If you think you are on earth and you haven’t heard of bitcoin get a compass!. Bitcoin pops up in the news now more than ever before. It is the soaring prices and the plummeting drops, that has everyone intrigued and wondering how to buy bitcoin. Bitcoin applications are growing massively as it is the most popular kind of cryptocurrency. Bitcoin and its blockchain technology are becoming broadly accepted all over the world, and more bitcoin investments are coming however before you can dive deeper into bitcoin, how and where to buy bitcoin and indulge in the exhilarating movement.
You must first get a better understanding of what you are getting into.
I have increasingly heard many stories about people who got scammed, or made a mistake in their first purchase or did not gain what they expected with false and misleading bitcoin price predictions. This is all because of giving in to the hype and wanting to invest in bitcoin right away. There is a lot of misleading data in cyberspace, so you need to be careful and diligent in your research.
But what is bitcoin?
In a nutshell, Bitcoin represents an advanced way of making payments. However it is much more than a currency it is, it is a cryptocurrency. Also known as a whole network called the blockchain that securely monitors peer to peer transactions.
If you spend $30 in a boutique using a visa debit card. That process would involve going through a card machine, the visa, your bank, plus the merchant bank. Note that every stage requires verification. Meanwhile, with bitcoin, you can quickly pay $30 directly to the boutique.
Eliminating the middleman makes transactions a lot less expensive as well especially for international payments.
Should you buy bitcoin?
It is not about if you should or should not buy bitcoin. If you are not sure of what you are doing and you want to test the waters. It is critical to first understand all about what you do not need to buy one whole bitcoin. Buying one full bitcoin will be insanely expensive now for someone who is just testing the waters. It is possible to obtain a fraction of a bitcoin for even $5. Nevertheless, this will be at your own risk as you may lose your money whatever the amount.
How to buy the bitcoin cryptocurrency?
There are quite some steps that need to follow to purchase your first bitcoin. If you are ready and committed, follow along, and we will go through them together.
Step 1 how to buy bitcoin- acquiring a good bitcoin wallet
The purpose of a digital wallet is to store your bitcoin until you need to use them or trade them for a particular currency. There are a variety of wallets to choose from: wallets with different features, the platform they are permitted to be used on, and the security of a wallet. Therefore it is critical to making the right choice of wallet that works for you.
Note; it is advisable not to link your wallet to any exchange when setting it up. This is because when the exchange gets too much traffic or goes down, you will be safe and still have easy access to your bitcoin.
To get you started, here are some tips on what to consider when choosing a bitcoin wallet:
Checking for the safety of the wallet is vital and should not be taken lightly. It is essential when considering a web wallet to see if it has HTTP or HTTPS. Having HTTPS is an indication that it is secure. Also, check whether the wallet logins are secure and robust to protect your bitcoin when you buy it. As well as whether it offers two-factor authentication (2FA)
Multisignature means to require more than one key for authorizing a bitcoin transaction. Therefore it is also essential to check whether the wallet offers multi-signature so that you can protect your bitcoin from any scams or theft.
3. Owning your bitcoin
Having control over the bitcoin you own is a big deal. Technically, if you cannot access the private keys to your bitcoin, you have no control over them. Having control over the movement of your bitcoin permits you to back up your wallet even in the absence of the wallet services.
How transparent are the wallet provider’s operations? Are they honest about who they are? But most of all do they have an open source wallet code? If they do not they how are they securing your bitcoin?
Does the wallet provider value anonymity? Is registration required to use the wallet? How much registration information do they need beforehand? Is there any user verification procedure? Here some things to consider before making a decision.
6. User experience
Is the wallet user-friendly? As a new user, it should be simple and not need a lot of experience to use the new portfolio. It would be best to use a wallet that is within your level of experience as well.
7. Wallet backup
It is essential that the wallet provider offers a way to back up your wallet. Consider things like, is the wallet backup encrypted? Is there backup restoration? If so is it easy to use?
8. The reputation of the wallet
Status is one of the most critical points to consider. If you want to check on how reputable the bitcoin wallet is, search for it on internet forums like bitcoin Reddit or bitcoin forum. Analyze the feedback and comments of those that have used it.
Note that for your first bitcoin purchase it is ok to use an online wallet. However, if you get to a point where you have a lot of valuable cryptocurrencies, you must consider storing it offline for security.
