How to Buy Bitcoins?
How to purchase bitcoins? There’s a lot of action that’s been going on in the cryptocurrency market lately, and if you haven’t been paying attention, you just might be losing out on one of the best investment vehicle that’s been made fully available to the public in a way that no other avenues of investment have ever been. If you’ve just been holding back interest only because you’re not sure about how to invest in them, then by the end of this help guide, you’ll have learnt all you need to know to set you off on your journey. Let’s begin.
How to Buy Bitcoins – Step-By-Step Guide
1. Signing Up For A Bitcoin Wallet
Before you buy your own bitcoins, the first thing you need to do is to download a Bitcoin wallet. This is what’s going to be used to access your bitcoin account. It’s more or less a number that’s matched to your account, and it allows for transfers to be made into it. You can do this through sites and apps such as Blockchain.info, or mobile apps like Bitcoin wallet for android. If you’re using an iOS device, then you could try out Blockchain bBitcoin wallet for iOS. You’ll then be prompted to fill in an online form with your basic details; a process that shouldn’t take more than five minutes.
2. Buying Bitcoins Through Regular Money
The purchase of bitcoins can be done through various means that involve the exchange of money. Such payment methods include credit card transfers, bank transfers of debit cards, and the purchase is normally done through sites referred to as bitcoin exchanges. Coinbase is a good example of such. Once the purchase is complete, you’ll have the bitcoins transferred straight to your wallet. The same process is also applied to other popular cryptocurrencies such as Ethereum and Litecoin.
Bitcoin Wallet vs Bitcoin Exchange
One thing you should keep in mind though is that the terms “Bitcoin wallet” and “Bitcoin exchange” do not refer to the same things. Its best to think of Bitcoin exchanges as something similar to foreign exchange bureaus, where you’re able to trade in your currency for another. In this case, you could be trading a BTC for USD, or the other way around. Bitcoin exchanges do allow you to use them as your bitcoin wallet, but the best way to keep your stack secure is by storing them in the latter.
Many people who happen to be new to Bitcoin trading often assume that bitcoins get stored in a wallet. The truth is, bitcoins aren’t really stored anywhere. The framework is similar to how banks handle their transactions, with banking platforms relaying codes that indicate the movement of money into and out of their accounts whenever a transaction takes place. Bitcoin balances are maintained through a series of keys that are linked to the algorithm that was used to create them.
Bitcoin Private Keys vs Public Keys
There are generally two types of keys in use here; there’s the public key, which acts as the address through which others are able to send bitcoins to your account, and there’s the private key, whose main purpose is to authenticate bitcoin transactions.
This is the private key that’s actually stored by your wallet, and it’s the key you’ll need to authorize any transaction in which you’ll be using bitcoins for payment. To even make the wallet more secure, you’re encouraged to encrypt it with a password, or even have it stored offline (cold storage).
3. Making Payments or Sending Bitcoins
Now that we’re clear on the whole concept of keys, let’s look at how they’re applied in the actual world. Say you want to purchase something, send money to friends or pay for a service rendered. You would have to access your wallet, enter the recipient’s public key, then enter your own private key to authorize the payment. The same process also applies when you intend to sell your coins through the bitcoin exchange.
Bitcoins have a characteristic that’s very similar to currencies at the foreign exchange market, in that their prices fluctuates depending on the country in which an exchange is to be done. In South Korea for example, bitcoins trade at around a 35% premium, while in India the premium fluctuates between 20% & 25%.
Conclusion on How To Buy Bitcoins
Bitcoins are slowly becoming a regionally acceptable form of making payments, and its already a highly profitable form of investment. If you’re planning on getting a few for yourself soon, we’d advise that you also try to secure your connection, since hackers and spammers may try to gain access to your account and make away with your stash. You can avoid all this by subscribing to a credible VPN provider, such as ExpressVPN. In doing so, you’ll have added an extra layer of security, and ensured that all your transaction occur within a protected digital environment.
Thank you for the info. I will probably never use it, as I never used Silk Road (and as these days, I rarely use anything but MJ), but I DO think responsible adults should have safe, convenient access to recreational drugs.
“Buying BTC through PayPal is inherently risky because PayPal doesn’t allow these kind of transactions due to the legal constraints on PayPal and the risk of money laundering.
If you MUST use PayPal (I would strongly not recommend it) to buy BTC, then do yourself a favour, register for a NEW PayPal account from a NEW IP address, in no way associated with your MAIN PayPal account (especially if you do business and rely on PayPal).
PayPal and eBay are getting smarter and able to link up accounts and usage of PayPal to individuals. If they discover you’re trading or buying BTC through PayPal you’re likely to lose your account, and possibly be banned from using the service completely in future.
My advice is, if you need access to PayPal don’t even risk it.
Instead, go to a cash BTC marketplace (such as localbitcoins) and buy your BTC with CASH deposit or bank transfer online. The BTC are held in escrow the minute you mark payment completed, and those marketplaces like localbitcoins are based on a peer trust model so you can choose a well trusted trader if dealing in cash. There’s very minimal risk of losing your cash or not getting your BTC.