Billionaire Elon Musk has done it. So have musicians Snoop Dogg, Kanye West, and Megan Thee Stallion. Boxers Mike Tyson and Floyd Mayweather Jr have done it too, along with actresses Maisie Williams and Gwyneth Paltrow. So have Twitter Founder Jack Dorsey and Virgin founder Richard Branson.
What do all these people have in common? Like millions of other people, they’ve invested in Bitcoin.
And why not? Over the past decade, investors have seen their Apple stock grow by 1,100%. Netflix has grown 2,300%. Those are great returns. But they are dwarfed by the 700,000% return enjoyed by Bitcoin owners.
Experts estimate that about 100 million people worldwide have purchased Bitcoin. That impressive-sounding number shrinks in comparison to a global population of 7.9 billion. But it’s about the same as the number of people who used the internet in 1997. And look at how that turned out.
Making a Bitcoin purchase can seem like a daunting task, but easy-to-use platforms like Kriptomat make crypto investing fast and easy. It’s all about knowing where to buy Bitcoin. This article tells you everything you need to know when it comes to where and how to buy Bitcoin.
THE CRYPTO REVOLUTION
Bitcoin is the first and most widely used cryptocurrency. It’s a kind of virtual money that exists only on the internet.
There’s no secret involved in learning how to buy BTC. You just visit a website called an exchange and make the purchase. At some websites, buying BTC is as easy as ordering a pizza. You can treat Bitcoin as an investment or use it for everyday purchases at a growing number of businesses.
Bitcoin is not the only cryptocurrency. Thousands of cryptocurrencies have been launched since Bitcoin appeared on the scene in 2009. Most are specialized to perform specific functions. Only a handful are viable competitors to ordinary money. Today, most of the people who buy cryptocurrencies buy Bitcoin. So if you know how to buy Bitcoin, you know how to buy other cryptos.
Worldwide, governments are recognizing Bitcoin and other cryptocurrencies as legitimate financial instruments or currencies. Since September 2021, El Salvador has recognized Bitcoin as an official legal tender. Other countries are watching closely to see if they should follow suit. Elsewhere, Bitcoin is recognized and regulated as a security like corporate stock. Although different countries are pursuing different ways of responding to the Bitcoin revolution, it’s fair to say that countries everywhere recognize that consumers and investors demand freedom from the banks, investment houses, and other entities that have told them what they can and can’t do with their own money.
Surveys show that many more people would invest in cryptocurrencies if they know where to buy Bitcoin and how to make transactions. The good news is that if you choose the right exchange, joining the crypto revolution is easier and faster than you think.
HOW TO BUY BITCOIN: MAKING THE PURCHASE
To buy and sell Bitcoin, you start by making an account at an online cryptocurrency exchange like Kriptomat. These sites provide the current trading prices for cryptocurrency and offer you a chance to make a purchase.
Creating an account is more than selecting a username and password. The best exchanges will require you to verify your identity by providing a copy of your government-issued ID and perhaps other documents. These Know Your Customer regulations are legally required by sites and applications that comply with the anti-money laundering provisions of the EU’s GDPR.
Identity verification is a long, complicated process at many crypto exchanges. At streamlined sites like Kriptomat, which operates throughout the EU and around the world, you can complete the simple process in minutes.
You start by providing your address and uploading a high-resolution photograph of your passport (or, in some countries, driving license). Prompts guide you through creating and uploading a selfie – a photograph that matches the photo on your government ID. If all goes well, your identity will be verified within a few minutes.
The next step is to fund your account so you can buy Bitcoin and other cryptocurrencies. Common options include credit and debit cards, bank wire transfers, and cash-transfer services like Neteller and Skrill. Credit and debit cards are generally the safest and easiest, but reputable crypto exchanges offer multiple options.
Once your deposit has shown up in your account, you can make a purchase. Depending on the exchange, you might view the Bitcoin page and press “Buy” or select “Buy” from a menu and choose BTC from a list of cryptocurrencies.
That’s all there is to it – you are now an expert at the fine art of crypto and fully briefed on how to buy Bitcoin.
Bitcoin sells for thousands of euros per coin, but you don’t need to purchase a whole coin. Depending on the minimum purchase requirements at the exchange you use, you could purchase as little as 25 or 30 euros worth of Bitcoin.
You don’t wind up with a physical coin. Instead, ownership of the Bitcoin you’ve purchased is transferred to your electronic address on the blockchain network that serves as Bitcoin’s technical foundation. You may one day choose to install cryptocurrency wallet software that lets you access the blockchain, but most users prefer to use a custodial exchange like Kriptomat that secures their cryptocurrency and handles complex blockchain transactions on their behalf.
AFTER THE PURCHASE
Once you have purchased Bitcoin, you can use it to make purchases. You can withdraw funds in your country’s currency at a Bitcoin ATM – worldwide, more than 34,000 have been installed. You can transfer your Bitcoin to an interest-bearing savings account, where you will typically earn a much better rate than your local bank offers customers. Or you could simply hang on to your Bitcoin and consider it a long-term investment.
Bitcoin is notorious for the volatility of its prices, which can rise and fall quickly. Bitcoin has delivered substantial benefits for those who make long-term investments. Here’s how the price of Bitcoin has grown over the years. These are the closing prices on October 1.
There is no guarantee that the Bitcoin you purchase will grow at such an eye-opening rate, but over the 10 years ended June 28, 2021, Bitcoin’s price grew at a compound annual growth rate of 116.41%, dramatically outperforming gold (1.82%), Nasdaq (17.77%), and the Standard & Poor 500 (12.33%).
When it’s time to sell your Bitcoin, simply return to your cryptocurrency exchange and sell it in exchange for your local currency. You can then withdraw the currency from your account.
Governments and banks dismissed Bitcoin and other cryptocurrencies as a fad for years. That may have been wishful thinking – government and financial institutions have made substantial profits from their monopoly on trading, lending, and investing.
Now that cryptocurrency is here to stay, the financial establishment is rushing to catch up. Governments are regulating Bitcoin. Some are considering the launch of national regulated electronic currencies. Financial institutions are rushing to integrate cryptocurrencies into their investment offerings.
With easy-to-use exchange platforms like Kriptomat, there is no reason to stand on the sidelines. Make a small purchase or a big investment. You’ll see that it’s easier than you imagined and the rewards are greater. You can be part of the great financial revolution of our times.