Looking for a Bitcoin Buying Guide? Wondering where to start? People have lots of misconceptions about bitcoin – the 1st well known and accepted cryptocurrency worldwide.
Lots of people think for instance that only hackers and shady people utilize it. However bitcoin is really going mainstream with everyone from TigerDirect to Expedia.com to Dell and also Subway accepting payments in bitcoin now.
Why so popular?
Well, bitcoin has a large amount of benefits over other currencies. For example, it is possible to send bitcoins to someone as payment without needing to feel the bank middleman (and obtain hit with extra fees). It’s also considerably faster than sending money with a bank wire or transfer. You can send bitcoins to someone and have them receiving the coins in seconds.
With all of this, it’s no surprise that lots of people are now trying to buy bitcoin for the very first time. However it’s not as easy as going to your bank and withdrawing bitcoins – or going to a store and plunking down some hard-earned cash for bitcoin.
The system works a bit differently than that. This Bitcoin Buying Guide will go over a few things you have to know before you get – to help you buy safely and securely.
First of all, while the price may be over $2000 us per coin, you don’t have to buy an entire bitcoin. Most places will let you buy portions of a bitcoin for as little as $20. To help you start small and go from there as you obtain more comfortable with the way things work.
Secondly, this article is for general purposes only and not to be studied as financial advice. Bitcoin could be risky and before making any purchase you should check with your financial advisor to see if it’s right for you.
So listed below are 3 easy steps to purchasing Bitcoins:
#1 Get a Bitcoin Wallet
The first thing to accomplish before you get your coins is to get a virtual wallet to store your coins. This wallet is really a string of text that folks can use to send you bitcoins.
There are a variety of different types of wallets including ones you download to your phone or computer, online wallets and even 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 software to your personal computer from the wallet’s main website.
#2 Decide Where you can Buy
There are several types of places to get and each is a bit different. You can find online sellers which will sell you bitcoins directly for cash (or bank wire or credit card).
There are exchanges where you can trade bitcoins from others – similar to a stock market. Additionally, there are Wasabi Wallet that link you up with sellers in your area looking to sell.
Additionally, there are ATMs where you go to purchase with cash and get 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 decide to buy, remember to research your facts and go with a trusted seller with an excellent reputation and strong customer service. First-time buyers will especially have questions and could need the extra support to help them making use of their first transaction.
Take your time and research the various places to get before you decide. Factors 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 location to buy, get your funds ready (i.e. you may 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 weekly). 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. Simply enter your bitcoin address and obtain owner to send you your bitcoins. You need to see them arrive in your wallet within minutes to an hour (depending on how fast the seller sends them out).
Voila, you are 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 is still in its infancy. You can find huge price swings and the currency could be risky. Never buy more bitcoins than it is possible to afford to lose.