How to Buy Bitcoin? a complete guide for beginners
Are you thinking to buy Bitcoin? How to buy Bitcoin? Every day on the social media, there are so many news about Bitcoin. It has been a top trending topic in the world.
So what exactly is a Bitcoin, everyone wants to know about it before investing. Here we have provided a full detailed information about why should you buy Bitcoin and Why shouldn’t buy?
Bitcoin was developed by a pseudonym Satoshi Nakamoto and it was launched in 2009 anonymously as a cryptocurrency. Since then the value of a Bitcoin has touched the sky and in December 2017, it reached $19,000 for a single Bitcoin.
What is Bitcoin?
Bitcoin is a cryptocurrency which doesn’t require any third party to control over its transactions as any national banks work nowadays.
It is completely virtual but can be exchanged with real national currencies. It was started as a universal money and has been carrying out its work as a global currency worldwide.
Being a digital form of money, Bitcoin is viewed as the future of currencies. Bitcoin is not only the digital currency but it’s becoming popular due to anonymity which doesn’t take users private information but only takes their wallet ID.
Bitcoin has its own wallet to keep Bitcoin which is a complete online wallet and it tracks its data with blockchains.
How Bitcoin works?
Bitcoin is a digital online currency which works in a peer to peer (P2P) network combination of computers.
It works according to the protocol of blockchain. You have to install a Bitcoin wallet on your phone or PC, so that you can use it normally as emails are used to transfer mails, in similar way Bitcoin also works.
A Blockchain algorithm is used which is like an open ledger for tracing the transactions carried out through the Bitcoin. All successful transactions are recorded in blockchains which are protected by the cryptography system.
Bitcoin is transferred from one user’s wallets to another, and that also gets included in the blockchain. For this transaction, a private key is needed which acts as a digital signature to prove the transactions is carried out through owner’s wallet.
And after the process has started, that signature prevent the transactions from being stopped as they are encrypted with it and cannot be hacked.
Related: Related: PIVX Price Prediction: Best Reasons to Buy PIVX in 2018
Why it’s important nowadays?
We all must have known, since the development and launch of Bitcoin, its value has raised unexpectedly and dramatically.
The world is getting digital and with the development of the Internet, every corner of the world has seen and known about each other.
The Internet changed many things and brought positive movements and with the development of social media, every people in the world tried to feel each other’s feelings, tried to help in fundraising in calamities, supported many movements and people.
The Internet changed the way of life with online business and payments, now the time has come it is changing the way of the transaction with Bitcoin. It is changing people’s way of day to day transactions.
The Bitcoin has removed the third party, so buying and ordering goods and services with it will be cheaper than the regular money. It has become global currency and moving money between different countries has become efficient and inexpensive.
But it’s also known fact they are volatile and has high risk. So it’s better to take consultation with the business advisor before investing in Bitcoin.
Before buying you must know these things about Bitcoin:
Bitcoin has always been a controversial currency since its development. Here are few things that you must have to know about before investing in it.
- Controlling center
There’s nobody who owns it or control over the transactions of Bitcoin. It works on its own blockchain system. The National Banks of the country or central Banks do not suggest to invest in Bitcoin as it has high risk and is underdeveloped. It is not regulated by any organization or agency.
Though it is called anonymous, it is actually not completely anonymous. The blockchain preserves all the transactions data and can be viewed by anyone.
Blockchain works as public ledger which provides every transactions detail which can be imagined as serial numbers in currency notes providing every detail of the transaction.
They are limited and only 16 millions of Bitcoin are in circulation which won’t get more than 21 million which works according to the algorithm used in Bitcoin. And it is also known that by 2040 AD, no more but coin will be produced.
Cryptocurrency like Bitcoin is very much volatile and have a high risk for investment. So it’s better to take advice and consultancy from economist and business advisor.
The price value of Bitcoin changes every day from very high values to low. The values of Bitcoin reached $19000 in December 2017 and it has reached $6200 in February 2018. So from these data, it is understandable about the volatility of Bitcoin.
Although Bitcoin has become popular worldwide and the next generation of money, it is still not legalized by most of the countries. Some countries like US, Canada, Greenland, Sweden, Mexico, etc countries European Union and G7 nations has legally accepted Bitcoins for buying goods. Some countries like Ecuador, Bangladesh, Nepal, Kyrgyzstan, etc has made bitcoin and other virtual currencies illegal and users are subjected to penalties if they use it.
Why should you buy Bitcoin?
Bitcoin has lots of pros and cons and here we have provided you required information about why you should buy it or you shouldn’t have to buy it. Here are all its pro and cons:
Pros of Bitcoin:
- Purchase through Bitcoin saves money as the sales tax are not added. There is no third party who has to pay extra tax. So it saves few bucks on each purchase.
