5 Things to Consider if you Want to Buy Bytecoin
Before you start your journey of buying Bytecoin, there are a few things you need to pay attention to as they will determine if you will enjoy the process or not.
1. Carefully Choose Your Preferred Secure Payment Method
There are various payment modes supported by cryptocurrency exchanges and brokers who allow the purchase of Bytecoin. These include bank transfers, use of credit/debit cards, third-party payment processors, and use of other cryptocurrencies. You can choose any of the modes that are accessible to you as long as they serve you well.
2. Will you need to set up your own wallet?
This is another question you should ask yourself before jumping on any platform to buy BCN. If you opt for exchanges where you get to deal with the actual asset, then you will have to consider acquiring a safe and secure wallet to store the tokens. However, if you choose to use brokers to access financial instruments linked to BCN, you don't have to acquire a cryptocurrency wallet since you will not be dealing with the actual asset.
3. Comparing Costs
This is another factor you need to keep in mind since when buying BCN, the costs can accumulate and impact your bottom line, especially for traders. Various platforms will have differing costs, and most of them will be in the form of fees. This part will be covered in detail later on. It's up to you to choose a platform with the least costs without having to compromise the quality of services you receive.
4. Safety and security
How safe and secure the platform you choose to buy Bytecoin is another crucial factor you will have to consider. Top platforms will have robust security measures in place to protect user data and funds. They will employ cryptography and encryption, including the use of SSL certificates. Also, they will offer users the ability to activate two-factor authentication (2FA) to add an extra layer of security. Additionally, some exchanges will have an insurance fund to reimburse users if the exchange is breached. And most of these platforms will store the majority of user funds offline in cold storage.
As a digital currency, Bytecoin employs cryptography, decentralisation and consensus mechanism to protect its network from bad actors. This helps stop the possibility of a 51% attack where a few malicious individuals take over the network and change transactions in their favour, thereby stealing from the network.
5. Can you understand and navigate the platform?
It's essential you can navigate the platform you choose to buy BCN with ease. Don't go for platforms that seem too complicated since you will risk losing your funds. Great platforms are built with users. They are designed in a simplistic manner that isn't intimidating to new users. Also, they offer tutorials on how to navigate various features on offer, and there is customer support readily available to help you whenever you get stuck.
What is the Best Payment Method for Buying Bytecoin?
When you sign up to an exchange or broker, you will come across various payment modes that allow one to access BCN. Below are a few popular options you will find.
Buying Bytecoin with Debit/Credit Card: This has to be one of the most popular modes of payment for any online transaction, whether it is paying bills, buying coffee, or paying for a ticket and it's no different when it comes to buying coins like BCN or funding your broker account. This method is easy to use, and all you need is to follow the necessary steps, enter your card details and complete the process.
Buying Bytecoin with Crypto: However, some platforms will not support credit/debit cards and bank transfers, depending on where you are located. If your country has strict regulations when it comes to crypto, then its possible financial institutions within the nation have been warned from facilitating crypto transactions. This means the only way you can access coins such as Bytecoin is by using other cryptocurrencies such as BTC.
Buying Bytecoin Peer-to-Peer: Most peer-to-peer (P2P) platforms are decentralised. This means that they operate without the watch of any authority, and it isn't easy to regulate them. This makes them easily accessible in nations that have issues with cryptocurrencies. If crypto is outrightly banned, then some users will use VPNs to access various platforms. P2P platforms allow buyers and sellers to deal directly where they negotiate on the price of an asset and then complete the transaction. Also, they offer support to various payment options available in any given location, making it possible to use local currencies to buy and sell crypto. Most P2P platforms will offer access to top coins such as BTC and ETH. You can purchase any of the tokens and transfer them to an exchange that supports BCN and make the swap.
Buying Bytecoin Using Third-Party Payment Options: Another popular option you will encounter on various platforms that offer access to BCN is third-party payment processors. These include PayPal, Skrill and SEPA. If you find the option supported on the platform you want to use and it seems convenient, don't hesitate to use it.
What Fees are Involved in Buying Bytecoin?
As mentioned earlier, this section will cover the costs you are likely to encounter while buying BCN on various platforms.
Transaction Fees: Transaction fees are common within platforms that offer access to BCN. This is how they make their money which helps them cover their overheads. A broker will take spreads and charge commissions for a given number of trades you conduct. Also, they will charge inactivity fees if you go for long without using your account. On the other hand, an exchange will add a small fee on top of network fees to facilitate a trade.
