How to Buy Bitcoin
The increasing price of Bitcoin has made more people eager to invest in it. This increase has made more people ask how they can buy it. Being the most popular and largest based on capital market value, Bitcoin is generally accepted in the world. Most merchants accept Bitcoin as a form of payment, but before you can trade with Bitcoins you have to first buy it. Its popularity has made the purchase easier, but there are certain things that must be done before you can successfully purchase it.
Pick a Bitcoin Wallet
These wallets are important because they help you store your Bitcoins till you are ready to either spend or trade them. There are different wallets, with diverse features, different security systems, so it is important that you choose the best. For beginners, it is advised that you choose wallets that make the transfer of funds easy. Most of these wallets can be downloaded for free and they come with different transaction fees. Some of the recommended wallets include;
• Mycelium; this mobile wallet is designed in such a way that it is compatible with more advanced technology.
• CoinBase wallet; this wallet is easy to use and is one of the most popular Bitcoin wallets in the world.
• Exodus; this is an offline wallet that supports Bitcoin. It is easy and free to use and also comes with a Shapeshift technology.
Even though using an online wallet is quite alright as a first time Bitcoin buyer, if, in the event that you own a large number of Bitcoins due to an unprecedented increase of value, it is advised that you store offline. That is called; “cold storage” and it is advised because it protects you from either hack or shut down of online wallet.
Choose a Secure and Reliable Exchange
Bitcoins can be bought with exchanges, these exchanges are numerous in number, each offering various functions. Some also being more trustworthy and secure than others. When choosing an exchange, it is necessary that you pick one that charges lesser for transactions and also offer multiple Bitcoin buying methods. Some of the most trustworthy and recommended exchanges include:
• CoinBase: this exchange has been described as the first choice for first time Bitcoin buyers. This is because of its incredible user-friendly interface and lesser fees charged for transactions.
• CEX: has also proven to be another efficient exchange. It offers users instant exchange rates and also ensures that “buy and sell” options are accessed with ease.
• Also, exchanges like BitStamp, Poloniex, and Bitfinex can also be used to purchase Bitcoins. Like the two exchanges mentioned above, these ones offer users security, faster transactions and lesser fees for transactions.
Bitcoin platform also offers users the opportunity to search for available exchanges in their respective countries.
You can also buy Bitcoins from direct means using peer to peer exchanges like Bitquick and LocalBitcoin. These exchanges offer users multiple payment methods and also allow them to directly buy Bitcoins from sellers who are ready and willing to sell. It is quite fascinating to know that these exchanges do these without intermediaries or middlemen.
Select Payment Method
After you must have decided on the wallet and exchange to use to store and buy Bitcoin respectively, you have to choose a payment method. Some of the payment methods include bank transfers or wires and credit card transfers. CoinBase mentioned earlier supports these two payment methods that is why it is highly recommended for first-timers. Also, credit cards and direct bank transfers are recommended because, in the past, other payment methods have been used to scam buyers.
Bitcoin has provided an Automated Teller Machines (ATM) that allows individuals to directly exchange Bitcoins for cash. Only a few wallets support this method. Unfortunately, these Bitcoin ATM’s are available in only a few megacities.
Buy your Bitcoins
Different exchanges offer different information on how many Bitcoin could be bought with an exact amount. It is also important to remember that Bitcoin’s value is volatile, meaning that you can buy a little fraction of Bitcoin with more money. After creating an account with an exchange, you have to buy Bitcoin through any payment method supported by the exchange. You have to transfer these Bitcoins to the address of the wallet you created. Most times, these exchanges charge for the transfer of your coins to your personal wallet.
It is advised that you either decide to sell your coins or use them to purchase something, this is advised because of the volatility of Bitcoin’s value. Another reason is the number of exchange and wallet hacks that have been recorded in recent times.
Users seeking to buy Bitcoins for the first time should remember that transfer of Bitcoins can be very slow. When Bitcoins are bought, each transaction is recorded on the blockchain and confirmed. During busy trading days, this recording can take up to an hour, so it is advised that you wait for up to an hour before moving funds.
Trade your Bitcoins
The consistent fluctuation in the price of Bitcoin is one reason why you must either sell or use it to buy something immediately. In order not to lose your coins because of Bitcoins volatility, it is advised that you create a seller account as soon as possible. Also, if you seek to buy something with it, it is advised that you should have already figured the buying process before your Bitcoins are sent to your wallet. Since most online merchants accept Bitcoins as a form of payment, it will be a lot easier for you to quickly purchase whatever you desire.
Those who desire to shop with their Bitcoins, you have to carry out intensive research before any purchase is done.
Careful and thorough research must be conducted before deciding to choose a wallet or exchange. This will ensure that you choose a secure, fast and trustworthy wallet and exchange. Experts have advised that you do not store your Bitcoins in an exchange. As soon as your purchase is confirmed, you have to immediately send the funds to your personal wallet address.