Purchasing Bitcoin is a thrilling event, particularly for the individual who is a first-time investor in the cryptocurrency world. But what goes on next? Once the excitement of your purchase wears off, it is important to know how to manage your Bitcoin, store and use it safely and efficiently. In this guide, we take absolute beginners through all that they should know, how to buy btc, so that they can become confident in managing their digital resources.
You Have Received Your Bitcoin-Now What?
The moment you are done purchasing your Bitcoin, what will strike your mind first is that the Bitcoin is deposited in your wallet or account. In case you purchased Bitcoin on a centralized exchange such as Bitget, it will automatically be placed in your spot wallet. The wallet is a holding account of your digital currency assets on the platform, just as your checking bank has fiat currency.
Non-Custodial and Custodial Wallets
Once you have purchased Bitcoin, another major question you will have to make is where to store it. When you leave it on an exchange, such as Bitget, then your Bitcoin is in a custodial wallet, i.e., you do not have the keys to your Bitcoin, but the exchange does. This is quite convenient for active traders or short-term holders who can trade and exchange crypto in a short time. But in case you intend to keep your Bitcoin long term, you may want to move it to a non-custodial wallet, which is also called a self-custody wallet. This means that you have complete control of your Bitcoin and its corresponding secret keys. There are hardware wallets (such as Ledger or Trezor) or software wallets (such as Trust Wallet or Bitget Wallet). It is vital to keep in mind that a loss of your private keys may result in a loss of your BTC forever, so you will need to back up your recovery phrase safely.
Following Bitcoin Prices and Market Trends
Bitcoin is a volatile currency. It can fluctuate relatively far in a short period of time, and it is necessary to monitor the market. Once you purchase BTC, it is practical to track your investment by tracking prices in real-time, investing in portfolio tools, or simply via the Bitget interface. A passive investor or those who believe in long-term growth may opt to hold, or as it is often referred to in the crypto world, HODL (or to hold). Nevertheless, if you are more active, Bitget offers such tools as charts and technical indicators, as well as alerts that can assist you in making a decision related to the purchase, sale, or conversion of your Bitcoin.
The Future Possible Functions of Bitcoin
Having bitcoin possesses a variety of opportunities. A majority of the population owns it as an investment, and some individuals use it during transactions, savings, or even as passive income. There is the option of selling your Bitcoin in an exchange of cryptocurrencies via the spot or futures market. In case you are confident in Bitcoin, but you want to test other coins, such as Ether, Solana, or stablecoins, such as USDT, you can easily exchange the assets in your account on Bitget.
Securing Your Investment
After you purchase Bitcoin, the second step you should consider is security. Although Bitcoin is based on secure blockchain technology, it may lose money due to any human error, phishing, or exchange hacking. As long as you store your BTC on Bitget, turn on two-factor authentication (2FA), make sure you have good passwords, and think about putting withdrawal limits or alerts. While in self-custody of your Bitcoin, you should back up your wallet, keep your seed phrase offline, and never tell anyone about it. Also, it is clever to keep up with the recent developments in security. Crypto cyber threats change fast, and the first line of defense is awareness.
Tax and Reporting Implications
Depending on where you reside, buying and selling Bitcoin may be an activity that is subject to tax. The majority of governments are handling Bitcoin like an asset, and consequently, any income realized through the sale is liable to taxation. You should monitor your BTC purchase date, price, and whether or not you sold or exchanged it. To make your records organized, you can use tools such as crypto tax software or spreadsheets. Exportable transaction histories are also offered in Bitget, and these simplify tax reporting when it is finally time to do so.
Conclusion
You have to start by purchasing Bitcoin, but that is only the start of your crypto journey. The thing you do once you buy it is just as important, maybe even more so, compared to the time you pressed the Buy button. As an investor, a frequent trader, or a casual user, it is important to know how to store, manage, and use Bitcoin to get the best out of your investment.
