Over the years, Bitcoin (BTC) has become famous for more than just being the first cryptocurrency and for paving the way for the global crypto and blockchain market. Today, in terms of market capitalisation, it has also become the biggest digital currency on the planet, as well as a top choice for the large majority of crypto investors and enthusiasts.
As a result, Bitcoin can be found and purchased on most cryptocurrency exchanges. This can be an issue though, making it difficult, especially for beginners, to choose between different exchanges and to find the best. That’s where comprehensive crypto guides such as this one can really come in handy.
The number of exchanges dealing in Bitcoin these days is huge. However, with so many available to pick from, they tend to have quite an extensive range of differences. From being super simple and limited in function, and free, to being super complex, streamlined, and perhaps requiring a fee to use. For many, the Goldilocks zone lies somewhere in between, containing just the right balance of performance and usability.
Browser-based online brokers for crypto are generally the easiest, most popular, and widely used platforms for the buying and trading of Bitcoin.
Here are some of the most popular online brokers to be found at the current moment:
The next most popular method for buying Bitcoin is by using an app. Apps give the advantage of being particularly streamlined and easy to use, especially when using a smart device like a tablet or phone. They also can employ different inventive ways of buying and trading by using interactive screens. Apps are also a particularly handy and useful way to make deposits and trade in BTC while on the move. Many of the app-based crypto exchanges also have an instant buy section, making trading even more quick and convenient.
A few examples of popular crypto apps that are currently being enjoyed include:
Digital wallets are a type of software or hardware made to store and keep cryptocurrency assets. Wallets generally offer far more protection and peace of mind than third-party crypto exchanges and apps can generally offer. Because of this, they have become the preferred means for crypto storage. The majority of leading wallets on the market today are generally all made to support BTC, often with it particularly in mind, though are often also made to support multiple other coins for those who want to diversify their crypto portfolio.
Another useful feature of some new wallets is the ability to buy Bitcoin and add it directly to your wallet, saving you time and bypassing the need for a broker for that purpose. However, to trade, a broker exchange platform is generally still necessary.
Recommended examples of some of the most popular digital wallets for Bitcoin currently available include:
Once you have the app or online account, the wallet, and can buy Bitcoin, you will simultaneously be able to sell and trade it too. Most online brokers and apps make this particularly easy and simple.
Selling and trading crypto is generally as easy as that.
Whether using an online broker or an app, each will connect to a crypto exchange in order to facilitate trade. Crypto exchanges, especially those that deal primarily in Bitcoin, generally offer the cheapest deals and trading fees around, along with providing the most vibrant marketplace and investment opportunities.
Examples of popular crypto exchanges include:
A less common way of buying Bitcoin is with the ‘contract for difference’ (CFD). These contracts are often issued by large and popular crypto brokers. CFDs are easy to use, can be long or short-term, are secure and regulated, and can be offered as demo accounts to test out. The downside to them, however, is that you don’t have asset ownership, you must trust the broker with your funds, and there may be higher fees. Plus, you can’t spend your BTC on services or products.
Another new way of buying Bitcoin is by using DEXs (decentralised exchanges). These are a type of digital app built directly on top of blockchain networks like Ethereum and BNB Smart Chain. DEXs are used by connecting to a decentralised wallet that allows peer-to-peer transactions, and generally do not require ID, nor is it regulated.
Peer-to-peer platforms are available that allow individual buyers and sellers to transact with each other for the cost of a small fee. Verified sellers of Bitcoin can set their own price for each coin. Alternatively, P2P services can simply be used as a meeting place to arrange further dealings in crypto at other locations and dates.
Otherwise, being the popular cryptocurrency that it is, there are very few crypto trading platforms that don’t offer or trade in BTC at all. Far from being hard to find, the trick to dealing in BTC is really more about finding the best deal with the least hidden or extra costs and fees.
Though the fees involved in buying BTC will invariably differ between brokers, and payment methods, the list is generally as follows:
As mentioned, crypto exchanges are known to generally have the cheapest deals, which include the above fees. Being in stiff competition with each other, the various exchanges will often compete in fee prices to bring in more customers.
As Bitcoin and cryptocurrency grow in popularity, regulation is an inevitable outcome. Transparency is a necessity too if crypto is ever to truly take the reins of the future global economy. Nevertheless, at the moment, buying Bitcoin anonymously is still possible via a decentralised exchange, and by employing methods such as DEX, where ID is unnecessary, and verification methods like KYC can be bypassed.
Even some major exchanges still allow KYC verification to be optional, although this usually comes with transfer limits as a penalty.
One can always arrange meetings and deal with someone in person or over the phone, but when it comes to the actual Bitcoin transaction, this can only be done online.
Most investors would view Bitcoin as a considerable asset in their portfolio. However, buying and selling have their particular advantages and disadvantages. Overall, buying BTC clearly has advantages.
Everywhere in the world where Bitcoin and cryptocurrencies have become widely utilised, taxes have been duly instated to regulate its establishment and growth. While there is no tax for the initial purchase of Bitcoin, with the exception of certain instances like small gifts and charity donations, thereafter every transaction involving it is subject to a capital gains tax.
Capital gains tax is a type of tax usually reserved for assets like physical stocks or property in real estate. Because Bitcoin and cryptocurrencies are considered to be “digital property” by tax institutions, it is therefore treated in a similar manner. Capital gains tax is determined according to the value that the asset accumulates for an owner over time.
Depending on your income bracket, long-term possession of Bitcoin assets can lead to lesser tax rates, allow greater market prediction, as well as become an effective hedge against inflation. However, the downside is they tend to become overly complicated, which might not appeal to some investors.
Speculating on anything economy-related is a challenge nowadays, even for the most knowledgeable and experienced experts. However, with its continued popularity and growth, becoming ever-more established in the global economy and general daily life, and despite its many setbacks, Bitcoin’s outlook is looking more promising than ever.
The world is rapidly changing, and technology needs to change with it. Whether Bitcoin, crypto, and blockchain will answer the call for a new and better system of transaction and economy, time will soon tell.
