With excessive money printing around the globe and hyperinflation just around the corner, more and more people are looking at safer assets to park their fiat into. For conservative, those assets tend to be gold or real estate and for those with higher risk tolerance this asset may be Bitcoin.
Many large scale investors like Michael Saylor, Raoul Pal, Elon Musk and Cathie Wood have turned to crypto for a store of value despite its volatility and associated risks. The word has gotten out and many first time crypto buyers are flooding to the space as well. Anyone entertaining the idea of entering the crypto market starts off with questions like: “What’s the best way to buy cryptocurrency?” or “What’s the cheapest way to invest in Bitcoin?” If this is you, buckle up, you may be up for a bumpy ride.
Comparing Exchanges to find the Cheapest Way to Buy Crypto
Many people have a tendency to look for the best deal out there. When it comes to crypto, this may be the cheapest place to buy cryptocurrency. However, it is important to keep in mind that the best deal may not hold the most overall value for everyone. This is why, when deciding on the exchange platform for crypto purchase or trading, there are a number of factors to ponder.
- Have you considered The Pros and Cons of Cryptocurrency investing?
- Which exchanges offer the trading pairs you need?
- Do you prefer a centralized or a decentralized exchange?
- Do you plan to keep your crypto in self custody?
- Will you be needing customer service support?
- Do you plan to buy and hold crypto or trade it?
- What kind of a reputation do you want the exchange to have?
- How does the exchange rank in terms of security and what their reimbursement policy is in case of a hacker attack?
- Do you need the option to buy stocks and crypto on the same platform?
- If you intend to trade, do you need a go to platform for buying and trading or are you willing to use several to get the best deals?
Say, you decided to invest in Bitcoin. Answering the questions above should narrow the list of exchanges down to a few options. The next step would be to compare the associated fees of these exchanges in order to find the cheapest place to buy Bitcoin. Typically, you will encounter trading fees and withdrawal fees, however, always read the fine print as additional fees may apply
The Best Way to Buy Cryptocurrency is Not a One-Size-Fits-All Deal
Please keep in mind that your country of residence will also dictate your exchange selection. For example, if you are a U.S. resident, you will have more features available on Coinbase than you would living elsewhere. This is why it is essential to look up what the best crypto exchange alternative is in your local area. In larger countries, this investigation may be as simple as typing “cheapest way to buy bitcoin uk” into your browser and reading a few articles which analyze the available options. However, for the residences of smaller countries, more elbow grease may be necessary.
Any investment mandates getting thoroughly informed on the matter beforehand. Impulsive and reckless investing is a guaranteed way to get burned. The best way to invest in cryptocurrency is the one that involves a well informed decision and a clear entry and exit strategy.
Timing Impact on the Cheapest Way to Buy Bitcoin
Unlike cryptocurrency trading, long term crypto investing is something anyone can do. Naturally, not all coins are worth parking your money into. Nevertheless, blue-chip cryptos are for the most part a safe bet. The top of the blue-chip pyramid is still the one and only, Bitcoin.
The best way to invest in Bitcoin, or any other coin for that matter, is to time the enty well. The worst feeling in crypto investing is buying a coin just to see its price drop the next day. This is why, when looking for the cheapest way to buy BTC, you can decide on an exchange platform and wait for a good buying opportunity. Traders use technical analysis to decide when a good time to buy is, however, some of the best buying opportunities are when the Fear to Greed index is below 20 and everyone is panic selling.
The Cheapest Way to Trade Bitcoin
Successfully trading cryptocurrencies requires a lot of knowledge and experience in the market. Naturally, one would start off by deciding on the trading platform based on the local availability and associated fees. However, it is important not to overlook the importance of taxation in cryptocurrency trading as this aspect may influence your trading strategy. For example, for the US residents, short term capital gains tax on trading Bitcoin could eat up a substantial portion of the trading profit. This may play a crucial role when the investor is deciding between short term trades or long term investing.
Changes to your bitcoin investing strategy
The largest bitcoin conference in history is coming up next month and we would recommend the possibility of attending it. This event could have a significant impact on your bitcoin investing strategy. On the one hand, it can give you valuable information about the latest developments in the bitcoin world. On the other hand, it can greatly distract you from the day-to-day work of tracking the market and making trades. Overall, we believe that the potential benefits of attending the conference outweigh the risks. We recommend that you just as carefully monitor the market before and after the event and make adjustments to your strategy if necessary.
Conclusion
When looking for the cheapest way to buy cryptocurrency, you should start off by evaluating your needs and preferences of trading. Only then, you can move onto comparing the associated fees among the narrowed list. However, the absolute cheapest way to invest in Bitcoin is to be patient and time your entry right. This is because a difference between 0.04% and 0.25% in transaction fees will seem insignificant if a day after your purchase, the price of Bitcoin falls by 20%.
