The use and trading of cryptocurrencies is a phenomenon that has globally been on the rise for some time now and the first ever cryptocurrency launched, namely Bitcoin, is nowadays literally everywhere, while hordes of people are currently interested in how and where they can buy Bitcoins. Truth is that this has now become easier than ever before, but exactly because there are now several platforms and options, discerning which is the most appropriate avenue for you, especially if you are completely new to the world of Bitcoin and cryptocurrencies in general, may be a confusing and daunting task.
The team at start-business-online, once again comes to the rescue through this ultimate guide on the purchase of Bitcoins, covering every aspect and aiming to equip you with all the necessary knowledge and information to be able to decide which are the best options for you. Read through and gain the insight and confidence to start investing in Bitcoin today!
Before proceeding to buy Bitcoin, you need to know what it is. Abbreviated BTC, Bitcoin is a digital asset used like any other currency, allowing you to buy Bitcoin, sell Bitcoin, make payments and purchases through Bitcoin and even make transfers via Bitcoin. Contrary to fiat money, i.e. money issued by governments, Bitcoin is a completely digital currency whose payment system is not controlled by any government, and it was the first of its kind. Bitcoin’s payment system is stored in a secure online database, called blockchain. Bitcoin is not printed like traditional currencies, but instead created by computers linked to this database. These computers verify the Bitcoin transactions and are rewarded with new Bitcoins for doing so, in a process called mining, which is how new Bitcoins are being generated. Every Bitcoin made is recorded and stored in a digital ledger and the Bitcoin network also records and stores all transactions made in Bitcoin.
Though you may be eager to jump on the bandwagon, there are a few important facts to be aware of, before proceeding to make your first Bitcoin purchase:
Feeling ready to go out and buy your first Bitcoin and can’t wait to read where and how to do so? Well, sorry but you need to wait just a tiny bit more, because the essential first step in the process is actually buying a wallet for your Bitcoin!
It is true that due to its boom in recent years the cryptocurrency market is now packed with several dazzling coins that you could choose to purchase. Popular coins that you will find on offer in most crypto exchanges include Ethereum, Ripple and Litecoin, to name but a handful.
What is difficult when you are a beginner though is knowing which one to choose and you may well end up make the wrong decision. Our advice therefore, especially for those with no previous experience in cryptocurrencies is to start off with purchasing Bitcoins first.
Besides being the oldest cryptocurrency around, Bitcoin also boasts the biggest market cap around as well, i.e. there are more Bitcoins on the market in total, than any of the other cryptocurrencies. Launched in 2009, Bitcoin has been in use for over a decade now and it has worked its way up, consolidating its presence, acquiring a good reputation and being on a constant improvement of its features. This gives Bitcoin a competitive edge over other newfound cryptocurrencies and thus makes it the most suitable for beginners to purchase when first entering the cryptos world.
Moreover, Bitcoin can be traded on all platforms and it enjoys great availability in over 90% of the countries in the world. As a result, it is now widely accepted across the globe as a legit payment method and people all over the world are using Bitcoin in all types of transactions, from buying a house or a car, to paying their college fees or for having lunch at a local restaurant. Indeed, Bitcoin’s popularity and widespread use is perhaps its biggest advantage and renders it a truly versatile digital asset. It is therefore ideal for novices to buy Bitcoin because they can easily use it to replace fiat currency and also easily convert it back to fiat currency if the need arises.
What is also great and works in favour of Bitcoin as the preferred digital currency for beginners is that, as shown above, it is no longer reserved for the few who are experienced and tech savvy, but can be purchased by anyone with relative ease.
If you are preparing to make your first Bitcoin purchase it is only natural to have concerns about whether doing so is safe, and it is also true that the crypto industry is constantly under attack by fraudsters and hackers. This however also means that credible crypto exchanges take all measures to secure your transactions and personal details, so if you decide to buy Bitcoin via an exchange simply make sure it is a legitimate, credible and secure one.
Once you buy from a trusted source, the next step is securing your Bitcoin wallet with the same, if not more care, that you would secure your physical wallet containing your fiat money. This is why we have repeatedly stressed above the need to have such a wallet and prefer wallets that are not constantly online, as this makes them more vulnerable. Of course, you should also choose your wallet wisely as well and prefer those with enhanced security features. When using non-custodial wallets, it is also extremely important to make sure you do not lose your keys. Private keys are great since only you know the passcode that gives access to your wallet, but the problem is that if you misplace or lose them, none will be able to help you regain them.
What is also prudent to keep in mind is that bitcoin transactions are not anonymous, in the sense that they are all recorded and stored permanently on the public Bitcoin network. Of course, the transactions are recorded per Bitcoin address, which is an encrypted public key and thus you cannot directly be identified and exposed as a person, but it does entail that you should be careful with using your Bitcoin address in a safe manner.
In lieu of a conclusion, and since by now you know both why it is a good idea to buy Bitcoin, how to go about doing so, and how to keep your Bitcoins safe, let us clarify a few other logical queries you may have before actually proceeding to make your first purchase.
As with every other financial and trading transaction, if you are a novice the prudent and wise thing to do is to start off with small amounts and increase your purchases as you go along, once you feel comfortable and confident enough to do so. The good news is that most reliable cryptocurrency exchanges allow you to buy your first Bitcoin with just a handful of dollars, as low as one dollar actually.
That being said one dollar will not obviously buy you one Bitcoin, but this is not a problem since you can purchase less than one Bitcoin, since Bitcoins are divided in Satoshis, named after the currency’s alleged, unknown, original creator. So, the smallest amount you can buy is a satoshi, which is 0.00000001 bitcoin!
Once you get the hang of it all and your Bitcoin purchasing journey is a successful, smooth and exciting one you might decide that you want to purchase large amounts of Bitcoin. The first solution would be to set up accounts in multiple crypto exchanges and buy from more vendors, while if that will not suffice you can always resort to specific brokers and exchanges that deal with larger amounts since they offer Over the Counter services.
Hoping our guide has inspired you to start buying Bitcoins today, we are always just a message or email away if you need further guidance and advice.
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