This is a detailed answer for you, if you’re asking How to Invest in Bitcoin.

Even if you’ve just heard of Bitcoin, you’d be able to invest Bitcoins by the end of this piece.

And hey, you don’t need to be a millionaire.

You can invest as little as a dollar.

And, you don’t even need a PC/computer. I’ve shared step-by-step instructions on how to invest in Bitcoin from a mobile device as well.

Table of Contents:

• What is Bitcoins? Why should you invest in Bitcoins?
• How to Choose the Best Bitcoin Investing Platform?
• How to invest in Bitcoin via Binance?
• How to invest in Bitcoin via Paxful.com
• How to invest in Bitcoin via CEX.io?
• Invest in Bitcoins from a Mobile device on CEX.io.
• Other mentionable Bitcoin buying platforms
• Frequently Asked Questions
• Conclusion

Let’s begin then?

What is Bitcoin? And, why should you Invest in Bitcoin?

Because you’re on this piece titled How to invest in Bitcoin, I already know, that you know, what Bitcoin is.

You also definitely know why you should invest in Bitcoin.

However, for those of you who reached this page without actually searching for it, don’t leave yet.

I’ll explain the basics in a few brief sentences.

Bitcoin is a Cryptocurrency.

It’s money that lives on the Internet.

You can create accounts , just like E-mail or social media accounts . Your funds are stored in these accounts.

You can use Bitcoins just like real-world fiat currency.

It can be used to buy things as simple as a Pizza, or as expensive as houses, sports cars ( Lamborghini to be exact) and even tickets to space !

Why should you invest in BTC? 4 simple reasons:

• Isn’t controlled by any govt. or organization, is decentralized.
• Previous history: An investment as low as $10.00 in 2010 is worth more a million dollars today.
• More privacy-respecting: It’s very hard, if not impossible, to link a Bitcoin transaction to the user who initiated the transaction.
• It’s extremely easy! Requires 0 technical knowledge.

How to Choose the Best Bitcoin Investing Platform?

Before you learn how to invest in Bitcoin, considering you’re new, there are certain aspects I’d like you to understand.

Not all of the Bitcoin investing platforms are equal.

I’ve included 3 of the best platforms on this list.

You can choose the one which suits you best using the factors explained below.

• KYC

This stands for “” Know your customer ” or “ Know your client ”.

There are companies which require KYC details when investing in Bitcoins, and there are those which don’t.

Those which do, require you to upload some kind of identity document, or at least verify your phone numbers before you can make a purchase.

It’s best to go with companies demanding the least bit of KYC details.

However, if “anonymity” isn’t your primary concern, in that case this factor doesn’t make much of a difference.

• Fee

There’s no standardized “ Bitcoin fee ” for Bitcoin investing.

Each company has its own fee.

It depends on a number of factors, primarily, the mode of deposit being used, and the amount.

Again, choose companies with lower fee than others.

• Security

Some companies make use of “ cold storage ”.

These are more secure. Cold Storage funds are kept in an offline environment and hence can’t be hacked.

All the companies mentioned below allow 2-FA which boosts security.

There are others which allow “ Escrow ” and these too are secure.

Some companies also allow backup codes, recovery seeds and other advanced measures.

Licensing, legality and govt. control are some other attention-worthy aspects.

You can use any of the below-listed options. I’ve only picked the most secure platforms in existence.

• Payment modes.

And finally, the payment modes do matter when you’re learning how to invest in Bitcoins, right?

These are basically the methods/modes/ways using which you can invest your fiat money into Bitcoin.

Very rarely companies allow investing in Bitcoins directly via Credit Cards or PayPal .

CEX.io is one such company which does offer such luxury.

Although, you can also invest in BTC using Skrill, Perfect Money Paytm, Bank transfers, Gift cards and any other payment method known to humans.

Basically, choose a company which offers more payment modes, more importantly, offers the payment mode of your choice when investing in Bitcoin.

