Looking for a guide to buying bitcoin? I wonder where to start? People have many misconceptions about bitcoin – the very first cryptocurrency widely known and accepted worldwide.
Many people think, for example, that they are used only by hackers and clever people. However, bitcoin is actually becoming mainstream for everyone, from TigerDirect to Expedia.com to Dell and even Subway, who accept bitcoin payments.
Why so popular?
Well, bitcoin has many advantages over other currencies. For example, you can send someone a bitcoin as payment without contacting a bank intermediary (and get extra fees). It is also much faster than sending money through a bank transfer or wire transfer. You can send bitcoin to someone and get them to get coins in seconds.
With all this, it is not surprising 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 bitcoin – or going to the store and earning hard-earned money.
The system works a little differently. This guide to buying bitcoin will cover a few things you need to know before you buy – so you can buy safely and securely.
First, although the price may exceed $ 2,000 per coin, you don’t need to buy a whole bitcoin. In most places you can buy portions of bitcoins for only $ 20. So you can start small and go from there when you become more comfortable with how things work.
Second, this article is for general purposes only and should not be construed as financial advice. Bitcoin can be risky, and before buying you should consult with your financial advisor to find out if it is right for you.
So, here are 3 easy steps to buying bitcoins:
# 1 Get a Bitcoin Wallet
The first thing to do before buying coins is to get a virtual wallet to store the coins. This wallet is a text string that people can use to send you bitcoins.
There are a number of different types of wallets, including the ones you download to your phone or computer, online wallets and even standalone wallets for cold storage.
Most people prefer to have a wallet on their phone or computer. Popular wallets include Blockchain, Armory, Bitgo MyCelium and Xapo.
It is usually as simple as downloading a wallet to your phone as a program or downloading software to your computer from the main wallet website.
# 2 Decide where to buy
There are several types of places you can buy and each one is a little different. There are online sellers who will sell you bitcoin 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 connect you with sellers in your area who want to sell.
There are also ATMs where you buy cash and get coins in 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% of the current price, which is ridiculous. (At BTC $ 2000, that’s $ 400! So you pay $ 2400 instead of $ 2000).
No matter where you decide to buy, be sure to research and contact a trusted seller with a good reputation and strong customer service. The first buyers especially have questions and may need additional support to help them with the first transaction.
Take your time and explore the different places where you can buy before making a decision. Factors to consider include coin prices, surcharges, payment method and customer service.
# 3 Buy bitcoins and transfer them to your wallet
Once you have found a place to buy, prepare your funds (i.e. you can send a bank transfer or use Visa to top up your account). Then expect 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 filled and you have the coins, you will want to send them to your wallet. Just enter your bitcoin address and get the seller to send you your bitcoins. You should see how they appear in your wallet within minutes to an hour (depending on how quickly the seller ships them).
Voila, you are now the owner of bitcoins. Now you can send coins to pay for other goods and services or stay on them for a rainy day.
And the last thing to remember: bitcoin is still in its infancy. There are huge price fluctuations, and currency can be risky. Never buy more bitcoins than you can afford to lose.