Bitcoin’s dominance in the world peaked in December 2018, as more and more investors sought to take advantage of it. While some experts are now saying it’s too late to invest in bitcoin, many are predicting that this is just the beginning.
Crypto currency enthusiasts predict that a single bitcoin could be worth up to $1 million by 2020. Many investors are interested in this burgeoning digital currency, and many cryptocurrency startups have made buying and selling bitcoins an easy task for them.
These bitcoin startups allow investors of any size to start trading bitcoins, for example you can buy bitcoins for any amount, say $5 for any amount.
People who have some money and want to invest in bitcoin, the process of buying and selling bitcoin is a bit confusing. They want to start trading bitcoins but don’t know how to go about it. The following questions may occur to someone considering buying bitcoins.
In this article, I will clear up all your doubts and provide you with all the information you need to start trading bitcoins.
Let’s get started.
Bitcoin (BTC/XBT) is a form of digital currency invented by Satoshi Nakamoto that operates as a payment system on a decentralized peer-to-peer network. This gives the bitcoin owner the ability to send and receive payments without the involvement of a financial institution such as a bank.
Fear of selling:
The known acronym for this currency is BTC, but because of the ISO 4217 standard, the name conflicts with some other currencies (Bhutanese Ngultrum (BTN)), so a new acronym for Bitcoin had to be introduced, namely XBT. Don’t confuse BTC and XBT as they are the same thing.
The stock of bitcoins is limited to 21 million, it is impossible to get more out of it. The smallest unit of BTC is called Satoshi, after its creator. One bitcoin is equal to 100,000,000 Satoshi or 0.00000001 BTC. Those who cannot buy an XBT token can buy Satoshi.
You know what the best part is? Nobody owns the Bitcoin network, it is the people who run and use it. The network is completely open and decentralized.
Instead of a third-party payment partner, thousands of independent computers around the world are connected to a bitcoin payment system called blockchain, which verifies bitcoin transactions and secures the system. In exchange, these miners (the people who set up their computers for successful BTC transactions) receive small bonuses in the form of bitcoins.
Bitcoin transactions are inherently cheaper and faster than traditional digital payment methods. If you z. B. through your bank to send a payment to a foreign country, your bank will first charge you for an exchange transaction, then facilitate your transaction and convert your country’s currency into the currency of the receiving country.
The whole process usually takes 3 to 7 days.
On the other hand, if you send the same payment via BTC, you won’t pay an upfront transaction fee, just a nominal network fee (you can decide which one) and within 30 minutes (it can vary) your recipient will receive that amount.
What you need to know here is that cryptocurrencies are highly volatile. For example, the price of BTC can drop dramatically in a few minutes.
Suppose you send someone 0.005 BTC, which is $100, and the current market trend causes a panic sale, and within minutes the price of BTC drops by 30%, your recipient will still receive 0.005 BTC, but the value in USD will be $70 (due to the 30% drop).
First, it is an experimental digital currency that is still under development. Its price is determined by supply and demand. When demand is higher, the price rises; when demand is lower, the price falls.
In addition, market trends, panic selling, pounds (fear, uncertainty and doubt) and prohibition/regulation related news also play an important role in price fluctuations.
There are two ways to receive bitcoins: Bitcoin mining and bitcoin trading.
Bitcoins mining is more complicated and requires more skills and a large investment, but the returns are very high. Mining requires a solid internet connection, adequate equipment (ordinary computers are not enough, ASIC miners are recommended) and a 24/7 backup power supply.
This makes bitcoin mining more difficult for the layman. The benefit of being a bitcoin miner is that you can help others mine bitcoins with your miner, and in return you are rewarded with BTC.
While you can buy a mining machine like an ASIC miner to start mining, it’s all a bit complicated for a non-techie.
Bitcoin trading, on the other hand, is suitable for small and medium-sized investors because you don’t have to do anything yourself except buy bitcoins. This is a quick way to get bitcoins.
No running costs for computer equipment, no knowledge required! In trading, bitcoin exchanges that have bitcoin mining machines allow anyone to buy bitcoins, and in return they charge you a small or reasonable fee.
