Looking for a Bitcoin Buying Guide? Wondering the place to start? People have plenty of misconceptions about bitcoin – the 1st widely known and accepted cryptocurrency worldwide.
Many people think for example that only hackers and shady people utilize 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 includes a large amount of benefits over other currencies. For example, you can send bitcoins to someone as payment and never have to go through the bank middleman (and get hit with extra fees). It is also considerably faster than sending money with a bank wire or transfer. It is possible to send bitcoins to someone and also have them receiving the coins in seconds.
With all this, it’s no surprise that many people are now trying to buy bitcoin for the first time. However it isn’t as easy as going to your bank and withdrawing bitcoins – or likely to a store and plunking down some hard-earned cash for bitcoin.
The system works a little differently than that. This Bitcoin Buying Guide will go over a few things you have to know before you buy – so you can buy safely and securely.
First of all, while the price may be over $2000 us per coin, you don’t have to buy a whole bitcoin. Most places enables you to buy portions of a bitcoin for as little as $20. So you can start small and go from there as you obtain more comfortable with just how things work.
Secondly, this article is for general purposes only rather than to be studied as financial advice. Bitcoin can be risky and prior to making any purchase you need to check with your financial advisor to see if it’s right for you.
So here are 3 easy steps to purchasing Bitcoins:
#1 Get yourself a Bitcoin Wallet
The first thing to do before you buy your coins is to get yourself a virtual wallet to store your coins. This wallet is a string of text that people may use to send you bitcoins.
There are a variety of various kinds of wallets including ones you download to your phone or computer, online wallets and also offline, cold storage wallets.
Most people prefer to get 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 as an app or downloading the program to your personal computer from the wallet’s main website.
#2 Decide Where to Buy
There are several forms of places to get and each one is a bit different. There are online sellers that will sell you bitcoins directly for cash (or bank wire or charge card).
There are exchanges where you could trade bitcoins from others – much like a stock market. Additionally, there are local exchanges that link you up with sellers in your area looking to sell.
Additionally, there are ATMs where you head to purchase with cash and obtain your coins sent to your wallet in minutes.
Each bitcoin seller has their benefits and drawbacks. For example ATMs are excellent for privacy, but they’ll ask you for up to 20% on top of the current price, that is ridiculous. (On a BTC price of $2000, that $400! So you’re paying $2400 instead of $2000).
No matter where you choose to buy, remember to research your facts and go with a reliable seller with an excellent reputation and strong customer support. First-time buyers will especially have questions and could need the extra support to greatly help them making use of their first transaction.
Invest some time and research the different places to buy before you decide. Things to consider include coin prices, extra fees, method of payment and customer service.
#3 Buy Bitcoin and Move It To Your Wallet
Once you’ve found a place to get, get your funds ready (i.e. you may send a wire transfer or use your Visa to invest in your account). Then await an excellent price. (Bitcoin prices are always fluctuating 24 hours, 7 days a week). Then place your order as you prepare.
Once your order is filled and you have your coins, you need to send them to your wallet. Simply enter your bitcoin address and get the seller to send you your bitcoins. You need to see them arrive in your wallet within minutes to an hour (depending on how fast owner sends them out).
Voila, you’re now a bitcoin owner. Now you can send coins to pay for other goods and services, or hang on to them for a rainy day.
One last thing to keep in mind: bitcoin continues to be in its infancy. You can find huge price swings and the currency can be risky. Never buy Wasabi Wallet than you can afford to lose.