Can An Ordinary Person Buy Bitcoin?

Bitcoin is a decentralized currency that anyone can trade, invest and use as payment. Here’s a beginner’s guide for Bitcoin.

Yes, an ordinary person can buy Bitcoin and use it for various transactions, including trading, investing, and payment for goods and services. While it is not a legal tender in major global economies, they recognize Bitcoin as a legitimate asset and means of payment, accepted in online and physical stores worldwide. Nevertheless, crypto remains a new concept, and there are several things you should know about it before making any purchase.

Getting a Bitcoin Wallet

Bitcoin is a pseudonymous platform that enables users to transact without revealing personal information. Bitcoin users mainly identify each other by public addresses that do not disclose personal details. However, you require a Bitcoin wallet to buy, sell or pay for items with Bitcoin.

Several service providers offer Bitcoin wallets, which you can get for free or at a fee. Reputable crypto exchanges provide secure and easy-to-use Bitcoin wallets that you can link to your bank account for convenient money transfers. You can choose a hot or cold Bitcoin wallet.

A hot Bitcoin wallet is online-based, allowing you to keep your private keys over the internet. A cold Bitcoin wallet doesn’t link to the internet and usually comes in a hard drive or USB disk. The former is more convenient since you can access it anywhere and anytime but, it is also vulnerable to cyber threats. The latter is the most secure since it lacks a connection to the online grid.

Buying Bitcoin Online

The other thing that you should know about Bitcoin is that you can only transact it online as it is a digital currency. Bitcoin’s value reached a record high of almost $68,000 per BTC in 2021 and, experts predict it will go higher in the future. However, you do not have to buy the whole Bitcoin. You can also purchase a fraction of Bitcoin, like with fiat currencies.

The smallest Bitcoin unit is a hundredth-million Bitcoin, known as Satoshi, named after its anonymous founder. Reputable crypto exchange platforms such as ethereum-trader.io are the best places to purchase Bitcoin online. They allow individuals and businesses to buy, trade, and invest with Bitcoin based on your budget and investment goals.

Crypto exchanges allow their customers to buy Bitcoin with cash or other cryptocurrencies. After making the purchase, you can also use the funds to trade in different digital currencies and pay for goods and services through those platforms or your wallet. Transacting via crypto exchanges will require you to pay a small transaction fee for processing the funds. Nevertheless, the costs are relatively lower than credit cards and bank transfers.

How Much Bitcoin Should One Purchase?

This question usually bothers many individuals seeking to buy Bitcoin. The amount of Bitcoin you should buy will mainly depend on why you need it and your budget. If you need Bitcoin to pay for a product online, you should first find out the amount of Bitcoin it would be worth, based on the market prices. Stores that accept crypto will automatically show the prices in Bitcoin, making it easier for you to know the required purchase price.

If you need Bitcoin to trade or invest, it would be best to discuss your plans with a financial advisor or a cryptocurrency expert. Bitcoin is a lucrative asset that could deliver significant profits margins. However, it is also highly volatile, with sharp price movements that could shatter your dreams prematurely.

Thus, the golden rule for every investor is to invest a small fraction that you can be willing to lose in case the markets take a hit.