Buying a Bitcoin Buying Guide? Wondering where to start? Individuals have plenty of misconceptions about bitcoin – the 1st widely known and accepted cryptocurrency worldwide.
A lot of people think for instance that only hackers and shady people use it. However bitcoin is really going mainstream with everyone from TigerDirect to Expedia.com to Dell and even Subway accepting payments in bitcoin now.
Why so popular?
Well, bitcoin has plenty of benefits over other currencies. For example, you can send bitcoins to someone as payment and never having to go through the bank middleman Tipping Token (and get hit with extra fees). Additionally it is considerably faster than sending money using a bank wire or transfer. You are able to send bitcoins to someone and keep these things receiving the coins in seconds.
With this, it’s no surprise that numerous people are now trying to purchase bitcoin for the initial time. However it’s much less easy as planning to your bank and withdrawing bitcoins – or planning to a shop and plunking down some hard-earned cash for bitcoin.
The system works somewhat differently than that. This Bitcoin Buying Guide will go over two things you need to know before you buy – so you should buy safely and securely.
To start with, while the purchase price could be over $2000 us per coin, you do not have to purchase an entire bitcoin. Most places allow you to buy portions of a bitcoin for as low as $20. So you can start off small and go from there as you receive more confident with just how things work.
Secondly, this article is for general purposes only and not to be studied as financial advice. Bitcoin can be risky and prior to making any purchase you ought to consult along with your financial advisor to see if it’s right for you.
So listed below are 3 easy steps to buying Bitcoins:
#1 Obtain a Bitcoin Wallet
The very first thing to complete before you buy your coins is to obtain a virtual wallet to store your coins. This wallet is a chain of text that people may use to give you bitcoins.
You can find numerous various kinds of wallets including ones you download to your phone or computer, online wallets and even offline, cold storage wallets.
A lot of people prefer to obtain a wallet on the phone or computer. Popular wallets include Blockchain, Armory, Bitgo MyCelium and Xapo.
Usually it’s as simple as downloading the wallet to your phone being an app or downloading the application to your computer from the wallet’s main website.
#2 Decide Where to Buy
There are many forms of places to purchase and every one is really a bit different. You can find online sellers that may sell you bitcoins directly for money (or bank wire or credit card).
You can find exchanges where you could buy and sell bitcoins from others – much like an investment market. There’s also local exchanges that link you up with sellers in your area looking to sell.
There’s also ATMs where you go to get with cash and get your coins brought to your wallet in minutes.
Each bitcoin seller has their benefits and drawbacks. For example ATMs are good for privacy, but they’ll charge you as much as 20% on top of the current price, which is ridiculous. (On a BTC price of $2000, that $400! So you’re paying $2400 in place of $2000).
Irrespective of where you decide to buy, remember to complete your research and choose a reliable seller with an excellent reputation and strong customer service. First time buyers will especially have questions and might need the additional support to help them using their first transaction.
Spend some time and research the different places to purchase before you decide. Factors to think about include coin prices, extra fees, approach to payment and customer service.
#3 Buy Bitcoin and Move It To Your Wallet
Once you’ve found a spot to purchase, get your funds ready (i.e. you could send a wire transfer or use your Visa to fund your account). Then await an excellent price. (Bitcoin prices are always fluctuating 24 hours, 7 days a week). Then place your order when you’re ready.
Once your order is filled and you have your coins, it is additionally vital to send them to your wallet. Simply enter your bitcoin address and get the vendor to give you your bitcoins. You must see them arrive in your wallet within seconds to one hour (depending on how fast the vendor sends them out).
Voila, you’re now a bitcoin owner. Now you can send coins to pay for other goods and services, or hold on to them for a wet day.
One final thing to keep in mind: bitcoin is still in its infancy. You can find huge price swings and the currency can be risky. Never buy more bitcoins than you are able to afford to lose.