The essential answers one must have before investing in cryptocurrencies

When should I buy bitcoins?

Bitcoin, as for any other commodity, is traded 24/7. This means that there’s no specific time for you to buy bitcoins since the price changes all the time.

You can use tools like CryptoWatch to help you decide when to buy.

Why does it take a lot of time to buy Bitcoins?

The actual process of buying Bitcoin doesn’t take time, it’s the processing of your payment that might take over five days. Bitcoin transaction usually takes less than an hour, averaging 10 minutes.

Can you sell Bitcoins?

Yes! You can find exchanges that allow you to buy and sell your bitcoins! Most of the platforms where you can buy Bitcoins, you can also sell them.

Why do I need to upload my ID for some transactions?

You might need to give you ID because of a law called the ‘KYC’ or Know Your Customer laws that the companies have to fulfill before you can carry out transactions.

Can anyone buy Bitcoin?

Yes! There are no current laws against bitcoin in most countries, so anybody can now invest in bitcoins.

Should you buy physical bitcoins?

Since bitcoins are verified using a personal key, the vendor might have a copy of this key. That copy could be used to exchange your bitcoin, so be careful whilst buying your physical bitcoins.

Can I buy half of a bitcoin?

Yes, you can! Since an individual bitcoin is now worth around $2700, a regular person can’t afford to buy a few bitcoins. Bitcoins can be divided into 100,000,000 units or satoshi’s. You can buy any number of these satoshis.

Should I buy bitcoin or mine Bitcoin?

Back in the day, people would be able to mine bitcoins easily but now you need complex computer hardware, therefore, buying bitcoins is more practical. You can use our 2017’s best Exchange chart in order to find the platform that will suit you best.

Do I need an account for buying Bitcoin?

You don’t really need an account to buy bitcoins since it’s a cryptocurrency you store in a wallet. But you do need an account to log into your Exchange platform.

Can I buy bitcoin stock?

Bitcoin doesn’t really have stock although it behaves like a stock, you can only buy bitcoins as you would buy another currency.

What happens when I buy bitcoin?

When you buy bitcoins, you receive a personal key. This key can be bought from someone already owning bitcoins, or can be transferred. So you don’t really receive anything physically but now you have a bitcoin, or a fraction of it.

Why would someone buy Bitcoin?

People are interested in Bitcoin because it has a decentralized structure, no ‘central’ authority to control the currency, which removes the human element of banking. The future of Bitcoin banking is instant transfers that regular banking takes over 5 days to complete. That’s why people are so excited about Bitcoin!

What’s the hype around Bitcoin?

Bitcoins are quite popular because of their volatility – they change in price almost 24/7 – which leads people to think about buying a bitcoin in order to benefit from the increase in price.

Is Bitcoin legal?

Yes, absolutely. Bitcoin is legal currently in most of the countries in the world, with the exception of some Middle Eastern countries.

Am I anonymous when I buy Bitcoin?

It depends on where you buy your bitcoin, for example, the safest way is through cash deposits which do not ask for your identification. Be careful, however, this is one of the ways in which scam websites lure people to buy ‘bitcoin’ from them.

Can I use several exchanges?

Yes, you can use several of them, as long as you store your bitcoins in your wallet, you can access as many exchanges as you like.

Do I need to pay taxes on Bitcoin?

In the US, every transaction on Bitcoin is taxed, but this depends from country to country. Please check with your local jurisdiction whether you need to pay taxes on global transactions before completing any.

What other ways can I get Bitcoin?

In the old days, you could visit a website, prove that you’re human, and take home a few bitcoins. Nowadays the only ways of acquiring bitcoins are to buy them from a platform or exchange or to mine them. However, mining is a complicated technological task which regular computers cannot do.

How to find the right Bitcoin Hardware wallet?

You need to understand your own needs first. For example, do you feel better with a software wallet or a hardware wallet? There are many questions that you may ask yourself, here’s the guide for buying the right Bitcoin wallet.

Can I send Bitcoins to my friends?

Yes, you can send your friends a portion of your Bitcoins without any costs.

Can I use my bitcoins on Amazon or at traditional retailers?

Not as yet. But you will though, soon! Big tech companies such as Microsoft now accept bitcoins as a payment for games and in-game purchases. It’s only a matter of time before bitcoins can be used for traditional retailers and Amazon.

That’s it, you are now ready to open your first trading account. If you need help check-our 3 steps guide: here.