A Beginner's Guide To Investing Bitcoin In Malta

Malta is a major hub for bitcoin and blockchain technology, and it is legal to buy, sell, trade, and invest in Bitcoin and other cryptocurrencies in the country. There are several crypto exchanges available in Malta, including Coinbase, Binance, and Kraken, which allow users to buy and sell Bitcoin with a variety of payment methods such as credit cards, debit cards, and bank transfers. When choosing a crypto exchange, it is important to consider factors such as fees, security, payment methods, and the range of cryptocurrencies available.

Choosing a crypto wallet

When it comes to choosing a crypto wallet, there are a few things you'll need to consider. Firstly, you'll need to decide what type of wallet you want: a hot wallet or a cold wallet. A hot wallet is connected to the internet, while a cold wallet is a physical device that is kept offline. Hot wallets are typically free and offer features such as trading or staking, while cold wallets provide added security by keeping your crypto offline. Some popular hot wallets include MetaMask, Coinbase Wallet, and Trust Wallet. Examples of cold wallets include hardware wallets such as Trezor and Ledger Nano X.

Another thing to consider is the level of security you need. If you're looking for the most secure option, a hardware crypto wallet might be the best choice. These wallets come in the form of a USB stick that you can disconnect from your system and the internet, providing an extra layer of protection. On the other hand, software wallets are more convenient and user-friendly but may be more vulnerable to hacking attempts.

It's also important to think about the number and type of cryptocurrencies you want to store. Some wallets only support a few popular cryptocurrencies, while others allow you to trade and store various types of digital tokens. For example, MetaMask is often considered a top Ethereum wallet, while Electrum is built specifically for Bitcoin power users. If you plan to store multiple kinds of cryptocurrencies, you might want to consider a wallet like Zengo, Crypto.com DeFi Wallet, or Guarda, which support hundreds or even thousands of digital assets.

Additionally, you'll want to consider the features and functionality of the wallet. For instance, do you need a mobile app or a desktop version? Can you easily move crypto between hot and cold wallets? Are there staking or rewards programs available? By comparing the features of different wallets, you can find one that best suits your needs.

Lastly, it's crucial to research the reputation and track record of the wallet provider. Look for reviews, check for security features, and ensure that the wallet has a good history of protecting user funds. By considering these factors, you can make an informed decision when choosing a crypto wallet.

How to buy bitcoin with a credit card

If you are in Malta and want to purchase Bitcoins with your credit card, there are several options available to you. These include Coinbase, Binance, BitPanda, and CEX.IO. Here is a step-by-step guide on how to buy Bitcoin with a credit card:

Step 1: Research the Credit Card

Not all credit cards support the purchase of Bitcoin. Therefore, it is important to research the card and payment company before proceeding. Some credit cards that support Bitcoin purchases include Visa, Mastercard, and American Express. Each of these cards charges unique fees, so be sure to understand the fees associated with your chosen card.

Step 2: Research the Exchange

The next step is to find a cryptocurrency exchange that supports the purchase of Bitcoin using credit cards. Popular exchanges that accept credit cards include Coinbase, Binance, BitPanda, and CEX.IO. Compare the fees, security, and features offered by each exchange before making your decision.

Step 3: Create an Account and Verify Your Identity

Once you have chosen an exchange, create an account and provide your personal information to meet the Know-Your-Customer (KYC) requirements. This typically includes providing a copy of your passport or driver's license, proof of address, and, in some cases, your Social Security number.

Step 4: Link Your Credit Card

After your account has been verified, link your credit card to the exchange. To do this, enter your full name, card details, and billing address. Some exchanges may also require you to verify the card by making a small transaction.

Step 5: Purchase Bitcoin

Now that your account and credit card are set up, you can proceed to purchase Bitcoin. Select Bitcoin as the cryptocurrency you wish to buy, enter the desired amount, and choose the option to pay with a credit card. You will then be redirected to your bank's page to complete the transaction.

Step 6: Store Your Bitcoin in a Wallet

Once you have purchased Bitcoin, it is important to withdraw it from the exchange to your own secure wallet. This could be a software wallet, such as Exodus or Mycelium, or a hardware wallet, such as a Ledger Nano device. Storing your Bitcoin in your own wallet gives you full control over your coins and enhances security.

It is important to note that purchasing Bitcoin with a credit card may incur additional fees, such as transaction fees and foreign exchange fees. Be sure to understand the fees associated with your chosen exchange and credit card before making a purchase. Additionally, using a credit card to buy Bitcoin can be risky due to the volatility of the cryptocurrency market. Always consider your financial situation and risk tolerance before investing in Bitcoin or any other cryptocurrency.

