Looking for a guide to buying bitcoin? Wondering where to start? People have many misconceptions about bitcoin – the first widely known and accepted cryptocurrency worldwide.
Many people believe, for example, that only hackers and shady people use it. However, bitcoin is actually becoming mainstream with everyone from TigerDirect to Expedia.com to Dell and even Subway accepting bitcoin payments now.
Why so popular?
Well, bitcoin has many advantages over other currencies. For example, you can send bitcoins to someone as a payment without having to go through a bank intermediary (and be hit with extra fees). It is also much faster than sending money by bank transfer or transfer. You can send bitcoins to someone and they will receive the coins in seconds.
With all this, it is no surprise that many people are now trying to buy bitcoin for the first time. However, it’s not as easy as going to your bank and withdrawing bitcoins – or going to a store and throwing away some hard-earned bitcoin money.
The system works a little differently than that. This Bitcoin Buying Guide will cover a few things you need to know before you buy – so you can shop safely and securely.
First of all, while the price can be over $ 2,000 for one coin, you don’t have to buy a whole bitcoin. Most places will allow you to buy pieces of bitcoin for only $ 20. So you can start small and move on when you feel more comfortable with the way things work.
Second, this article is for general purposes only and should not be construed as financial advice. Bitcoin can be risky, and before making any purchase, you should consult with your financial advisor to see if it is right for you.
Here are 3 easy steps to buying bitcoins:
# 1 Get a bitcoin wallet
The first thing you need to do before you buy your coins is to get a virtual wallet in which to store your coins. This wallet is a string of text that people can use to send you bitcoins.
There are a number of different types of wallets, including those that you download to your phone or computer, online wallets and even offline wallets for cold storage.
Most people prefer to get a wallet on their phone or computer. Popular wallets include Blockchain, Armory, Bitgo MyCelium and Xapo.
This is usually as simple as downloading your phone’s wallet as an app or downloading software to your computer from the main wallet website.
# 2 Decide where to buy
There are several types of places to buy and each one is a little different. There are online sellers who will sell you bitcoins directly for cash (either a bank transfer or a 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 connect you with sellers in your area who want to sell.
There are also ATMs where you go to buy with money and receive your coins delivered to your wallet in minutes.
Every bitcoin seller has its advantages and disadvantages. For example, ATMs are great for privacy, but they will charge you up to 20% on the current price, which is ridiculous. (At a price of BTC of $ 2000, that $ 400! So you pay $ 2400 instead of $ 2000).
No matter where you decide to buy, be sure to do your research and go to a trusted seller with a good reputation and strong customer service. For the first time, buyers will have special questions and may need additional support to help them with their first transaction.
Take the time to research the different places to shop before deciding. Factors to consider include coin prices, surcharges, payment methods and customer service.
# 3 Buy bitcoin and move it to your wallet
Once you find a place to buy, prepare your funds (ie you can send a bank transfer or use your Visa 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 are ready.
Once your order is fulfilled and you have your coins, you will want to send them in your wallet. Just enter your bitcoin address and have the seller send you your bitcoins. You should see them in your wallet within minutes to an hour (depending on how fast the seller sends them).
Voila, you already own bitcoin. You can now send coins to pay for other goods and services, or keep them for a rainy day.
One last thing to remember: Bitcoin is still in its infancy. There are huge fluctuations in prices and the currency can be risky. Never buy more bitcoins than you can afford to lose.