Looking for a Bitcoin Buying Guide? Are you wondering where to start? People have a lot of misconceptions about bitcoin – the very first cryptocurrency widely known and accepted around the world.
Many people think for example that only hackers and shady people use it. However, bitcoin is going mainstream, with everyone from TigerDirect to Expedia.com to Dell and even Subway now accepting bitcoin payments.
Why so popular?
Well, bitcoin has a lot of advantages over other currencies. For example, you can send someone bitcoin as payment without having to go through the bank (and be hit with additional fees). It's also much faster than sending money via wire transfer or wire transfer. You can send someone bitcoins and have them receive the coins within seconds.
With all of this, it's 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 bitcoin – or going to a store and spending hard-earned cash on bitcoin.
The system works a little differently from that. This Bitcoin buying guide will go over some things you need to know before you buy – so that you can buy safely and securely.
First of all, although the price may exceed $ 2,000 per coin, you don't have to buy an entire bitcoin. Most places will allow you to buy portions of bitcoin for as little as $ 20. So you can start small and go from there as you get to grips with how things work.
Second, this article is for general purposes only and should not be taken as financial advice. Bitcoin can be risky and before making a purchase you should consult your financial advisor to see if it is right for you.
So here are 3 easy steps to buy Bitcoins:
# 1 get a bitcoin wallet
The first thing to do before buying your coins is to get a virtual wallet to store your coins. This wallet is a text string that people can use to send you bitcoin.
There are different types of wallets, including those you download to your phone or computer, online wallets, and even offline storage wallets.
Most people prefer to have a wallet on their phone or computer. Popular wallets include Blockchain, Armory, Bitgo MyCelium, and Xapo.
Usually this is as easy as downloading the wallet to your phone as an app or downloading the software to your computer from the main wallet website.
# 2 decide where to buy
There are several types of places to buy and each is a little different. There are sellers online who will sell you bitcoin directly for cash (or a wire transfer or credit card).
There are exchanges where you can buy and sell bitcoin to others – like a stock market. There are also local exchanges that connect you with sellers in your area looking to sell.
There are also ATMs where you buy cash and get your coins to your wallet within minutes.
Every bitcoin seller has their pros and cons. For example, ATMs are great for privacy, but they'll charge you up to 20% on top of the current price, which is ridiculous. (On a BTC price of $ 2000, that $ 400! So you pay $ 2400 instead of $ 2000).
No matter where you decide to buy, don't forget to do your research and go with a trusted seller with a good reputation and solid customer service. New buyers will mostly have questions and may need some extra support to help them with their first transaction.
Take your time and research the different places to buy before you decide. Factors to consider include the price of parts, additional charges, method of payment, and customer service.
# 3 Buy Bitcoin and transfer it to your wallet
Once you've found a place to buy, get your funds ready (i.e. you can send a wire transfer or use your Visa to fund your account). So wait for a good price. (Bitcoin prices always fluctuate 24 hours a day, 7 days a week). Then place your order when you're ready.
Once your order is filled and you have your coins, you will want to send them to your wallet. Just enter your bitcoin address and ask the seller to send your bitcoins to you. You should see them appear in your wallet within minutes to an hour (depending on how fast the seller sends them).
Voila, you are now the owner of Bitcoin. You can now send coins to pay for other goods and services, or hang on to them for a rainy day.
One last thing to remember: bitcoin is still in its infancy. There are huge price fluctuations and the currency can be risky. Never buy more bitcoin than you can afford to lose.