How to invest in Bitcoin via Binance?

Website: https://www.binance.com/

Binance is another automated exchange, Today, it’s arguably “the” most popular Bitcoin exchange on the planet.

If you need Bitcoins exactly at market-price, Binance is the answer.

Here are its primary features:

• Invest via: Credit/Debit Card, Simplex, Koinal, BANXA, Mercuryo.
• Purchasing/Investment fee: Depends on the deposit mode.
• Minimum deposit: $10.00.
• KYC: Mandatory.
• Fee: 2% ( for automated cards.) Varies for other modes.
• Countries: Almost global, some restrictions apply.

Here’s how to make your Bitcoin investment via Binance.

Step 1: Create a Binance account using this link . It’s free and instant.

Step 2: Login to your account, and click on the “Buy Crypto” button > the select “Credit/Debit card” .

Step 3: Enter the amount of Bitcoins you’d like to purchase > set the coin to “BTC” > click on “Buy BTC” .

Step 4: You’ll be asked to setup 2-FA. It’s mandatory. If you wish to remain anonymous use Google Authenticator, or use phone verification for a simpler but less-anonymous process.

Step 5: I’m using “ phone verification ” for this example. Simply enter your number, click on “ get code ” > Enter your e-mail ID and click on “ get code ” > click on submit.

Step 6: You’ll be taken back to the same page which I discussed in step 3. Re-do step 3.

Step 7: You’ll be then asked to get verified ( it’s instant and automated.) A form like the following will be presented-

Complete all the required steps. It’s pretty straight-forward, you upload an identification and take a selfie. Done.

Step 8: For the last time, you’ll be taken back to the page in step 3. Or, go there manually ( Buy Crypto > credit/debit card) > enter the amount .

Step 9: Enter your card details on the popup-form

Step 10: Finally, review your order. This page will show you the fee, Bitcoin-price for your order, total spend etc. If you’re satisfied, click on “ confirm ”.

Step 11: You’ll be taken to your bank’s OTP page. Simply enter the OTP and done.

You’ll receive the funds in your Binance wallet.

How to invest in Bitcoins in 2021 without credit cards?

Binance ( not so) recently launched P2P. It’s a Person to Person Bitcoin exchange. Binance acts as an escrow on these trades preventing any frauds and scams.

Because it’s P2P, it’s a lot more anonymous than using direct credit cards/bank transfers. Also, you get a plethora of payment options. You can pay via online wallets ( AirTM / Uphold/ Google Pay/ PhonePay/), person to person bank transfers ( still anonymous) , gift cards and many others.

Basically, you pay the seller via a third-party payment mode. This payment seems completely unrelated to anything else. Once the seller gets your payment, he/she sends the funds to you, again, unrelated to your payment done earlier.

Step 1-> Go to Binance and click on “Buy Crypto” > P2P trading.

Step 2-> Enter an amount and select your native currency.

Step 3-> You’ll get hundreds of sellers. Choose one who has a good number of completed orders and is selling at a reasonable price. Click on “ Buy USDT ” ( it won’t be USDT for you if you selected any other currency, simply click on “Buy [Yourcurrencyname] .

You’ll be asked to login to your Binance account . Do that, make the payment using your chosen payment mode, and you’ll receive the funds in the account automatically .

Hey, those were some of the simplest and most trustworthy methods to invest in Bitcoin.

I wouldn’t confuse you by throwing a dozen options at you.

These 3 offer you all the choice-variations you possibly can imagine.

However, here are some more.

How to invest in Bitcoin anonymously ( no tax )- LocalCryptos

Website: https//www.localcryptos.com

LocalCryptos is how you invest in Bitcoins if you wish to be completely anonymous, and save taxes*.

It’s a P2P exchange. It connects buyers and sellers. Users can either make their offers on pre-listed ads, or list their own ads letting others make offers on these.

