How to buy bitcoin (BTC)?
The precautions to take when buying bitcoin
1/ Research and analyse the market
Before investing in Bitcoin, it is essential to understand what it is and how it works. Bitcoin is the first decentralised cryptocurrency that uses blockchainA blockchain is a type of distributed ledger technology. It is a huge database formed by blocks,cryptographically linked to each other, containing information such as transactions. These blocks are addedfollowing technology to enable secure transactions without the intervention of third parties. As with any investment, market analysis is crucial. This involves following price trends, understanding the factors that influence the cryptocurrency market and keeping abreast of the latest news that could affect the value of Bitcoin.
2/ Understand French regulations
In France, buying and selling Bitcoin is regulated and it is important to comply with the laws in force. Gains made on cryptocurrency transactions are subject to tax and must be declared to the tax authorities. It is recommended that you consult the guidelines of the French Tax Authorities or seek the advice of a tax advisor to ensure that you comply with all legal obligations.
3/ Store your BTC securely
Once you have acquired Bitcoins, the question of secure storage arises. It is crucial to choose a walletPrice variation of an asset on a given period. that offers a good balance between accessibility and security. This is a step not to be neglected, and you need to take the time to find out about the various solutions. Above a certain amount invested, it is essential to opt for a secure holding.
4/ Define an investment strategy
Clearly establish your investment strategy, taking into account your investment horizon and risk tolerance. Long-term investment in Bitcoin involves holding your assets in the hope of appreciation over several months or years. Short-term trading, on the other hand, seeks to take advantage of market volatilityPrice variation of an asset on a given period. to make quick gains. Diversifying your portfolio, by including other financial assets or cryptocurrencies, can help to reduce risk.
5/ Manage your BTC
In the case of a short-term investment, active management of your Bitcoin investment is essential. This means regularly monitoring market developments, re-evaluating your strategy in light of market conditions and keeping abreast of technological and regulatory developments. Put risk management mechanisms in place and be prepared to adjust your position as the market changes.
The process of buying bitcoin
The steps may vary from one platform to another, but they are generally simple and intuitive, so let yourself be guided by reading all the information given to you at each stage of the process.
- Choose a trusted and secure exchangeExchange platform for crypto assets (Binance, Kraken…) platform
- Open an account and make a deposit by bank transfer, credit card or other payment methods.
- Select Bitcoin (BTC) and enter the desired amount (transaction feesFees related to operations; they sometimes are distributed to miners. deducted)
- Validate your transaction and hold Bitcoin
Cryptocurrencies or digital currencies are terms commonly used in the crypto ecosystem. However, the terminology favored by regulators (ACPR and AMF) is crypto-assets or digital assets. This distinction arises because, although often referred to as cryptocurrencies, these assets do not qualify as currencies in the legal sense. They are virtual resources based on blockchain technology, whose value is determined solely by supply and demand.
None of the information contained in this FAQ constitutes investment advice, tax advice, legal advice, or any other type of advice, nor does it serve as an invitation to engage in any form of financial transaction.
Investing in digital assets carries risks and may not be suitable for all investors. It is the responsibility of investors to educate themselves about the risks associated with different digital assets. In particular, it is noted that digital assets can exhibit significant volatility, and investments in digital assets involve a risk of capital loss. Accordingly, it is important to remember that the past performance of digital assets, as might be indicated on Banque Delubac & Cie’s website or in documents provided to investors, is not indicative of future performance. Investors should familiarize themselves with the technologies underlying each digital asset and their associated risks, including vulnerabilities, defects, hacks, errors, protocol failures, or attacks on the protocol. Banque Delubac & Cie cannot be held liable for any misunderstanding of the risks associated with digital assets or for any losses investors may incur due to errors in wallet addresses attributable to the investor.
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