Buying Bitcoin - What Should You Consider?
Buying Bitcoin - Step by Step Guide on how to get started. There are more and more people who want to buy Bitcoin now with the huge price development and bullishness around the world's largest cryptocurrency Bitcoin in recent years. As there are hundreds of different trading sites & crypto exchanges and some are less serious, we have made a small guide to consider. ByBit is one of our absolute favorites with a large selection, very low fees, simple interface and fantastic VISA cards, leverage trading, NFT and more. Binance is the world's largest crypto exchange and its range of cryptocurrencies, the opportunity to work with leverage trading, buy NFTs and more, combined with extremely low fees, makes it a great choice. Binance another favorite among our reviewed crypto exchanges.
- New to crypto? Create an account on the world's best crypto exchange BingX for a safe & good platform with a huge range of products
Step 0 - before you start
Investing in stocks or bonds, for example, can go both ways, and buying bitcoin can of course also lead to either making or losing money.
Therefore, before you start investing in Bitcoin in earnest, you need to ask yourself a number of questions in step 0:
- Do you understand what you want to buy?
- How would you react if the price went down?
- How much money can you afford to risk if the worst happens?
- Can your personal finances cope with a possible loss?
Speculating on various financial assets can be both exciting and profitable - but don't forget that you are risking your capital even if the upside is attractive. Be cautious.
Step 1 - looking inwards
Then decide what you are looking for. Do you only want price exposure to take advantage of price increases or do you want to own real bitcoins that can be used in transactions at a later date? The answer to this question affects the potential path you will take.
Step 2 - price exposure only
If you only want price exposure, you can buy certificates on, for example, safe, Swedish companies. Avanza. You can own the certificate in an investment savings account (ISK) or in a traditional custody account. This route provides a 'synthetic' exposure to Bitcoin and consequently you cannot transact on the Bitcoin network. On the other hand, you avoid the hassle of wallets and safe storage of your bitcoins. To invest and start buying Bitcoin as a Swede, Binance is the favorite for pure Bitcoin purchases and transactions. Avanza if you want to save in bitcoin funds or certificates as it is also called. With the savings in the ISK account at Avanza, you get minimal tax and it is much easier than buying Bitcoin on a crypto exchange.
Step 3 - more than just price exposure
If you have a longer investment horizon than the short-term investor and believe in bitcoin as an international means of payment and long-term store of value, you can buy 'real' bitcoins. Buy Bitcoin and other cryptocurrencies on BingX for the absolute lowest fees and fast transactions without KYC.
Step 4 - create a wallet
Just like physical cash, you need to store your bitcoins somewhere. However, a bitcoin wallet differs from traditional wallets because you need to send your bitcoins to the wallet's unique address. Note that the simplest way to store your Bitcoins is to store them at, for example ByBit, Binance or on Crypto.com all of which are by far the largest and most secure crypto exchanges in the world.
Step 5 - which wallet is right for you?
When it comes to wallets, there are a variety of providers on the market. Which provider is right for you depends on your purpose and how you view the investment.
- See Best Bitcoin Wallet -
If you want to make frequent transactions with lower amounts, a connected (online) wallet may be right for you. Usually all you need to do is download an app to your phone and then follow the instructions to create an account. As a rule of thumb, these online service providers are suitable for smaller amounts (less than €10 000). This convenience comes at a price, so to speak, and carries a security risk.
Larger amount, higher security
If you are instead interested in a larger amount (over €10,000), it is wise to add a security dimension and keep your private "keys" (required to spend bitcoin) secure and not with a third party. Then you can choose an offline wallet (unconnected) that is in "cold storage". There are options such as Trezor (costing around $700) or Ledger (costing $700). Only buy these products from credible retailers to minimize the risk that someone has "tampered" with the hardware and/or software.
Step 6 - time to buy Bitcoin
Now that you've done your homework, it's time to buy Bitcoin. By now, you're probably wondering: where do you buy bitcoins?
- Deposit the equivalent of 50 dollars on Binance here and you'll immediately get a $100 bonus! -
You can buy Bitcoin in a variety of ways, such as:
- From a Swedish company such as BTCX or Trijo - has a limited range and much higher fees than e.g. Bybit, Binance, Kraken and others.
- On an exchange like ByBit, Binance or Kraken - all much more professional, cheaper and better than the Swedish players.
- On a trading site like Binance - you can also trade stocks, commodities, indices and CFDs, ETFs and engage in leverage trading.
- In Swedish, the superb bank Avanza you don't buy bitcoin but bitcoin certificates (also called funds or ETFs).
- From the Norwegian crypto exchange Firi you can trade safely and securely as a Norwegian or Dane.
In principle, all exchanges/trading venues require some form of registration. This means that - just like when you open a bank account - you need to fill in a form and send an ID document or verify your identity using BankID on your mobile or BankID on your card.
- We review many players and on our site Best Crypto Exchanges you will find a large number of trading venues & crypto exchanges where you can invest in Bitcoin directly or indirectly via certificates.
Step 7 - what happens next?
After you have done the steps and have Bitcoins in your possession, the final question is: what do you do now?
If you believe that the increase in value will continue, you choose to do nothing. You quietly "sit" on your holding until the price perception changes. Much like a "buy and hold" strategy for your favorite stocks - you buy to keep them. If you want to spend your Bitcoin instead, you can look around online for stores and others that accept Bitcoin as a means of payment. Examples of businesses that accept Bitcoin include travel site Expedia, Swedish Web Hall, Microsoft and sports car company Lamborghini. If you want to sell, you can go to the same place where you bought your Bitcoins. With ByBit or Binance VISA CARD you can trade your crypto as easily as with your old VISA card.
Of course, you need to keep yourself informed about what is happening in the Bitcoin market, how legislation is developing in this area, how to keep your Bitcoins safe and so on.
You have now learned the basics of how to buy Bitcoin. The blockchain technology on which Bitcoin is built is fascinating and there is a lot to learn.
This quick guide provides a quick introduction - but of course there are several factors to consider and we encourage anyone interested in the market to continue their self-study.
Good luck with your investments - but remember that like all investments, trading Bitcoin is a bit risky and don't forget to use your common sense.
- We review many players and on our Best Crypto Exchanges you will find a large number of trading venues and crypto exchanges where you can invest in Bitcoin directly or indirectly via certificates.
Easiest Way to Buy Bitcoin
By far the easiest, safest and most secure way to gain exposure to Bitcoin is to use the superb Swedish online bank, Avanza. Avanza and invest in their Bitcoin funds.
- Or create an account on the world's best crypto exchange BingX for a safe & good platform with a huge range and no KYC.