Bitcoin is the flavor of the month! The decentralized crypto-currency has more than quadrupled in price since the beginning of the year. This sensational growth has sparked interest not just in investors. The average man-in-the street is now also asking “How To Buy Bitcoin”?
Whereas up to just a few months back you would not hear talk of Bitcoin and crypto-currencies, today we hear chatter about owning Bitcoin in the local pub. However, there is still much mystery surrounding Bitcoin to the public in general. How to Buy Bitcoin? How to Store Bitcoin Safely? What is Bitcoin anyway?
In this article today, we will take the beginner’s approach on how to buy Bitcoin, and dispel all myths and fears in anyone wishing to experiment with Bitcoin investment.
With the price of Bitcoin going over the $4000 mark earlier this month, it is natural for the man in the street to ask whether buying fractions of Bitcoin is possible?
I have recently received plenty of questions from people saying, how can I come up with $4000 in order to hold just one Bitcoin at this point? Have I already missed the boat?
The answer is yes, you can hold fractions of Bitcoin. In the process of explaining how to buy Bitcoin, we are also explaining how to buy fractions of Bitcoin called Satoshis.
In case you never heard of Satoshi – Satoshi Namakoto is allegedly the inventor of Bitcoin. I say allegedly because no one really knows who invented Bitcoin. More likely than not, it is more than one person who created this digital currency that is based on Blockchain Technology. However, today, as a tribute to Satoshi, the fraction of Bitcoin has been given his name sake.
Therefore when looking at how to buy bitcoin, you can also look at buying fractions as small as 0.01 of a Bitcoin, which at the time of writing would cost you just $43.
How to Buy Bitcoin Online in a Safe Manner
Although it is not recommended to keep large amounts of Bitcoin online, for security reasons, your initial purchase of Bitcoin has to be conducted online.
Here are some ways in which you can buy Bitcoin
a. Through a trustworthy Coin Exchange
b. Directly from an owner of Bitcoin into your wallet
c. Directly from the miners.
For the public in general options “b” and “c” are probably not an option on how to buy bitcoin.
Therefore for the purpose of this article, we will go through a simple process of opening your wallet with a trustworthy exchange and buying your first Bitcoin.
Opening Your Wallet and Buying Your First Bitcoin
In order to own Bitcoin you will need to first open a Bitcoin or crypto currency wallet. If you are looking at buying more crypto-currencies such as LiteCoin, Monero, or Ether, you must make sure that the Coin Exchange that you are selecting has the technology to support these currencies.
Here is how to buy Bitcoin with CoinBase
CoinBase is a California based Exchange that is highly regarded and regulated within the United States. Although initially, Coinbase offered its services exclusively to U.S citizens – it is now offering buying and selling of crypto-currencies in more than 30 countries. CoinBase, is strict on identification and follows harsh due diligence with the IRS. Therefore, you should know that buying Bitcoin with CoinBase is a legitimate and transparent transaction.
You can either download the App for CoinBase on your phone. Alternately, you can open your account with CoinBase through your desktop. Personally, I found that navigating through the desktop was much easier.
You can buy Bitcoin either with a Debit or Credit Card. Alternately, by connecting your Bank Account to your CoinBase account. If you are serious about trading Bitcoin, then you should opt for connecting a bank account, as selling Bitcoin will not be paid to your credit card.
As soon as you register to open an account with CoinBase, you will be asked to make a two step verification on your phone, and then you will be required to upload your documents. Upload can either be through your phone, or via webcam on your computer. Your phone and your computer are automatically synched via the CoinBase site.
Once you have uploaded your identification, you will need to wait for the verification process to be cleared by CoinBase.
This done can buy your Bitcoin or fractions of your Bitcoin through the method of payment that you chose.
Other Legitimate Exchanges – How to Buy Bitcoin
You have created your wallet and bought Bitcoin. Or fractions of Bitcoin or any other crypto currency. You can either hold the digital assets as an investment or use them to shop online or make peer-to-peer payments.
Although CoinBase is a regulated broker, it is not the only legitimate exchange.
Here are some other exchanges that are popular sources where to buy and sell Bitcoin. BitStamp is a European based exchange that accepts payments through SEPA . Whilst CoinBase is ideal for U.S clients, BitStamp is more appropriate for you if you are based in Europe.
BTCChina is yet another legitimate exchange that is developing business in the Asian market. BTCChina has not only been providing services on how to buy Bitcoin. It has been a pioneer in facilitating Bitcoin as a gateway for payment.
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How to Buy Bitcoin – Conclusion
Whether or not Bitcoin and other crypto currencies are really the future, is a matter of opinion and much speculation. However, today Bitcoin has a market cap of more than $70 Billion with millions of transaction being conducted using the currency as a means of payment on a daily basis.
In countries, such a Venezuela, Zambia, Argentina where the volatility of currencies is uncharted, the movements of Bitcoin as considered as a safe enough bet, despite high market movements.
Therefore the likelihood of Bitcoin and cryptocurrencies disappearing is becoming more and more remote on a daily basis.
Disclaimer: This article is not intended as investment advice. It is merely a manual on how to buy Bitcoin and other cryptocurrencies. Affiliate links are also introduced in the article and the Binary Option Sheriff site may stand to gain from your participation.