Quick Lessons about Cryptocurrencies and Bitcoin
How to Buy Bitcoin
From what we’ve learned from the basic concepts of Bitcoin, you are probably excited about its potential and now probably want to buy some; but there’s one thing I must add, never invest more than you can afford to lose because cryptocurrencies are volatile and the price could go up or down.
Bitcoin can be purchased in bags or directly from other people through the markets, you can pay for them in a variety of forms, ranging from cash to credit and debit cards to electronic transfers, or even other cryptocurrencies, depending on who is buying from and where you live.
Creating an E-Wallet
You must have one, whatever your preferred method of purchase is, this wallet is where the Bitcoins are stored, it could be an electronic purse, a software, hardware, or paper wallet; so you can decide which version best suits your needs, in the following chapters we will talk about them. The most important part of any wallet is to keep the passwords or keys, that is, a string of characters, and/or secure passwords; if you lose them, you will lose your access to your bitcoin storage forever.
Open an account in during a cryptocurrency trade to buy and sell bitcoin on your behalf. There are hundreds currently in operation, with varying degrees of liquidity and security, and new ones will keep emerging while others will cease to exist. As with any other wallets, it is advisable to do some research before you choose one, you could be lucky enough to go through many that look trustworthy, or your could be limited to one or two, depending on your geographic area.
Bitcoin’s largest stock in the world right now, in terms of volume, is the US $ Bitfinex, although it is primarily aimed at cash traders. Other high volume exchanges are the Coinbase, Bitstampy, Poloniex and Kraken, but for small amounts, the most reputable exchanges should work good enough. With the repression of ‘knowing your customer’ (KYC) and the ‘anti-money laundering’ (AML) regulation, many stocks now require an identification process by verifying the account setup. This usually involves a current photo of their official identification and sometimes, even a proof of address.
Most exchanges accept payments through a bank transfer or credit card, and some are willing to work with Paypal transfers. And most exchanges charge a fee, which generally include a fee for using the bitcoin network. Every currency requires a different process, both for installation and operation, and should provide enough details for you to be able to execute the purchase. If that’s not the case, consider looking for a new service provider.
Once the currency has been received, the corresponding amount of Bitcoin will be purchased in your name, and will be placed in an automatically generated wallet in the stock. This may take a few minutes or sometimes hours due to bottlenecks. If desired (recommended), you can transfer the funds to an external wallet.