When the price of cryptocurrency can reach an all-time high of over $20,000, it becomes rather wasteful to not use the opportunity to invest in the lucrative digital currencies. Although their prices have been dropping down  after what can best be described as a ‘bubble-burst’, bitcoins aren’t knocked out of the picture yet.

After first arriving into the market, the mere idea of buying bitcoin seemed rather ludicrous to most consumers. Indeed, they relegated Bitcoin to the world of behind-the-scenes, underground, tech-savvy computer users who harbored ill intentions. But today, when the market cap of Bitcoin has exceeded over $200 billion, even the likes of Wall Street has begun to acknowledge that digital currency is here to stay.

We’ve designed a step by step guide to help you get started with investing in digital currency.

Using a Bitcoin ‘wallet’

The easiest step is to sign up for a digital wallet which will store all your Bitcoin in a safe digital ‘vault’. It will allow you to securely buy and sell bitcoins without having the paranoia of your transactions being recorded by any third party entities. There are three types of wallets you can use:

1)    A software wallet

This is software which you can install on your computer and mobile device. It will give you compete control over your bitcoins but the security of your bitcoins is only going to be as good as your computer’s, and your own technical savvy. If the data on your computer gets compromised or lost in the pipeline, it could compromise the integrity of the bitcoins as well.

2)    Using a web wallet

Using a wallet hosted on a trusted third party website is one of the better alternatives out there. The web wallets are easier to use and can be as simple as pointing and clicking with your mouse. The web hosts usually maintain very high levels of security to protect your digital coins. Some of the popular outlets which can be used to purchase Bitcoin wallets include Bitcoin Code, Breadwallet and Coinbase.

3)    Hardware wallet

This small physical device can easily be accommodated in your wallet or safe and is protected by a pin-code. It offers unmatched security when compared to web and security wallets.

Using a payment method

The next step after signing up for a wallet is to add a payment method. It requires you to complete a few verification steps and you’re done. Some consumers like to connect their bank account with the wallet which is an easier alternative.

Other options include linking to a PayPal account, credit and debit cards, but they have their own transaction fees and verification steps to complete.

Choosing an exchange

The most important step is to choose a reliable bitcoin exchange. There are various third party websites which can serve as exchanges and the options can sometimes feel a little overwhelming. One of the safest alternatives is Buy and Trade Crypto, which offers the highest levels of security and minimal transactions fees.

Other reputable exchanges include Bittrex, GDAX and Bithumb. Each of them have their own signing up processes and allow you to transfer all your bitcoins to your chosen wallet.

As with everything related to cryptocurrency, we advise our readers to tread carefully and expect fluctuations in the price of bitcoins.