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The latest Bitcoin halving is just weeks away and momentum is building as BTC hits , heights that we haven’t seen for a couple of years.
This halving cycle is the fourth in Bitcoin’s lifetime, and historically these events have prompted a surge of interest and a significant increase in the Bitcoin price.
Each halving cycle cuts the rewards paid to new miners in half, using market forces to reduce the supply of new coins from about 900 BTC per day down to about 450 BTC. This time, we’ve also got serious demand, with almost 10,000 BTC flowing into the new Bitcoin ETFs each day.
Some analysts suggest that this sudden supply and demand shock could contribute to the Bitcoin price soaring north of $200k by 2025. In what has already been a great year for the world’s biggest crypto, this could be another sign that the time is right to make your first investment.
Investing in Bitcoin is more appealing and convenient than ever before. We’ve put together some guidance to help you make your first steps into the crypto world.
3 best places to buy Bitcoin, chosen by the experts
Our expert panel recommends eToro as the best place to buy Bitcoin right now. eToro is inexpensive, beginner-friendly, and offers lots of different ways to buy and sell Bitcoin.
Here are a few more of our favourite crypto platforms:
Cryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Invezz.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB.
82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Terms Apply. Cryptoassets are highly volatile. Your capital is at risk.
What you need to buy Bitcoin
A phone and the internet is all you need to invest in Bitcoin, but in order to make your experience as straightforward as possible, it’s useful to have these to hand:
- A crypto exchange account. It’s a good idea to set up an account straight away, so you’re ready to invest in Bitcoin as soon as the price hits a level you’re happy with.
- A way to pay. Many people buy Bitcoin with a bank account or card payment. You can also buy crypto with PayPal or another e-wallet. Make sure you have the details of the account you want to use, whether that’s your credit card, PayPal, or a different service.
- Photo ID (a copy is fine). You usually have to provide ID when you set up an account to buy Bitcoin. Most crypto platforms ask for ID verification in order to comply with KYC (Know Your Customer) regulations, which are in place to prevent fraud.
How to buy Bitcoin now
Choosing a crypto exchange to get started with is just the first phase. Next, you need to learn how to set up an account and buy your first Bitcoin.
Step 1. Sign up to eToro
eToro is the safest crypto exchange to get started with. Enter a few of your details to set up an account, then you may be asked for a copy of your photo ID to verify it.
Step 2. Make a deposit
To add money to your new account, choose either a card payment, bank transfer, or alternative payment method like PayPal. You can deposit as little as $10, or as much as you like to get started.
Step 3. Buy Bitcoin
Type BTC into the search box then click ‘trade’ or ‘buy’. Fill in how much cryptocurrency you want to buy, and execute the trade.
Now you own Bitcoin, wonderful!
What to look for in a crypto exchange
When you choose a cryptocurrency exchange, it’s essential to pick one that offers value, security, and convenience all in one package. Here’s some things to look out for:
- Competitive trading fees. These fees can range from 0.1% to 1.25%, and lower rates mean more value for your investments. Some platforms offer reduced fees for high-volume traders or holders of their native cryptocurrency. For instance, Binance provides lower fees for BNB token holders.
- Regulatory compliance and protection. The jurisdiction of the crypto exchange impacts the level of regulatory protection. For robust protection, opt for exchanges regulated in top-tier financial jurisdictions like the US, UK, or EU. This was exemplified by the case of FTX.US, where US regulatory standards provided better protection for users.
- User-friendly interface. Ease of use is crucial. The best exchanges offer intuitive interfaces, allowing you to focus on trading rather than navigating the platform. Platforms vary, with some catering to beginners and others offering advanced features for experienced traders.
- Wide range of cryptocurrencies. Ensure the exchange supports the cryptocurrencies you’re interested in. Check the availability of your preferred assets and the trading pairs offered, like BTC/USD, which indicates the ability to trade Bitcoin for US Dollars.
- Accessibility in your region. Confirm that the exchange operates in your country or state, as access can be geographically restricted. Some countries, like the UK, have recently introduced stricter guidelines over how you can buy crypto.
Not just the ‘halve’ of it
The halving is just one reason why now might be a great time to buy Bitcoin. Crypto analysts are so bullish about crypto this year because a lot of fundamental factors are converging all at once.
A halving event means there’s less supply of Bitcoins, and more scarcity usually means higher prices. But there’s also the Bitcoin ETF, which was first approved earlier this year and whose momentum shows no signs of abating.
Bitcoin ETFs saw their highest ever inflows in late February, adding fuel to the fire that prompted Standard Chartered to forecast that as much as $100 billion could flow into Bitcoin ETFs this year.
For investors who want to jump aboard the Bitcoin train ahead of the halving, this is an important consideration. All these factors could combine to create a powerful crypto bull market and the window for getting in is shrinking. Choose an exchange today to make sure you don’t miss out before the BTC express leaves the station.
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