You are probably reading this article because you have an interest in cryptocurrency. Specifically, you want to get involved with Bitcoin. There has been quite a buzz around this digital token since it was introduced almost ten years ago. Even those with only a limited knowledge of things like the blockchain and cryptocurrency want to possess some Bitcoin of their own. Here are a few things to know about how to buy Bitcoins.
Getting a Bitcoin Wallet
Before you can actually purchase Bitcoin you will need a place to store it. All digital tokens are kept in something called a wallet. This wallet is really a set of cryptographic keys that allow you to send and receive Bitcoin. There are multiple wallets to choose from.
An online or Cloud-based wallet is one that is maintained on a third-party server. An example of this kind of wallet would be one that is provided by a cryptocurrency exchange. The provider of the wallet gives you access to your keys and you use them to make transactions. Another popular option is the desktop wallet. This wallet is one that is maintained on your local computer. It does not require constant Internet access and may therefore be more secure.
A paper wallet is something you print out from your computer and keep on your person. It includes QR codes that are linked to your keys. You would then scan these codes to send Bitcoin or to provide your receiving address to someone that is sending you tokens. Finally, a hardware wallet will offer you maximum protection for your Bitcoin. This wallet is contained on a device that you can carry in your pocket. Someone could only access your Bitcoin if they were able to get your device.
The type of wallet you choose is a matter of personal preference. You will decide based on how much security you want for your Bitcoin, ease of access, and other factors. But before you can buy Bitcoin you will need to have a wallet so that you can receive your tokens.
Buying your first Bitcoin
Once you have a wallet set up you are ready to buy your very first Bitcoin. There are several methods that you can use to make this happen. One of the oldest and most proven methods is to purchase Bitcoin from someone that you happen to know. All you would need to do in this case is give them the appropriate amount of cash for the amount of Bitcoin you want. As of October 2018, a single Bitcoin can cost $6,000 or more, so you will likely be purchasing a fractional amount of the currency.
What you need to do is determine the current exchange rate for Bitcoin. You should then be able to find out how much Bitcoin you can buy for $50, $100, or more. Make sure that you only deal with friends or family members that you can trust. You do not want to buy Bitcoin from someone that might rip you off.
How can I Buy Bitcoin? There are services online like LocalBitcoins.com which facilitate connections between Bitcoin buyers and sellers. If you choose to use a service like this, never agree to meet someone that you do not know in person. You should be able to complete a transaction without a meeting being necessary. Also be wary of sending someone that you do not know a large amount of money. This can lead to the loss of your funds.
Using a cryptocurrency exchange may be a better and safer way to purchase your first Bitcoin. We have reviewed many such exchanges here on Cryptoswede. You can check our reviews for exchanges that are trustworthy.
You will find that there are two primary kinds of exchanges. There is one kind that will allow you to make a purchase with just a debit or credit card. Some of these exchanges do not even require you to have a full account. You just provide your card information and the amount of the token you would like to buy, enter a wallet address, and receive your tokens.
Other exchanges exist for the sole reason of allowing people to actively trade their Bitcoin. These exchanges are probably going to require you to create an account and verify it before you can make a Bitcoin purchase. Once you purchase the coin your tokens will be placed in a wallet hosted by the exchange. Remember to only deal with exchanges that you can trust, as many of them have been the victims of security breaches. Exchanges will allow you to use a debit or credit card, and some will permit you to make a bank transfer.
You Bought Your First Bitcoin! Now What?
Now that you have made your first Bitcoin purchase, what comes next? Well, you can always hold on to the tokens in the hopes that their value will rise. In late 2017 the value of Bitcoin skyrocketed before it fell back to earth in 2018, but some people believe that Bitcoin is an asset which will keep growing and growing. Who knows? You might become the next Bitcoin millionaire.
It is also possible to use your Bitcoin to make purchases. Bitcoin has been used to buy things like:
- Web hosting
- VPN Service
- Music downloads
There are more merchants that are accepting Bitcoin each day. No one really knows exactly what the future may hold for Bitcoin, but it is certain that more retailers will begin to accept is as a means of exchange. Another option is to sell bitcoin when you are in profit.
*** Here at CryptoSwede you will find information on Crypto Mining the different cryptocurrencies as well as the best cryptocurrency exchanges. You can trade or you can set up trading bots instead and then store the crypto on crypto wallets. Later, spend them using crypto debit cards!***