It’s primary features include:

• No identification: Doesn’t ask you for identification/documents.
• 100+ payment modes: You can invest in BTC using cards, online wallets, cash and dozens of other everyday payment modes.
• Non-linked payments: Your payment to the seller isn’t linked or identified as the “payment for Bitcoin”.
• Affordable fee: The fee is set at a very low 0.25% for the one who “makes an offer” on a listing, and it’s 0.75% for the person who created the listing.
• Complete fund control: It’s a non-custodial wallet so you retain 100% access to your coins at all times, even if the market is down.
• Escrow: The platform acts as an escrow for both the parties, eliminating scams.

Here’s how to invest in Bitcoins in2022 anonymously:

Step 1-> Sign up at LocalBitcoins and click on the “view the marketplace” button.

Step 2-> Click on the buy option (left-sidebar), choose Bitcoin > select your country > enter an amount > choose the payment mode most favorable to you.

Step 3-> Choose a seller from the right-pane. You can check the seller’s profile for his/her history, reputation, total sale amount etc. to validate their legitimacy. Then, Click on the “Buy” button.

Step 4-> Enter the amount of funds you’d like to invest in Bitcoins. Write a message if you require the seller’s bank details or any other such information. Finally, click on “open trade”

Step 5-> Make your payment. If you did everything right, the seller will release your funds.

* Tax evasion is a crime. We aren’t promoting the act. It’s just that using LocalCryptos doesn’t automatically link your investment to you and hence you’ll have to declare these investments manually.

How to invest in Bitcoin via Paxful.com

Website: https://paxful.com/

The “ eBay for Bitcoins ” is what I like to call it.

Paxful is a P2P ( Person to Person) Bitcoin exchange.

In other words, it’s not an “automated system” like CEX.io.

Rather, it lets Bitcoin sellers list their prices, and buyers can then buy these Bitcoins.

Despite being P2P, it’s 100% trustworthy and secure.

Paxful acts as an Escrow between the seller, and you.

This makes sure the seller only gets the payment when you receive your Bitcoins.

You should go with Paxful when you seek “anonymity”.

Moreover, it’s “free” for buyers/investors! And, offers hundreds ( literally) of payment modes.

Again, here are the primary Paxful features:

• Pay through almost “anything”: Paxful sellers accept over 336 payment modes! This includes credit/debit cards, PayPal, gift cards, online wallets, bank transfers, gold, cash etc.
• KYC: Mandatory ( Email and Phone only.)
• Minimum deposits: No minimum requirement.
• 100% free.
• Countries: Global.

Let’s invest in Bitcoins using Paxful then?

Step 1: Signup on Paxful by clicking on this link . It only asks for your e-mail ID and a password.

Step 2: Verify your E-mail by clicking on the verification link sent to your E-mail. It’s mandatory on Paxful now for any practical use of the account.

Step 3: Verify your phone. The verification-link from your E-mail will directly take you to this page:

Simply enter your number > click on verify > enter the OTP >click on Submit .

Step 4: Go to the Paxful homepage /dashboard and click on Buy Bitcoin.

Step 5: On the next page, click on “ Any payment method ”.

Step 6: Choose a payment method you’d like to use. I’m sure you’ll find something that suits your comfort.

Step 7: The next page will get you all the sellers in your region who accept your payment mode. Click on the “ buy ” button next to an offer which you like.

You’ll love the interface.

Pay attention to the:

• Get on dollar: This shows you the worth of a dollar for each specific vendor.
• The arrow icon: It has a “percentage” ( %) next to it. It shows how high a price the seller has set, as compared to the actual market prices.

It’s best to go with vendors with the least price-difference.

Step 8: Next, enter the amount of Bitcoins you’d like to purchase and click on “ Buy now ”.

As soon as you click on “ buy now ”, the seller’s funds amounting to your purchase-amount are stored in the Paxful Escrow.

