How To Buy Bytecoin Online in 2022
Bytecoin allows users to generate numerous untraceable one-time addresses from a single set of keys. This makes it almost impossible to establish a connection between transactions or addresses. Nowadays, Bytecoin can be found on most major exchanges.
This is the ultimate guide to buying Bytecoin online.
Best Brokers To Buy Bytecoin in 2022
We picked the best brokers where you can buy Bytecoin using fiat currency or cryptocurrency.
What Is the Difference Between Buying and Trading Bytecoin?
Buying involves exchanging fiat currency or cryptocurrency for Bytecoin. Exchanges offer Bytecoin in place of major cryptos like Bitcoin or stablecoin like Tether.
We recommend first purchasing Bitcoin or USDT with fiat currency like USD, AUD, EUR on platforms like CoinSpot and Coinbase. Buy Bytecoin using the Bitcoin or Tether you acquired.
Trading involves speculating the price movement of BCN tokens. This is possible using several trading options such as Contract for Differences (CFDs). Investors can also trade speculatively through buying and selling on exchanges. Currently, exchanges only offer spot trading for Bytecoin.
How To Buy Bytecoin Online
Buy Bytecoin by first purchasing Bitcoin or USDT in a fiat-crypto exchange like Coinbase. Here’s a step-by-step guide on how to buy Bytecoin online:
Buy Bitcoin or USDT using fiat currencies
Buy Bitcoin or USDT from a fiat-to-crypto exchange like Coinbase or a P2P marketplace like Paxful. Here are the steps to first purchase the Bitcoin.
Step 1: Open an account on an exchange that exchanges Bitcoin for fiat currencies.
This will require email/phone and password combination during the registration process. Fill in all the mandatory Know your customer (KYC) details to finish the set-up.
Step 2: Fund the account via bank transfers, Paypal, or wire transfer.
Step 3: Initiate the trade, specifying the amount you wish to spend.
Step 4: Execute the trade
Exchange Bitcoin for another Bitcoin.
The two main pairs that involve Bytecoin are BCN/USDT and BCN/BTC. These pairs are available on crypto to crypto exchanges like Poloniex, HitBTC, and CoinEX. Here is a step by step guide:
Step 1: Transfer the Bitcoin from the fiat to the crypto exchange or from a wallet. Transfers should be within 1 hour.
Step 2: Trade Bitcoin for Bytecoin
Step 3: Use the buy widget to search for the BCN/BTC pair.
Step 4: Secure storage: Transfer your Bytecoin to a secure wallet. Examples of wallets that support BCN include Freewallet and the online Bytecoin wallet.
How To Trade Bytecoin?
Investors cannot trade Bytecoin on brokers like Plus500 or eToro. Traders can seek to trade on platforms like gate.io that offer trading options like futures, copy and spot trading.
Here’s a step-by-step guide on how to trade Bytecoin:
Step 1: Find a suitable broker: Select a broker with low fees, commission, and high trading limits.
Step 2: Fund your account: Deposit funds into the account via bank transfers, e-wallet, credit, and debit cards.
Step 3: Decide how to trade: Spot trading is the most common method of trading Bytecoin. Beginners should first learn how to use this trading option before trading.
What Are the Different Ways To Pay for Bytecoin?
There are different methods to pay for your Bytecoin. Investors should understand that they have to purchase other main cryptos like Bitcoin.
Financial institutions offer credit cards against a line of credit. We recommend users check with their credit card institutions and exchange to see if their cards support purchasing cryptocurrencies.
Most exchanges accept Visa and MasterCard credit cards. Note that some institutions treat credit card purchases as cash advances that attract considerable interest. Purchasing crypto with a credit card is a risky investment.
Banks give debit cards that are linked to a bank account. Visa and Mastercard debit cards are readily accepted on exchanges. Clients can connect their debit card with the exchange and purchase cryptocurrency, which they can use to buy Bytecoin.
Bank transfers are the most popular way of depositing funds into an exchange or broker. It allows for a large deposit and is cheaper. Transfers may delay due to slow processing, which may take over 48 hours.
Some of the popular supported bank transfer options across the world include:
ACH transfers in the USA
SEPA for European transfers
Faster payments for the UK
OSKO payments for Australia
Investors can fund their accounts using E-wallets such as Paypal and Skrill. These are global online payment companies but maybe only available in certain regions only.
Traders can purchase Bitcoin or USDT using the funds from their Paypal on any major exchange. Transfer these cryptos to an exchange that offers Bytecoin and make a swap.
What To Consider When Buying Bytecoin?
Market insiders believe there was a “pump and dump” Bytecoin scheme on Binance in 2017. These are fraudulent price manipulations through the spread of misinformation and have been around in economic settings since at least the 1700s. The result was a subsequent low uptake of the coin. Bytecoin’s all-time high price came in 2018 at a price point of $0.14.
