by Rushali 
It’s impossible to ignore the chatter around bitcoin, you may or may not invest in it but you must have heard the news around it. It has always been a great investment option but this pandemic has proved it. This year 2020, has shaken the ground of the fiat currencies. The growing rate of inflation has decreased the purchasing power of the normal currency. And the global recession has taken away the source of livelihood from the people.
All these things have automatically increased the demand for a currency that is more reliable and safe. What’s better than cryptocurrencies, that is the answer to all the problems. Under cryptocurrencies, bitcoin is the oldest and most popular cryptocurrency. Not only these cryptocurrencies have given great returns as well especially bitcoin. Bitcoin has already raised around 300% from May 2020. One year ago bitcoin’s price was around $10000 and today it has crossed the levels of $60000, so you can analyze the return in just one year.
Nowadays many retail investors are also started invested in bitcoins. One misconception regarding bitcoin is still here that just like 2017, this bull run will also end into a sudden downtrend. But they don’t understand a simple thing that 2017’s bull run was supported by retail investors only and when they started profit booking the price crashed. But this year’s bull run is supported by institutional investors. Many big companies like Visa, MasterCard, MicroStrategy have invested in bitcoins. And after that retail investors have invested in bitcoin. So there is a big difference between two bull runs.
A few years ago buying and selling a bitcoin was a tedious task. But with the recent developments, it’s become a really easy thing to do. One thing still remained the same for the people and that is the confusion while buying bitcoin. The confusion of how to buy, where to buy, how to pay, etc. In this matter, the development has become a roadblock. Due to so many options, people tend to confuse with too many options. It is easier to choose between 2-3 options than between 100 options.
So, today I will tell you the 3 best ways to buy bitcoin in 2021 through this article. There are mainly 3 ways through which you can buy bitcoins that I will mention here.
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Crypto exchanges
The best way to buy cryptocurrency including bitcoin is through crypto exchanges. It is the easiest and safest way to buy, sell, and trade cryptocurrency and bitcoins. There are many crypto exchanges that enable their users to buy bitcoins. And even almost every exchange has the option of buying bitcoins. If you are looking for the simplest way to buy bitcoin then go for a crypto exchange.
Then the question arises that how to select a crypto exchange? so let’s see the characteristics to be kept in mind while selecting a crypto exchange.
1. Ease of using
These should be the basic criteria to look for in the crypto exchanges. Trading in stocks or bitcoin the most important thing is that the time taken to complete a transaction. For example, you want to buy bitcoin at a specific price but just because of your exchange’s slow speed your transaction couldn’t be completed. You should search for an exchange that provides a trading platform that is fast, simple, and works on all devices like phones, tablets, and desktops through the internet to ensure trade from anywhere anytime. And the exchange should also allow online payment methods like UPI, net banking, and any other methods.
2. Support bitcoin
This is the basic thing to look for in an exchange. As we are talking about the best ways of buying bitcoin, so the exchange should obviously support bitcoin. But you should check that your country’s native currency is supported by the exchange or not. Bitcoin is listed on almost every exchange. But it should also support your country’s currency. Like if you are in India then the exchange should support the Bitcoin-INR pair.
3. Transaction cost
Obviously, the exchange is providing you services in exchange for some money and that money is called the transaction cost. Every exchange charges this money, but you need to look for an exchange that has a reasonable charge. Normally, charges for trading in bitcoin are less than 1% per transaction. And if you trade in large volumes then the fees may decrease but it completely depends on how the exchange charges your buy and sell transactions.
You need to compare all the fees of all the exchanges before opening an account and also check what charges are the platform is charging from you. For example, many exchanges also collect withdrawal charges when you transfer your money back into your bank account.
4. Security
While trading in bitcoin it is very important to have utmost security. We have heard many cases of hacking, online theft, etc in case of online trading. So it is very important that your exchange is free from any kind of threats. Security is the most important factor because if an exchange is insecure then your bitcoins and funds are at risk of theft.
You have to select an exchange that employs encrypted transactions, crypto coin storage in cold locations that are not connected to the internet, and safe trading.
There are several steps that you need to follow after you have selected the exchange, now let’s look at them.
Step 1- After selecting the exchange you need to open an account there for that log in there fill up all the details asked for.
Step 2- Then you have added your payment method to your account. If you want to use your bank account then provide your bank details or if you have any other way of payment then add that method. But make sure that your payment method is supported by your exchange.
Step 3- Now you have to place an order. For that, you need to go to the cryptocurrency list and select bitcoin from there. Then give the amount you want to buy and click buy.
Step 4- Open a digital wallet, after the seller will get the amount then your bitcoin will be credited to your account. Bitcoin will be kept in your digital wallet. Normally, your exchange will provide you with a wallet but it is advised that you should keep it in your personal digital wallet for security reasons. But many exchanges don’t allow their customers to transfer their bitcoin from their wallet to their personal account, if you need to do it then make sure that your exchange provides this facility before opening an account.
Peer-to-peer exchanges
If you don’t want to go for a crypto exchange to buy bitcoin then you can go for Peer-to-peer exchanges. It is another best way to buy bitcoins. This way you will not have to pay the transaction charges. In the p2p way of buying bitcoins, the exchange acts as a facilitator. The exchange will help you find the seller from whom you can buy bitcoin, then the transaction will have to be completed by you. It depends on the exchange’s policies that you will receive your bitcoin after the seller receives the money.
There are many p2p exchanges that support bitcoin but you have to look for one that will support your native currency.
You may have a question that which is a better way to buy bitcoin, so let’s answer this query.
Crypto exchange v/s P2p exchange
The account opening steps are the same in both ways. In a p2p transaction, you have to give your buying requirements or you can look for a seller that matches your requirement then the transaction will be completed. But in crypto exchanges you just have to place an order for buying bitcoin then the transaction is completed by the exchange.
In a p2p transaction, the time taken may be higher than crypto exchanges as you have to search for a seller then negotiate with him and then complete the transaction by yourself.
Which one is better, it completely depends on your requirements. You have to decide the best way to buy bitcoin.
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Bitcoin mining
Third and last best way to buy bitcoins is through bitcoin mining. Mining is a process where you will reward a bitcoin after the successful addition of a block to the blockchain. There are two steps in mining,
First is to you need to verify the past bitcoin transactions that have already taken place. Check the file size containing details of bitcoin transactions is equal to 1MB or not that needs to be verified.
The second step is you need to solve a complex mathematical problem through which the block of verified bitcoin transactions can be added successfully to the existing blockchain. After successfully completing these tasks you will be awarded one bitcoin.
It is a complex process and you can not do these steps at your home. You will be needed Application Specific Integrated Circuits computers that are dedicated only to bitcoin mining and use lots of electricity.
These were the three best ways to buy bitcoins in 2021. There are many crypto exchanges and peer-to-peer exchanges where you can buy bitcoin as per your requirement. The cryptocurrency world is a very innovative place and they are opening doors for new innovations, so we can definitely find other ways to buy bitcoin as well in the future. And today bitcoin is the best investment option I already have provided you with the numbers, so you can certainly analyze the potential of this cryptocurrency for giving you returns in the future.
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