Beginners Guide To Buying Bitcoins
Beginners Guide To Buying Bitcoins
Bitcoin is digital currency that has become so popular. Various large businesses and companies are using Bitcoin for lots of purposes. There are lots of websites or online retailers that accept Bitcoin. It has become so popular in so many countries but still some people are not aware about it.
Here in this guide, we have mentioned some important things that you should know about Bitcoin. Generally some people have little knowledge about Bitcoin and wonder for buying options for it. There are so many different ways available to get Bitcoin.
Getting a Bitcoin wallet
You are free to buy any amount of Bitcoin but you need Bitcoin wallet for it. You might not hear about it, if you are newbie. This is a program or software that you have to download and install to your device that you are going to use to manage your Bitcoin. You have to store your Bitcoin in this wallet. When you buy it from exchange, you would have to move them to your personal Bitcoin wallet. There are various types of Bitcoin wallets available that you can use to manage your Bitcoin.
Some important and popular Bitcoin wallets include:
- Independent Bitcoin Wallet
- Third Party Bitcoin Wallet
- Multi-user Bitcoin Wallet
- Paper and other Physical Wallet
Factors to consider before choosing the right Bitcoin wallet:
Well there are more than 20 Bitcoin wallets are available online, but you have to choose the right one that meets your need. You have to consider lots of factors in order to choose the right Bitcoin wallet for you.
- Frequency of use: Receiving Bitcoin may be same for all types of wallets but you have to consider frequency of sending Bitcoin. If you are a heavy Bitcoin user and you have to send Bitcoin frequently, then you should look for a Bitcoin wallet that is always accessible to your smart phone. Those people who just buy Bitcoin for long term investment, they can go for independent Bitcoin wallet.
- Amount of Bitcoin: If you are going to buy small amount of Bitcoin, you can install any type of Bitcoin wallet as there is no big risk is associated with small amount of Bitcoin. But if you are going to buy big amount of Bitcoin, then you should look for safe wallet such as multisig or independent hardware wallet.
- User Friendliness: you should look for a user friendly wallet that can make it easy for you to send and receive Bitcoin.
Choose a payment method
You will get lots of payment methods while purchasing Bitcoin. These payment methods include credit cards, debit cards, PayPal, Skrill, cash, wire transfers and much more.
- Cash: Bitcoin transactions that are done with cash may be cheaper and quick. Some websites connect Bitcoin sellers and buyers. You can physically meet the person for face to face Bitcoin transactions, but you never know the person whom you are dealing with. You have to make safe transaction and protect yourself when it comes to cash.
- Wire Transfer: many sellers prefer you pay them by wire transfers. Once the money receives by seller, it can’t be charged back. Transaction can take longer time.
- PayPal and Skrill: PayPal and Skrill’s guidelines are against selling Bitcoin and accept credit in return, but some hacks can be done to purchase Bitcoin with PayPal or Skrill balance.
Credit cards and debit cards: This is the common payment method and many Bitcoin exchange allow you to buy Bitcoin by using your debit or credit cards.
Choose a Bitcoin exchange
You need to choose Bitcoin exchange carefully as this is the place from where you will buy Bitcoin. There are different types of exchange including trading platforms, brokers, non executable exchange, direct trading exchange and much more. You should examine the exchange before choosing it. You can use Google to search exchange and its reputation. You can write name of exchange + reviews in search bar of Google. You should go through the top results and read about us page of exchange. If you want to use any exchange, you can ask on largest forum of Bitcoin (Bitcoin Talk).
Purchasing a Bitcoin:
Again, there are lots of ways to buy Bitcoin. You can buy them using coinbase as it makes it easy to convert local currency into/out of Bitcoin. You just need to get registered with coinbase. Once you create a Coinbase a/c, you will get a secure place to manage your Bitcoin. You can connect your bank a/c with coinbase. You may have to go through some verification processes but once verifications completes, you will be allowed to purchase Bitcoin. You can also buy Bitcoin by using CoinMama, Coin.MX, Circle and much more.
How to avoid frauds:
You have to follow some rules in any Bitcoin purchasing process. Here we have mentioned these rules below, check them out:
Check the credibility of seller
If you are purchasing Bitcoin from an individual, you have to validate the reputation. You can do it by reviewing his/her trade profile. You can also esquire about trader’s social network profile to know more about him/her. If you are buying it from any Bitcoin exchange, then check reviews and name on Bitcoin talk forum to get valuable insights.
Bitcoin is untraceable as this is digital currency. There may more chances of fraud as compared to cash. You should document your communication with Bitcoin seller in proper way so that you can use it to prove any allegation.
Use Bitcoin Escrow Service:
If you are conducting any large transaction with any individual, you should use a Bitcoin escrow service. This service can be useful in order to hold on to your funds till you get confirmation of required amount. This is a simple way to keep your money in custody of third party till you get your Bitcoin. This is all about the Bitcoin and its safe purchasing. Hope you find this Bitcoin guide informative and beneficial