How to buy Bitcoins, the legal alternative to the dollar

This 2021 is so far the year of cryptocurrencies, with Bitcoin as the main -not the only- protagonist. It is a volatile market, in which prices can change abruptly in a matter of minutes. The advantage is that you can buy Bitcoin in most currencies and obtain profits in dollars, without the restrictions that exist today in the exchange market.

For those who still do not know what it is about, Bitcoin is a virtual currency or a means of electronic exchange that is used to acquire products and services like any other currency. But this currency is decentralized, that is, there is no authority or control entity that is responsible for its issuance and registration of its movements. It consists of a cryptographic key that is associated with a virtual wallet, which discounts and receives payments.

How to invest in cryptocurrencies

The price is strictly dependent on supply and demand. It is the reflection of the countless prices agreed at every moment between those who want to buy bitcoins and those who want to sell them. Therefore, and in the absence of an authority intervening, its price can become very fluctuating.

It should also be noted that Bitcoin is not an indivisible unit, so it is not necessary to buy a whole one to invest; only a portion can be purchased.

Steps to buy and sell Bitcoin

To operate with cryptocurrencies you must resort to a platform in which an account or virtual wallet is opened to be able to buy and sell. It is in practice a digital “exchange house”.

To register, the personal data, a photo of the ID and a selfie are enough to verify the identity of the user.

The next thing is to enter the money, which can be done by transfer from a bank account, a virtual wallet, and in some cases in cash.

The accreditation of funds can take between 24 and 48 hours. And it should be said that each platform has limits on the amount that can be operated.

Once the funds are in the wallet, the investor can start trading. You just have to indicate on the platform which cryptocurrency and how much you want to buy. The conversion is made at the current exchange rate.

The platforms usually impose a minimum investment amount, in some cases equivalent to 10 dollars. One of the most popular alternatives is Ethereum, with a similar logic. But there are also others, known as “stablecoins” because their value is linked to that of the dollar, which makes them less volatile options.

Fees for trading cryptocurrencies

The virtual “exchange houses” in which cryptocurrencies are operated charge, from now on, a commission. What they do is set, for the different operations or movements, commissions and charges that should be taken into account before starting to invest.

They usually keep between 0.5% and 6% of the amount entered, depending on the amount and the modality. Then, the purchase and sale usually have a commission of 1%. Sometimes, not always, there may be a fee for withdrawing the investment.

We hope this post was useful. Thank you for reading.

Comments are closed.

Create a website or blog at WordPress.com

Up ↑

Create your website with WordPress.com
Get started