Looking for a Bitcoin Buying Guide? Ask where to start? People have a lot of misconceptions about bitcoin – the first cryptocurrency widely known and accepted worldwide.
Many people think for example that only hackers and shady people use it. However bitcoin is currently going mainstream with everyone, from TigerDirect to Expedia.com to Dell and even Subway which accepts bitcoin payments now.
Why so popular?
Well, bitcoin has many benefits over other currencies. For example, you can send bitcoins to someone as a payment without having to go through the bank broker (and get hit with extra fees). It’s also much faster than sending money through a bank wire or transfer. You can send bitcoin to someone and get them to get coins in seconds.
With all this, it is not surprising that many people are now trying to buy bitcoin for the first time. However, it is not as easy as going to your bank and withdrawing bitcoin – or going to a store and withdrawing cash earned for bitcoin.
The system works a little differently than that. This Bitcoin buying guide will contain a few things you need to know before you buy – so you can buy safely and securely.
First, while the price may be over US $ 2,000 per coin, you do not have to buy a whole bitcoin. Most sites will allow you to purchase parts of a bitcoin for less than $ 20. So you can start small and go from there once you are more relaxed with the way things work.
Second, this article is for general purposes only and should not be taken as financial advice. Bitcoin can be risky and before making any purchases you should consult your financial advisor to see if it is suitable for you.
So here are 3 simple steps to buying Bitcoins:
# 1 Get a Bitcoin Portfolio
The first thing you need to do before buying your coins is to get a virtual wallet to store your coins. This portfolio is a string of text that people can use to send you bitcoin.
There are a number of different types of wallets, including those you download to your phone or computer, online wallets and even offline cold wallets.
Most people prefer to get a wallet on their phone or computer. Popular wallets include Blockchain, Armory, Bitgo MyCelium and Xapo.
It is usually as simple as downloading the wallet to your phone as an application or downloading software to your computer from the portfolio homepage.
# 2 Decide Where to Buy
There are several types of sites to buy and each one is a little different. There are online retailers that will sell you bitcoins directly for money (either bank wire or credit 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 to vendors in your area looking to sell.
There are also ATMs where you go to buy with cash and get your coins in your wallet for a few minutes.
Every bitcoin trader has his own advantages and disadvantages. ATMs, for example, are great for privacy, but they will charge you up to 20% off the current price, which is ridiculous. (With a BTC price of $ 2000, this $ 400! So you are paying $ 2400 instead of $ 2000).
No matter where you decide to buy, remember to do your research and go with a trusted seller with good reputation and strong customer service. For the first time, buyers will have particular questions and may need additional support to assist them with their first transaction.
Take your time and research the different places to buy before you decide. Factors to consider include coin prices, surcharges, payment methods and customer service.
# 3 Buy Bitcoin and move into your Wallet
Once you have found a place to shop, prepare your funds (i.e. you can send a phone transfer or use your Visa to fund your account). Then wait for a good price. (Bitcoin prices always fluctuate 24 hours, 7 days a week). Then place your order when you are 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 encourage the seller to send you your bitcoin. You should see them appear in your wallet within minutes to an hour (depending on how quickly the seller sends them).
Voila, now you own bitcoin. You can now send coins to pay for other goods and services, or hang them for a rainy day.
One last thing to remember: bitcoin is still in its infancy. There are huge price changes and the currency can be dangerous. Never buy more bitcoin than you can afford to lose.