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Perfect Beginners Guide Easy for Buying Bitcoins

 

How to Buy Bitcoin (BTC): Beginner’s Guide to Investing…

Bitcoin is the most popular cryptocurrency in the market and buying bitcoins is one of the most famous search requests. Everyone wants to invest in it as it has offered people great returns in the past.

Worry not. We’ve gone back to the basics with financial advisers to bring you up to speed and help you answer a question that may be burning in the back of your mind lately: Should I buy Bitcoin — and how?

 

What is a Bitcoin and how does it work?

 
Each Bitcoin is basically a computer file which is stored in a ‘digital wallet’ app on a smartphone or computer. People can send Bitcoins (or part of one) to your digital wallet, and you can send Bitcoins to other people. Every single transaction is recorded in a public list called the blockchain.

How Do I Buy Bitcoin?

As mentioned above, your most likely destination is a Bitcoin exchange (yes, you may have seen in-person Bitcoin vending machines, but these are mostly novelties).

You’ll create an account and enter a payment method. At reputable exchanges you’ll be asked for information such as your bank account details or a debit or credit card. You’ll then need to prove your identity with a driver’s license, ID or passport. After you’ve been verified, you can start buying Bitcoin with your chosen payment method, transferring it to your personal wallet and watching with greater interest as its price fluctuates.

Use Debit or Credit Card When Buying Bitcoins

One of the simplest and easiest ways to buy bitcoin is by using your debit or credit card. Most of the beginners use this method to acquire bitcoins and use them.

It is a simple process. All you need to do is enter the details of your debit or credit card and click on the buy button. The amount will be deducted from your bank account. After this, bitcoins will directly be transferred into your bitcoin wallet.

It is the most popular way people use to buy bitcoins. One of the biggest advantages of this method is that bitcoin is instantly transferred to your wallet. It really saves a lot of time.

The only drawback to this method is that the bank charges a bit high fees. But they offer an instant transfer. If you can wait a bit and don’t want bitcoins to be transferred to your wallet, you should try any other method.

Moreover, you need to give an ID to make a purchase with a debit or credit card, which doesn’t allow you to be anonymous.

 

 

Can I Buy Stuff With My Bitcoin?

 

Sure. Some vendors have started accepting it as payment. These range from small shops to a Swiss ski resort. But most people don’t really use Bitcoin to buy things, and instead use it as an investment or a store of value — in the way people purchase gold but don’t really use it to buy everyday objects.

Some skeptics doubt the cryptocurrency will become a universal currency any time soon. But Bitcoin as a means of payment got a boost this year, when PayPal Holdings Inc. announced in October that it would allow customers to use it and other virtual currencies to shop at the 26 million merchants on its network.

What About a Bitcoin Fund?

Bitcoin funds have been in the news this year, but are still relatively out of reach for most ordinary investors. In August, Fidelity announced the launch of its first Bitcoin mutual fund. The passively managed, Bitcoin-only vehicle will be made available to qualified purchasers through family offices, registered investment advisers and other institutions, according to a person familiar with the matter. Fidelity Digital Assets will custody the fund, and the minimum investment is $100,000.

This, according to Twin Cities Wealth’s Menard, means these sorts of funds are probably not right for most people. Bitcoin is normally meant to be a small portion of most portfolios. “If the minimum to get in is $100,000, and the maximum you want to allocate to it in your portfolio is 5%, you’d better come swinging with a big, fat sack of cash,” he said.

Bitcoin derivatives have also come under scrutiny this year. In October, U.S. prosecutors charged the founders of BitMEX, a crypto-derivatives exchange in Hong Kong, with failing to prevent bad actors from using the platform to launder dirty money. And beginning in January, the sale of crypto derivatives to retail investors will be prohibited in the U.K.

Direct Bank Transfers for Buying Bitcoins

Another common way to buy bitcoins is through bank transfer. It helps you save a lot of money as it charges lower fees.

 

The buying limits are pretty high, and with lower charges, it has become an attractive method that you can use to buy bitcoin online. You need to wait a bit while a bank confirms the transaction, but other than that, it is one of the best ways to buy bitcoins.

 

If you want to buy bitcoins in large quantities. There is no better option than bank transfers as the fee is quite affordable as compared to credit or debit cards.

The only issue is that it doesn’t offer a fast pace. It means you need to wait for 3-4 days for getting your transaction confirmed.

Only then bitcoins will be transferred to your wallet, which is highly inconvenient.

 

 

Bitcoin ATMs

It is a great option when it comes to buying bitcoin as it is highly convenient and easy to use. The procedure is identical to the bank ATMs where you use a debit card to withdraw cash.

 

It is a bitcoin ATM where you can buy bitcoin by depositing cash. You can place your order and receive a receipt/QR code from the machine.

 

You can use that receipt to transfer bitcoins to your wallets.

There are limited areas where you can find a bitcoin ATM, and you can use a bitcoin ATM locator to check if there is one in your area.

 

 

PayPal

You can use it to buy bitcoins, but it is not a good option as there are several terms and conditions. And it is way too expensive than other methods.

 

You should prefer it only if you are having some balance in your PayPal wallet that you want to use. Otherwise, the fees are too high, so it is not a profitable option.

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