Message: You can earn bitcoins by mining them. You can use your computer to do this or buy a mining device. This is another topic, which we will discuss in another article. Today we will focus on how to buy bitcoins.
- Choose an exchange where you want to buy your first bitcoin.
- Check the track record; if possible, try to read customer reviews (a very effective way, but you need to read a lot to make a decision), fee structures (deposit fees, transaction and withdrawal fees).
- Once you have decided who you want to buy bitcoins from, create a bitcoin wallet account with that exchange; if that exchange does not offer an online wallet service, create a wallet with another exchange.
- Complete the KYC (Know Your Customer) check by entering your location and contact information.
- Upload documents (in JPEG or PDF format), for example a voter card and proof of address to prove your identity.
- Wait until your account is verified, this may take a day or more.
- You can start buying and selling bitcoins once the exchange has confirmed your account. You can buy bitcoins using a credit card, debit card, online banking, mobile wallet or any other listed method.
- Finally, put the coins in a safe place, for example. B. in a paper wallet, mobile wallet, software wallet, or hardware wallet (recommended).
- You can sell bitcoins at any time. No minimum or maximum time limit. For example, if you buy 1BTC for $10,000 and the price reaches $15,000 within a few hours, you can make a profit by selling it. It’s up to you to sell it or keep it to make more profit.
Trading Bitcoin is very easy, but it does come with risks and you should be aware of them before you start. First, its future is still in limbo, as if there is no law regulating the bitcoin currency. The recent Chinese decision is an example.
Although bitcoin prices are rising again, but my concern here: What if all countries declared bitcoin trading illegal?
We will look at the pros and cons of crypto currency trading in another article and the above are just probabilities. Anyway, you know them. Trading Bitcoin is risky, just like trading stocks intraday, but it can give you very high returns and even make you a millionaire.
Some experts recommend buying at least one bitcoin, as they believe the price of bitcoin will reach $25,000 to $50,000 by 2025 (but with no guarantee). My advice is that if you are willing to invest in bitcoin, be prepared for the implications that come with it.
Also, diversify your capital and don’t invest most of your savings in bitcoin.
Golden words for beginners:
Bitcoin is not for the faint of heart. It is true that one coin can make you a millionaire, but it is also true that the value of your coin can become zero. Only invest as much of your money as you can spare. Don’t store your savings in bitcoins.
You currently have three ways to buy bitcoins:.
- Crypto-currency exchange
- Peer-to-peer exchange
- Bitcoin ATM – Yes, they exist.
Let’s go through them one by one.
1. Exchange of crypto-currencies
Cryptocurrency or Bitcoin Exchange offers the easiest way to buy bitcoins. Through exchanges, you can buy bitcoin and other cryptocurrencies in exchange for your fiat currency (dollars, euros, INR and others) and other assets.
Some exchanges allow you to buy bitcoins with a credit card, debit card or bank transfer. You can also go to the nearest exchange office to buy BTC in cash or via direct deposit.
Crypto to crypto exchanges are also available on most exchanges, where you can buy one crypto currency in exchange for another.
While crypto currency exchanges allow you to easily own digital assets and get a web wallet to store them with their assets, they are very vulnerable to hacking (Bitpoint, Binance, recent eyebrow-raising hacks), so they should not be considered long-term coin storage.
In the worst case scenario, if you bought BTC on an exchange that engages in fraudulent trading practices, it can run off with your money.
So when you buy bitcoins, immediately put them in a safe place, like a vault. For example, in a paper wallet, a software wallet or a hardware wallet.
Finally, we will also discuss where to keep your coins safe.
These are the best bitcoin exchanges
Currently, there are many well-known bitcoin exchanges where you can buy bitcoins. To find the best bitcoin wallet company, you need to make an extra effort on your part.
Below are some of the best bitcoin exchanges in the world where you can buy BTC. These fairs are widely appreciated for their first-class services and state-of-the-art security.
