How to Buy, Sell and Track Bitcoin

On Jul 10, 2019 at 8:50 am UTC by Vijaya Bharti · 4 min read
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Photo: Shutterstock
Photo: Shutterstock

Check out some mandatory steps that are to be adhered to if you want to buy, sell or keep track of your Bitcoins.

Bitcoin, the first ever cryptocurrency that came into existence while every other currency was just being initialized is as anonymous as its inventor, Satoshi Nakamoto. Bitcoin is highly mythical but certainly the best version of digital currency being used today. Investing in crypto assets may seem groovy but is highly speculative.

Apparently, in 2010, someone decided to sell their Bitcoins for the first time to purchase two pizzas for 10,000 Bitcoins. If that person would have kept a hold of those, he would’ve been a potential holder of $100 million today. To avoid discrepancies and to invest potentially a person has to be informed about the basics in Bitcoin, how to buy, sell and hold a Bitcoin.

How to Buy, Sell and Keep Track of Bitcoin?

The blockchain-based digital currency has its way long, so here we are with some mandatory steps that are to be adhered to.

Look Out for an Exchange

You will need a platform to buy and sell the currency. To begin with trading, you will be required to choose an exchange. There are numerous exchanges that support trading in Bitcoin and other digital assets such as Ethereum and Litecoin. There are several exchanges like Coinbase, Binance, Bitfinex, Coinex, Okex to name a few. You can weigh the exchanges on the basis of daily users that these exchanges gather through the data below.

Number of daily active users at top crypto exchanges.

You may check our comprehensive guide on how to buy Bitcoin with a credit card here.

Set Up a Wallet

Once you are done with choosing which exchange to trade on, you will have to install a wallet app to help you hold your currency securely. There are types of wallets categorized under:

  • Hot wallets (to manage the funds and do cryptocurrency trading).
  • Cold wallets (help to hold the funds and reduce the risk of hacking).
  • Hardware wallets (special USB device that helps you to hold funds and send them to different addresses).
  • Light Wallets (provide multiple benefits including exchange options, trading desks and purchase of Bitcoins).

Coinbase, Atomic Wallet, Trezor, Exodus, Jaxx are a few from the list of top crypto wallets.

Add Your Bank Details

If you want to buy coins using your debit or credit cards, you’ll need to add a bank account or a wallet app to sell. Once you’re done with setting up your account and adding bank details, you are all set to buy and sell cryptocurrencies. With time, exchange platforms have made it easier for you as now you don’t need to wait after signing up for your account to get verified, instead you set up and start trading right away.

Examine Current Price

You will find a price tab section on your exchange app where you can easily check out and compare the prices of existing currencies. Through infographics you can knob the price index by the hour, day, week, month and even seconds, leaving you with the choice of whether you would like to go with buying the currency now or wait for a better price.

You’re Just a Click Away

After all the analysis, choices and price comparison, you are just left with the decision to either buy or sell the currency in matter of a hit button.

Certain exchanges have their own exchange fee. Exchanges make money through a varying minimal cut. The exchanges calculate a variable percentage of cut for higher trades depending upon the country.

Exchange fees at various exchanges.

You’re on an enthralling ride in the digital world now. Don’t panic if the trade is done but your wallet is still not reflecting the bought or sold currency. Exchanges might take a few days to process the transaction through your bank. Just sit back and relax till then!

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