This guarantees that you’ll 100% get your Bitcoins once you make your payment.

Step 9: Make a payment > click on “ I have paid ”.

You’ll find the ID, number, account you need to make your payment to on this page. This will vary for each seller, obviously. Simply send the funds to the specified address.

If no details are mentioned, you can live-chat with the seller using the chat feature on the right.

Step 10: ( Optional) Send a receipt/screenshot/transaction ID of your payment to the seller using the chat feature.

It’s not mandatory, but if the seller is taking time finalizing the trade, this will help.

Done. The funds will arrive in your Paxful wallet once the seller has verified your payment and released the funds.

Now, let’s answer some of the questions related to Paxful that you may have?

1. What if the seller doesn’t send you Bitcoins?

You can always raise a dispute.

The funds are already stored in the Paxful escrow, and not with the seller.

Hence, if you have the payment proof, Paxful will release the Bitcoins to you, even when the seller doesn’t want to.

2. Which payment modes does Paxful accept?

Over 300 payment modes are accepted.

All the common payment modes such Credit/Debit cards, online wallets, bank transfers, PayPal etc. are accepted.

In addition to this, uncommon payment modes such as gold, and even direct cash are accepted!

3. Can I cancel a trade after initiating it?

Totally.

As long as you’ve not made a payment, you can cancel a trade.

4. How much fee does Paxful charge?

Paxful is technically free for Bitcoin buyers/investors.

However, you do not get 100% of your deposited amount.

That’s because Paxful charges a fee to the sellers, and the sellers charge a fee to the buyers.

The fee differs for each seller and is set at his/her own will.

How to invest in Bitcoin via CEX.io?

Website: https://cex.io/

CEX is one of the world’s oldest, most reputed, trustworthy and professional Bitcoin exchanges.

Well, it’s a lot more than an exchange.

It’s also a Bitcoin-buying platform.

Meaning, anyone can buy Bitcoin on CEX.io.

It takes less than 3 clicks to do so.

Before I show you the steps, here are the CEX.io basics you need to know:

• You can invest in Bitcoin using: VISA/ Mastercard /Skrill / Bank transfer/ ACH / QIWI/ Faster Payments and SEPA.
• Purchasing/Investment fee: Depends on the deposit mode.
• Minimum deposit: $20.00.
• KYC: Mandatory.
• Countries: Minimum country-restrictions.

( It’s one of the very few exchanges which allow buying Bitcoin directly using a Credit Card .)

Let’s start investing then? ( Using a mobile? Scroll down for the mobile-investment steps!)

Step 1: Go to this link, you’ll get a page like the following screenshot:

Step 2: Enter your Email-ID, Password and Country.

Step 3: Once you’re signed up, login to your account and click on “ deposit ” ( on the top-right corner of the page.)

Step 4: Next, choose your payment method. How would you like to make your Bitcoin investment?

Note that your choices will vary depending on your country. Not all the deposit modes are available for all the countries.

In this case, I’m choosing the VISA/Mastercard option. Why?

Well, The “Cards” method I chose is available in most countries and hence will be the most helpful to you.

However, using any method is equally simple. E.g. if you use Skrill, all you have to do is login to your Skrill account and make the payment.

Step 5: Next, click on “ Add Card ”.

In the screenshot above, you may notice that I already have a VISA card added, and verified.

You wouldn’t see that on your screen. Simply because, this is your first-time on CEX.io. On the other hand, I’ve already used CEX multiple times to invest in Bitcoins.

Step 6: You’ll see the card-information page next. Enter the details and click on “ proceed ”.

Step 7: Next, you’ll simply get the “ success ” screen. Click on “ Next ”.

If your card details are correct, it’s verified within seconds ( literally !), on automation. No e-mails, manual documents required.

This is another reason why I favour CEX.io over other Bitcoin buying platforms.

You’ll be taken back to the payment page.

