I have been within the monetary world for a few years, writing about every part from credit cards and loans to budgeting and retirement. However, whereas I’ve achieved a good bit of writing concerning the subject of cryptocurrency, I solely not too long ago took the plunge and purchased my first Bitcoin.
Alright — given the present per-coin value, I did not purchase a full Bitcoin. I purchased a small fraction of a coin. My objective is not to get wealthy on crypto — although that would definitely be beautiful — however to get a greater really feel for the way crypto buying and selling works.
The entire course of, whereas easy, was instructional. I discovered a number of issues that I would not have essentially found with out going by means of the method. Listed here are three stunning issues I discovered about buying Bitcoin.
1. You want a separate account in your crypto
On reflection, this one appears sort of apparent. However earlier than I began buying and selling crypto myself, it had by no means actually sunk in.
If you commerce inventory, you cope with two sorts of accounts: retirement accounts — assume IRA and 401(okay) — and normal funding accounts. However neither of those account varieties can commerce crypto.
Principally, that is as a result of crypto is not part of the common inventory alternate. So, to commerce crypto, you open a devoted account with a cryptocurrency broker. In my case, I used SoFi to make my Bitcoin buy. I opened a SoFi Invest account, then a SoFi Crypto account.
2. It’s possible you’ll get free Bitcoin with a brand new account bonus
Bank cards have had sign-up bonuses for years, as have financial institution accounts. Even common funding accounts can include sign-up bonuses. So it ought to have been my first thought once I opened a crypto account. As an alternative, it was a contented shock.
My new SoFi Crypto account got here with $10 in free Bitcoin once I invested a minimum of $10 of my very own. This appears to be their normal supply. The free Bitcoin did not hit my account instantly, however I did obtain it the identical day I made my first buy. After all, your mileage could fluctuate.
Different crypto brokers have a tendency to supply new account bonuses, too. Nonetheless, some exchanges have greater minimal order quantities to attain free Bitcoin, so learn the wonderful print.
3. No-commission buying and selling does not embrace crypto
One other factor I did not take into consideration a lot beforehand is that crypto brokers cost charges for buying and selling Bitcoin and different cryptocurrencies. Even top brokers which have no-commission buying and selling for shares and ETFs sometimes cost charges for crypto trades.
With this in thoughts, it is sensible to hunt for a dealer with the bottom charges should you plan to do quite a lot of buying and selling. Robinhood advertises $0 buying and selling charges for crypto, however you could discover extra choices.
Maybe one of the best ways to get round buying and selling charges is to make use of one of many many bank cards that supply rewards you possibly can redeem for crypto with out buying and selling charges. A number of crypto brokers now supply these playing cards. For instance, the SoFi Credit Card earns 2% again while you redeem for crypto. And the Coinbase debit cardstyle=”text-decoration: underline”> earns 4% again in crypto rewards.
Hop on the Bitcoin bandwagon
As a monetary skilled, I am nonetheless kicking myself for not shopping for Bitcoin years in the past. However I am on the bandwagon now — and I do not remorse it.
Do I feel I will retire on my Bitcoin earnings? Hardly. It is a extremely risky sort of investing, and you need to solely make investments cash you possibly can afford to lose. Do I’ve enjoyable watching the market transfer and attempting to guess the way it’ll go? Completely.