In the past few years, Bitcoin has seen a meteoric rise making normal people turn into millionaires. The success stories are for all to see. They have been plastered all over social media, on forums, and in different communities.
Imagine having bought a couple of hundred Bitcoins for a few hundred dollars back in 2010. In ten years, you would be looking at a million dollars! No other investment asset has been able to deliver the returns as Bitcoin has.
With financial experts stating that Bitcoin can cross the $40K mark by year-end, many retail investors are making a beeline for buying and selling Bitcoins.
In this article, we are going to look at five ways of buying and selling Bitcoins in the USA. But before we do, let us first look at the challenges associated with the same.
What are some challenges you can face when you buy and sell Bitcoins?
In this section, we will list down some of the most common challenges you are likely to face when you buy or sell Bitcoins in the USA.
- Understanding whether the platform you are trading at is credible or not
- Choosing the best software and trading platform to help you buy and sell
- Integrating your bank account with your trading platform for faster credit and debit
- Understanding trends, projections, and estimations on Bitcoin prices
- Differentiating between high-risk and low-risk trades on the platform
- Using credit or debit cards or net banking for buying purposes
- Storing Bitcoins in a digital wallet or physical hardware device
As you can see on the list, people who are first-time investors, or are looking to engage casually will face these challenges. In the following section, we will look at five ways to buy and sell Bitcoins in the USA.
List of 5 Ways to Buy and Sell Bitcoins Legally in the USA
- Authenticate your Documents-
If you are looking to buy or sell Bitcoins, the first thing you would need to do is authenticate your documents. You cannot buy or sell Bitcoins without a digital wallet. When you apply for one, you will be asked to submit personal identification by the SEC. This helps in preventing money laundering through Bitcoins.
- Choosing a Trading Platform or Exchange-
If you are an institutional investor, you might be better served on a Crypto Exchange. However, retail investors should find the ease of working on trading platforms much better. These platforms allow people to buy and sell Bitcoins by integrating it with their accounts. Platforms like https://thebitcoincode.io/es help users with a financial advisor as well as sophisticated software.
- Using Safe Internet Connection-
A first-time investor who is not using a secure network is a prime target for any cybercriminal. The nature of the ecosystem is such that it targets users and infiltrates their systems with ransomware. This is why you should use the latest antivirus solution to help you maintain your transactions in a safe and secure manner.
- Buy Bitcoins Using Debit and Credit Cards-
When you go on to a trading platform or an exchange, you will see the option of buying Bitcoins using any one of the payment methods. It works exactly in the same manner as an ecommerce setup. For example, if you want to buy One Bitcoin, the trading platform will show you the price for the same (say $10K) and ask you to use your debit card to make the payment.
- Use an Exchange for Conversions-
There might be times when you would want to exchange your Bitcoins for currency or vice versa. This means that you might want to give your Bitcoins and want dollars for the same. This is where you go to Bitcoin exchanges and use the platform to make the conversions. Based on the rate of the day, you will get the sum or the Bitcoin as the case may be.
The Final Word
It is important to follow all legal channels when buying Bitcoins in the USA. This is because you do not want to invite letters from the IRS or the SEC when you start making huge profits. You will also have complete peace of mind and not be fearful of being duped.