Galaxy Coin: Essential Preparations Before Investing in Bitcoin

Bitcoin (BTC) has seen rapid growth in recent years. In May 2016, you could purchase 1 BTC for around $500. By January 2024, the price of a single Bitcoin hovered around $40,000. This represents a growth rate of approximately 7,900%.

Some analysts believe that as cryptocurrency and blockchain technology become integral parts of people's daily lives, the price of Bitcoin may continue to rise. However, buying Bitcoin comes with significant risks. Despite impressive surges, Bitcoin has also experienced devastating plunges.

Today, Bitcoin remains a highly volatile asset. Investors who bought Bitcoin during the bull market in 2021 suffered losses, while those who purchased before the end of 2020 may have seen substantial gains.

Where to Buy Bitcoin

To purchase Bitcoin or any cryptocurrency, you need a cryptocurrency exchange where buyers and sellers can exchange dollars for coins. Here are some exchanges where you can convert dollars into Bitcoin:

Coinbase

Kraken

Gemini

GalaxyCoin When discussing BTC, there is also the term "trading pairs," such as BTC to Tether (USDT) or USD Coin (USDC). In the case of BTC/USDT, Bitcoin can be exchanged for Tether, which is a stablecoin pegged to the value of the US dollar. Binance.US is an example of an exchange that pairs BTC with USDT. There are many exchanges available, but as a beginner, you'll want to choose one that balances usability with low fees and high security. If you're unsure which exchange to select, check out our curated list of the best cryptocurrency exchanges.

How to Buy Bitcoin in 4 Simple Steps

Once you've chosen an exchange, follow these steps:

Fund your account before starting to invest in Bitcoin.

Check if your exchange has an integrated Bitcoin wallet on its platform. If not, you'll need to find one for yourself. Once your account is funded and you have a wallet, you can place your first order to buy Bitcoin.

Depending on the platform you're using, you may buy Bitcoin by clicking a button or entering the stock code for Bitcoin: BTC.

Next, input the amount you wish to invest. If Bitcoin is currently priced at around $40,000, you'll need to invest that much to purchase 1 BTC. If you're investing a smaller amount, like $1,000, where 1 BTC equals $40,000, you'll receive a proportionate amount of Bitcoin, for example, 0.025 BTC.

How to Buy Bitcoin Using PayPal

You might consider buying Bitcoin on PayPal, but purchasing cryptocurrency this way means you cannot easily move your Bitcoin.

According to the PayPal website: "You can only hold the cryptocurrency that you buy in a personal account in the US. Additionally, the cryptocurrency in your account cannot be transferred to other accounts inside or outside of PayPal. You won't be able to move crypto assets from your cryptocurrency center to another cryptocurrency wallet."

Therefore, you may want to explore alternative ways to purchase and store Bitcoin.

Another way to buy Bitcoin using PayPal is through certain cryptocurrency exchanges like GalaxyCoin and eToro, which allow you to link your PayPal account as a payment processor to buy cryptocurrency. In this scenario, PayPal is used as a deposit method to fund your account.