Buy Bitcoin (Dynamic With All Coins)
Cryptocurrencies have been around for more than a decade. Many people have heard about them and some are even thinking of owning them. In most cases, the easiest way to own any cryptocurrency is to buy bitcoin. This is so because bitcoin is the most popular cryptocurrency and the grand-daddy of them all.
Those who are not familiar will ask what bitcoin is. It is the firstborn of a family of virtual currencies called cryptocurrencies. A cryptocurrency is a decentralized virtual currency secured by cryptography. Bitcoin is the native currency of the blockchain network of the same name.
Bitcoin and its cousins rely on different types of consensus algorithms to eliminate the double-spend problem. Cryptocurrencies are not issued by central authorities such as central banks or governments.
Bitcoin, the leading cryptocurrency, is considered to be a safe-haven asset. And some people have called it digital gold.
How to buy Bitcoin
Buying bitcoin is not difficult. It is straight-forward but several steps need to be followed.
You need a digital wallet to conduct any transaction on the bitcoin network. A wallet is a software program that allows you to buy, store, and send cryptocurrency. Bitcoin is not a physical currency. It is simply a record of transactions kept on a public ledger.
This ledger tells how many bitcoins you have received or sent. A wallet is what gives you access to your bitcoin balance on this public ledger.
A wallet uses private and public keys. A public key is similar to your bank account number. You give it to people to send you bitcoins. A private key is like a PIN or password. It should only be known by you.
Different kinds of digital wallets fall into two major categories: offline and online wallets. Offline wallets are generally safer as they are less susceptible to hacking attacks.
You need a secure internet connection to buy or sell bitcoins online. Using a secure connection will reduce the risk of third-parties from attacking you.
Different methods of buying bitcoin
There is more than one way to buy bitcoin. Your choice will depend on the easiest method for you.
How to buy bitcoin from BTC exchange
Online marketplaces called bitcoin or cryptocurrency exchanges are the easiest ways to buy bitcoin. The exchanges provide a direct connection to the crypto marketplace where you can exchange bitcoin for cash or other cryptocurrencies.
Bitcoin exchanges and wallets are two different things. However, bitcoin exchanges offer wallet services and some traders or holders store their digital assets in these exchanges. It is risky to store your bitcoins in exchanges because they can be hacked or cease to function.
You can buy bitcoin with a credit/debit card at an exchange. Many people prefer to buy bitcoin with a credit card because the process is faster and they receive their virtual currency immediately.
On the downside, it may not be the best option as the fees can be very high. The buying process is also not private as you may be required to provide your ID or personally identifiable information.
Some exchanges allow you to buy bitcoin via a bank transfer. This incurs low fees and you get a good price for your purchase. However, the process is slow and in some instances, you may have to wait up to five days to receive your bitcoins.
Buying bitcoins via bank transfers is not private as ID verification may be required. Due to regulatory uncertainty, some countries are closing the bank accounts of bitcoin traders.
Buy bitcoin from P2P exchange
A P2P exchange is a marketplace that directly connects buyers and sellers. It is different from centralized exchanges that anonymously execute sell orders and buy bids.
Users with registered and active accounts on P2P exchanges create posts with sell or buy information. They specify the bitcoin amount they want to sell/buy and the preferred payment method.
P2P exchanges tend to offer a wide variety of payment options. At the same, the bitcoin price is not constant as it is set by individual users. With time and patience, you can shop around for good deals as some sellers may be willing to let go of their bitcoins at a fairly lower price.
These exchanges normally have a rating system so that you can wisely choose the trader you want to buy your bitcoin from.
You can buy bitcoin from a bitcoin ATM if there is one located in your area or are willing to travel to an area where there is one. A bitcoin ATM map helps you to locate the nearest bitcoin ATM.
Most Bitcoin ATMs allow you to buy the leading digital currency without verification. You will pay a high fee for privacy. In most cases, you will be charged between 5 – 10% in fees. There are different bitcoin ATM manufacturers and you may be required to provide your personal information.
Cash may be the most private way to buy bitcoins. But it is not the easiest method. You need to identify bitcoin sellers in your area and meet up with them.
You conduct the bitcoin transaction and only pay the money when the digital asset is in your wallet. This method opens up the possibility of meeting with robbers who take away your cash without exchanging it for bitcoin.
It is best to buy bitcoin for cash from people you know or trust.
When and how should I buy bitcoin
Anyone can buy bitcoin depending on the regulations set up by their governments. There are many ways to buy bitcoin.
The first step is to have a secure digital wallet to store your digital asset. There are different kinds of wallets. Many crypto experts recommend hardware wallets. The leading digital asset fluctuates in value. Check the price of bitcoin before making your purchase.
People buy bitcoins for different reasons. Some buy and hold for the long term. Others to trade with other cryptocurrencies. Whatever the reason, think about the security and volatility of bitcoin. It is also important to purchase bitcoins if you want to trade other altcoins especially those with small market capitalizations.
And remember that bitcoin is a virtual asset recorded and kept on a public ledger.