- User anonymity will be maintained as no one can trace who has purchased using that bitcoin, only possible to know about purchases if the user, themselves want to publish their transactions. User identity cannot be found from purchase.
- There will be free from the limitations of National currencies while using Bitcoin.
- Transactions are fast and can be done easily even in international transactions, no need to wait for authorization from banks or government as no government governs the transactions, which saves both time and money of the user while transacting.
- The user doesn’t have to go to banks as every transaction are carried out online.
- Bitcoin cannot be stolen like other physical currencies. Only possible to steal if the user is forced to tell the key of the wallet or has physical access to user’s computer or phone.
- No need to worry about bank holidays, cross bordering transactions and you’re only the sole owner and administrator to use the Bitcoin as your wish.
- Bitcoin is cryptographically secured, so they cannot be manipulated by person, organization or government.
- Identity theft and payment fraud will be minimized or less while using Bitcoin.
- Many huge companies, organization, and brands allow the use of Bitcoin for transactions and purchase. Microsoft, Dell, Paypal, Amazon, WordPress, Baidu, Reddit, etc allow users to use Bitcoin for purchases. They can also buy gift cards through Bitcoin.
Why Shouldn’t You buy Bitcoin?
- Many countries have declared the use of Bitcoin as illegal. So it is not possible to use a global currency. And you might have to face penalties if you don’t follow the law of country against Bitcoin.
- Once the transactions are done, they cannot be reverted. So if anyone mistakenly sends money, there is no governing body to help to get back the Bitcoin.
- Lack of knowledge about digital currency, people are unaware of its use. They cannot understand how to properly take benefit from this cryptocurrency.
- It is totally highly risky to invest in volatile and underdeveloped currency. It has reached near $19000 in December 2017 and reached $6200 in February 2018. So it’s a risky investment to carry on.
- High risk of loss due to human errors, hardware loss, and hard drive failures, they cannot be controlled and the refund will be not possible. If the ID or passwords are lost, it cannot be retrieved.
- These types of cryptocurrency are also used for illegal activities as no one can trace the identity of the user and has a high risk of misuse of its function.
- It is less used and application of Bitcoin for general purpose payment method is not mostly supported by companies worldwide.
- Once the transactions are carried out, it cannot be stopped or changed.
- Few companies are stopping the use of Bitcoin as a payment method to their services as stating Bitcoin as a volatile and unstable currency.
Today’s Bitcoin price:
How to buy Bitcoin?
Buying a bitcoin is not a difficult task and can be easily done. There are different ways to buy Bitcoin, you can buy Bitcoin with cash or with debit and credits cards or even with wired transactions. Buying a Bitcoin is quite expensive for normal people but a good news is you can buy as much as you can according to your budget. A single Bitcoin can be divided into very small numbers.
To buy Bitcoin first of all you need to have a Wallet, wallet in Bitcoin works like the real wallet but it keeps Bitcoin in a secured way only accessible to the owner of the Wallet ID owner.
You can use any online third-party service to have Bitcoin wallet according to your country. Some of the popular services are Coinbase, Blockchain.info, Xapo which are available both on mobile and desktops.
- You have to sign up to any of these service providers as you sign up to any normal websites and set up a password.
- You need to verify your email ID by clicking the link in your inbox.
- You will be asked to provide your phone number for two-factor authentication, else you can also use Google authenticator for this which is a safer method for protection of your wallet from hackers.
- You will ask for verification of ID in which you will need to provide a photo.
- Then you have to select add payment method option, you need to connect your bank account, or credit or a debit card for this.
- Buy the amount of Bitcoin you want to buy, according to your budget.
- The purchased amount of Bitcoin can be viewed in the Account detail section in your wallet and it will remain there till you do not spend or sell them.
Even Bitcoin can be mined, it’s like digging the gold from the gold mine. But we won’t suggest you do so because it’s not an easier task, and needs the high level of computation power with specialized software and high level of Mathematics equations solving power. Even it is not illegal and nor impossible but Bitcoins are limited so maybe it won’t be worth spending the time to mine the Bitcoin.
Top Traders to Buy Bitcoin
Coinbase - Good for beginners.
BitMEX - Leading crypto trading platform.
Bittrex - High-quality exchange with a lot of coins.
Kraken - Best for worldwide exchange.
Poloniex - One of the biggest cryptocurrency exchanges.
Coinmama - Fast coin delivery.
Bitpanda - European broker.
Changelly - Swap coins securely.
Cryptopia - Exchange for small & cheap coins.
Disclaimer: It is to note that we’re not endorsing or trying to encourage the use of Bitcoin. This article is for educational purpose only and before trying to buy or use of Bitcoin please take in consideration of your local laws and risk of use. We’re not responsible for any harm or the financial loss.