Bitcoin is one of the most popular cryptocurrencies used around the world. If you are looking to buy some BTC, there are many different options to consider. You can use Coinbase, Changelly, Bitstamp, Kraken, LocalBitcoins, Paxful, Gemini, itBit, Circle, etc. There are even apps like Cash App that allow you to purchase bitcoin instantly. In addition, you can purchase cryptocurrency via credit card, debit card, PayPal, Amazon Payments, Apple Pay, and Dwolla.
What Is Bitcoin?
Bitcoin is a type of digital currency or cryptocurrency that debuted in 2009 and really caught fire in 2017 with its dramatic rise that year. Bitcoins are created, or “mined,” when computers that organize the currencies process and legitimize transactions. They’re the coins we use to buy stuff online.
The currency uses a decentralized network of thousands of computers to manage everything — a distributed ledger called a “blockchain” that tracks transactions in the money. It’s like a giant public record of every transaction ever conducted in the currency. And the network keeps track of everything, making sure the money isn’t being used fraudulently.
And the whole thing works without a central authority. There’s no government agency that controls it. It’s completely decentralized.
How Does Bitcoin Work?
Bitcoin is a digital currency that was invented in 2008 by Satoshi Nakamoto, a pseudonym for someone or something unknown. Bitcoin works like cash, except it exists entirely online and isn’t controlled by banks or governments. In fact, no one controls it—it’s decentralized. This makes it difficult to trace, track and shut down.
The network that supports bitcoin is called the “blockchain.” There are thousands of copies of the blockchain stored around the world, and every transaction gets recorded in a public ledger known as the “block chain,” where everyone agrees what happened.
To use bitcoins, you download software to verify and make money off the transactions. You’re rewarded with bitcoins for doing so. To keep the system secure, the software requires people to solve complex math problems called “proof-of-work” puzzles. These puzzles take a lot of computing power, and the person who solves the puzzle first is awarded the next batch of bitcoins.
Proof-of-work is how the entire bitcoin network knows whether a particular address belongs to a valid owner. If the owner tries to spend his coins twice, he’ll run into trouble because there’s no way to know whether he owns those coins or just stole them.
Where To Buy Bitcoin
If you’re looking to invest in cryptocurrencies like bitcoin, you’ve probably heard about Coinbase. But while it’s easy enough to sign up and buy digital currency directly through Coinbase, most people aren’t ready to dive into trading just yet. Instead, many investors prefer to start small and work their way up. For beginners, buying bitcoins or another cryptocurrency isn’t nearly as daunting as it might seem. In fact, it’s easier than you think. Here’s how to buy bitcoins.
How to Buy Bitcoin
If you want to start investing in cryptocurrencies like bitcoin, here are five popular methods to choose from.
1. Coinbase
Coinbase makes it easy to buy, sell and store digital currency such as bitcoin. All you need is a bank account. To set up an account, you’ll need to provide personal information like your name, email address and phone number. Once you’ve done that, you’ll be able to purchase bitcoin, etherium, litecoin and stellar lumens.
2. Gemini
Gemini is another popular option for buying bitcoin. Like Coinbase, Gemini allows customers to deposit money into a brokerage account and use it to invest in virtual currencies. However, unlike Coinbase, Gemini doesn’t require investors to have a bank account. Instead, users can fund their accounts via wire transfer, credit card, cash, debit card or SEPA bank transfer.
3. Kraken
Kraken is one of the oldest exchanges around, having been founded in 2011. It’s known for being fast and reliable, and is generally considered one of the best places to buy bitcoin. Kraken accepts payments via credit cards, bank transfers, Paypal, WebMoney, OKPay, Perfect Money, Dwolla, Advcash, Amazon Payments, iDeal and Western Union.
4. Local Bitcoins
LocalBitcoins is a peer-to-peer marketplace where people trade bitcoins directly with each other. The site was launched in 2010 by Finnish programmer Ville Peltola. Users post ads listing what they’re selling (like bitcoin) and how much they’re willing to pay. People who want to buy can contact sellers directly.
