Galaxy Coin - Exploring the Process of Buying Bitcoin with a Credit Card

Galaxy Coin - Exploring the Process of Buying Bitcoin with a Credit Card

Galaxy Coin - Exploring the Process of Buying Bitcoin with a Credit Card

Investors should consider that platforms may charge higher transaction fees for certain funding options. While you can buy Bitcoin with a credit card, we strongly advise against doing so. This is because cryptocurrency exchanges typically have high fees for credit card transactions.

Furthermore, purchasing cryptocurrency with a credit card is often treated as a cash advance, resulting in higher interest rates than your regular charges. Additionally, taking on debt to invest in volatile assets poses significant risks.

It is generally recommended to use cash or other cryptocurrencies you already own to pay for cryptocurrency purchases.

How Much Bitcoin Should You Buy?

Experts generally suggest that the proportion of cryptocurrency in an investment portfolio should not exceed 5%. Given its status as the first and largest cryptocurrency, Bitcoin can easily constitute a significant portion of these holdings.

There are several reasons why experts advocate for Bitcoin and other cryptocurrencies to only represent a small portion of an investor’s portfolio. One reason is that despite the lucrative returns cryptocurrency may offer to some long-term investors, the overall cryptocurrency market still experiences extreme volatility.

How to Store Your Bitcoin

The cryptocurrency exchange you use may have an integrated Bitcoin wallet, or at least a preferred partner where you can securely hold your Bitcoin. However, some individuals are hesitant to connect their cryptocurrency to the internet (kept in “hot wallets”) due to the increased risk of hacking.

While many major exchanges have private insurance to compensate customers in such cases, BTC can be stored in various ways, whether through online or offline storage:

Hardware wallet: Hardware devices store the private keys to your assets and allow you to interact with the wallet without exposing data. Examples of hardware wallets that support BTC include Trezor and Ledger.

Offline storage: Sometimes referred to as “cold storage” or a “cold wallet,” this is considered a secure way to store BTC as this type of storage is not accessible through an internet connection. You can also use a paper wallet to store cryptocurrency on paper — this will generate public and private keys for your cryptocurrency.

Software wallet: Desktop wallets are considered “hot” wallets and are programs downloaded to store cryptocurrency assets. There are also mobile wallets for interacting with and managing cryptocurrency assets. Trust Wallet is an example of a mobile wallet that can store BTC.

Cryptocurrency exchange: Many exchanges that trade Bitcoin will allow you to store cryptocurrency in their wallets. These cryptocurrency exchanges include GalaxyCoin or eToro, among others. How Much Is Bitcoin Worth? The highest recorded trading price for Bitcoin was $68,789 in November 2021. The most recent low point for Bitcoin was in December 2022 when it traded at $16,291. This means the price dropped by 76% in approximately one year. As you can see, the price of Bitcoin fluctuates greatly, and the volatility can be significant. Should I Invest in Bitcoin? Investing in popular cryptocurrencies like Bitcoin might seem appealing when the price is surging. However, while it has the potential to be a profitable investment, you should proceed with caution: it is an extremely volatile purchase, and experts do not recommend allocating a large amount of funds to this risky asset class. If you are unsure whether investing in Bitcoin or other cryptocurrencies is suitable for your needs, consider meeting with a financial planner who can help you determine if cryptocurrencies align with your investment strategy.