6 Ways to Own and Manage Bitcoin
Cryptocurrencies are becoming increasingly prevalent in the world of financial markets. Some economists consider them to be the “future of money”. This especially goes for Bitcoin, which is considered a crypto “that started it all”.
Investing in Bitcoin has a plethora of fruitful benefits for its owners – high return potential, liquidity, user anonymity, and fewer government regulations.
If you’re interested in becoming a Bitcoin investor/trader, here’s everything you need to know about owning and managing this popular cryptocurrency.
So, without any further ado, let’s get right to the bottom of it.
1. Traditional brokers
Many traditional brokerage firms are allowing crypto trading on their platforms. If you are looking for ways to buy and own Bitcoin, licensed brokers are probably the safest option out there. They all charge different fees, so make sure you do some market research to find the best deal out there.
One of the biggest advantages of buying crypto through traditional brokerage companies is that they provide access to a plethora of tradable securities like futures contracts and the like. It’s a great way to minimize your investment risks and improve your return potential.
If you don’t know where to find reliable Bitcoin brokers, we recommend that you start with the most popular ones: Trade Station and Interactive Brokers.
2. Bitcoin ATMs
Bitcoin ATMs are a relative novelty in the world of crypto trading – they’re speedy, easy to use, and quite accessible (depending on your location). You can both buy and sell your Bitcoins on these devices, although you’ll need to have an e-wallet opened beforehand.
Now, the most significant downside of using Bitcoin ATMs to purchase the currency is the commission fee you’ll be paying. These can get quite high, so if reducing your costs is high up on your list of priorities, you should probably opt for a different way of acquiring Bitcoin.
Besides that, Bitcoin ATMs aren’t yet that well-spread: you probably won’t be able to find them in smaller towns or underdeveloped parts of the world. If there aren’t any Bitcoin ATMs anywhere near you, don’t worry – there’s a plethora of buying options you can choose from instead.
3. Pay for bitcoin with a debit card on a crypto exchange
Crypto exchange platforms are probably the “default” way of purchasing Bitcoin. The most popular ones include Binance, Coinbase, Kraken, and Gemini. Each has its fees and offers, which is something you should examine thoroughly before you start trading.
Crypto exchange platforms are so popular because they usually offer a variety of features that makes trading with Bitcoin as simple as possible. As a novice user, you’ll have the ability to create your crypto wallet and purchase your Bitcoins for the cheapest possible price.
So, overall, if lowering your costs is your highest priority, your best bet is to purchase Bitcoins through a crypto exchange. You won’t be charged any hidden transaction fees on these platforms, which makes them the most suitable way of trading crypto for both beginner and experienced investors alike.
4. Buy bitcoin with PayPal or Venmo
Many financial apps that you probably use daily (such as PayPal or Venmo) allow you to trade cryptocurrency in an extremely convenient way.
When it comes to PayPal, the trading fees depend on the transaction itself. For anything up to $5 you’ll be paying $0.5, for transactions involving $200 – $1000 the fees are around 1.9%, and anything above is around 1.5%. You can check this to review some popular purchasing options using this method.
While there’s a spread markup for every trade, you won’t be charged for storing crypto and there’s no lower limit on the amount you can trade. The same fees can be applied to Venmo, as it’s owned by PayPal.
Either way, if you’re already using a financial app to make your online purchases, it’s worth checking whether it offers Bitcoin trading. It’s certainly one of the most convenient ways of trading crypto nowadays.
5. Trading apps
If you’re already using trading apps such as Robin Hood to trade other financial instruments, you can use the same method for your crypto exchange needs. These can be a bit costly depending on the platform, so make sure you’ve done your research beforehand.
Either way, trading apps offer a variety of useful features for Bitcoin trading, such as buying the currency directly – no upfront commissions charged! You will have to deal with spread markup (which is usually hidden), but it’s mostly worth it considering the level of security these platforms provide.
Again, as we’ve already mentioned before, make sure you do as much research as possible before you choose a trading app on which you’ll purchase your Bitcoins. Compare their offers until you’ve found something that suits your trading needs properly.
6. Buy bitcoin with another currency
Certain brokers and trading apps allow you to purchase Bitcoins using other types of cryptocurrencies such as Litecoin and Ethereum. There are many advantages to doing so, but we don’t recommend this method for novice crypto traders.
As you probably already know, Bitcoin and other currencies aren’t exactly stable: their market value is unpredictable and it changes very often. You have to be very knowledgeable about the crypto market to be able to buy Bitcoin with another currency as efficiently as possible.
Either way, this method is becoming increasingly popular nowadays, as cryptocurrencies are becoming a more prevalent payment option in the financial world. You should certainly consider it once you’ve learned more about crypto in more depth.
The bottom line
In this article, we’ve reviewed some of the most popular methods of buying and managing your Bitcoin. As you can see, each of these methods has its unique pros and cons you’ll need to consider. Your choice will mainly depend on your specific trading needs and preferences.
Whatever you do, make sure to do your research before you start buying Bitcoin. There are a plethora of resources online, so make sure you get into it all as knowledgeable as you can.