Looking for a bitcoin buying guide? Wondering where to start? People have many misconceptions about Bitcoin – the very first widely known and accepted cryptocurrency in the world.
For example, many people think that only hackers and shady people use it. However, bitcoin is indeed going mainstream , and buy and sell usdt in nigeria everyone from TigerDirect to Expedia.com to Dell and even Subway are now accepting payments in bitcoin.
Why so popular?
Well, Bitcoin has many advantages over other currencies. For example, you can send bitcoins to someone as payment without going through the bank’s middleman (and being hit with additional fees). It’s also much faster than sending money via bank transfer or wire transfer. You can send bitcoins to someone who will receive the coins in seconds.
With all of this, it is not surprising that many people are now trying to buy Bitcoin for the first time. However, it’s not that easy to go to your bank and withdraw bitcoins – or to go to a store and throw in some hard-earned money for bitcoins.
The system works a little differently. This bitcoin buying guide covers a few things you need to know before you buy – so you can shop safely and securely.
First of all, although the price per coin could be over $2000, you don’t have to buy an entire bitcoin. You can buy bits of a bitcoin for as little as $20 in most places. So you can start small and go from there as you become more comfortable with how things work.
Second, this article is for general purposes only and should not be construed as financial advice. Bitcoin can be risky and before making a purchase you should consult your financial advisor to see if it is right for you.
So here are 3 easy steps to buy Bitcoins:
#1 Get a bitcoin wallet
The first thing you need to do before buying your coins is to get a virtual wallet to store your coins. This wallet is a string of text that users can use to send you bitcoins.
There are a number of different types of wallets, including those you download onto your phone or computer, online wallets, and even offline cold storage wallets.
Most people prefer to have a wallet on their phone or computer. Popular wallets are Blockchain, Armory, Bitgo MyCelium and Xapo.
Usually, it is as simple as downloading the wallet as an app on your phone or downloading the software from the wallet’s main website on your computer.
#2 Decide where to buy
There are different types of places to shop and each one is a little bit different. There are online sellers who will sell you Bitcoins directly for cash (or bank transfer or credit card).
There are exchanges where you can buy and sell bitcoins from others – similar to an exchange. There are also local exchanges that connect you with sellers in your area who want to sell.
There are also ATMs where you can shop with cash and have your coins delivered to your wallet in minutes.
Every bitcoin seller has its pros and cons. For example, ATMs are great for privacy, but they charge you up to 20% on top of the current rate, which is ridiculous. (If BTC is $2000, that’s $400! So you’re paying $2400 instead of $2000).
Regardless of where you decide to purchase, remember to do your research and go with a trusted seller with a good reputation and strong customer service. First-time buyers primarily have questions and may need additional assistance to help them with their first transaction.
Take your time and research the different shopping options before you decide. Factors to consider are coin prices, additional fees, payment method, and customer service.
#3 Buy Bitcoin and move it to your wallet
Once you’ve found a place to buy, prepare your money (ie you can send a bank transfer or use your visa to fund your account). Then wait for a good price. (Bitcoin prices always fluctuate 24 hours, 7 days a week). Then place your order when you are ready.
Once your order is complete and you have your coins, you’ll want to send them to your wallet. Just enter your bitcoin address and let the seller send you your bitcoins. You should see them appear in your wallet within minutes to an hour (depending on how quickly the seller ships them).
So what exactly is a bitcoin anyway? Full Bitcoin Breakdown
There is virtual money and then there is bitcoin. The super geeky Bitcoin is a mathematically derived currency that promises to change the way people use money. Bitcoins aren’t real coins — they’re strings of code encrypted with military-grade encryption — and people who use them to buy and sell goods and services are difficult to track down. Along with anonymous drug dealers, Ashton Kutcher and the Winklevoss twins are said to have jumped on the bandwagon. There is something to be said about using currencies that are not regulated by the government or banks, do not come with the usual transaction fees, and cannot be counterfeited. Bitcoin also promises to be disaster-proof because you can’t destroy numbers the same way you can destroy gold reserves or fiat money.
What is Bitcoin?
Bitcoin is a digital currency created in 2009 by a developer hiding under the pseudonym Satoshi Nakamoto (supposedly a Japanese man with a perfect command of American English). Bitcoin is decentralized, meaning it is not controlled by a central authority such as a financial institution, country, government, or individual. It is peer-to-peer and open source, and is distributed from computer to computer over the Internet without the need for intermediaries. Compared to US dollars, bitcoin is virtually untraceable, making it attractive to libertarians fearful of government interference and denizens of the underworld. You can use it to pay for purchases online and offline, from illegal Silk Road drugs to legal restaurant meals.
Where to get Bitcoins
You can get bitcoins from friends, online giveaways, or by buying with real money from bitcoin exchanges. However, using real money to buy bitcoins defeats the entire purpose of anonymity as you may need to add your bank account to a third-party site. You can also buy bitcoins through your mobile phone or through cash deposit facilities. New bitcoins are created through mining. Mining is done automatically by computers or servers – it’s not real mining where you have to dig underground to dig up raw materials, but the concept is similar. It takes effort to dig for gold, and you (or your machine) also need to spend time and resources verifying and recording bitcoin transactions.
One of the coolest things about Bitcoin is that it doesn’t derive its value from real objects, but from codes. Bitcoins are pulled from the ether by machines (and the people who operate them) to solve complex mathematical problems related to the current number of bitcoins. These bulky and expensive supercomputers have powerful encryption capabilities (and reportedly suck power like nobody else). In a typical transaction, buyer A from site X pays seller B some bitcoins online. Miners then race to authenticate and encrypt the transaction, logging bitcoin codes to a central server. Whoever solves the puzzle first gets the bitcoins. About 25 new bitcoins are created for each 10-minute block, but this number may increase or decrease depending on how long the network runs.
How to use bitcoins
Once you get your hands on some bitcoins, you need to store them in an online wallet through a computer program or third-party website. You become part of the Bitcoin network once you create your virtual wallet. To send bitcoins to another user or to pay for online purchases, get that person/seller’s identification number and transfer bitcoins online. Processing takes around a few minutes to an hour as bitcoin miners around the world verify the transaction.
How to make money with Bitcoins
If you’re still skeptical, one bitcoin is currently worth around $90 (as of April 18, 2013), with hourly fluctuations that can make a day trader dizzy. As volatile as it is, more and more people are starting to milk the phenomenon for as long as it’s worth it — as long as it lasts. How do you get your slice of the virtual gold rush? A few ways: sell how to sell usdt for cash bitcoin mining computers, sell your bitcoins on eBay for insane prices, and speculate on bitcoin markets. You can also start mining. Any person can mine bitcoins, but unless you can afford an efficient setup, it will take an ordinary PC a year or more to solve algorithms. Most people join pools of other miners who combine their computing power for faster code-cracking.