5. Bittrex
Bittrex is a US-based exchange platform that was founded in 2014. It offers more than 100 cryptocurrencies including bitcoin, Ethereum, Ripple, Litecoin, Stellar Lumens, Dash, Monero and ZCash.
Where Can I Spend My Bitcoin?
You can spend your bitcoin at any business that accepts traditional payment systems. Some examples include:
Amazon
Overstock
Newegg
Microsoft Store
Best Buy
Apple Store
CVS
7-Eleven
Staples
Toys R Us
Walmart
Bitcoin is also accepted by some merchants on websites like Bitpay and Bitnet.
How To Buy Bitcoin On A Crypto Exchange
To buy bitcoin, you must first deposit fiat currency into an account with a cryptocurrency exchange. You might use a credit card, bank transfer, PayPal, wire transfer, etc. Once you’ve deposited funds into your account, you can start trading cryptocurrencies.
When you’re ready to sell your bitcoins, you’ll likely want to withdraw them to a self-categorized wallet. A “self-categorized wallet” is one where you hold the keys to your own money, rather than having someone else do it for you. This way, you can manage your own bitcoin holdings without needing to rely on anyone else.
The most popular wallets are desktop apps, but there are plenty of mobile options too. For example, here are three popular Android wallets: Coinbase, Blockchain.info, and Mycelium. There are also many web-based wallets, such as BitGo, BlockCypher, Electrum, and Xapo.
Here’s the typical flow for selling bitcoin from an exchange. First, you log onto your account and select how you’d like to receive your coins. Then you’ll enter the amount of bitcoin you’d like to sell. Finally, you’ll choose whether you want to pay a fixed price or wait for the best offer.
You’ll see the current market rate and the total cost of each option. If you decide to go ahead with the sale, you’ll confirm the payment and send your coins to the address indicated.
How to Buy BTC With PayPal
If you want to purchase Bitcoin with PayPal, it’s pretty easy. All you have to do is go to Coinbase and sign up for an account. Then, log into your Coinbase account and select “Buy/Sell Cryptocurrencies.” Once there, you can choose to pay with a credit card or bank account. In this case, we’re going to use a bank account. Click on “Add Funds,” enter your information, and add funds. After that, you’ll see a list of payment methods. Select PayPal, fill out your email address, and confirm your payment method. Now, you’ve successfully purchased Bitcoin with PayPal.
How to Buy Bitcoin With a Credit Card
The best way to buy bitcoin with a credit card is to take out a personal loan. This option is usually much cheaper than borrowing money from a bank or lending institution, and it gives you complete control over your funds. However, there are some drawbacks to this method. For example, lenders usually require collateral for loans, meaning you’ll need something else worth more than what you’re borrowing.
You could sell goods online and accept payment in bitcoin — but again, this requires trust in someone besides yourself. If you don’t know anyone trustworthy, you might want to avoid this approach altogether.
Another option is to open a Coinbase account and deposit fiat currency into it. You can transfer money directly from your bank account to Coinbase; however, this process isn’t free. Fees vary depending upon how much you send, but most range from $5-$10 per transaction.
Finally, you could simply download one of many wallet apps like Mycelium Wallet, Electrum, Jaxx, etc., and store your coins offline. Once you’ve done that, you can load up your app with the amount of bitcoin you’d like to spend, enter your PIN code, and make a purchase.
Start Investing In Bitcoin Today With Coinbase
How Much Bitcoin Should I Buy?
The crypto market is volatile. Some people say it’s too risky to invest in digital currencies because you never know what price you’ll see next week. Others argue that they’re worth buying now while prices are low. But there’s one thing everyone agrees on: You shouldn’t put more than five percent of your total investment into cryptocurrencies.
Experts generally agree that cryptocurrencies shouldn’t make up more than 5 percent of your portfolio. “You don’t want to take a large chunk of your money and place it in something that might lose value,” says Charles Hayter, CEO of CryptoCompare.com, a site that tracks trends in the industry. “If you do that, you’re putting yourself at risk.”
