Bitcoin has revolutionized the world of international digital currency. This currency represents decentralized, anonymous forms of payment that can financially connect you with anyone in the world. If you’re ready to make your mark on the blockchain, buying bitcoin is easy and secure. This article discusses the best ways to buy bitcoin tokens and who would benefit the most from switching to this currency.
What Is Bitcoin?
Bitcoins hit the digital market in 2009, created by a developer under the pseudonym of Satoshi Nakamoto. Bitcoins are a digital form of currency, free from bank regulations and desperate intermediaries. Every Bitcoin transaction is recorded in the blockchain, a type of digital ledger. Much like stocks, the value of bitcoins fluctuates every day. You can either trade bitcoins for cash, or you can use them to purchase goods.
Who Uses Bitcoin?
Since its conception, the popularity of bitcoin has ebbed and flowed; in 2013, the importance of the bitcoin was laughable. Now, it has become a very valuable source of currency. In fact, the actual value of a single bitcoin is now over nine hundred dollars, creating the necessity to split the coins into portions.
Bitcoins are used by large corporations, business owners, and individuals. Large corporations and small businesses favor this currency for the lack of transaction fees and easy access to the global market. Many individuals buy bitcoin portions for the potential investment and its anonymity.
How to Use and Buy Bitcoins
Before you buy bitcoin shares, you must create a bitcoin wallet. Like a bank account or a traditional wallet, a bitcoin wallet holds all of your currency or, more specifically, the keys that access your money. These wallets can be created through mobile apps, offline desktop programs, or websites. There are hundreds of wallets available, but the most common in the U.S. are Coinbase, Blockchain.info, and Trezor.
There are different levels of security associated with bitcoin wallets. Web-based wallets offer the most mobility but are also the most susceptible to hackers. Likewise, paper and offline wallets are very secure but are far less convenient. Whichever you choose, keep in mind that the more security, the better. Unlike bank accounts, FDIC does not insure wallets; if a hacker manages to steal your money, you lose it forever.
Once you set up your wallet, you will receive a wallet address. This is similar to a bank account number. Now that you have set up everything needed, you may be wondering how to buy bitcoins. Luckily, there are several well-established methods to make this process easy.
How to Buy Bitcoin: 5 Main Steps
Step 1: Buy Bitcoin via an Exchange
The bitcoin exchange can be the easiest way to buy bitcoin while you’re still getting your feet wet. As bitcoins are similar to stocks, bitcoin exchanges are very similar to the stock exchange. The bitcoin exchange is one of the most organized methods of receiving bitcoin portions.
The exchange shows the daily value of a bitcoin in your country’s currency. From here, you can buy a bitcoin with a credit card or bank account. You can also sell your bitcoin in the same fashion, although you need a bank account for most exchange deals. The most common bitcoin exchange markets are Bitstamp, Kraken, Bitfinex, Coinbase, and Circle.
Step 2: Buy Bitcoin Face-to-Face
If anonymity is your greatest priority, face-to-face bitcoin transactions are available. This method can be very convenient if you live in an urban area where there are several meetup locations. Usually, an individual seller posts an ad on Local Bitcoins or a group meet up an announcement on meetup.com. The ad usually specifies a preferred meeting place and a commission for the service. The commission ranges based on the seller and the location, but it is generally between 5-10%.
Step 3: Buy Bitcoin with Over-the-Counter Marketplaces
If you prefer not to meet in person, you can trade bitcoins via third-party services like Bitquick or Wall of Coins. These services hold your bitcoins in escrow until you transfer the cash at a designated local bank. The trading fee with this service is usually minimal, about 1-2%.
Step 4: Buy Bitcoin with Bitcoin ATMs
To use this method, you must buy bitcoins with credit card or debit card transactions. Like traditional ATMs, you can find these machines throughout the city. Some of the Bitcoin ATMs print a receipt with the key to the funds, others transfer the key directly to your bitcoin wallet. This method is a little more expensive, usually requiring a 3-8% transfer fee. However, many users prefer this method because it is secure and it doesn’t require any seller interaction. To find an ATM in your area, try searching via coinatmradar.com.
Step 5: Earning Bitcoin
Like any marketplace currency, you have the opportunity to earn bitcoins. Many users are now trading bitcoin portions for items, services, and even gambling prizes. Websites that use bitcoins as currency include Etsy, Glyde, CryptoThrift, and Shopify.
Mining was an early form of gaining Bitcoins. Instead of mining with a pickaxe and drills, your computer program solves complex programs, known as hashes, to release bitcoins. Originally, this was a relatively effective method to earn bitcoins since the company releases 25 bitcoins every 10 minutes. However, due to the increased number of miners, mining has become unprofitable and nearly impossible unless you join a mining pool.
Jumping into the world of bitcoin can simplify your digital life. A currency without centralized regulations can be a convenient way to purchase products online. It’s easy to buy and sell bitcoins on bitcoin exchanges, with face-to-face sellers, ATMS, or through earning. With well-established systems and an increase in user-friendly mobile apps, bitcoin is well on its way to becoming a conventional form of currency. What have been some of your experiences with buying bitcoins? Feel free to post your positive and negative experiences below.