How to buy bitcoin with cash

There are several ways to buy Bitcoin with cash. Here are some of the most popular methods:

• Peer-to-Peer Trading: This method involves buying and selling Bitcoin directly with other individuals, bypassing traditional exchanges. It offers a high level of privacy and flexibility in payment options but carries a higher risk of fraud. Examples of P2P platforms include LocalCoinSwap and Paxful.
• Bitcoin ATMs: Bitcoin ATMs are convenient as they are often available 24/7 and provide easy access to Bitcoin. They accept cash deposits and send Bitcoin to your wallet. However, they may charge higher fees and offer less favourable exchange rates.
• CDReload by Crypto Dispensers: CDReload allows you to deposit cash at participating retail stores and then purchase Bitcoin on the Crypto Dispensers website. It offers competitive fees and a wide network of locations but has daily transaction limits.
• Mailing Cash: This method involves finding a reliable seller who accepts cash by mail and then mailing the packaged cash to their provided address. It offers privacy and lower transaction fees but carries the risk of loss or theft during transit.
• Bank Deposits: You can deposit cash into your bank account and then use electronic payment methods to purchase Bitcoin on a cryptocurrency exchange. This method is secure and widely accepted but may involve identity verification and processing delays.

When buying Bitcoin with cash, it's important to take necessary precautions to ensure the safety of your transactions. Use reputable platforms, conduct due diligence when dealing with individuals, and store your Bitcoin securely in a wallet.

How to trade another cryptocurrency for bitcoin

Trading another cryptocurrency for Bitcoin is a more advanced method of acquiring Bitcoin. There are several platforms that allow users to trade cryptocurrencies, including eToro and Bitfinex.

EToro is a social trading and multi-asset brokerage registered in Cyprus, Israel, and the UK. It offers trading in a variety of assets, including fiat currency, cryptocurrency, and commodities such as oil and gold. eToro has a great social trading feature that allows less experienced traders to copy the trades and strategies of professional traders, increasing their chances of success. However, users cannot buy or send Bitcoins to eToro, but they can practice trading with a free demo account.

Bitfinex is a cryptocurrency exchange and currency storage platform. It is the world's largest Bitcoin exchange platform and accounts for 10% of all trades. Bitfinex allows trading between fiat currencies and cryptocurrencies and is one of the best choices for Bitcoin trading and exchanging.

It is important to note that trading another cryptocurrency for Bitcoin is more complicated than standard trading, so it is recommended to get familiar with standard trading before delving into this more advanced method.

How to store cryptocurrency

When you own cryptocurrency, it's important to consider how to store it. Cryptocurrency doesn't have the same types of protection as money in a bank account or investments made through a broker. As the owner, storing your crypto safely is your responsibility.

Hardware Wallets

Hardware wallets are small, USB-like devices that connect to your computer and store your cryptocurrency offline. They are considered one of the safest options for storing your crypto as they are not connected to the internet and therefore cannot be hacked. Examples include the Ledger Nano S, Ledger Nano X, and Trezor Model T.

Paper Wallets

A paper wallet is a free, offline method of storing your cryptocurrency. It involves printing out your public and private keys, usually as a string of characters and scannable QR codes. Paper wallets are highly secure, as your crypto is offline, but they are not very user-friendly.

Mobile Wallets

Mobile wallets are applications that you can download on your mobile device to store your cryptocurrency. They are convenient and easy to use, but they are not very secure as they are always online and therefore vulnerable to hacking.

Desktop Wallets

Desktop wallets are programs that you can download on your computer to store your cryptocurrency. They are not the safest option as they are always connected to the internet and are therefore more susceptible to hacking.

Web-Based Wallets

Web-based wallets are hosted by a web service and are not secure as you are letting a third party store your keys for you. They are also always online, which further increases the risk of hacking.

Custodial Wallets

Custodial wallets are managed by a third party, such as a cryptocurrency exchange like Coinbase. The third party stores your crypto for you, either through cold (offline) storage, hot (online) storage, or a combination of both. While custodial wallets are convenient, they are not as secure as using your own wallet.

To summarise, the safest methods for storing your cryptocurrency are those that you manage yourself without a connection to the internet, such as hardware or paper wallets. For large amounts of cryptocurrency, it is recommended to use a cold wallet. For smaller amounts that you want to use for trading, a hot wallet may be more convenient.

Frequently asked questions