How to buy Bitcoins?
Nowadays, people who know at least a little bit about the Bitcoin network get very interested in the question how to purchase those coins. It is not a surprise that electronic money will become very useful and maybe only they will be relevant in the future. Here you will find several recommendations on buying coins.
Bitcoin differs from other mining organizations because it does not have a central governing department that would watch all actions inside the network. Therefore, you will have to figure out what way suits you and use it to buy bitcoins yourself.
If you remember well, Bitcoin was first introduced to the world back in 2009. At first, people were very skeptic about such innovation and did not believe in its importance. A lot of people said that this innovation will only live for a couple of months and then successfully disappear like hundreds of other ideas.
However, during last few years, a lot of people made a very prosperous business and got rich just by trading bitcoins. Now the term Bitcoin has a great popularity all over the world. More and more people start believing in its importance. Therefore, a lot of people want to find out more about the network and finally know how to buy those fortunate coins.
One of the advantages of Bitcoin network is that it is open for everyone. Rich people, as well as people with a very low salary, can use it. We should mention again that the organization is not controlled by anyone. It means that no one will know how much you spend, make, etc.
However, there is also a dark side of this opportunity. If you look at the scale of Bitcoin rate, you will be very surprised. It often goes very high and then drops down. On and on. This, however, is a very attractive possibility for investors. As long as the term becomes more and more popular and let’s say universal, we decided to write about this topic in details and make it useful for you.
Here right in this article, you will 5 effective ways to purchase bitcoins.
1. Get your personal wallet for purchasing and receiving bitcoins
Before you start doing any operating with the coins, you have to have a wallet. This is a virtual wallet. You will have to get a special software and install it on your device. This will allow you to send and receive bitcoins through the Internet.
Nowadays, you can find around 20 different wallets that can be used for various operations with coins. However, you need to know special details that will tell you that the wallet that you want to install on your device is trustful. Your wallet must have the frequency of use, interface for a user, the number of bitcoins that you are planning to purchase, the degree of personal information that you are willing to provide.
Here you can review a few types of bitcoin wallets:
You should get this wallet if you want to be the only one owner of the wallet. Your wallet will not be managed by third parties. This is a definitely safe wallet than other types we are going to tell you about a bit later. However, this wallet has got quite a specific set up. If there are certain technical problems, you may lose the wallet and all your coins.
Third party wallet
This is the type of Bitcoin wallet that will request you to put your coins into someone else’s wallet. All your information will be kept on the remote server. It means that you will have to trust your bitcoins their party. For this, you will have to discover different platforms and make sure that you choose a trustful one. A good piece of new is that this type of wallet become popular among new investors who care about advanced safety features. You will be able to get an access to your wallet from anywhere and know that the chance to break the access by someone else has a really low chance.
This type of Bitcoin wallet has more than one owner. This is a much safer type of wallet for third parties. However, all owners of one wallet will have to establish certain rules and stick to them. For example, the wallet can be used only in that case if the number of owners who authorize the payment is discovered before.
2. Choose the way of payment
How easy the process of payment will depend on your location. If you live in the UK, some banks do not provide services that are connected to bitcoins. If you do not buy coins with hard cash, then you can use your credit or debit card, as well as bank wire. However, the issue with using credit and debit card is because those individuals who use cards are more likely to be hacked. Therefore, a lot of companies do not want to accept this method of payment.
Another reason why using your card is not very suitable is because you may not get a good rate. Still, it is quite a simple way of payment online. You will be able to pay for bitcoins on appropriate platforms.
So, if you prefer to not use your credit or debit card, then you should take advantage of the bank wire. Use a domestic bank transfer to buy bitcoins. Usually, the process will not take any fee from you and will be done very quickly. Of course, for sellers bank wire or transfer is a very good way to receive payment. Because once they receive your money, there is no way to get money back. Therefore, you will see that most organization will offer you to make a wire or bank transfer.
PayPal is another popular way of making payment online. However, it disappoints the customers by requesting a big fee. If you do not have another opportunity to buy bitcoins but only through PayPal system, there is one thing that you can try and it may work for you. Use Circle to buy bitcoins through PayPal. However, this way will suit only USA residents. You must have an American card or a bank account in the USA that is connected to your account in PayPal system. Make an account in Circle and connect it to PayPal. This way, you will be able to trade bitcoins and make payouts on your card.
3. Find the way to sell and buy bitcoins
To buy and sell bitcoins is also called exchange. So, if you want to deal with bitcoins, you will have to find where you can exchange them. Brokers are shops that have their own bitcoin supply. They will be able to give you an approximate cost of bitcoin, so you will know whether the rate is good for you now or you prefer to wait. Of course, brokers are located online. Their online services have the convenient interface and provide quick and safe transactions.
Also, you can exchange bitcoins on various trading platforms. However, you should know that the sellers will take the fee for your transactions. If you choose to exchange at one of the platforms, you will have to tell the price and it will be deposed from you. It means that the cost of bitcoins on such platforms is the same as on the market. You will require some time to understand how such platforms works and how to exchange when using one.
4. Learn about the exchange
There is no official website where you can exchange bitcoins, therefore, you will have to discover and investigate different platforms that offer customers to exchange coins. Know your requirements and look for one that will tick all of them. To start working on one of the platforms, you should remember some important tips:
Discover the platform you want to use. Do not choose the first random platform. Investigate the website and start using it once you feel confident about its trustfulness. Do not skip customers’ feedback. They will tell you a lot about the certain website.
Make sure that you use the exchange that accepts payments from the country where you live.
You should know the percentage of money the platform takes when you make a payment.
Use bank transfer instead of a credit or debit card. If you are going to purchase or send a big number of coins, bank transfer is the best option. If you need to exchange just a small number of coins, use your card or PayPal method.
The platform you have chosen should have as many payment ways as possible. Do not choose the platform that allows you to exchange using only one way of payment. You should not be restricted buy choose what suits you best. Check FAQ page or contact customer support term if it exists to ask about payment methods.
Know the period of time that is required for checking your information, deposit, and withdraw.
Find the platform that offers the best exchange rate. If you contribute money, you should get the most benefits. So, spend some time on finding the platform that will offer you a decent exchange rate.
Finally, choose the exchange market. Here are some of the trustful markets that offer bitcoins (Bitstamp, Coinbase, OKCoin, Kraken).
5. Avoid scam
Purchasing and selling bitcoins may become a very impressive and exciting business for you. However, you should be careful and try to avoid fraud when trading. If you are a newcomer, check all the actions you do when using bitcoins. Make sure the person who sells you coins has a good reputation. Therefore, do not rush to buy bitcoins of a stranger. When you find a seller, find feedback about the seller and make sure the comments are positive and people recommend cooperation with the seller.
Another great way to avoid the scam is to make copies of all your actions with bitcoins. If you get into troubles, you will be able to prove what happened and that you did spend money but did not receive bitcoins. Make sure you get confirmation after every single transaction. Never forget to take money out of the market that you use. Never leave them there. Once you receive money on the market, transfer them to your bitcoin wallet. This is the safest way to save your money.
As you may understand, bitcoins become very popular, therefore, more and more people are interested in making bitcoins, buying, and selling them. This may become a very prosperous business for you.
Hopefully, if you follow all the above-mentioned steps, you will find a safe and effective way to buy bitcoins and do various actions with them. The good sign that you do everything right is successful transactions. So, please make sure you get confirmations.