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 to get Bitcoin yourself and here’s some simple steps to doing it.
What To Know When Buying Bitcoin
There are several ways to acquire Bitcoin. 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 Bitocin wallet.
Buying Bitcoin On Cryptocurrency Exchanges
There are a lot of cryptocurrency exchanges to buy from in the market. 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.
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 secur your coins in a wallet.
Now you have a good idea on various ways you can buy Bitcoin and how to make yourself a cryptocurrency owner and investor with a few short steps.
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.