Bitcoin, the biggest cryptocurrency by market cap, is often cited as being a good candidate for inclusion in a portfolio. It’s the most popular coin, and it’s had a lot of success over the years. In 2017 alone, the currency rose from $1,000 to nearly $20,000 — a gain of around 2,700%. And since then, it’s fallen about 75%, hitting just under $8,000 last month.
But even though Bitcoin is down, it’s still worth investing in. As Hayter explains, “There are lots of different coins out there, and they all offer different benefits.” For example, he points out that Ripple, another big player in the space, offers faster transactions than Bitcoin does. So if you’re looking for speedier transfers, Ripple may be a better bet.
Another factor to consider is how much you already spend on cryptocurrencies. If you use Coinbase to buy and sell, you’ll pay a transaction fee every time you move funds. This adds up quickly. If you’re trying to save money, you may find it easier to simply hold onto your cash rather than trade it in for cryptocurrencies.
And finally, remember that cryptocurrencies aren’t backed by anything tangible. They’re not stocks, bonds, real estate or gold. While they’ve gained popularity among speculators, they haven’t really caught on with mainstream consumers. Many people think of them as investments, but they’re actually closer to gambling tools.
Store Your BTC
Cryptocurrency is becoming more popular every day. But how safe is it? If you store your cryptocurrency on a hot wallet, like Coinbase, you are putting your money at risk. Hackers could steal your funds. And some people don’t want to expose their coins to the internet at large. So what’s the solution? Many cryptocurrency enthusiasts choose cold storage solutions, such as hardware wallets, to keep their funds secure. These devices allow you to access your digital currency while keeping your coins out of reach of hackers.
What Can You Buy With Bitcoin?
Bitcoin isn’t just used for making purchases online, it’s also accepted for purchasing goods and services offline. Here’s a list of some of the most popular businesses that accept Bitcoin as a form payment.
The Bottom Line
Investing in cryptocurrencies can be an exciting way to diversify your portfolio. However, before you start spending any of your hard-earned money, it’s important to understand the risks involved. Before you decide whether or not to invest, here are three things you should consider.
First, cryptocurrencies are extremely volatile. Prices have gone up and down dramatically in recent months. The value of one Bitcoin was less than $1,000 in January 2018. Today, it’s almost $19,000. That means that you could lose everything you invested in a single day.
Second, cryptocurrencies are unregulated. There are no government agencies overseeing the industry, so investors need to do their own research when choosing which currencies to invest in.
Finally, cryptocurrencies are new. Most people who invest in cryptocurrencies today will likely see their returns diminish over time. Some experts believe that we’re only seeing the beginning of this technology.
If you’re interested in learning more about cryptocurrencies, check out our guide on How to Invest in Cryptocurrencies. We explain how to purchase Bitcoins and other major cryptocurrencies including Ethereum, Litecoin, and Dash.
Should I Invest in Bitcoin?
Bitcoin is one of the most exciting assets in the world today. Its value has skyrocketed over the last few months, making it a hot topic among investors. While many people are interested in getting involved in digital currencies like Bitcoin, there are some things to keep in mind before jumping headfirst into this market. Here are three reasons why you shouldn’t invest too much money in Bitcoin.
1. Volatility
The biggest risk associated with Bitcoin is volatility. As mentioned above, the value of Bitcoin has increased dramatically since early 2017. In fact, during 2018 alone, the currency rose about 30% in value. However, it could just as easily drop 20%. This makes it extremely difficult to predict how much a single coin will cost in the future.
2. Lack of Regulation
As of now, there isn’t a lot of regulation around Bitcoin. There aren’t even clear guidelines for what constitutes a “real” Bitcoin. Some coins are considered legitimate, while others are simply scams designed to take advantage of unsuspecting individuals. Because of this lack of regulation, it’s hard to know what you’ll actually receive if you buy Bitcoin.
3. High Risk Investment
Another major issue with investing in Bitcoin is that it’s still relatively unregulated. Many countries, including China, India, South Korea and Japan, have banned initial coin offerings (ICOs). These ICOs are similar to IPOs, except that they raise funds for startups rather than publicly traded companies. Without proper regulations in place, it’s very easy for scammers to use these illegal fundraising methods to steal millions of dollars from investors.