Other factors to consider the following before buying Bytecoin include:
Competition - Bytecoin faces considerable competition from more established cryptocurrencies like Monero, Bitcoin, and Litecoin, facilitating peer-to-peer payments.
Roadmap - The developmental roadmap for Bytecoin seems complete. This is after the implementation of all security features. The last update on this open-source project was in late 2019.
Deposit fees - This largely depends on the mode of payment. Credit and debit card users usually have to pay deposit fees. These fees play a significant role in eroding the gains made from an investment.
Trading fees - Trading fees will vary across different exchanges. Some offer a fixed rate, while others will consider your 30-day average trading volume. Fees may be presented as a percentage of your total investment or as a fixed value depending on specific tiers.
Regulations - Consider exchanges regulated within your jurisdiction. This will make it easier to pay taxes and reduce the chances of getting scammed.
Long-term holding (HODL) - Investors who look to hold Bytecoin for the long run should consider the project’s roadmap and community activity.
Short-term Holding - Traders can look to make a quick buck with short-term holding, especially in volatile markets. This should be after careful technical and fundamental analysis.
Is It Safe To Buy Bytecoin Online?
Consider buying Bytecoin from exchanges that offer good security. Check for the following features on an exchange to ensure your funds and Bytecoins are well protected.
2FA - Apart from the email and password combination, ensure to activate the two-factor authentication using SMS or Google authenticator. Other exchanges may offer a question-answer combination before withdrawals.
Getting help from official sources only - Ask for help from the official channels only. Exchanges have dedicated support teams ready to offer assistance using live chats, email, and phones.
Storing Bytecoin safely - We recommend transferring your Bytecoins to an external wallet after purchase. Hardware wallets like Ledger Nano S are the best, especially for a significant investment. Investors can also use the online Bytecoin wallet, which is a web and mobile wallet.
Passing only necessary KYC - Many exchanges will require investors to submit their data. We recommend only filling the mandatory fields to complete the verification process.
Use strong passwords for your hot wallet - The email and password credentials are the first line of defense for your exchange account and web wallet. We recommend the use of complex passwords to deter scammers and hackers from accessing your accounts.
Use a secure internet connection - Avoid accessing your wallet or exchange account over an unencrypted network such as public Wi-Fi. Consider using a VPN if your network connection is not secure.
Never give out your private keys - Store the keys safely to avoid leaks which may lead to losing your Bytecoins
How To Store Bytecoin?
Storing your Bytecoin securely is vital. Some exchanges provide digital wallets where the coins will be deposited. Other exchanges will require the investor to provide a wallet address where the coins will be deposited after purchase.
We recommend that investors who want to buy and HODL store their coins in an external offline wallet.
Short-term investors may keep their coins in an online wallet for easy operations.
There are different types of wallets available, and the choice will depend on the amount and type of investment.
Software wallets - These allow users to send, receive and store their Bytecoins online. They require internet connectivity for operations. They are easy to set up and access. Software wallets exist in several forms, including:
Web wallets - These are accessible via a browser without the need to download an app. Users can access their wallets using an email password combination, for instance, the Bytecoin web wallet.
Mobile wallets - This will require investors to download an application on their mobile phones. A data file is generated which stores your keys. Examples include the Bytecoin mobile wallet and Trust wallet.
Desktop wallets - These are downloadable apps on your computer. Again, a data file is generated with your crypto keys which you can access. Secure your device with an anti-virus. An example is the Bytecoin Desktop wallet.
We recommend having a backup copy of your keys stored safely.
Cold wallets - Long-term HODLers prefer to store their investment in cold wallets. They operate offline, making them difficult to hack. There are two categories of cold wallets.
Hardware wallets - These are USB-like devices that store your keys. The device is offline, and investors can create a seed phrase to use in case you lose the device. Examples include Ledger and Trezor wallets.
Paper wallets - This is paper that contains data needed to access your Bytecoins. It can be presented as a QR code.
How To Sell Bytecoin?
Bytecoin owners will need to sell their coins on exchanges or in person.
You will need to transfer your assets to an exchange that supports Bytecoin. These platforms allow you to buy another cryptocurrency like USDT first with Bytecoin. You can then cash out the USDT easily.
Selling Bytecoins in person
An investor can seek Bytecoin buyers online or in meetups. You are likely to find buyers in Bytecoin online communities.
Is It Worth Buying Bytecoin Right Now?
It is difficult to see the price of Bytecoin rebounding to its all-time high. After its listing on Binance in May 2017, prices rose by 114%, but the run subsided soon after, and prices have not recovered since then.
It is therefore difficult to see any improvement in the price since the roadmap for this open-source project looks complete. We expect prices to range between $0.0003 - $0.0001 in the short term, barring any external forces.
The best way to buy Bytecoin is to first purchase Bitcoin or USDT in a fiat-to-crypto exchange like Coinbase. The Bitcoin can then be exchanged for Bytecoin via a crypto-to-crypto exchange like gate.io.