Looking for a guide to buying bitcoin? I wonder where to start? People have many misconceptions about bitcoin – the first widely known and accepted worldwide cryptocurrency.
Many people think, for example, that only hackers and shadow people use it. However, in reality bitcoins go along with everyone from TigerDirect to Expedia.com and ending with Dell and even Subway, accepting payments in bitcoins.
Why so popular?
Well, bitcoin has many advantages over other currencies. For example, you can send someone a bitcoin as a payment without going through a bank intermediary (and get extra fees). It is also much faster than sending money by bank transfer or wire transfer. You can send someone a bitcoin and get them to receive 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 grabbing a little earned money for bitcoin.
The system works a little differently. This Bitcoin Buying Guide will cover a few things you need to know before making a purchase so that you can buy safely and securely.
First of all, although the price can exceed $ 2,000 per coin, you don’t need to buy a whole bitcoin. In most places you can buy portions of bitcoin for only $ 20. So you can start small and go from there when you feel more comfortable working.
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, consult with a financial advisor to find out if it is right for you.
So, here are 3 simple steps to buying bitcoins:
# 1 Get a bitcoin wallet
The first thing to do before you buy coins is to get a virtual wallet to store the coins. This wallet is a line of text 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, wallets online and even offline, cold wallets.
Most people prefer to receive a wallet on their phone or computer. Popular wallets include Blockchain, Armory, Bitgo MyCelium and Xapo.
Usually it’s just like downloading a wallet to your phone as an app or downloading software to your computer from the main wallet site.
# 2 Decide where to buy
There are several types of places to buy, and each is somewhat different. There are online sellers who will sell you bitcoin 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 are going to buy cash and deliver coins 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% up to the current price, which is ridiculous. (At a BTC price of $ 2,000 it’s $ 400! So you pay $ 2,400 instead of $ 2,000).
No matter where you decide to buy, be sure to research and contact a reliable seller with a good reputation and strong customer service. Buyers will have questions for the first time and may need additional support to help them make the first transaction.
Take your time and explore different places to buy before making a decision. Factors to consider include coin prices, additional fees, payment method and customer service.
# 3 Buy bitcoin and transfer it 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 wait for a good price. (Bitcoin prices always fluctuate around the clock, without weekends). 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 bitcoin. You should see how they display in your wallet in a matter of minutes-hours (depending on how fast the seller ships them).
Voila, you are now the owner of bitcoins. You can now send coins to pay for other goods and services, or hang them on a rainy day.
The 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 lose.