Are you looking for a Bitcoin buying guide? Wondering where to start? People have a lot of misconceptions about Bitcoin – the first known and widely accepted digital currency around the world.
For example, many people think that only hackers and suspicious people are using them. However, Bitcoin is actually becoming mainstream with everyone from TigerDirect to Expedia to Dell and even Subway is accepting bitcoin payments now.
Why is it so popular?
Well, Bitcoin has a lot of benefits compared to other currencies. For example, you can send Bitcoins to someone as a payment without having to go through a bank broker (and get additional fees). It’s also much faster than sending money via bank transfer or transfer. You can send bitcoins to someone and have them receive the 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 bitcoins – or going to the store and extracting some hard-earned cash for bitcoins.
The system works a little differently than this. This Bitcoin Buying Guide will go over a few things you need to know before purchasing – so you can buy safely and securely.
First of all, while the price may be in excess of $ 2,000 per coin, you do not have to buy a whole Bitcoin. Most places will allow you to buy bitcoins for as little as $ 20. So you can start small and go from there where you feel most comfortable with the way things work.
Second, this article is for general purpose only and should not be considered financial advice. Bitcoin can be risky, and before making any purchase, you should consult with your financial advisor to see if this is right for you.
So here are 3 easy steps to buy bitcoins:
# 1 Get a Bitcoin wallet
The first thing that you must do before purchasing your coins is to have a virtual wallet to store your 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 offline cold storage wallets.
Most people prefer to have a wallet on their phone or computer. Popular wallets include Blockchain, Armory, Bitgo MyCelium, and Xapo.
Usually, it’s as simple as downloading the wallet to your phone as an app or downloading the software to your computer from the wallet’s main website.
# 2 Decide where to buy
There are several types of places you can buy and each varies slightly. There are online sellers who sell you Bitcoins directly for cash (or 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 looking to sell.
There are also ATMs where you can buy with cash and have your coins in your wallet in minutes.
Every Bitcoin seller has its own benefits and drawbacks. For example, ATMs are great for privacy, but they’ll charge you up to 20% on top of the current rate, which is ridiculous. (At $ 2,000 BTC, that’s $ 400! So you’re paying $ 2,400 instead of $ 2,000).
No matter where you decide to buy from, remember to do your research and go with a trusted seller with a good reputation and solid customer service. First-time buyers will have special questions and may require additional support to assist them with their first transaction.
Take your time and research the different places to buy before you decide. Factors to consider include coin rates, surcharges, method of payment, and customer service.
# 3 Buy Bitcoin and transfer it to your wallet
Once you find a place to buy, get your money ready (for example, you can send an electronic transfer or use 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 you fulfill your order and get your coins, you’ll want to send them to your wallet. Simply enter your bitcoin address and ask the seller to send you your bitcoins. You should see it appear in your wallet in minutes to an hour (depending on how quickly the seller sends it).
Voila, you are now the owner of Bitcoin. You can now send in coins to pay for other goods and services, or stick to them on a rainy day.
The last thing to remember: Bitcoin is still in its infancy. There are large fluctuations in prices and the currency can be quite risky. Never buy more Bitcoins than you can afford to lose.