Buying Bitcoin is an activity that many traders, investors or crypto enthusiasts have been doing for many years. How does it work? Let’s see it in this article!
What is Bitcoin? It is a decentralized network that allows the exchange of the electronic money, namely bitcoin.
It is a huge distributed database that involves a large number of nodes in a network structured according to the peer to peer system.
In this network bitcoin circulates, an electronic money, or cryptocurrency, which is completely based on cryptography.
The exchange of bitcoins takes place completely or almost anonymously. In fact, the alphanumeric address of those who buy bitcoins and those who sell them is visible on the blockchain. It is a cryptographic technology. Once a transaction has taken place, there is no longer the possibility to cancel the operation.
You can buy Bitcoins and then have them in e-wallets, electronic wallets, identified by the address which is simply a long alphanumeric code.
Bitcoin technology was born in 2009 and is the progenitor of the concept of cryptocurrency.
The inventor, who hides himself (or herself) behind the pseudonym of Satoshi Nakamoto, has appropriately thought of naming the subunits that make up a single bitcoin.
Bitcoin is divided up to the eighth decimal place into Satoshi.
Bitcoins have dramatically increased their importance to become a real currency known all over the world and, in some cases, recognized as a legal means of payment.
How to buy and sell Bitcoin
Bitcoin is usually quoted against the US dollar.
This means that if you buy bitcoins, you are essentially selling dollars and vice versa. The Euro bitcoin exchange rate (BTC / EUR) is also widespread.
In the event that the price of bitcoin increases it means that you will get a profit if you then choose to sell them. Conversely, if the price drops, you will incur a loss once your Bitcoins are exchanged for euros.
By choosing to invest with CFD trading on Bitcoin, you choose not to own bitcoin directly, but on the contrary, you open a position whose value increases as the price of the digital currency rises against the US dollar.
Conversely, if the bitcoin price drops, the position will generate a loss.
You can choose to invest in Bitcoin either upwards or downwards, or going long or short. Let’s explain it better:
- Buying Bitcoins with CFDs (Long): you are gaining if the price goes up, you are losing if the price goes down;
- Selling Bitcoins with CFDs (Short): you are gaining if the price goes down, you are losing if the price goes up.
Please note: ESMA has limited leverage for retail traders to a maximum of 2: 1.
How to buy Bitcoins
How do you buy Bitcoin? Today trading with Bitcoins is very simple. All you need is:
- an internet connection;
- an e-wallet;
- a smartphone, tablet or pc to access your account with a cryptocurrencies broker;
- Alternatively, register on a cryptocurrencies exchange.
How to buy Bitcoins
There is no specific method to buy them, but there are different ways and it all depends on your needs.
One of the “classic methods to buy Bitcoin involves the creation of a wallet (coin holder) and therefore the purchase at one of the various bitcoin exchanges available on the internet.
Another system instead could be to buy bitcoins through CFDs thanks to the different platforms that we offer below.
Another method could be through a credit card.
But let’s proceed with the analysis of the various methods listed above.
How to buy Bitcoins through CFDs
All traders are well aware that it is not possible to actually purchase assets through CFDs.
With CFDs, you invest on rises, through a long (or buy) position, or on falls, with a short (or sell) position.
So the phrase “Buying bitcoins through CFDs” means “to open a long position on the cryptocurrency“.
There are many brokers that offer you this possibility today and we have listed some of them.
In fact we know well that, since CFDs are contracts by difference, the investment does not take place directly on the underlying asset, but exclusively on price movements.
This offers the opportunity to invest in bitcoin and earn while not having to create a wallet and without registering on an exchange.
How to buy Bitcoins through a credit card
The easiest and fastest way to buy bitcoins effectively is by using a credit or debit card on an exchange that supports this operation, such as eTorox.
If you don’t choose to invest with companies that have a solid reputation and that comply with the regulations, you may run into dishonest companies that sell bitcoins in order to collect credit card numbers and personal information.
All this leads to scams and identity theft. The goal is therefore to buy Bitcoins with credit cards at reputable sites.
Buying Bitcoins instantly
Buying Bitcoins instantly, how to do it? For example with credit cards, it is in fact a fast system.
Buying and selling bitcoins with a debit or credit card is in fact the fastest way for new users to get bitcoins.
How to buy Bitcoins with PayPal
To buy Bitcoin with PayPal you need to use services that allow you to buy cryptocurrencies using Paypal as a means of payment.
How to do? First you need to connect a card to the PayPal account or, alternatively, have sufficient balance on your PayPal account.
Subsequently, when you select the payment method to buy Bitcoin you have to choose PayPal, clearly only on the exchanges that have enabled this tool.
Even some online brokers, such as eToro, allow you to deposit funds using PayPal. So you could deposit euros into your eToro account and buy Bitcoins with these, or other cryptocurrencies on the broker’s platform.
Is buying Bitcoin worthwhile?
We can’t establish that, you are the only one who can do it. Our job is to guide you to understand how to do it and what are the consequences of investing in cryptocurrencies or buying Bitcoins.
Buying Bitcoin is worthwhile if you consider it a good investment and if you have understood how it works.
How to buy Bitcoins without commissions
You can buy Bitcoin without commissions on brokers and exchanges that do not apply any cost, but in any case it’s very rare.
On the eToro platform you can buy Bitcoin without commissions, but you may incur withdrawal costs.
Other brokers offer trading on Bitcoin and other cryptocurrencies without commissions, but they have other costs, such as overnight financing or wide spreads.
The ideal is to find a platform that allows you to buy Bitcoins at the lowest possible price, and eToro is a good idea!
Buying Bitcoins at a bank
Unfortunately, it is still not possible to buy Bitcoins at a bank. In fact, the cryptocurrency system was born as an alternative to the traditional financial system, so this choice is not surprising.
