Bitcoin is the cryptocurrency accepted by many businesses around the world as the newest method of payment. Do you want to learn how to buy bitcoins? Before you get to know all methods and ways to buy your first bitcoin, there is important information you need to know.
What you need to know before buying bitcoins?
Like any other currency, bitcoins has some properties and details that you need to know about. If you are new in the Bitcoin market you should know that the exchange of money is different from how it is usually done in banks. So, it is really important that you take the time to inform yourself before making any transaction. Since you are exchanging money for bitcoins, you need to take care of this investment as any other.
Secure your bitcoin wallet
Like any other wallet with money you own, you need to be sure your bitcoin wallet is well protected. The wallet options are many, but one of the main features you need to be concern of, is the security. Make sure you are in charge of your private key, which makes you responsible of the level of security you got, however, if you forget your password no one can help you. Now remember, if Bitcoin is used correctly, it can provide high levels of security. It is important to learn more about good security practices for bitcoin wallets.
The price of a bitcoin can unpredictably change over a short period of time due to many reasons. Like other currencies, the laws of supply and demand determine the price you pay for a bitcoin, users are increasing by the day, but the supply can´t grow as much, the price will continue to increase. Even with the growing tendency of bitcoin, it should be considered as a high risk investment.
Once you have done a transaction with bitcoins there is no person, government entity, bank or credit card issuer able to help you reverse it, once is done, is gone. You need to make sure, that every transaction you do with bitcoins is with a person or company you trust, because only the receiver can send back your money.
Bitcoin is not anonymous
All bitcoin transactions are recorded in a public ledger, since the network will have the information regarding each transaction permanently, anyone might have access to the transactions information and link it to an identity over time. You must be aware of any tax regulations regarding bitcoins in your area. Adopting good practices to protect your identity is your responsibility.
For each transaction you´ll receive a confirmation score to let you know the possibilities of the transaction of being reversed, must of the time is ok to receive any transaction. The payment process with bitcoin is faster and global, and since is not owned by any company or government, there are not third parties trying to take advantage of any situation.
There are many options to exchange money for bitcoins, due to the inefficiency of banks, the price of exchange can change every other day. Traders will always try to buy at a low price and sell at a high price. Make sure to use trusted exchanges to avoid high price fluency and scams.
You should be aware now of all basic but very important information about bitcoins, transactions and the importance of security. It doesn´t take to much time to buy bitcoins, but you should take the time to think about every decision you make. These are the basic steps you need to follow to buy bitcoins.
Choose and download a Bitcoin Wallet
As it was explained before, bitcoin doesn´t work by the same system of normal banking, however, it does need a layout to process all transactions, the bitcoin wallet is a program or application designed to process all bitcoins transactions, send and receive value thru a cryptocurrency. The wallet helps to keep total control of your money, keep detail balance records and transactions for one or more bitcoin addresses. The features available for the bitcoin wallet depend on witch one you download, make sure to choose a wallet that fulfill all your needs and expectations.
The bitcoin wallet helps you store the bitcoins you bought, meanwhile you get ready to spend them or exchange them to a different currency. The differences between wallets rely on security features, options and the platforms they can be use; all wallets have the same basic functionality.
Remember, the first security layer is on you, keep your private key(s) only to you, do not share this information, if your password is changed without your knowledge nobody will be able to help you. It is very important to have an offline storage for your wallet’s private key and any other credentials.
Buy bitcoins and add them to your wallet balance
Once you have chosen and downloaded the bitcoin wallet that better suits all your security needs, you are ready to add some bitcoins to it. The options and methods to buy bitcoins are many. As if it was your bank account, your bitcoin wallet´s address is the information you provide to store the bitcoins you buy, until you are ready to spend or sell them.
Methods to buy bitcoins
There are many options of cryptocurrency exchange; the main differences between them are safety, security, privacy and control of your money. Some bitcoin exchange work by region or country and other as an international exchange. Since no one owns bitcoin, there is no fee regulations, is your responsibility to carefully inform yourself of all fees for transactions. Most bitcoin exchange accept wired transfers from bank accounts and credit card payments.
So you can use a Bitcoin ATM to buy bitcoins, you need to locate the closest one. There are several ATM locators so you can find them fast enough. Since bitcoins transactions can´t be reversed, but the credit card´s can, the ATMs only take cash.
The verification process is very similar in every bitcoin ATM, requires your bitcoin wallet address, however, there are some that have biometric verification methods. Depending on the type of ATM it might have different limits and verifications set up.
Local Bitcoin Seller
Some countries don´t have access to Bitcoin ATM or a cryptocurrency exchange, and those are probably the easiest ways to buy bitcoins. Due to do the growing tendency, some banks in these countries act as local bitcoin seller, allowing to buy bitcoins thru the local banking system.
This is other easy way to buy bitcoins. You can buy a gift card in several online and offline shops, such as Amazon, Starbucks and many others, visit a website that accepts the gift card code as a method of payment for bitcoins. Credit cards can be used since the gift card vendor accepts them.
The peer-to-peer marketplaces offer secure and anonymous options to buy and sell bitcoins, allowing a variety of deposit methods. This marketplaces offer lower fees to take or make an offer to buy or sell bitcoins.
Method of Payment for bitcoins
You can buy bitcoins with cash in a bitcoin ATM, local seller or even a Gift Card, if the issuer has a physical kiosk to get them.
There´s almost nothing you can´t buy with a credit card, but when it comes to bitcoins, there are some limitations. As it has been explained, a bitcoin transaction can´t be reversed, but you can cancel a transaction with a credit card issuer, therefore this is not a method of payment preferred by bitcoin sellers . Some bitcoin exchanges accept credit cards as a method of payment, however the fees might be higher.
Paypal, like the credit cards, has the option to cancel de transactions or payments. Many vendors won´t accept this method of payment, but there are some exceptions.
This is the most accepted and trusted method of payment among the bitcoin vendors. The buying process is not automatic; it may take up to 3 days while the transaction goes though.