Step 8: Specify a payment amount. This is the amount of money you’ll like to invest in Bitcoin > Choose the card you’d like to make a payment with > enter your CVV > Click on deposit .

Note that you can select any currency. If your native currency isn’t mentioned, simply choose USD.

CEX auto-converts the amount from your native currency to the amount you’d like to spend for your Bitcoin investment.

Done!

Your Bitcoins will arrive in your CEX.io account in a couple minutes.

Invest in Bitcoins from a Mobile device

Some of you may be reading this from a mobile device.

Well, it’s equally easy to start your Bitcoin investment from a mobile device as well.

Step 1: Download CEX.io mobile app from the Android Playstore, or Apple Store.

Step 2: The app launches by default on the “Buy Bitcoin” page. If not, just click on the “ Buy/Sell ” tab at the footer.

Step 3: Either Signup on CEX.io or login using your existing account.

Step 4: You’ll be asked to set a “ Personal code ” because this is your first-time using CEX.io’s mobile app. Just set a secure 4-digit code.

Step 5: Now you’re on the payment screen. Click on “ Add New Card ” ( because you don’t have a card added yet, I suppose?). If you do, simply skip to step 7.

Step 6: Enter your card number, and expiry date. Or better yet, click on the “ scanner icon ” on the right of the screen, and simply scan your card.

Step 7: Go back to the payment screen, and select the card you’d like to pay with.

Step 8: The card will flip, and it’ll ask you to enter the CVV. ( I love the card-flipping animation.)

Step 9: You’ll be redirected to your bank’s OTP page. Enter the OTP for your card on this screen.

Done! Again, your funds will be in your CEX account momentarily.

Now, let’s answer some of the questions that you may have?

1. How much fee does CEX.io charge for investing in Bitcoins?

The CEX.io fee depends on your deposit mode.

If you use Credit/Debit cards to make the payments, you’ll pay 2.99% of your transaction amount for the deposit.

For the other modes, here’s the fee you’ll be paying for each:

2. Can you invest in Bitcoin without Credit cards?

Obviously, as the screenshot above shows, on CEX.io you can invest in Bitcoins using quite a few other payment modes.

In fact, using modes such as SEPA, QIWI, ACH etc. will let you invest in Bitcoin without paying any additional fee.

Now, let’s move on to a decentralized Bitcoin investing experience.

3. Is Cex.io available in all the countries?

Not exactly.

But, CEX.io has one of the largest global presences.

Hence, there’s a very strong possibility that unless you’re from a country where Bitcoin itself is outright illegal, CEX.io is available to you.

Other mentionable Bitcoin buying platforms

• LocalBitcoins

LocalBitcoins is almost a Paxful-clone ( or, vice-versa) . Either way, it’s a P2P Bitcoin exchange. You can buy as well as sell Bitcoins on the platform. The Bitcoin buying process too is almost identical to Paxful ( discussed above.)

Because you’re a human, and your partner ( either a buyer or a seller) is human as well, you’re free to choose from almost any of the payment modes available to us humans. For the same reasons, it also doesn’t have any geo-restrictions!

This includes gift cards, online wallets, PayPal, bank transfers, and basically anything else. Also, because it’s P2P, sellers get to set their own price for the funds. But, for the same reasons, buyers also get to choose from any seller they feel suits them best.

Why didn’t we list it with or around Paxful? Because, LocalBitcoins has a mandatory KYC policy. So, it’s not exactly “anonymous” now. Some sellers do accept trades without KYC, however, the platform has a centralized requirement of KYC and as a result we listed it lower.

LocalBitcoins acts as an Escrow making sure both parties fulfill their ends of the bargain. If anonymity isn’t your primary requirement, you totally can check LocalBitcoins out.

• Poloniex

Website: https://poloniex.com/

Poloniex is for those who need a 100% anonymous, no-KYC Bitcoin investing platform. It allows both deposits as well as withdrawals without any KYC or verification whatsoever. The initial withdrawal limit without KYC is set at USD 10,000/day which is still acceptable.

