buy Bitcoin. However, keep in mind that most sellers profit from a "spread." A spread is a difference between the price a seller bought Bitcoin for and the price they offer you.

You must keep your passwords and private keys safe at all times

Private keys and passwords augment your coins' security. You use private keys every time you spend or trade your BTC. These transactions are irreversible, so it's crucial to ensure your keys are safe and secure. That means protecting the devices you use to transact from suspicious individuals and website activities.

There are numerous BTC storage options

Most people store their coins in either web-based or hardware-based digital wallets. Web-based or online wallets operate on devices with an internet connection. While this feature makes them more accessible, it also exposes them to more online security threats.

On the other hand, hardware-based or offline wallets don't need an internet connection. Therefore, they are more secure and are the best option if you plan to buy significant amounts of Bitcoin.

The Bottom Line

Investing in BTC is a good idea for seasoned investors and beginners. However, just like any other investment option, you should only invest what you can afford to lose and you need to conduct thorough research to understand what you are putting your money into before buying Bitcoin.