Looking for a Bitcoin buying guide? Wondering where to start? People have many misconceptions about bitcoin, the first widely known and accepted cryptocurrency in the world.
Many people think, for example, that they are only used by hackers and shadow people. However, bitcoin is being run with everyone, from TigerDirect to Expedia.com to Dell and even Subway accepts bitcoin payments now.
Why so popular?
Well, bitcoin has many advantages over other currencies. For example, you can send bitcoins to someone as payment without having to go through the banking intermediary (and get additional fees). It is also much faster than sending money by bank 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 a store and withdrawing some much earned cash for bitcoin.
The system works a little differently. This Bitcoin Buying Guide will go over some things you need to know before you buy, so you can shop safely.
First, while the price may exceed $ 2,000 per coin, you won’t have to buy an entire bitcoin. Most sites will allow you to buy portions of a bitcoin for only $ 20. So you can start small and go from there as you become more comfortable with the way things work.
Second, this article is for general purposes only and cannot be considered as financial advice. Bitcoin can be risky and before making any purchase, check with your financial advisor to see if it is right for you.
So here are 3 easy steps to buying bitcoins:
# 1 Get a Bitcoin wallet
The first thing you need to do before buying your coins is to get a virtual wallet to store them. This wallet is a text string that people can use to send you bitcoins.
There are several 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 get a wallet on their phone or computer. Popular portfolios include Blockchain, Armory, Bitgo MyCelium and Xapo.
It is usually as simple as downloading the wallet to your phone as an application 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 one is a little different. There are online sellers who will sell you bitcoins directly in cash (by bank transfer or credit card).
There are exchanges where you can buy and sell other bitcoins, similar to a stock exchange. There are also local stock exchanges that connect you with vendors in your area who want to sell.
There are also ATMs where you go shopping with cash and they deliver your coins to your wallet in minutes.
Every bitcoin seller has its pros and cons. For example, ATMs are great for privacy, but they will charge you up to 20% above the current price, which is ridiculous. (With a BTC price of $ 2000, that $ 400! So you pay $ 2400 instead of $ 2000).
No matter where you decide to buy, remember to research and go with a reputable seller with good reputation and strong customer service. First-time buyers will have special questions and may need additional assistance to assist them in their first transaction.
Take your time and research the different places to buy before deciding. Factors to consider include the price of the coins, additional charges, method of payment, and customer service.
# 3 Buy Bitcoin and move it to your wallet
Once you’ve found a place to shop, prepare your funds (that is, you can send a bank transfer or use your Visa to fund your account). Then expect a good price. (Bitcoin prices always fluctuate 24 hours, 7 days a week). Then place your order when you are ready.
Once you have filled out your order and have the coins, you will want to send them to your wallet. All you have to do is enter your bitcoin address and the seller will send you your bitcoins. You should see them in your wallet in minutes to an hour (depending on how quickly the seller gets them).
Voila, now you own bitcoins. You can now send coins to pay for other goods and services or hang on to them on 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 bitcoins than you can afford to lose.