Do note that we’d not recommend Poloniex for day-trading. Binance is still the winner in that case. This is primarily because Poloniex doesn’t have a “market price” feature. Meaning, whenever you convert your BTC to any other Cryptocurrency, you can’t do it instantly in a click. You always have to set a “limit order” and wait for it to be fulfilled.

Even though that’s often almost instant, at times you may end up losing money. Also, there’s a hefty withdrawal fee on Poloniex for withdrawals. So, whatever profits you make by investing Bitcoins will have to be shared with the company during withdrawals.

Two other platforms worth trying:

• OKEx
• Coinbase

Phemex

Website: https://phemex.com/

Safety tips while investing in Bitcoins

There are a few points you should follow when making BTC investments. We’ll list them out in brief:

• Only use established and reputed exchanges like CEX when investing in Bitcoins.
• When using Paxul, LocalBitcoins or other P2P exchanges, be sure to pick sellers who’ve made a few hundred sales and have good ratings.
• When you make a purchase, you’re using an exchange. These are not secure. Consider getting one of the best Bitcoin wallets . These are 100% free and a lot more secure than exchanges.
• Always be sure to save your mnemonic code/recovery key/ 2-FA authenticator code someplace safe and preferably offline. Losing them is common and then you lose all your funds forever.
• Consider using Bitcoin mixers if and when you wish to make your deposits/withdrawals anonymous and untraceable.

Disclaimer:

This article is not financial advise. Do your own research before investing in Bitcoin or any other Cryptocurrency. We can’t be held liable for any of your losses, financial or otherwise.

Frequently Asked Questions:

Now, let’s answer some basic questions you may have before investing in Bitcoin?

• Is investing in Bitcoin illegal?

No.

Bitcoin is 100% legal in most, if not all countries.

Sure, some countries “regulate” it.

But only some extremely conservative nations, such as Nepal or Bangladesh have banned Bitcoin completely.

Even in countries where it’s restricted, using Bitcoins is still legal.

• What is the minimum amount I can invest?

You can invest as low as $1 if you find the right seller on platforms like Paxful .

However, even on CEX.io the lowest accepted amount is $20.00.

Or, Binance allows an even lower deposit of $10.00 via Credit/debit cards.

• What is the minimum Bitcoin amount I can withdraw?

Bitcoin isn’t a scam. Meaning, there’s no unachievable minimum balance you must have before being able to withdraw. Sure, some companies such as CEX.io and Binance do have a minimum limit, but, that’s generally $5.00-$10.00. This is just so the transaction covers the network fee, and has some leftover balance for you to use.

In most other cases, there’s no fixed minimum amount. You can withdraw any amount as long as you’ve the network fee covered.

• What is the fee for investing in Bitcoins?

Again, Bitcoin isn’t a “centralized” or govt. controlled tender. Hence, there’s no fixed fee as such. Depending on your mode of purchase (card/bank transfers/ online wallets etc.) the fee keeps changing. It’s generally around 0.5%-5% on average.

In some cases, you may even get 100% free purchases. Do note that Bitcoin transactions have a “network fee”. This is paid to the miners of the coins for facilitating the transaction.

In some cases, you can manually choose to control your fee (primarily during withdrawal). The higher you choose to pay, the faster your transaction gets processed.

• Can I invest in Bitcoins without revealing my identity?

Yes, you can.

E.g. some platforms (e.g. Paxful ) only require an E-mail and phone verification for the most basic trades.

Update- Oct. 2020: Paxful now requires mandatory verification. It’s not pushed for all accounts yet but it is being done. Meaning, you may be required to submit identification documents before being able to purchase any Bitcoins.

But, technically, because you’re investing in Bitcoins, you’ll be using your cards/banks/online accounts to make payments.

So, the anonymity of the platform doesn’t matter, your identity will still be linked to your purchase anyway.