Deposit Fees: Both brokers and exchanges will not charge any deposit fees, but these will stem from the payment processor you choose to fund your account. The fees will vary depending on the platform you opt to use.
Withdrawal Fees: Exchanges will charge a small fee to facilitate the withdrawal of coins from the platforms. Like any other fee listed here, they will vary depending on the platform.
Safely Storing Your Bytecoin
The section below will cover the various options you have to safely store your tokens from the reach of bad actors. You need to know that wallets don't store your coins but private keys that allow one to access their coins on the Bytecoin blockchain.
Web Wallet: Bytecoin web wallets exist as exchange-provided wallets or browser extensions. Centralised exchanges will provide the user with a custodial wallet to hold their tokens when they make a purchase. However, with these exchanges, you don't hold the private keys to the wallet. This means you don't really own the tokens. If the exchange is breached or goes under, all your investment is gone. On the other hand, browser extensions offer a better option since you get to hold your private keys.
Web wallets are convenient for people that need regular access to their tokens but pose a security risk since they are always online. This means they can easily be breached, and you can lose your tokens.
Mobile Wallet: These are apps you install on your smartphone that help manage your portfolio. They offer great convenience to individuals who want to access their tokens on the go to trade or conduct various transactions. The only risk with these wallets is that if someone gets a hold of your device and has your login details, you can lose your tokens. Also, if the device is infected by malware or virus, you will lose your investment. Popular examples include the Blockchain wallet.
Desktop Wallet: This is software you install on your PC that helps safeguard your private keys. BCN desktop wallets offer better security than web wallets since you get to keep your keys, and they are not online most of the time. They are great for traders. Popular examples include the Blockchain wallet.
Hardware Wallet: BCN hardware wallets are physical devices that resemble USB flash disks. They offer the best security when it comes to storing the private keys for your tokens since they are mostly offline. This is why they are said to store coins in cold storage. The devices are highly resistant to viruses and malware. They are ideal wallets for long-term investors and individuals that hold a large number of BCN tokens. Popular examples include Trezor and Ledger.
Wallet Combinations: You might choose to be bot-a short term as well as a long term investor. This means you will need various wallets that offer convenience depending on whether you are trading or holding tokens for the future. You can opt to hold both a desktop and hardware wallet in such a case since you are not restricted to the number of wallets you can hold.
What Other Coins Can I Trade or Use to Buy Bytecoin?
On platforms that support BCN, you will find various coins that can be traded for the token. The most popular include stablecoins such as USDT and BUSD. Also, you might find the pairing of popular coins such as BTC/BCN and ETH/BCN. Another popular option is using the native token of the exchange to make the swap.
What's the Smallest and Largest Amount of Bytecoin I Can Buy?
One BCN token does not cost a lot and anyone that wants can buy it. However, due to the fees discussed earlier, most exchanges will stipulate that you buy coins worth at least $10. That amount can get you a lot of coins at their current trading price, and as for the highest number of tokens you can purchase, there is usually no limit but check your local laws.
Can I Buy Bytecoin Anonymously with no ID? Is it Safe and Legal to Buy Bytecoin?
Decentralised exchanges offer users the ability to buy various crypto coins anonymously without disclosing their identity since there is no KYC. It's possible to buy BCN on such a platform if you find one that offers such services. However, you need to be careful; otherwise, you can get scammed easily. Also, some DEXs can be a bit complicated for the average investor. If you want to protect your investment, you are better off on a centralised exchange.
Will Buying Bytecoin Make Me Money?
Judging by what has been witnessed on the crypto market, this is possible. You can achieve this goal either as a short-term investor where you actively trade the BCN market or as a long-term investor where you buy and hold onto the tokens for as long as possible. As the project grows, so will the value of your investment. Visit our dedicated Bytecoin Price Page to find out more about the price history of this cryptocurrency.
How to Spend your Bytecoin
There are many ways you can spend your BCN tokens. This includes using them to pay for goods and services at merchant points where they are accepted. Also, you can convert them to fiat and spend the money as you like.
How to Sell your Bytecoin
Platforms that offer access to BCN will allow you not only to buy but sell the tokens. To do it quickly and at a fair price, opt to use a platform that has high liquidity. If you choose to trade using CFDs, the process is easy and quick as no wallets are involved. All you need to do is close the CFD trade.