Three Easy Steps To Buy Your First Bitcoin
Are you searching for a guide in buying bitcoin? Do you know where to begin? Bitcoin is the very first famously accepted and known cryptocurrency globally and a lot of people are having misconceptions about it.
Several people think that only shady people and hackers can readily utilize it. Only a small number of people know that Bitcoin is getting mainstream, with a lot of people from Expedia.com to Dell to Tigerdirect and even the Subway are allowing Bitcoin payments now.
Why is it prominent?
Well primarily, Bitcoin can give us several benefits compared to other currencies. Like for example, Bitcoins can be sent as payment to any person without the need to go through a bank as a middleman which can necessitate you to pay for fees. It is much faster as well compared to sending money through bank transfer or bank wire. Sending Bitcoins to someone and having them to receive it can be done in just a few seconds.
Having these in mind, it’s not surprising that several people now are trying to purchase Bitcoin as first timers. But, it is not that simple to go to the bank and withdraw some Bitcoins, or go to a store in order to plunk down some Bitcoins in exchange for your hard-earned money.
The system operates a little bit different than that. This guide for buying Bitcoin will discuss a few important things that is necessary for you to know before you purchase so that you can do it safely and securely.
Basically, even if the price per coin may go beyond 2000 USD, it is not necessary to purchase one whole Bitcoin. Several places mostly will allow you to purchase portions for an amount of just $20. So one can readily start with small and from there, can decide and be more comfortable with how the things work usually.
Secondly, this written article is for the purpose of spreading general knowledge only and it is necessary not to take this as a financial advice. Bitcoins can really be risky and its is better to have a consult first with a financial adviser before initiating any purchases to check if it really suits you.
So these are the three simple steps to purchase Bitcoins:
1 Secure your own Bitcoin Wallet
Before starting to purchase Bitcoins, the most important thing to do first is to secure a virtual wallet for storage of your coins. The wallet is just a string of text in which people can utilize to transfer or send Bitcoins to anyone.
There are several various types of wallets which includes the one you have downloaded into your PC or mobile phone, online and offline wallets and also cold storage wallets. A lot of people prefer to secure a wallet on their PC or mobile phone. Famous wallets include Armory, Blockchain, Xapo, and Bitgo MyCelium
Typically, it is just as easy as downloading the virtual wallet as an app to your phone or as a software to your PC from the main website of the wallet.
2 Determine Where to Purchase
There are various types of places for buying and each of it is a little bit different. Online sellers are available as well that offers to sell Bitcoin directly to you in exchange for cash (or credit card or bank wire).
Exchanges as well exist in which you can purchase and sell Bitcoin from other people just like a stock market. Local exchanges are available also that will connect you with local sellers in your neighborhood looking to sell.
ATMs can also be utilized in which you are able to buy using cash and have your coins transferred to you in just a few minutes.
Every seller of Bitcoin has their own benefits as well as drawbacks. Like for instance, ATMs are perfect for privacy, however they will require a fee of as much as 20% added on top of its price, that is just really ridiculous. (If a BTC has a price of 2000 USD, that would 400 USD! So you are gonna be paying 2400 USD instead of just 2000 USD).
It doesn’t really matter where you chose to purchase, just remember to do some research first and settle with a reliable and trusted seller possessing a good reputation as well as great customer service. Those first time buyers will typically have several questions and may appreciate an extra effort in helping them upon their first transaction.
Try to research various places first and take your time before you decide to purchase. There are factors to consider first which includes payment methods, Bitcoin price, extra fees and of course, their customer service.
3 Purchase Bitcoin and Tansfer It To Your Bitcoin Wallet
The moment you have decided where to purchase, have your money ready (e.g. you may use a credit card or send a bank transfer to fund your own account). Secondly, wait for a better price. (Since the prices of Bitcoin usually fluctuates 24/7). When your settled with the price already, place your order whenever you are ready.
By the time you have filled your order and you already have your coins, you will want to move it to your wallet. What you need to do is to simply input your bitcoin address, after which ask the seller to transfer your Bitcoins into your account. You can readily check and see your Bitcoins in your wallet in a span of minutes to one hour but it depends on how fast it was sent by the seller.
So there it is, you now own a bitcoin. You can readily send coins now as payment for goods and services or just let them be in your wallet as an emergency fund.
Another thing to take note is that Bitcoin is currently on its early stage yet. A lot of massive price fluctuations will happen and it could be risky. It’s important to not purchase an amount of Bitcoins you cannot afford to lose.