• When and How can I withdraw my Bitcoins?

I’m sure you’re asking this before making any Bitcoin investments.

The media and governments have tried pretty hard to render Bitcoin a non-practical asset.

Well, that’s not the case.

You can withdraw your Bitcoins anytime you wish. Even a second later after purchasing investing in them.

The “how” is pretty impressive as well.

You can either get it encashed to your bank account directly, or purchase items online.

Major companies such as Microsoft, Virgin Atlantic, McDonalds and hundreds of others now accept Bitcoin as a mode of payment.

• Your steps don’t match to my screen when investing in Bitcoin.

That may be the case primarily depending on your geographic area.

Depending on where you live, you may not see the same payment modes, sellers and other aspects of a platform as me.

• What should I do after I’ve learnt how to invest in Bitcoins.

Once you’ve purchased Bitcoins, you should move them to a more secure wallet.

These “exchanges” are secure, but not the most-secure.

So, get Electrum and transfer your Bitcoin funds to Electrum from the exchange.

Better yet, get a Hardware wallet . That’s the most secure form of Bitcoin storage or vault.

• Difference between investing and trading

The title of this piece says- how to “invest” in Bitcoins. You need to understand that “trading” and “investing” aren’t the same.

“Investing” is when you buy a commodity/asset, or crypto in this case, and hold it for the long term. Short-term fluctuations do not matter to you.

Trading on the other hand would require exchanges. These let you store hundreds of different cryptocurrencies in your account.

They generally have a very fast, advanced crypto exchange feature. You can swap one crypto for another instantly, for a “trading fee”. Trading exchanges also offer you advanced charts for technical analysis.

Now, because “wallets” do not generally offer the “buying” feature, we’re using exchanges such as CEX and Binance on this piece to buy Bitcoin.

However, once you’ve bought your Bitcoins, moving them to a Bitcoin wallet is the first thing you should be doing.

Also, because you’re “investing”, it’s important that you own your coins, right? Exchanges do not let you own your “private keys”. In other words, these exchanges do have full control over your crypto even though they’re still pretty secure.

With wallets though, you do get full control over your private keys and hence your coins.

• Do you need to pay tax on Bitcoin investments?

I’m sure this is a major question you may have about Bitcoins. Yes, Bitcoins are taxed, but not always. Confused? Let me explain.

The Bitcoin taxes depend on three primary factors. First, your country of residence, second, your mode of acquisition and third; your “period” of holding.

The tax laws vary in each country. However, how much tax, and under which head and slab will depend on the country.

However, tax-free Bitcoin countries exist. Germany, Portugal, Singapore, Malaysia, Malta, Slovenia, Belarus and obviously, Singapore have made Bitcoin completely tax-free!

So, dealing in Bitcoin in any of the above-mentioned countries is absolutely free.

Secondly, the “ mode of acquisition ” means the process using which you received your Bitcoins.

If you “mined” your Bitcoins, it’s “ self-generated “, if you sold something for Bitcoins, it’s “ receipt of money ” and if you invested in Bitcoins directly using your cards/bank transfers, it’s taxed as simple investment.

In most cases, you do not have to pay any tax when you buy Bitcoins or other Cryptocurrencies. The taxation only comes in effect when you sell it.

The third factor is “time”. In countries like Germany, you do not pay any tax on your BTC investments if you’ve held your funds for 12 months or more (1 year).

On a different note, it is technically possible to avoid taxes on Bitcoins but it may not be legal so let’s avoid that for now.

Conclusion – How to invest in Bitcoins?

The process is no harder than shopping for anything online. In fact, it’s arguably simpler.

Simply choose an exchange > make payment > receive Bitcoins . Simple, eh?

In my opinion, Binance is the simplest and easiest way to invest in Bitcoins. Followed by Binance .

Either way, that should do for this guide on how to invest in Bitcoin, shouldn’t it?