You'd like to buy Bitcoin, but you feel like you're missing the specialist knowledge, or you just don't know where to start? Don't worry. We'll tell you everything you need to know about investing in Bitcoin.
Bitcoin - basic information
Bitcoin has a turbulent past behind it, and certainly an interesting future. So it's worth getting to know the basics, because despite its growing popularity, many people still don't know what Bitcoin really is, how it works, or where to buy it. Bitcoin is a fully digital currency that can be used in buying and selling transactions. It is not issued or held by any bank or government.
In 2008, a person (or group of people) under the pseudonym Satoshi Nakamoto published a scientific article proposing a completely new electronic money system. The main feature of this system is the lack of a central institution to control it. This means that Bitcoin is completely decentralized. This is a fundamental feature that makes it different from fiat money issued by governments.
Bitcoin can be bought in many ways. In the following sections we will discuss them all in detail. Let's see how to get and invest in Bitcoin.
Where can I buy Bitcoin?
You probably guess that we have at least a few options. For beginners, the most convenient ones are the online exchange, and a Bitcoin ATM. We'll look at all options, which will allow you to choose the option that suits you better.
Let's start with the crypto platforms. If you are hesitating between a reputable exchange and a small known one, recommended by a friend, choose the first option. If you are a beginner investor and do not have enough knowledge about it, use discussion forums such as bitcointalk. There are some things to ask about, as someone who finds themselves on the topic can provide you with many valuable tips.
You can judge exchanges on several criteria: security, commissions and reputation. Do not entrust your funds to a platform that quite often falls victim to hacking attacks. If such situations occur frequently, it may be better to choose another exchange where you will feel safer.
Another important aspect are commissions. In case of short-term investments or arbitrage they can become extremely important. So it is worth comparing the offers of the platforms concerned with each other and choose the most advantageous one!
Reputation is also a decisive factor. Popular exchanges have greater liquidity. This is quite an important fact, as in this case there is less chance that such a platform will collapse overnight (although such cases have also occurred). Don't forget to check which currency and cryptio pairs are supported by the exchange of your choice. While some have rich offers, others only offer cryptocurrencies with the highest market capitalization. Moreover, some platforms do not support fiduciary currencies at all.
The only question that remains to be answered is how to buy Bitcoin on a crypto exchange? First, you must first register an account: provide your e-mail address, first and last name, and sometimes your telephone number. Many platforms also follow KYC and AML's policy and for this reason they may ask you to send data such as your place of residence and a photo of your identity card. After the verification process you can start trading.
Instant crypto exchange
These are places where you can quickly and easily buy Bitcoins. Moreover, some of them offer to buy Bitcoin without verification. In this case, the user is only asked to provide an e-mail, the amount of money he is interested in and the address of the bitcoin wallet.
The advantage is probably the convenience and speed of making transactions. The downside is quantitative limitations. The user can purchase Bitcoin up to a given amount at once, and commissions may also be higher than on standard cryptocurrency exchange.
You can also buy bitcoin in bitcoins ATMs. What are they? They may look like a regular ATM, except that you can buy Bitcoins in them. Payment is usually accepted in cash, but there are also some machines that support credit cards. It all depends on their provider.
In this case buying Bitcoins is really quick. You specify the amount for which you would like to buy BTC, insert the money and give the address of your crypto wallet. The downside in this case is quite large commissions. Although it may be the easiest way to buy your first Bitcoins, it is certainly the least profitable.
Read also: How Does Bitcoin Mining Work?
Directly from the other person
Watch out for this type of transaction. While you could buy Bitcoins from your friend or someone around you, never do it with a complete stranger. In this case, there is a fairly high risk that the other party will deceive you and not send you the Bitcoins you paid for.
If you would like to make an exchange with your good friend in a very quick and easy way, you can do it with your mobile wallet. The other person will scan your public address to assign funds to it. How you transfer the money to them, either in cash or by transfer, is a matter of your agreement.