Why buy bitcoin ?
The arrival of cryptocurrencies was made possible thanks to Bitcoin, which was launched in 2009 and appeared to be a real revolution in the cryptosphere and alternative finance. The goal of bitcoin is to compete with a well-established but too wobbly financial system with too many flaws.
Bitcoin is a step towards a freer world, which does not depend on central institutions and in which everyone is on an equal footing.
In its early days, the purchase of bitcoin was rare and carried out by marginals. Only, in recent years, Bitcoin has been democratized and today affects a much larger part of the population.
Many companies are investing heavily in the purchase of Bitcoin and some countries are also starting to catch up. El Salvador, for example, recently adopted Bitcoin as its official currency.
Investors and the crypto community believe that bitcoins are the future and that one day they will be the basis of a new form of finance that is massively used around the world.
Opinions are obviously divergent about bitcoin. Many people do not know how to place themselves between buying bitcoins and being part of the “early adopters” or being wary and not risking their savings.
The term “early adopters” means people who adopt a new technology, a new product before the majority of people. They are precursors to this technology. In our case, the purchase of bitcoin today remains a precursor at a time when a very small percentage of people have already purchased it.
Buying Bitcoin : Advantages and Disadvantages
As with any new technology and investment, it’s impossible to say for sure whether to buy bitcoin sooner rather than later or whether those who don’t will be very happy with it in a few years.
In general with cryptos, some see it as the new world in which we will be massively brought in the next few years, but others see it as an illusion that never short-circuits a well-established banking system.
- New financial system in which many believe
- The world is moving towards this financial revolution that goes through cryptocurrencies
- Mother of cryptocurrencies
- Highest Market Cap in Cryptos
- Increasingly adopted by companies, shops, etc.
- Enables peer-to-peer exchanges
- In 2022, the price of Bitcoin is rather weak
- Very uncertain future
- Can be overtaken by other more innovative cryptos
- Many believe that Bitcoin and cryptos can never replace traditional finance
How to buy bitcoins ?
There are several ways to buy bitcoins. First, Bitcoin is the most well-known and popular cryptocurrency, which makes it the easiest to buy in cryptos.
To understand how the purchase of bitcoins works, it should be remembered that a bitcoin is a digital token stored on the blockchain. The latter is the network on which the digital token exists. To be able to buy bitcoin, you must be able to store it in a digital wallet. Either an “independent” wallet or on a platform that offers wallets within the site.
Today there are many places to buy bitcoins but given its reliance on the internet, you have to buy bitcoins online.
However, there are physical cryptocurrency distributors around the world that allow you to buy and sell bitcoins.
Buy and sell bitcoins with an ATM
Indeed, there are bitcoin distributors that open everywhere. These make it possible to make a direct link between bitcoins (or other cryptos) and cash.
The Coin ATM Radar site lists bitcoin distributors around the world. Currently, there are only 3 in France.
Bitcoin distributors allow a bitcoin holder to sell and withdraw cash through their wallet containing bitcoins. To do this, he must go to the distributor and send a certain amount of bitcoin to a digital address and when the distributor receives the sum, the user can withdraw his money.
It is also possible to buy bitcoins with cash via these distributors. To do so, the user must have opened a bitcoin wallet beforehand and have an address. By going to the distributor, he can then select the purchase of bitcoin, enter the address to which the distributor must send his bitcoins, and pay the desired amount in cash to the machine.
Buy bitcoin online
The simplest and most traditional method is to buy bitcoins online through a platform that allows it. Several solutions are available to investors :
These platforms allow users to buy bitcoins with Paypal or their credit card and store them.
Buy bitcoins for free
Buying bitcoin today still involves paying a fee. All transactions within the blockchain generate fees that the user must pay.
In addition to blockchain transaction fees, platforms or ATMs also charge fees to the buyer. It is therefore not currently possible to buy bitcoins free of charge.
The latter are even higher when you buy bitcoins via a physical distributor, because this also involves fees for the machine.
Where to buy bitcoins ?
There are many solutions that exist to buy bitcoins, for beginners or the most experienced.
The solutions to buy bitcoins when you are a beginner are brokers. These are sites that have been developed to be as intuitive as possible and the easiest to use.
We are going to introduce you to some platforms and solutions where to buy bitcoins easily and quickly as a beginner.
Buy bitcoins on eToro
Buying bitcoins on eToro is perhaps the easiest way to get started in the world of bitcoin investing.
Registering with eToro is easy and takes just a few steps.
You can then buy bitcoins with your Paypal, credit card, bank transfer, etc.
Bitpanda : buy bitcoin
In the same vein as eToro, Bitpanda is also aimed at beginners who want to get started in investing. The platform meets all the requirements that one may have in terms of security and intuitiveness.
Very easy and pleasant to use, Bitpanda allows an easy purchase of bitcoin and in just a few clicks.
Binance : a cryptocurrency exchange platform
Binance is also a platform through which you can buy bitcoins. A little less intuitive than eToro or Bitpanda, Binance is more aimed at experienced investors who have experience in cryptocurrencies.
The platform is nonetheless very interesting, it is also one of the best known and most complete. There are dozens of cryptos available and features ranging from trading to savings.
Best site to buy bitcoin
There is not one site that outperforms all of its competitors when it comes to buying bitcoin. There are dozens of platforms to buy bitcoins and all care about providing an easy-to-use solution for everyone.
In the race to adopt cryptos, shopping platforms are putting the odds on their side to attract beginners without scaring them away.
With this in mind, brokers like eToro, Bitpanda, Capital.com, etc. are the easiest to learn for beginners.
When to buy bitcoins ?
Just like the question “should you buy bitcoins”, the question “when to buy bitcoins” is very difficult to answer.
The principle of an investment is to realize a capital gain. With this in mind, it is a question of buying your asset as low as possible with the idea that its value will increase.
The crypto market is very volatile and the value of some cryptos can drop by 50% from one day to the next.
However, bitcoin experts and fans are convinced that bitcoin is far from peaking and that its value will increase significantly in the coming years.
Depending on the investment strategy you want to adopt (long term, DCA, trading) it may be wise to buy bitcoin at any time. The year 2022 is marked by a general decline in the market, including Bitcoin, which can be a good opportunity to buy it.
Some investors regularly buy bitcoins with the idea of keeping them for several years and waiting for its value to increase and reach unprecedented levels.
Generally (and in a very simple way), we consider, for an asset like Bitcoin, that it may be interesting to buy it when it is far from the maximum it has already reached (ATH). In the case of bitcoin, it has already touched $68,000 in 2021 and has been stagnant between $30,000 and $40,000 for weeks, which can be a positive sign to buy some.
In any case, this remains speculation and as explained, no one can predict if Bitcoin is the future and will really be the currency of tomorrow, if its value will really increase or if it will eventually die. Any investment is risky and by investing you expose yourself to the risk of losing your money.