How To Buy Bitcoin “Stock”
If you’re like many people who are interested in diving into the world of Bitcoin, you’ve probably wondered how to buy Bitcoin “stock.” First, it’s important to know that Bitcoin is not actually a stock. While a stock is a security that represents the ownership of a fraction of a corporation, Bitcoin is a currency, just like the U.S. dollar. For the purposes of this article, we refer to it as Bitcoin “stock” because a large percentage of investors have been buying and selling Bitcoin and other cryptocurrencies just like stocks in a portfolio.
Before investing in any type of stock in the market, it’s always a good idea to research and become aware of the specific steps and best practices for properly investing and trading.
See how to buy Bitcoin "stock" and understand the essential factors to look for when searching for the Bitcoin “stock” exchange platform or Bitcoin ATM that will best suit your needs and expectations for your ideal Bitcoin experience.
How To Buy Bitcoin “Stock”
The concept of buying Bitcoin “stock” can seem complicated at first, but it is much easier to grasp when it is broken down into steps. Anyone can invest in Bitcoin, regardless of your experience and knowledge of the market and Bitcoin.
However, many Bitcoin enthusiasts recommend those interested to research and familiarize themselves with the basic methodology of the stock market, the digital cryptocurrency, and its standing in the world.
Learn how to buy Bitcoin "stock" with these four simple steps below.
Download a Cryptocurrency Wallet
Before you buy your "stock" in Bitcoin, you’ll need to get a digital cryptocurrency wallet to store your Bitcoin safely and securely. There are two types of Bitcoin wallets that people can choose from—hot wallets or cold wallets.
Hot wallets are offered by trusted exchange platforms or providers. They allow users to store their Bitcoin "stock" purchases in the cloud that can be accessed on a desktop or mobile device app. Many people prefer to transfer and store their Bitcoin "stock" in third-party hot wallet providers because hackers target wallets provided by exchange platforms.
Cold wallets are small, encrypted portable devices that allow you to transfer, download, and carry your Bitcoin. These are more secure than hot wallets, but are more difficult to utilize for beginners.
Connect Your Bank Account
Most exchanges (but not all wallets) allow you to connect to connect your bank account to your wallet in order to purchase your Bitcoin. When you buy and sell Bitcoin "stock", you can directly deposit that money into your bank account. You can link your debit or credit card to your account, but they can only be used to buy cryptocurrencies in small amounts.
Find a Bitcoin Exchange Platform or Bitcoin ATM
Bitcoin exchange platforms are online marketplaces where you can trade cryptocurrency for traditional fiat currency. In order to be eligible to trade on exchange platforms, users must be at least 18 years old. Most exchanges have an extremely detailed application process.
There are many exchange platforms available, but even though some exchanges may trade the same cryptocurrencies, they usually offer different services. Exchange platforms can vary in reputation, exchange rates, fees, payment options, and more. It’s recommended that you research and look around to find the exchange platform that best suits you.
With a Bitcoin ATM, you can easily turn your fiat money into Bitcoin “stock” in seconds. There are many different Bitcoin ATM machines available, like our very own, Pelicoin Bitcoin ATMs.
Make Your Purchase
Now that you have your wallet, connected bank account, and preferred exchange platform, you must decide how much Bitcoin “stock” you would like to buy. Although one Bitcoin costs several thousand dollars, Bitcoin “stock” can be bought and sold for fractional shares, meaning that your initial investment can be as low as $20.
Bitcoin “stock” can be divided up to eight decimal points, so even if the price of Bitcoin increases drastically, you’ll be able to buy Bitcoin "stock" for a fraction of a cent.
How To Buy Bitcoin Stock With Exchange Platforms and Bitcoin ATMs
As mentioned before, people can learn how to buy Bitcoin with Bitcoin "stock" exchange platforms. With numerous platforms available, ensure that the one you choose aligns with what you want to do with your Bitcoin.
Here are some essential factors to look out for and consider before buying your first Bitcoin.
Important Factors of Bitcoin Exchange Platforms and Bitcoin ATMs
Not every Bitcoin exchange platform and Bitcoin ATM is the same, meaning that one platform or ATM may work well for one user but not every user. It’s vital to analyze different exchange platforms and Bitcoin ATMs to find one that works well for you and your Bitcoin goals based on these key factors:
Reputation. A platform or ATM’s reputation can help you determine whether an exchange is reliable. With the popularity of Bitcoin, you can easily locate reviews from previous users of a platform or Bitcoin ATM to make a valuable decision.
Fees. Majority of exchange platforms and some Bitcoin ATMs illustrate their additional fees and payment information on their website. Scrutinize the payment information and requirements in defined print before joining a platform or using a Bitcoin ATM to avoid any hidden costs.
Payment Method. Ensure that the exchange platform or Bitcoin ATM of your choice has a payment option that comfortably suits your needs. Platforms have various payment options available that allow you to make deposits from via bank account to wire transfer.
Verification Requirements. Bitcoin "stock" exchange platforms usually require a user to provide some form of ID verification to securely buy Bitcoin. Check to see if a platform has a verification process to maintain the safety of your personal information.
Geographic Location. There are some platforms that require users to perform transactions from a specific country or region in order to fully access the platform’s functions. Verify that the exchange platform you want to join allows you to access all its features from the country you currently live in.
Exchange Rate. The exchange rate varies depending on various exchange platforms. Some platforms’ exchange rates reach as high as 20%, but you can find a lower rate if you extend your search.
Best Bitcoin Stock Exchange Platforms
There are many Bitcoin "stock" exchange platforms available, but Coinbase and Gemini are the most widely used American platforms by beginners and Bitcoin enthusiasts, respectively.
Coinbase is a popular Bitcoin "stock" exchange platform used in the United States because users can easily link their bank accounts. The user interface of Coinbase is colorful, accessible, and available in a mobile app compatible with Android and iOS devices. With a highly-established reputation and the ability to buy Bitcoin "stock" instantly, Coinbase is well-known and used by first-time users.
Gemini is the best overall exchange platform for Bitcoin "stock" because it boasts very low fees compared to many other platforms. It’s clean user interface allows investors to view a snapshot of their "stock" holdings upon logging into their account. The platform has high-performance trading software that makes it simple to buy and sell Bitcoin "stock".
Although these are just two examples of exchange platforms, you have the opportunity to choose the platform that will allow you to fully enjoy the perks of buying and selling Bitcoin "stock".
Learn How to Buy Bitcoin Stock with Pelicoin
Now that you know how to buy from an exchange, learn how to buy Bitcoin “stock” with a Pelicoin ATM.
You can now purchase Bitcoin “stock” at convenient business locations with the help of Pelicoin, the Gulf South’s largest cryptocurrency ATM. With the growing popularity of Bitcoin, we’ve made it possible for everyone to buy Bitcoin “stock” easily by placing our user-friendly Bitcoin ATM machines in hand-picked local businesses.
Our Bitcoin ATMs allow users at every level to quickly and conveniently buy Bitcoin “stock” with their fiat cash.
To learn more about Pelicoin or Bitcoin in general, contact us today at support@pelicoin.com or 855-PELICOIN. We look forward to hearing from you!