- Mum of the pieces
Coinbase is an international bitcoin exchange that allows you to buy, sell and store bitcoin, as well as other cryptocurrencies such as bitcoin cash, XRP (learn more about the best exchanges for Ripple wallets), Ethereum, Litecoin. The exchange is well-known among cryptocurrency investors and is available in 103 countries.
It offers you a secure atmosphere to buy and sell listed coins, as well as a web wallet to store your coins. The two-factor authentication feature makes your online wallet even more secure.
You can use their convenient website or their Android or iOS app to start trading bitcoin.
Register on Coinbase and receive $10 for your first transaction.
Another well-known international exchange is Bitcoin, which offers a robust trading platform with many advanced features, such as SMS price notifications. The exchange has been operational since 2011. You can redeem bitcoins, ethereum, litecoins, XRP and other coins.
A simple interface, low fees, a mobile app and direct bank transfers are some of the key features of this exchange that make it stand out from the crowd.
Register now with Bitstamp
Kraken is a well-known cryptocurrency exchange based in San Francisco, USA. Founded in 2011, the exchange is one of the largest and oldest bitcoin exchanges in the world. It is a reliable platform to buy, sell and trade bitcoins and popular altcoins like LTC, ETH and others.
You can use your fiat currency (USD, Euro, CAD, etc.) as crypto currency. Crypto to crypto exchanges are also possible.
High security, low cost and excellent customer service are some of the key points that can make someone choose this platform.
Register now for Kraken
The exchange has been around since 2013 and operates in 190 countries. According to its website, more than 1.5 million registered users use its services.
At Coinmama you can buy bitcoins with credit card, debit card and bank transfer. Of course, you can trade one crypto currency for another.
Instant delivery, high spending limits, convenient payment methods, a large user base and state-of-the-art security make this exchange a safe bet.
Register now at Coinmama
At the site of the recent hack, the exchange is still working well. Because Binance is an established exchange and has its own digital currency, Binance (BNB), with a market capitalization of over $43.5 million, it is vulnerable to attack.
But the company is determined to constantly improve its security by implementing the latest security features and protecting itself and its users from future hacks.
Binance offers its services worldwide. At the time of writing, users are residents of 180 countries. You can definitely buy bitcoins from Beans.
Exchange can answer your questions within 24 hours with 24/7 customer support.
Join Binance now and receive 5% cashback on your trading deposit.
2. Peer-to-peer exchanges
Peer-to-peer exchanges are not designed to buy and sell bitcoins themselves. Instead, they provide a platform where buyers and sellers can meet and exchange bitcoins. The buyer transfers the amount directly to the seller’s bank account and upon receipt of the amount, the seller releases his BTC.
On these platforms you will find many sellers selling their BTC at different prices. You can even talk to the sellers to negotiate the price. You can buy bitcoins from a merchant who has good ratings and positive reviews.
Some well-known peer-to-peer exchanges for buying bitcoins
- Local Bitcoins
The exchange allows you to buy bitcoins directly.
LocalBitcoins.com is one of the largest peer-to-peer bitcoin exchanges in the world. The trading platform is available globally and as of August 2019, it operates in over 248 countries, including India. The escrow service protects buyer and seller from fraud.
The site is very simple, practical and easy to use. You can also store your BTC in the web wallet. Although hot wallets are not recommended for storing bitcoins, you can always use the online wallet if you want to make intraday transactions.
This Finnish exchange is known for its simple bitcoin trading platform. I have been using this scholarship since 2014, and so far my experience has been very satisfactory. In my last post, I showed you how to buy bitcoins on LocalBitcoins.com.
Recycler at LocalBitcoins.com
BitQuick is another platform where you can safely buy BTC. It charges a service fee of 2% and a mining fee of 0.000106341304 BTC.
The escrow service guarantees that you will receive your bitcoins as soon as the money is transferred to the merchant’s account. To date, 57,643.53 BTC have been sold on this platform.
You can sell bitcoins at your own price against a bank deposit without paying a commission.