In any case, in the last few years the banking world itself has been increasingly interested in cryptocurrencies, an example is JP Morgan who founded its stablecoin JPM Coin.
How to negotiate Bitcoins on the exchanges
Another alternative to buying bitcoins is to go to a bitcoin exchange, or the place where bitcoin sellers and buyers meet virtually.
Among these, the most used internationally are Coinbase, Bitstamp and BTC Markets, but we can also add eTorox.
Through these exchanges it is possible not only to buy Bitcoin, but also other cryptocurrencies, such as Ethereum.
Keep in mind that most of these platforms, once the transaction is made, will deposit the bitcoins purchased in a few hours on your wallet.
How to choose a bitcoin exchange
In order to choose an excellent Exchange, you must consider some very important factors, that vary from person to person and which concern:
- exchange rate;
- payment methods;
- quantity limits;
Can I buy Bitcoin on different exchanges if the purchase limits are too low?
Unfortunately there can be very low limits, even $ 50 a day.
This involve that you can buy from multiple exchanges in order to accumulate a larger sum.
Is it risky to provide personal information to buy Bitcoin?
Also in this case, the answer can only be affirmative.
Buying bitcoins from exchanges that are also compliant with regulations is very risky, as you have to trust the companies that register documents according to the privacy and security regulation.
Like all information provided online, the service provider may be attacked and robbed.
Do I have to keep Bitcoin in my exchange after buying them?
We believe it’s not useful. You can keep your bitcoins inside your bitcoin wallet if you feel it is more secure.
After purchasing bitcoins, it is therefore necessary to immediately move them to a secure wallet.
Many people have lost millions of dollars because of exchanges that have lost their clients’ funds.
We therefore advise you to always check the private keys of your wallet account, in order to avoid being a victim of these attacks.
How to buy Bitcoins on eToro?
eToro is the regulated and authorized broker that offers you the opportunity to trade with CFDs on Bitcoin also by taking advantage of social trading and copy trading. Alternatively, you can buy bitcoins without CFDs and keep them in your wallet. If, on the other hand, you wish to exchange cryptocurrencies, you could consider registering with eTorox, eToro’s cryptocurrency exchange.
With CFDs on Bitcoin all traders can speculate even if they don’t know the market well, because they can invest and copy other traders thanks to copytrading.
Keep in mind that Bitcoins are the best known virtual currency at the moment and eToro could not ignore it.
With eToro you just need simple clicks to invest in Bitcoin both upwards and downwards.
The first thing to do, as with all brokers, is to open your eToro trading account. If you don’t have one, you can always choose to create it by clicking below:
At this point you just have to log in and, once you have entered the platform choose the markets section, click on Crypto and choose Bitcoin.
Trading Bitcoin on Plus500
An alternative to eToro might be Plus500, another broker that offered the opportunity to trade on Bitcoin, but with CFDs.
A strength of Plus500 is the large number of available markets, in addition to cryptocurrencies you can trade Forex currencies, stocks, indices, commodities and ETFs with CFDs.
Plus500 offers a free demo account, thanks to which you can practice CFD trading on cryptocurrencies with virtual money and therefore without any risk!
How to buy Bitcoins with CFDs on IQ OPTION
Today you can choose to invest with this cryptocurrency directly from the IQ Option platform. Thanks to this platform, the Bitcoin Index returns to the list of commercial resources available for all traders who have an account on IQ Option.
We recommend to trade with CFDs on Bitcoin and IQ Option broker, because it is a highly professional, regulated and authorized broker that offers all its members the opportunity to trade with minimum trades, starting from $ 25 and minimum deposit from € 10.
We always recommend to start investing with a demo account.
In fact, this offers you the possibility not only to practice the best trading strategies on BitCoin, but also to become familiar with the broker.
Specifically, you can choose to invest with CFDs on Bitcoins, because this index has been added to the list of resources available on IQ Option.
Bitcoin is in fact a universal electronic currency, now also used for payments.
It was designed to manage direct payments through the P2P principle and uses a unique encryption system which guarantees complete anonymity and security of payments.
The Bitcoin Index now available in the list of resources on IQ Option
When you choose to invest with CFDs on IQ Option and you choose the Bitcoin Index, you must know that this is the trend of bitcoin in relation to the 3 most important currencies.
These currencies today represent the 3 most developed economic areas in the world and are:
- US Dollar;
- Chinese Yuan.
The relationship between them allows you to determine the real value of the crypto currency.
Keep in mind that the value is independent from the currency of a single country.
How to determine the cost of Bitcoins
IQ Option also offers you an analysis of the very value of Bitcoin, which is given by the material cost of production.
Bitcoins can’t be touched
This means that it is a virtual currency that needs computers and programs to be created.
IQ Option knows this well and therefore it invites you to trade this asset.
We recommend to choose this broker for your investments, as it offers significant opportunities and advantages.
Why IQ Option?
- Free demo account with virtual € 10.000;
- Professional training system;
- Accessibility from any device;
- wide range of tools for analysis;
- More than 70 assets to negotiate;
- Simple and reliable withdrawal system;
- High profitability;
- Minimum investment of $ 25;
- 1 min. for the transactions;
- Minimum deposit of € 10.
With IQ Option you can also choose to invest and trade in Bitcoin 7 days a week.
Bitcoins can be bought through a cryptocurrencies exchange.
With CFDs you are not buying bitcoins, but you are investing in the price movement of bitcoins. So you can invest on the value of the cryptocurrency, both upwards and downwards.
Yes, you can choose to buy Bitcoin directly on the eToro platform or to trade with CFDs. Alternatively, you can buy and sell bitcoins on the eTorox cryptocurrency exchange.