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Although still presenting a low adoption in market, the bitcoin is already recognized as a vehicle for investment and means of store of value in the world. With it, you can make payments, transfers resources without third parties intermediaries and protect yourself from inflation. But the first step to get some of these benefits is buying bitcoins.

For this reason, we looked for a step by step on how to acquire your first bitcoins, prepared by YouTube channel Crypto Economía.

Getting a bitcoin wallet

Before buying bitcoins, you’ll need a wallet to store them. The wallets are programs that help you in sending and receiving the crypto coins. These systems generate your bitcoin address, where they will be received.

If you are buying small quantities, you can use any reliable wallet software. However, for large quantities it is usually recommended only the safer type of wallets. For such reason, the best option is to choose the wallet hardware, cold wallets or paper wallets. These wallets are not connected to the internet, so the possibility of hacking is smaller.

When to buy?

This is the key question for those who want to invest in bitcoins. However, there is not a universal response or something that applies to everyone. Everything will depend on the reason for which the buyer is making the investment

Thus, if the goal is to speculate, you must familiarize yourself with the different techniques of bitcoins negotiation and understand how the market works.

For those looking for an investment in the long run, there are two suggestions. One of them is the Dollar Cost Averaging, which consists in buying bitcoins in a fixed amount in dollars (or euros) on a recurring basis, regardless of the price. In this way, the investor follows the bitcoin price fluctuation over a long period and foresees the future.

Another option is to buy without analyzing the price. In this case, it is recommended that the investment should be made in several operations. Long-term investors argue that it doesn’t matter if the purchase is held within €100 difference or even €1,000 extra. That’s because no one knows for sure if it will decrease more or if it will ever reach the current price again.

The reasoning is that in the long term, if the bitcoin follows its adoption rate, it is expected that the price is much higher than the current one. This would make these  differences not too relevant in the future.

How to buy?

There are a few ways to buy bitcoins. One of them is through credit or debit cards. Some of the exchanges that accept this modality are the Coinmama, and Bitpanda. Another option is Bank transfers. The exchanges that accept bank transfers usually sell bitcoins for better prices. However, more time is required for the transaction to be completed by using a bank transfer. Depending on the country where you are, it can take several days for a bank transfer to be processed.

It is also possible to make purchases in cash. There are some sites, like LocalBitcoins, that connect buyers and sellers who are close to perform transactions personally. Buying bitcoins with money is faster and usually cheaper. However, the disadvantage of making transactions with money is that you need to meet the person physically. In addition, when there’s money involved, you never know who you’re dealing with. Therefore, it is important to take appropriate measures to protect yourself, if this is the chosen model.

Where to buy?

Another option is the trading platforms. They connect buyers and sellers, without the need of communicating directly. The platform usually collects a small fee for the service in each transaction completed. However, this may not be the simplest option.

You can also buy through brokers, which are websites that sell directly to the investor. The process is simpler, but tends to be more expensive.

Another option is the P2P platforms. They allow buyers to communicate directly with the sellers and vice versa. This direct communication between the two parties has advantages, such as the possibility to negotiate the price. However, this also implies a risk, since you will be dealing with a stranger.

On the positive side, P2P platforms usually have benefits such as availability in many countries, more payment methods availbility, etc. Two examples of P2P platforms to be highlighted are Paxful and LocalBitcoins.

Buying bitcoins can have a financial market sophistication

Hence, buying and selling bitcoins requires a certain degree of knowledge. However, for those who see the cryptocurrency as an investment vehicle there is simpler way. We at Transfero Swiss AG acknowledge the bitcoin as a new asset class and offer the investor investment strategies originated from the traditional financial markets. Learn how we can help you to diversify your investments.