Step two on how to buy bitcoin; Choosing the right bitcoin trader
The best reliable place to buy bitcoin the first time is on an exchange. There are a lot of unreliable exchanges out there, some of which have a lot of limitations. Hence it should be a priority to search for the perfect exchange for yourself from the get-go. There is absolutely nothing wrong about using a website for bitcoin exchange comparison. For the most part, the things you need to consider are similar to the ones when looking for a wallet.
Here are a few extra points to guide you
1. Location of the Bitcoin traders
Laws and regulations are different in every country, so it is essential to know the state that the exchange is located. However, it is an excellent idea to purchase bitcoin with an exchange in your home country. Apart from that most bitcoin traders allow multiple currencies.
2. Find out about the bitcoin traders fees
Find out if the exchange fees are reasonable and not too extravagant in comparison to the rest of the market. The exchange fee can vary from time to time from exchange to exchange. Some of the exchanges will charge extra fees in addition to the transaction fees.
3. Order book volume
An order book is a list of the order of buy and sells which are on offer on the exchange. The higher the volume of the order book is a sign that people are using the exchange and it has liquidity. However, some bitcoin traders may not have the function yet or are just a bit smaller compared to the more prominent exchanges. This not necessarily means it is not for real or genuine.
Publishing of cold storage addresses is a sign that an exchange is fully transparent.
5. How soon will you get your bitcoin after buying them?
It is imperative to know how long it will take, what is rightfully yours. You have to make sure that the exchange provides “ locked in” prices, which means that even when delays are happening when receiving your bitcoin, the amount that you paid for it will remain the same, that will be the amount you were charged.
The last three points which are security, anonymity, and reputation are pretty much the same ones that we considered in finding a bitcoin wallet.
Step three on how to buy bitcoin; Choosing a payment method
Most exchanges allow a variety of payment methods depending on what they are prepared to use. In the past payment methods were used as a tool to scam people. This is why for exchanges it is a bit of a sore spot. With compatible wallets, bitcoin exchanges give you the option of trading your bitcoin for cash. Bitcoin ATMs of this sort are limited and can only be found in a selected number of cities.
However, they do offer a great alternative to using an exchange to withdraw your money. Note that many online wallets, as well as exchanges, do not deal directly in cash.
Step four on how to buy bitcoin; Purchase your bitcoin and save them in your wallet
Exchanges give you data on how many or what fraction of a bitcoin you can buy with a certain amount of money. However because bitcoin’s volatility it’s price can shift dramatically at any moment depending on the exchange. This ultimately means even if you have a lot of money to spare you may still just be purchasing a fraction of a bitcoin. There is absolutely no shame in that as most people opt for this while the wealthy ones go for more.
When making your first trade, all you have to do is input the bitcoin amount you want to purchase in the given field and press the buy button. You can place a “market” buy order that will buy bitcoin for you at the best market rate. An alternative would be to set a “limit” order that gives you an option to set the cost you are ready to pay for a particular amount. In this case, the trade will only take place if, and when that amount comes up at that price.
When you have made the purchase, your new bitcoin will now be stored in your wallet. You should then consider the option of transferring your funds to the bitcoin wallet that you created separately from the exchange. A small fee will be required; however, this is part of the bitcoin transactions. It is fortunate that the charges are quite far from their peak at the moment.
It is important to note that bitcoins are entirely different from other currency trades. When you purchase bitcoin, the transactions must be declared and recorded in the blockchain. This may be time-consuming mostly at busy trading hours. A trade taking an hour or two is quite reasonable, so it might not be a good idea to start moving funds around immediately.
Step five on how to buy bitcoin; Get ready to use your bitcoin
You may decide to sell your bitcoin at a profit or use it to buy something else. Regardless of the decision you make, you must be able to access your bitcoin there and then where ever it is. With the uncertainty and constant fluctuation of bitcoin, having a plan earlier on is very important. It is best to set up a seller account and have it ready for use at any time. Or do your research on what your options are before making a plan. This way when the time comes, you will not join the masses and have a panicked rush.
How to buy bitcoin-Conclusion
Bitcoins may have a significant impact on everybody’s future. If you take the time to understand fully what the fuss is all about, you may walk away from a happy bitcoin owner. It will take time and patience to do your research and make the right decisions. Do not follow those that succumb and rush to search for how to buy bitcoin instantly.
The confidence in bitcoin is rising very fast. With the developing regulatory attitude, the growing acceptance and adoption. The start-ups in bitcoin investments and all the new products being launched in its midst. Nevertheless, it is still in its budding stage so you must be aware of the risks involved. You must also take note and understand issues like volatility, legality, and taxation before buying bitcoin.