Looking for a Bitcoin Buying Guide? Wondering the place to start? People have a great deal of misconceptions about bitcoin – the 1st well known and accepted cryptocurrency worldwide.
Lots of people think for example that only hackers and shady people use it. However bitcoin is in fact 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 instance, you can send bitcoins to someone as payment without needing to go through the bank middleman (and get hit with extra fees). It is also much faster than sending money via a bank wire or transfer. It is possible to send bitcoins to someone and have them receiving the coins in seconds.
With all this, it’s no surprise that lots of 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 plunking down some hard-earned cash for bitcoin.
The system works a bit differently than that. This Bitcoin Buying Guide will go over a couple of things you need to know before you buy – so that you can buy safely and securely.
First of all, as the price might be over $2000 us per coin, you don’t need to buy a whole bitcoin. Most places will let you buy portions of a bitcoin for as little as $20. So that you can start small and go from there as you get more comfortable with the way things work.
Secondly, this short 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 should check with your financial advisor to see whether it’s right for you.
So listed below are 3 easy steps to buying Bitcoins:
#1 Get yourself a Bitcoin Wallet
The first thing to do before you buy your coins would be 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 different types of wallets including ones you download to your phone or computer, online wallets and also offline, cold storage wallets.
Most people would rather 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 computer from the wallet’s main website.
#2 Decide Where to Buy
There are several types of places to get and each 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 can buy and sell bitcoins from others – similar to a stock market. There are also local exchanges that link you up with sellers in your area looking to sell.
Additionally, there are ATMs where you go to purchase with cash and obtain your coins delivered to your wallet in minutes.
Each bitcoin seller has their positives and negatives. For example ATMs are excellent for privacy, but they’ll ask you for up to 20% along with 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 do your research and go with a reliable seller with an excellent reputation and strong customer service. First time buyers will especially have questions and may need the excess support to greatly help them with their first transaction.
Take your time and research the different places to buy before you decide. Factors to consider include coin prices, extra fees, approach to payment and customer support.
#3 Buy Bitcoin and Move It To Your Wallet
Once you’ve found a location to get, get your funds ready (i.e. you may send a wire transfer or use your Visa to invest in your account). Then wait for a good price. (Bitcoin prices are always fluctuating 24 hours, 7 days a week). Then place your order when you’re ready.
Once your order is filled and you have your coins, you’ll want to send them to your wallet. Simply enter Wasabi Wallet and get the seller to send you your bitcoins. You need to see them show up in your wallet within minutes to one hour (depending on how fast owner sends them out).
Voila, you’re now a bitcoin owner. Now you can send coins to cover other goods and services, or hang on to them for a rainy day.
One last thing to remember: 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.