Bitcoins are all the rage right now all across the world and the truth is, bitcoins are here to stay. In case you don’t have a firm understanding of what bitcoin is, it is a form of cryptocurrency that does not exist in physical form. It is created and held virtually.
Unlike physical money that is controlled by governments and central banks, bitcoins are not controlled by anyone, embracing the idea of decentralization. The bitcoin blockchain is wide open.
With all the interest and media coverage around bitcoin’s rise in value, the conversation seems to be getting louder and louder. A single bitcoin at the time of writing translates to about $55,000, making it very difficult for anyone to ignore.
Buying bitcoin for the first time may seem overwhelming. It is, however, much less complicated when you break it down into steps as we have done for you. Here’s a detailed step-by-step guide on how to buy bitcoin.
How to Buy Bitcoin
Until a few years back, Bitcoin mining used to be one of the most popular methods of getting bitcoins. But as more people mined bitcoins, the total number of bitcoins was restricted to 21 million, with about 70% of them already mined.
This made mining bitcoin a very hard and unprofitable task, leaving people with no option other than to buy them. Here’s what you need to do to buy BTC.
1. Find a Bitcoin Wallet
The first thing you need to do before you buy any bitcoins is to set up a bitcoin wallet. A bitcoin wallet is a virtual storage space for storing cryptocurrency just like you would use a physical wallet to hold your credit cards or cash.
There are many digital wallet service providers in the market today with different features, levels of security, and platforms that accept them. As such, you must do your research before choosing one to work with.
2. Select a Reliable Bitcoin Trader
After you’ve opened a bitcoin wallet, the next step will involve opening an account with a fiat-to-crypto trading company. The trading company takes regular cash such as Sterling Pounds, Euros, or U.S. Dollars in exchange for cryptocurrency.
There are plenty of trading companies in the market to choose from, with some being more costly and trustworthy than others. Make sure you choose the one that is most convenient for you, especially in regards to the payment methods they accept.
3. Buy Some Bitcoin
The price of bitcoin is mostly volatile and can vary dramatically depending on the trader you choose to buy from. Since the trading company sells bitcoin from their own reserves, they can dictate the price of the cryptocurrency.
To make your first purchase, input the amount of bitcoin you want to buy and consent to the transaction costs. Next, click the ‘buy’ button and wait for the transaction to be completed.
After a short while, your bitcoin will transfer into the crypto wallet you created in step #1. You can now store it to sell at a profit, or you can spend it however you wish.
The Bottom Line
Bitcoin is currently enjoying global acceptance and has emerged as the most popular cryptocurrency. The best way to understand it is to buy some to get the best learning experience.