Looking for a guide to buying bitcoin? Wondering where to start? People have many misconceptions about Bitcoin – the very first widely known and accepted cryptocurrency around the world.
For example, many people think that only hackers and untrustworthy people use it. However, Bitcoin is actually becoming popular with everyone from TigerDirect to Expedia.com to Dell and even Subway accepting Bitcoin payments.
Why is it so popular?
Well, Bitcoin has many advantages over other currencies. For example, you can send bitcoins to someone as payment without resorting to a bank intermediary (and you will have to pay additional fees). It is also much faster than sending money by bank transfer or wire transfer. You can send bitcoins to someone and they will receive coins in seconds.
That being said, it’s no surprise that many people are trying to buy bitcoins for the first time. However, it is not as easy as going to the bank and withdrawing Bitcoins – or going to the store and shelling out your hard-earned money for Bitcoins.
The system works a little differently. In this Bitcoin buying guide, you’ll find a few things you need to know before buying so that you can shop safely and securely.
First, while the price can be over $ 2,000 per coin, you don’t need to buy all of the bitcoin. In most places, you can buy some of the bitcoins for as little as $ 20. This way, you can start small and move on when it becomes more comfortable for you to work.
Secondly, this article is for general purposes only and should not be construed as financial advice. Bitcoin can be risky and you should consult with your financial advisor before buying to see if it is right for you.
So, here are 3 easy steps to buying bitcoin:
# 1 Get a Bitcoin Wallet
The first thing to do before buying coins is to get a virtual wallet to store your coins. This wallet is a string of text that people can use to send bitcoins to you.
There are several types of wallets, including wallets that you download to your phone or computer, online wallets, and even standalone cold storage wallets.
Most people prefer to have a wallet on their phone or computer. Popular wallets include Blockchain, Armory, Bitgo MyCelium, and Xapo.
It’s usually as easy as downloading the wallet to your phone as an app, or downloading software to your computer from the wallet’s main website.
# 2 Decide where to buy
There are several types of places to shop and each is slightly different. There are online sellers who sell you bitcoins directly for cash (either bank transfer or credit card).
There are exchanges where you can buy and sell bitcoins from others – similar to the stock market. There are also local exchanges that put you in touch with sellers in your area looking to sell.
There are also ATM machines where you can make a purchase with cash and coins will be delivered to your wallet in minutes.
Each bitcoin seller has its own advantages and disadvantages. For example, ATMs are great for privacy, but they’ll charge you up to 20% over the current price, which is ridiculous. (At $ 2,000 BTC, that’s $ 400! So you pay $ 2,400 instead of $ 2,000.)
Regardless of where you decide to buy, be sure to do your research and contact a trusted seller with a good reputation and reliable customer service. First-time buyers are particularly questionable and may need additional support to help with their first transaction.
Take your time and research the different places to buy before making a decision. Factors to consider include coin prices, additional fees, payment method, and customer service.
# 3 Buy bitcoins and move them to your wallet
Once you find a place to buy, get your funds ready (i.e. you can send a bank transfer or use a Visa card to fund your account). Then wait for a good price. (Bitcoin prices always fluctuate 24 hours 7 days a week). Then place your order when you’re ready.
Once your order is complete and you have coins, you will want to send them to your wallet. Just enter your bitcoin address and ask the seller to send you your bitcoins. You should see them appear in your wallet within minutes to an hour (depending on how quickly the merchant sends them).
Voila, you are now the owner of bitcoins. Now you can send coins to pay for other goods and services, or delay them for a rainy day.
One last thing to remember: Bitcoin is still in its infancy. There are huge price fluctuations and the currency can be risky. Never buy more bitcoins than you can afford to lose.