Register on BitQuick.co
3. Bitcoin ATM
Yes, you read that right. You can also buy bitcoins directly from a bitcoin ATM. Some companies have taken the buying and selling of cryptocurrencies to the next level by installing bitcoin ATMs in major cities.
These BTC machines are similar to ATMs, but they have different functions. These machines allow you to deposit and withdraw money to buy and sell bitcoins. One thing that can discourage someone from using these devices is the high cost.
These ATMs charge higher service fees (up to 16%) than crypto currency exchanges.
You can use an ATM search service for crypto currency, such as Coin ATM Radar, to find the nearest bitcoin ATM.
Anyone who wants bitcoins can buy them. There are no rules about who can buy bitcoins. It’s just a digital asset that can be owned by anyone who believes in it or sees potential in it.
As described above, there are two ways to buy bitcoins: Bitcoin trading and bitcoin mining.
There is no limit, you can buy any amount of bitcoins you want. However, some exchanges have restrictions on buying and selling BTC. For all you know, you can also buy a portion of a bitcoin, say 0.005 or 0.5 or some other amount.
Not yet, but at the same time, it’s not illegal either. Many countries are making rules, and many are thinking of banning. As you may already know, it cannot be stopped because no country controls it, it is a decentralized digital currency.
However, there are some strict laws that can prevent you from buying, selling and trading bitcoins. A recent example is India, where the RBI (Reserve Bank of India) arbitrarily banned cryptocurrencies in India, but the country’s crypto community appealed to the highest court and after a long battle, the Supreme Court of India overturned the RBI’s ban on cryptocurrencies.
Therefore, Indians can now trade in cryptocurrencies at their own risk.
At the moment it is neither a legal nor an illegal form of payment.
Before you buy any crypto currency, make sure it is not an illegal activity according to the laws of your country.
Bitcoin is not anonymous, it is pseudo-anonymous. You can view bitcoin transactions in real time, including the public addresses of senders and recipients, using the Blockchain Explorer service, but you can’t see details about the people behind the transactions.
But that doesn’t mean you’re anonymous.
Exchanges will not allow you to buy digital currency unless you verify your identity by providing your address and bank details.
Bitcoin is not currently legal tender in any country, but the laws of your country may require you to pay taxes on your profits and investments.
Buying and selling this currency is very simple. You can sell your BTC as soon as you have bought it. You can sell it through the same exchange where you bought it, or you can sell it through another exchange or peer-to-peer directory.
You can also contact someone directly who wants to buy bitcoins.
It depends on your goal. If you want to make transactions, you can leave them online to minimize transaction costs. On the other hand, if you plan to keep your money for a long period of time, you will opt for a paper wallet, a software wallet or the most secure solution in the industry so far, the hardware bitcoin wallet.
Currently, the hardware bitcoin wallet (Ledger Nano S, Nano X, Trezor, to name a few) is the most secure way to store bitcoins and altcoins. Hardware wallets are small physical devices that store bitcoins cold and securely.
You can send, receive and store coins with a hardware wallet. For more information on hardware portfolios, click here.
A hardware wallet is not expensive, but it can keep your coins safe. It is almost impossible to hack a hardware wallet without physical access. And upstairs, check your personal keys.
The stock market is not safe, so never keep your coins on an online wallet, regardless of the reputation of the stock market.
In the current scenarios, bitcoin can bring you high profits, but don’t ignore the volatility. A smart investor knows how to diversify their assets and does thorough research before making a new investment.
You can start trading bitcoins, but remember not to put all your eggs in one basket. Only invest as much of your money as you can spare. It wouldn’t be seen as a way to get rich.
Denial: The above list of bitcoin wallet companies is for informational purposes only. Check these bitcoin exchanges before buying BTC on any of them. We are not affiliated with these companies and therefore cannot accept any financial or legal liability. This article is for information only. Do not consider this information an investment proposal.
frequently asked questions
What is the cheapest way to buy bitcoins?
Crypto-currency tutorials are the cheapest. ….
Where can I buy bitcoins?
Best Places to Buy Bitcoin……
Can I buy partial bitcoin?
How to buy bitcoins-20000-15….
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