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With the price of Bitcoin climbing at an unprecedented rate, I am tempted to buy some Bitcoins to sell when the price goes up. What should I pay attention to when buying?
Hi there,
When purchasing Bitcoin as an investment, it is important that you treat it like any commodity investment. If your goal is to make a profit rather than a statement, pay careful attention to the brokerage fees, transaction fees and retail fees involved in buying and selling Bitcoin. The cost of buying and selling your Bitcoins (on top of their actual value) will cut into your profits.
Buying Bitcoin through a Bitcoin ATM is best avoided because commissions are high. Fore example, the Swiss federal railway SBB / CFF charges a commission of 6% when you buy Bitcoin through its ticket vending machines. Bitcoin Suisse charges a fee equal to 5% of each Bitcoin purchase made through its ATMs. Similar fees apply when you sell Bitcoin through ATMs.
Fees are generally lower when you purchase Bitcoins directly from brokers - particularly when you purchase large amounts. The same applies to selling Bitcoin.
Purchasing Bitcoins directly from trusted individuals who are willing to sell them can help you get around brokerage fees. Exercise caution when dealing with strangers or marketplaces which you do not fully trust.
Foreign transaction fees may apply when you purchase Bitcoin through a foreign broker or marketplace because your Swiss francs will be exchanged into the local currency before being used to buy Bitcoins. The same applies when you sell Bitcoins through a foreign broker.
Best regards from Moneyguru
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