Looking for a Bitcoin Buying Guide? Where to start asking? People have many misconceptions about bitcoin – the world’s first popular and accepted cryptocurrency.
Many people think, for example, that it is only used by hackers and shady people. However, bitcoin is really taking over with everything from TigerDirect to Expedia.com to Dell and even Subway accepting bitcoin payments.
Why so popular?
Well, bitcoin has many benefits over other currencies. For example, you can send someone bitcoins as payment without having to go through a bank intermediary (and incur extra fees). It’s also much faster than sending money via wire transfer or wire transfer. You can send Bitcoins to someone and receive coins in seconds.
With all of this, it’s no wonder that many people are trying to buy bitcoin for the first time. However, it is not as simple as going to your bank and withdrawing bitcoins, or going to a store and withdrawing your hard earned money in bitcoins.
The system works a little differently than that. This guide to buying Bitcoin will cover a few things you need to know before buying so that you can buy safely and securely.
First, although the price can be over $2000 per coin, you don’t have to buy the entire bitcoin. Most places will let you buy fractions of a bitcoin for $20. So you can start small and go from there as you get more comfortable 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 you should check with your financial advisor before making any purchases.
So here are 3 easy steps to buy Bitcoins:
#1 Get a Bitcoin Wallet
The first thing to do before buying coins is to get a virtual wallet to store your coins. This wallet is a text string that people can use to send bitcoins.
There are several types of wallets, including ones you download to your phone or computer, online wallets, and even offline cold storage wallets.
Most people prefer to access their wallet on their phone or computer. The most popular wallets are Blockchain, Armory, Bitgo MyCelium and Xapo.
It’s usually as easy as downloading the wallet as an app to your phone or downloading the software to your computer from the main wallet website.
#2 Decide where to buy
There are many different types of places to shop and each one is a little different. There are online sellers who will sell you bitcoins directly for cash (or bank wire or credit card).
There are exchanges where you can buy and sell bitcoins from others, much like a stock market. There are also local exchanges that connect you with sellers in your area who want to sell.
There are also ATMs where you go shopping with cash and have your coins sent to your wallet in minutes.
Each Bitcoin seller has its own benefits and drawbacks. For example, ATMs are great for privacy, but they will charge you up to 20% on top of the current price, which is ridiculous. (At a BTC price of $2000, that’s $400! So you’re paying $2400 instead of $2000).
Wherever you decide to buy, remember to do your research and go with a trusted dealer with a good reputation and solid customer service. First-time buyers in particular will have questions and may need additional assistance to help them through their first transaction.
Take your time and research different places to buy before you decide. Factors to consider include coin prices, extra fees, payment method, and customer service.
#3 Buy Bitcoin and transfer it to your wallet
Once you’ve found a place to buy, prepare the funds (ie you can send a wire transfer or use your Visa to fund your account). Then wait for a good price. (Bitcoin prices are always changing 24 hours a day, 7 days a week). Then place your order when you’re ready.
Once you’ve completed your order and have your coins, you’ll want to send them to your wallet. Enter your bitcoin address and get the seller to send you your bitcoins. You should see them appear in your wallet within a minute to an hour (depending on how fast the seller ships).
Voila, you are now a bitcoin owner. Now you can send coins to pay for other goods and services, or hang out with them on a rainy day.
One last thing to remember: bitcoin is still in its infancy. There are big price swings and the currency can be dangerous. Never buy more bitcoin than you can afford to lose.