With the price of Bitcoin sky-rocketing, you might be wondering how much can you buy safely? It depends on your risk tolerance and what your goals are. If you want to buy a small amount of Bitcoin just to try it out, it’s fine to get started with a smaller exchange.
These exchanges allow buying of small amounts right up to thousands of dollars with their market interface and order books that automatically place buy or sell orders at the current price.
The advantage is that you don’t need to create an account, and your bitcoins can usually be sent immediately to your personal wallet. You just need to enter your bitcoin wallet address, and off you go. If you’re looking for more information, head over to the Swyftx blog (https://swyftx.com/au/blog/buy-large-amount-of-bitcoin-in-australia/)
How Much Bitcoin Should You Buy?
For most people, the goal is not to buy just a few hundred dollars worth of bitcoin. The average purchase size for one person seems to be around US$500 worth of bitcoin.
Understanding its math, it’s not wise to invest more than you are willing to lose. Given that the swings in price can be 10% up or down in one day, it’s probably reasonable to say that you shouldn’t invest anything in Bitcoin (or any other investment for that matter), which you can’t afford to lose.
In Australia, when looking at the minimum buy-in, there is a steep increase in price from US$100 to US$1,000. It makes purchasing large amounts of Bitcoin easier by breaking up your buys into multiple transactions spread across a few weeks or months.
How to Buy Large Amounts of Bitcoin?
The first step is to open a marketplace account with an exchange that allows high-volume trading. Once you have signed up, verify your personal details and deposit funds into your account. Withdrawing money from an Australian bank is usually free, so if it looks like the price will go up significantly before buying, feel free to move your money to exchange and wait for a better price.
The larger exchanges have higher volumes and lower fees. But they do require you to open an account, verify your ID, and transfer funds from a bank account. This process may take up to ten days but usually happens much faster than that.
For very large amounts of bitcoin, experts recommend using the OTC (Over The Counter) market so that you can use a trusted escrow service to ensure the transaction goes smoothly. It is much faster than going through an exchange, and you can have your bitcoins in just a few hours.
This OTC site allows people to buy large batches of bitcoin using whichever payment method they choose. If you’re still feeling unsure about the process, read more about it on the Swyftx blog.
Mistakes to Avoid When Buying Large Amounts of Bitcoins
There are lots of opinions out there about how to buy large amounts of Bitcoin safely. A common concern with buying in one transaction is that the price will drop before you’re able to move your coins to a wallet.
It won’t be an issue if you spread your buys across multiple weeks or even months using stop-loss orders on an exchange or limit orders on an OTC marketplace.
The most important part of safe large-scale bitcoin buying is never to put all your eggs in one basket and take extra care when you’re managing your wallets.
For example, it makes sense never to download online wallet apps or web browser extensions for large amounts of Bitcoin. You should also avoid sending your entire stack of bitcoins to a brand-new untested address.
With almost 100,000 transactions happening every day, there’s no shortage of people who will try to take advantage of people like you – so take care!
An experienced investor will know the best way to protect their coins. For more information, have a read through the Swyftx blog.