Bitcoin has come a long way since its inception back in 2008 and not many could’ve predicted the dizzying heights it has now reached. Bitcoin unquestionably holds on to its crown as the king of cryptocurrencies and though prices are volatile at times the potential to make a financial gain through investing in BTC still remains. If you’re new to buying Bitcoin read on and we’ll give you the beginners run down of how to get involved.
How to Buy Bitcoin
There are a number of ways to legitimately buy Bitcoin online and these have developed and changed over the years. Lots of folks who are new to cryptocurrency are put off because they think the process will be difficult or perplexing. We’ve broken down the process of buying Bitcoin for novices, here are a few simple steps that will guide you from acquiring a Bitcoin Wallet through to buying something with Bitcoin for the first time.
Choose your Bitcoin Wallet
A Bitcoin Wallet is where you store your Bitcoin but you can make a transfer when you want to send BTC or accept BTC from others. There are a few common types of BTC Wallet that will suit different kind of digital currency users:
- Bitcoin Paper Wallet. This is where your Bitcoin address and key code are written on a physical piece of paper. Often a QR code is used so that information can be conveniently transferred to a digital Bitcoin Wallet.
- Mobile Bitcoin Wallets. The most commonly used type of Bitcoin Wallet. Of course everyone carries a smartphone with them today and the mobile wallets are the best for people who make Bitcoin payments and transfers often. Exodus, bitWallet and Mycelium are examples of popular and trusted BTC Wallets.
- Desktop BTC Wallet. A wallet that is stored on the desktop of your laptop or home computer.
- Hardware Wallets. A hardware wallet is a physical device thats stores your digital currency. The device stays offline except when you connect it to your computer to manage your Bitcoin.
Get started with your Bitcoin Wallet
Getting started with a BTC Wallet is pretty straight forward. The parts of the process that you must mindful of are firstly, make sure that you write down the passphrase that is generated and given to you, this is called the seed. Write the pass phrase down and keep it somewhere really safe. You’ll need this code if you have computer problems or memory failure. Secondly you’ll be prompted to set up your own password so make sure you choose a strong password that you don’t use anywhere else.
Once these to aspects are done your wallet will generate an address that will allow you to receive Bitcoin and to send Bitcoin known as a ‘public key’. This address can be located in the department of your wallet marked as ‘receive’. If you want to send then insert the recipient’s address in the send section of your wallet.
Using a Bitcoin Exchange
A Bitcoin exchange works by setting a price for a cryptocurrency and then accepting credit or debit card payments in order for you to purchase your Bitcoin. Once you’ve made your cryptocurrency purchase you can move your funds into your Bitcoin Wallet. The most popular and widely trusted Bitcoin Exchange on the market is Coinbase. Other note worthy exchange sites include Binance, Coinmama and Bittrex.
Alternative ways to buy BTC
Aside from using a Bitcoin Exchange to acquire your Crypto there are a number of alternative methods to choose from.
- Bitcoin ATM Machines. These machines function in a similar way to regular ATM machines and are often found in convenience stores. These BTC ATMs are perfect if you want to convert hard cash into cryptocurrency. You deposit your funds into the the ATM which converts the amount to the agreed bitcoin exchange rate and allows you to either transfer the Bitcoin to your wallet or print out a QR code which will allow you to access the funds in your own time. Perhaps the main pitfall of a Bitcoin ATM is that you’ll generally be paying a higher exchange rate than that of a Bitcoin Exchange.
- Peer to Peer Bitcoin. Another option to get Bitcoin is to purchase it from other users. There are specific websites that cater for peer to peer crypto transactions such as LocalCoinSwap, these are commonly known as P2P Bitcoin Exchanges. These P2P Exchange sites match Bitcoin buyers with Bitcoin sellers and allow individuals to trade with each other.