Bitcoin is a digital and global money system that allows people to send or receive money on the Internet. Each Bitcoin is a computer file stored in a program known as a “digital wallet.” You can send Bitcoins to other people’s digital wallets the same way they can send Bitcoins to your digital wallet.
Bitcoin wallets store a secret piece of data known as a private key that one uses to sign every transaction. The private key helps provide a mathematical proof that every sent Bitcoin comes from the owner of the wallet. A public list referred to as the blockchain records every single transaction. Bitcoin can be a great investment opportunity when you know where to buy, store and trade the cryptocurrency.
Where to Buy Bitcoin
A Bitcoin exchange platform is the best place to make your first Bitcoin purchase. Though thousands of Bitcoin exchanges exist out there, only a few are trustworthy. You can sign up with renowned platforms such as Changelly and Coinbase. For each account, you have to provide some form of identification including a live image of your face and a copy of your photo ID.
Exchange platforms usually accept various payment options depending on what they’re willing to use. For instance, Coinbase allows users to debit cards, credit cards or bank accounts to make the payments. Choose an exchange with payment options that suit your financial needs.
How to Buy Bitcoin
Exchanges such as Coinbase and Changelly provide you with details on the number of Bitcoins you can purchase for a certain sum of money. Due to the volatility of Bitcoin, the prices may tremendously change from time to time. You should trade in the cryptocurrency once you fully understand its volatility.
1. Using Coinbase
The basic requirements for buying Bitcoin on Coinbase include a valid photo ID and a bank account or credit card. Coinbase doesn’t have any restrictions on the number of Bitcoins users can have. However, the company usually verifies if you’re the real owner of the bank account you provided.
Once you complete the account set up, scroll up to the top of the Coinbase homepage and click Buy/Sell. A pop-up screen, which asks you to specify the dollar amount of Bitcoin, will appear. Set the dollar amount of your choice and then click “Confirm Buy.” You’ll see a green check, which is an indication that the purchase was successful.
Return to the Coinbase dashboard to view the summary of your account including its activity. Coinbase also allows you to set up recurring purchases if you’re looking to buy Bitcoin on a fixed monthly budget. In this case, go to the Buy/Sell page and check the “Repeat this buy” box. Remember to set the frequency of your recurring purchase.
2. Using Changelly
Changelly accepts bank cards and currencies of any country. The exchange calculates every transaction in dollars. To buy your Bitcoin with a credit card on Changelly, visit the homepage and click USD on the left side of the page. You should also choose the cryptocurrency you want to buy in the right section of the page.
Proceed to check the current trading rates and the possible amount you’re going to get from the purchase. Once you’re content with the prices, specify your Bitcoin address. Confirm all your payment details before initiating the transaction.
You should give Changelly your valid credit card information together with the phone number attached to the card. Changelly will call you on the provided number with a 4-digit code to enter on the website. Once Changelly accepts the numbers, go to your online bank app to get a three-digit code on your bank statement. Changelly takes 5 to 30 minutes to disburse Bitcoins in your account after completing the two verification steps.
Where to Store Bitcoin
After purchasing Bitcoin, you need a digital wallet for securing the cryptocurrency. Consider factors such as security, transparency, anonymity, user experience and reputation when choosing one. A secure digital wallet should offer strong logins and two-factor authentication (2FA). If it’s a web wallet, it should have the HTTPS secure protocol.
The secure wallet platform should offer you a multi-signature (multisign) option to protect your Bitcoin from hackers. The multisign option requires more than one key to authorize any cryptocurrency transaction. You may lose control over your Bitcoin if you don’t have the private keys for your wallet. Make an effort of saving the key in a retrievable place.
Examples of Bitcoin Wallets
Coinbase is among the leading online platforms for buying, selling and holding cryptocurrencies. You can rely on it to securely store your Bitcoins. Other reliable digital wallets include Trezor, Electrum, Blockchain.info, and Mycelium.
Trezor is actually a physical device that plugs into your phone, tablet or computer to provide access to your cryptocurrencies. The wallet features two-factor authentication and works with multiple currencies. Electrum works as a software wallet for Android, Linux, Mac OS X, and Windows devices. The program allows you to store coins as files in your desktop, laptop or phone.
With Blockchain.info, you get a digital wallet that is separate from your cryptocurrency marketplace. Blockcahin.info is more secure than most online wallets since it facilitates the buying and storing of Bitcoins separately. On the other hand, Mycelium works as a Bitcoin wallet only supported on iOS and Android. Mycelium keeps your Bitcoins in your phone and allows for anonymity.
Buying Bitcoin is the first step for those who want to excel in the Bitcoin trading market. Though there are high risks involved in the market, you can get good investment returns with the right trading tips which you can find on our website. The basic rule is to choose the right trading platform, the right projects and start with a little amount.
Besides trading, you can earn Bitcoins from online casino games such as the ones on Stake.com, mining and selling products/ services in exchange for Bitcoins. With mining, you get to earn cryptocurrencies once you solve a given computational problem. You can also sign up for freelance work that pays using Bitcoins. Either way, knowing the limitations and opportunities related to your Bitcoins can help you get the most out of them.