Simple steps to get started trading Bitcoin

You don't need thousands of dollars to invest in Bitcoin, and getting started is not as difficult as you might think.
You don't need thousands of dollars to invest in Bitcoin, and getting started is not as difficult as you might think.

As Bitcoin keeps gaining momentum, the fear of missing out on investing in the world’s largest cryptocurrency is growing each day.

Last week on Wednesday, Bitcoin (BTC) broke the $18,000 price mark for the first time since December 2017, less than 10% away from its all-time high price of $20,000.

As some analysts believe that an upcoming $20,000 threshold is not the end but the start of Bitcoin’s upcoming explosion to a $1 trillion asset, it may still not be too late to get into Bitcoin.

Bitcoin’s supply is capped at 21 million coins, but you don’t need to have thousands of dollars to own some. You can get started buying Bitcoin with as little as $15, getting about 0.0008 BTC in return, according to BTC price at publishing time.

Getting started investing in Bitcoin is not as difficult as you might think. Here are some simple tips to buy Bitcoin easily.

1. Pick a reputable crypto exchange

The first step to buy Bitcoin easily is to choose the right crypto exchange.

You might have heard of the world’s largest crypto exchanges like Binance and Coinbase, but there are about 400 crypto exchanges globally, according to major crypto data website CoinMarketCap.

When choosing a digital asset exchange to buy Bitcoin, check whether the company is reputable and provides services to customers in your country. Using tools like CoinMarketCap or CoinGecko, also check trading volumes on a certain platform. Do some research and read some news and updates on a company’s website or Twitter to get more info, such as the platform’s transaction fees, deposit methods and security protocols.

2. Sign up with a platform, and complete security checks

Once you've picked a crypto exchange, prepare to create an account and proceed with the required verification processes. Opening an account on most crypto exchanges, like Binance, is free, requiring just an email and a phone number.

Some cryptocurrency exchanges such as BitMEX and Coinbase require Know Your Customer checks for certain crypto operations, so you will want to have your passport or another form of official identification ready.

3. Don’t forget to enable 2FA

Use a strong password for your account on a crypto exchange, and don’t forget to turn on two-factor authentication, or 2FA. Enabled 2FA reduces the risk of a security breach or a hack by putting an additional layer of security on your account. Google Authenticator is one of the most popular 2FA applications, providing users with two-step verification on a phone.

4. Consider your preferred payment option

There are a number of ways to buy Bitcoin with fiat currencies like the U.S. dollar or euro. Some crypto exchanges allow people to buy Bitcoin using a debit or credit card as well as a bank account. Using one of these methods will require linking a bank account or a card to your account on the platform.

Some global exchanges also allow users to buy Bitcoin directly from users through a peer-to-peer service, wherein customers browse offers posted by other users.

Other crypto exchanges allow users to buy Bitcoin via third-party payment solutions like Simplex and a few major payment companies like PayPal also allow crypto purchases.

5. Start buying Bitcoin

Now, you are ready to buy some Bitcoin. But first, you should decide how much you want to invest. Remember that it is a high-risk investment, and it's better to start with significant research and an honest calculation of how much one is willing to risk. Major investors and entrepreneurs like Mark Cuban have previously recommended investing up to 10% of one's savings in Bitcoin. 

6. Don’t keep a lot of crypto directly on an exchange

Once you own some Bitcoin, take care of your crypto. By keeping holdings on a cryptocurrency exchange, users risk losing access to them due to a number of reasons, like a possible hack or security breach, which can result in frozen withdrawals or other issues.

To keep your Bitcoin safe, consider using a cold wallet or paper wallet. Read Cointelegraph’s piece on how to keep your crypto safe for more tips about crypto security.

Disclaimer: Bitcoin investment is associated with a high level of risk and may not be suitable for all investors due to the high volatility of BTC prices. Prior to investing in crypto, you should carefully consider your investment objectives and risks to lose money.