Bitcoin has become an appealing type of virtual currency in recent time. It is powerful, universal and safe.
The fact that you can mine your own bitcoins is appealing. However, you’d have to get a massive computer that generates loads of energy or computing power in order to mine some.
You’d have to build it from scratch and acquire a graphics card that is extremely powerful and may not work with other functions in mind. This can be rather troublesome as it can take an extremely long time for one single computer to mine a single bitcoin.
Fortunately, it is not too hard to buy bitcoins nowaday. In this article, we are going to take a look at how you can buy bitcoins.
Find a Proper Exchange
To start, you can buy bitcoins through a trusted exchange like CEX.io. These are a type of entity that will provide you with solutions for buying bitcoins – one of the options available for you to invest in them.
Set Up a Wallet
After you have found a trusted exchange, you will need to set up an account. Your account will include a wallet that allows you to securely send/receive your bitcoin in/out.
You can then deposit money into your account. This can come in the form of any kind of currency you are interested in. Typical exchanges can support a majority of national currencies from around the world.
Types of Wallets
There are various types of bitcoin wallets. In order to select the right wallet, you have to search for a specific kind of bitcoin wallet you will use. There are three particular types of wallets to choose from:
- Software Wallet – A software-based program can be installed on your computer to help you secure bitcoins. These include programs like BitGo, Electrum, Armory and Coin.Space.
- Online Wallet – An online service can also help you with storing your bitcoins. This often comes from an exchange.
- Vault/Hot Wallet – A vault service can also help keep tabs of your bitcoins in an offline environment. This may include handling documents and points showing that you legally own certain bitcoins.
All of these options are appealing but you have to watch or keep security in mind. The last thing you’d want is for your electronic data concerning your precious bitcoins to become corrupted and/or potentially lost/stolen.
Buying Actual Coins
The money you have deposited can now be utilized to buy bitcoins. You can then convert your money into bitcoins that may be used for a variety of purposes.
In most cases, you will need enough money to buy one full bitcoin so you can have full ownership over that singular coin.
A Word of Note
Be advised that some exchanges will provide you with
straightforward actual bitcoins while others will only allow you to invest in them. The number of actual bitcoins that an exchange holds will vary by each option from exchange to exchange.
Therefore, you might be spending money on a bitcoin in some places but you’d only have the rights to invest in the value of that coin. Check on this carefully before signing up with any exchange so you can ensure you’re actually getting real bitcoins and not just an investment in one’s (bitcoins) value.
Like with any other currency, the value of a bitcoin will vary. Be sure you check on the value before buying a unit.
While you are at your bitcoin exchange, you will be able to review the cost of bitcoins. The cost will vary based on what the market says. Some bitcoin exchange sites may provide you with a simple or comprehensive chart(s) showing historical data on a bitcoin’s value, thus helping you make smart decisions about when and/or if you should invest at the chosen time you want to buy.
Always be sure to check on the value reports on bitcoins carefully. You have to ensure that you’re only dealing with bitcoins when you know you can afford to have them or when you know that the market for them is strong.
What About Cards?
You could buy bitcoins through pre-paid cards provided to you by a bitcoin exchange.
A card comes with your name on it which can then be used to secure crypto and fiat currencies alike. You can get your currency exchanged into bitcoins that you can fully own a card with ease.
There are a few key aspects of watching for when finding a card:
- These cards quite often have various fees applied. These are to cover the costs associated with maintaining them.
- You can easily buy a Bitcoin with one of these cards and use that bitcoin’s value at many retailers and service providers. However, you will more than likely need the full value of the bitcoin on hand before getting access to it. You cannot buy just a portion of a bitcoin in most cases.
- While typical cards are available for use online, the potential for clients and retailers to accept them will vary. This is especially due to how some cards might not have the backing of major credit card providers like Visa or American Express.
- The types of currencies supported by such cards are different among each choice. The American dollar, British pound and Euro are typically supported the most.
- The process for converting between individual currencies is different on each card. Some cards might allow you to convert money into its value in bitcoins automatically with transactions based on the current exchange rate. Others may require you to exchange your funds into a certain currency before use.
- The cards more often offer rewards, found on your card. These include cash back rewards that pay you back for purchases made with a card. These Rewards can be then used to acquire bitcoins.
- You may also order a no-name card that provides you with added privacy when making transactions with that card. The fees for those cards might be higher due to the inherent convenience involved.
It’s not too hard to buy bitcoins today. Whether it entails going to an exchange or even getting a card that allows you to receive bitcoins, you will have an easy time finding this great currency.
Be sure to monitor your activities and choose secure options when using your bitcoins. Don’t forget to observant if any spot you are receiving bitcoins from someone, they will either provide you with actual bitcoins or just an investment in them.
Were these tips helpful? What is your favorite wallet? what exchanges have you used? Feel free to leave your feedback in the comments section below.
Featured image courtesy of Pixabay