Looking for a Bitcoin Buying Guide? Wondering where to start? Folks have a lot of misconceptions about bitcoin – the initial widely known and accepted cryptocurrency worldwide.
Plenty of people think like that only hackers and shady people use it. However bitcoin is obviously going mainstream with everyone from TigerDirect to Expedia.com to Dell and even Subway accepting payments in bitcoin now.
Why so popular?
Well, bitcoin has a lot of benefits over other currencies. For instance, you are able to send bitcoins to someone as payment without having to have the bank middleman Tipping Token (and get hit with extra fees). Additionally it is much faster than sending money with a bank wire or transfer. You are able to send bitcoins to someone and have them receiving the coins in seconds.
With this, it’s no surprise that many people are now trying to buy bitcoin for the first time. However it’s much less easy as planning to your bank and withdrawing bitcoins – or planning to a shop and plunking down some hard-earned cash for bitcoin.
The system works somewhat differently than that. This Bitcoin Buying Guide will go over a couple of things you need to know before you decide – so you should buy safely and securely.
To begin with, while the purchase price may be over $2000 us per coin, there isn’t to buy a complete bitcoin. Most places enables you to buy portions of a bitcoin for as low as $20. So you can begin off small and go from there as you receive more more comfortable with the way in which things work.
Secondly, this article is for general purposes only and not to be studied as financial advice. Bitcoin can be risky and before generally making any purchase you ought to consult together with your financial advisor to see if it’s right for you.
So listed here are 3 easy steps to purchasing Bitcoins:
#1 Obtain a Bitcoin Wallet
First thing to do before you decide your coins is to acquire a virtual wallet to store your coins. This wallet is a chain of text that people may use to send you bitcoins.
You can find a number of different types of wallets including ones you download to your phone or computer, online wallets and even offline, cold storage wallets.
Many people prefer to acquire 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 application to your personal computer from the wallet’s main website.
#2 Decide Where to Buy
There are many kinds of places to buy and each one of these is really a bit different. You can find online sellers that may sell you bitcoins directly for cash (or bank wire or credit card).
You can find exchanges where you can buy and sell bitcoins from others – much like a stock market. Additionally, there are local exchanges that link you up with sellers in your area seeking to sell.
Additionally, there are ATMs where you go to purchase with cash and get your coins brought to your wallet in minutes.
Each bitcoin seller has their benefits and drawbacks. For instance ATMs are good for privacy, but they’ll charge you around 20% on top of the current price, which is ridiculous. (On a BTC price of $2000, that $400! So you’re paying $2400 instead of $2000).
Wherever you decide to buy, remember to do your research and choose a trusted seller with a great reputation and strong customer service. First-time buyers will especially have questions and may require the extra support to simply help them making use of their first transaction.
Invest some time and research the various places to buy when you decide. Factors to consider include coin prices, extra fees, way of payment and customer service.
#3 Buy Bitcoin and Move It To Your Wallet
Once you’ve found a place to buy, get your funds ready (i.e. you might send a cable transfer or use your Visa to fund your account). Then await a great 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 your bitcoin address and get the seller to send you your bitcoins. You ought to see them appear in your wallet within a few minutes to an hour (depending how fast the seller sends them out).
Voila, you are now a bitcoin owner. It’s simple to send coins to cover other goods and services, or hang on to them for a wet day.
One final thing to remember: bitcoin continues to be in its infancy. You can find huge price swings and the currency can be risky. Never buy more bitcoins than you can afford to lose.