With Bitcoin becoming one of the most popular cryptocurrencies in the world, it should come as no surprise that more and more people want a slice of the pie. There can be several different reasons as to why a person would want to purchase Bitcoin, and there are many different ways to purchase Bitcoin. Whether you’re looking to invest for the long-term, or you just want to switch over to a currency that offers more features than more conventional payment methods, then there are some steps you need to take to ensure that you’re purchasing Bitcoin in the right way.
An Overview of Bitcoin
Bitcoin is a digital currency, so there is no physical money. Instead, the currency is kept in virtual wallets. These wallets can differ. An online wallet is often referred to as a paper wallet and is one of the cheaper solutions when it comes to storing Bitcoins. If you’re looking for something a little more robust, then you can invest in a hardware wallet, which is effectively a physical storage device designed especially for Bitcoins.
It’s important that you have somewhere to store your currency, otherwise, you could end up risking losing your currency if you just leave it in exchange. While not a frequent occurrence, there can be times when certain providers go out of business, meaning that you have no access to the currency you have invested. Ensuring you have somewhere to store your Bitcoin just gives users an additional layer of protection.
One of the most popular platforms for purchasing Bitcoin is an exchange. There are many options available online, so it’s really a case of finding what works for yourself. If this is your first foray into the world of Bitcoin, then you will need to create an account on one of the available exchanges such as coinbase, for more information read this Coinbase review. This normally involves stating your name and email address, although different platforms may ask for different information.
Once you have finished setting up your account, you will then need to add a bank account. This is because you will need to purchase Bitcoin with you fiat tender, and then have it converted. It works in a similar way to foreign exchange. If you don’t want to add your bank account, then there may be other options available, such as adding your credit or debit card.
If you’re new to a particular platform, then it’s likely you will have limits set on your account when it comes to purchasing Bitcoin. However, these limits normally increase once you have become a verified member.
The price you pay for your Bitcoin will vary, but in most instances, the platform you use will give you the amount of Bitcoin you will receive for your fiat tender before the purchase is made.
Getting Paid in Bitcoin
If you’d rather get paid in Bitcoin, then this is also a possibility. While there are many merchants who use the cryptocurrency for their business, it won’t always be the case that they can pay you in Bitcoin. Of course, there will be those who can, but this is likely to be a very small demographic, so we need to look at a solution that’s going to serve us well moving forward.
There are companies available who will provide you with a basic bank account for your wages to be paid into. These details are then passed onto your employer, and the details will be similar to that fo a generic bank account. However, the main difference here is that the company will transfer the funds into Bitcoin, and automatically send the payment to your wallet,
You may ask yourself why you can’t just carry out the purchase yourself. The service is set up for those who work, and often means that they’re not subjected to the same fees that someone making a one-off purchase would be. It’s always worth doing your research to ensure that a particular solution is going to serve your purpose, but if you’re looking for a reliable and easy way to convert currency into Bitcoin, then this is an avenue worth investigating.
Purchasing Bitcoin Offline
This is one of the least popular methods, as there can be some risk involved. However, if you’re able to safeguard yourself, then you could find some bargains. There are several platforms that look to match up those selling Bitcoin with those wishing to make a purchase. Rather than carrying out the transaction online, the seller and buyer may wish to meet up to discuss the matter in more detail. While this is great for some, it can also be a breeding ground for the more unsavory, so we need to ensure we have our wits about us.
Treat the transaction like you would when meeting any other stranger in public. Ensure you choose a public place, let people know of your whereabouts and if possible, take a friend along with you.
This may all sound a little worrying, but it’s simply a case of being safe than sorry. Unfortunately, we’re not able to vet anyone before we meet up with them, so we need to remain cautious when it comes to money and strangers.
There are many avenues available when it comes to obtaining Bitcoin, it’s simply a case of finding what works for us. However, before making any transactions, it can be a good idea to become familiar with the currency as well as the way it is used.