Bitcoin is a virtual currency (cryptocurrency) that has captivated technologists and investors alike who see its disruptive potential. There will only ever be 21 million Bitcoins “mined” and made, so many investors see it as an asset that will face scarcity in the future. There are some easy ways toward buying Bitcoin yourself and here are some simple steps to doing it.
What To Know When Buying Bitcoin
There are several ways to acquire Bitcoin or Bitcoin Cash. You can buy Bitcoin from those who you know have some and are willing to sell or from a business. There are online platforms that connect buyers and sellers in this manner. More popular, however, is the use of a cryptocurrency exchange which allows buyers and sellers to do exchanging seamlessly.
There are no restrictions on the amount of Bitcoin you can purchase, outside of the exchanges, as long as the seller has got the value of Bitcoins you need. Some exchanges restrict the number of Bitcoins you can purchase daily, and buying beyond a particular amount could alert the authorities on your transactions as most exchanges would require that you identify yourself to make transactions above certain limits.
Whether you are buying a bitcoin or more, or want some fractions of the virtual currency, you’ll want to ensure that your investment is protected. To do this, you’ll need a Bitcoin wallet. Bitcoin wallets are devices/software applications used to make bitcoin transactions. It’s needed to store, send, or receive Bitcoin from others. Here is a good guide for making your Bitcoin wallet.
Buying Bitcoin On Cryptocurrency Exchanges
There are a lot of cryptocurrency exchanges to buy from in the market. Some of these let their users buy Bitcoin with credit card or different payment methods like PayPal, Skrill, WebMoney, WeChat, and many more. Each has its own features, fee structures, technology, and security protocols. Exchanges also decide which cryptocurrencies to offer and which trading pairs they’ll use.
With most exchanges, because of the high rate of buying and selling on these platforms, transactions are carried out instantly. Because these cryptocurrency exchanges are offering this service, and performing the task of being the middlemen of the trade, they will take a small fee from the transaction.
Most traders will use the same platform or two for their trades to ensure ease of use, consistency in their process, and trust that the exchange will carry out their trades in a timely manner. Most traders will tell you not to keep your coins on an exchange and instead store them in a wallet. Still, exchanges have come a long way in protected traders’ assets.
How to Use Bitcoin ATMs
One last method for buying Bitcoin is using a Bitcoin ATM. These are fast and easy method to purchase bitcoins. Bitcoin ATMs, however, charges between 5-10% fees on transactions.
Of course, ATMs are found in all sorts of locations, so you’ll have to find one in order to support your wish to secure Bitcoin this way. And you’ll still want to think about how you’ll secure your coins in a wallet.
Make sure you take care of your privacy when buying Bitcoins. If you are concerned about this, then you should consider buying Bitcoins anonymously. Do you think it is impossible? Think again.
Now you have a good idea of various ways of buying Bitcoin and how to make yourself a cryptocurrency owner and investor with a few short steps.
Must Read: How to Buy Bitcoin with PayPal
There are hundreds of resources available to you for how to buy other coins, use certain exchanges, or download specific wallets. Make sure you do your own research on the technology as well as the risks associated with trading an asset like cryptocurrency.