A Brief Guide to Buy, Invest & Store Bitcoin

Bitcoin Minning

At present, investment in Bitcoin can result in the huge payoff. Every smart citizen or you can say netizen is investing in this blockchain technology and making the path in this hyper-growth investment. Bitcoin is a peer-to-peer payment network in which two users can do the transactions securely. Bitcoin is digital money, the only difference that it is decentralized, no central authority is involved in this payment method and users can manage their transactions themselves. In addition, you can also invest in Bitcoin exchange or take benefit from IRAs and 401 (k)s tax-advantaged accounts. So, in order to make you informed that how to buy, invest, and store Bitcoin, here is a brief guide. Read on!

Bitcoin Minning

Opt for User-Controlled Wallet

Created by a pseudonym Satoshi Nakamoto in 2008, Bitcoin is a cryptocurrency that frees up the users to transact without any involvement of the third party, be it the bank, government, or any other central authority. The core of Bitcoin was launched in 2009. Each owner or miner was given a ‘private key’ address that enables the bitcoins sending. So, the software or you can say user-controlled wallets gave permission to users manage their private keys.

So if you are tech-savvy, then using a user-controlled wallet is an ideal option. The wallet is similar to digital money and does not need the permission of any third party. However, with that being said, there are also certain disadvantages as no central authority is involved in this network. Your PC or computer might get hacked or you can lose private keys provided to you.

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The user-controlled wallets are desktop or the web friendly. Categorized as Simplified Payment Verification (SPV) and full node, the wallets of Bitcoin loads the complete blockchain. Each transaction that is ever made on the Bitcoin network is secured in the computer. Generally, the file takes around a couple of days to download. But if you use a hardware for a full node, then it will take less time.

Users can also opt for phone wallet. It is good and much easier to use. Miners or users can use Bitcoin to make the payments for items. You can choose from various Android user-controlled mobile wallets as per your choice.

Therefore, it is better to make back up of your wallet and secure it in case you lose your phone so that you can make that wallet on the new device.

Go for a Hosted Wallet

These wallets are managed by the third party. They take care of private keys and provides the user a great experience via mobile app and web. It is somewhat similar to online banking, all you need to choose the reliable Bitcoin wallet that securely handles your funds and prevent them from getting hacked. When you choose a trustworthy mining wallet, then you can simply send a particular amount of money to other wallet and identity remain anonymous.

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For the security of your wallet, you can select two-factor authentication from Google. For instance, Yubikey (Do not use the phone number as there are chances of account hacking). Apart from wallets, there are services like cold storage or vaults, in these Bitcoin keys are secured in the computer even without an internet connection.

Choose Hardware or Vault Wallet

If security is your main concern, then you can opt for vault or hardware wallet. In case, you do not rely on third party mining providers, then you can trust yourself and go with this wallet. In this wallet, there is no need to hold the keys on your own and even you cannot completely rely on the company.

It works the both ways. In place of one key, there are several keys that are associated with Bitcoin address, suppose two, three or five that must be signed. The process is similar to company checks in which to pass a certain amount multiple executives’ signatures are required.

Using a vault wallet is highly secure and there is no need to the involvement of the third party. However, in this wallet, you cannot access the funds immediately.

In case, you are much concerned with security and fear from malware hacking, then you can select a hardware wallet. It is a very small device that holds the private and public keys of Bitcoin. Generally, the USB size is smaller and they cannot be connected to the Internet. However, they secure private keys and prevent malware hacking.

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How to Get Bitcoin?

In case you use a user-controlled wallet, you can easily buy Bitcoin from various Bitcoin exchanges, namely Coinbase, Gemini, and more. Secondly, you can go to Bitcoin ATM or some local exchange and change the fiat currency like Dollar, Euro, Rupees, Yen to Bitcoin.

In addition, hosted wallets make Bitcoin mining easy by connecting us to the banking system and you can purchase Bitcoin from ACH or wire transfer.

Choose Bitcoin Investment Trust (GBTC)

If you are the one who does not want to spend the actual bitcoins and process them in an investment vehicle, then opt for Bitcoin Investment Trust. It is a tax-advantaged account with beneficiaries. GBTC is a trust that provides Bitcoin securely. GBTC is basically a publicly traded security that represents 1/10th of Bitcoin. It comes under IRA, 401(k), and other accounts. Investors can purchase GBTC shares from the issuer and trade them freely on OTCQX by brokerage/ investment accounts and IRA.

Conclusion

The above-listed are some of the methods to invest, get and buy Bitcoins. Bitcoin price is getting higher day-by-day and every smart city is investing in this blockchain technology. So, you should also invest in Bitcoin mining and be a part of the growing Bitcoin community.

About the author: abhay.singh

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