2017 has been a good year for bitcoins. The dynamics of bitcoin trading have increased tremendously. So many people are getting interested in this digital currency but they do not know how and where to start from. With the increasing demand for bitcoins, it looks like there is a lot for bitcoins in store.
The article will guide you on how to successfully buy your first bitcoin.
Step 1: Look for a Good Bitcoin Wallet
Bitcoins are stored in specific digital wallets. They are stored here as they await spending or exchange for another currency. There are plenty of wallets nowadays that can be easily downloaded and installed on personal computers or even mobile phones. Wallets are differentiated by their features, their safety and the platforms upon which they can be used.
It is therefore important that you choose one that works best for you. It is highly recommended that as a beginner, you start with a simple to use wallet that allows you to transfer funds easily. They can be downloaded for free.
For beginners, the following wallets are highly recommended:
This is the most popular and simplest wallet to use. It gives its users some insurance on the bitcoins stored. You can easily download it on Playstore.
This is another complex, yet popular mobile phone wallet that is mostly used together with advanced technologies such as Trezor and Tor hardware wallets.
This is mostly used for desktop computers. It offers its users individual encryption keys. This is more suited for people interested in storing large amounts of bitcoins. It is also among the safest.
Step 2: Select a Good Bitcoin Exchange
You need an exchange if you are interested in buying bitcoins without the help of a broker. There are plenty of exchanges where buying and selling takes place. However, not all the exchanges out there are trustworthy.
Some are also very limited in terms of services offered on their platforms. It is therefore very important that you select an exchange that best suits you. When comparing different exchanges, remember to consider the fee charged and the methods of payment that are allowed for transacting in bitcoins. This is because only a few exchanges will offer the option of directly turning your bitcoins into cash.
The following are some of the most reputable exchanges that you might consider:
This is highly recommended if you are buying bitcoin for the first time. Its user interface is very simple. It is very easy to use and has a very good customer care. The fee is also smaller as compared to other exchanges. You can access this through your mobile phone or through your computer.
This is recommended if you have some little experience in trading. It offers its users live exchange rates. It also has basic buy and sell options. The downside, however, is that it has limited payment options.
Step 3: Choose a Method of Payment
Depending with what the exchanges are willing to use, you will have several payment options. Most exchanges accept credit card and bank transfers. You could also use other forms of payment such as Skrill or PayPal. Coinbase allows most of these methods of payment. With bitcoin ATMs, you can exchange your bitcoins for cash. However, these ATMs are only available in a few select cities round the country.
Step 4: Buy and Store Your Bitcoins in Your Wallet
Most exchanges will let you know the number of bitcoins that you can buy for a specified amount of cash. At the moment, one bitcoin is worth more than $8,000. This means that if you cannot afford to buy a whole bitcoin, you have the option of buying a fraction of it. For instance, if you had $500 today, you would be able to buy 0.0625 bitcoin.
After buying the currency, you then transfer it to your address on your wallet. A small fee might be levied for this transfer. Once you have made a payment at the exchange and transferred your bitcoins to your wallet, you should be able to check your balance any time. Every transaction is recorded in a blockchain. Due to the large number of trades taking place at any given time, the transfer of bitcoins might take some time before it reflects in your wallet.
Step 5: You Can Now Trade With Your Bitcoins
Once the bitcoin is in your wallet, you can become a cryptocurrency trader. Other people buy bitcoins as an investment, and not as a means of trading. With your bitcoins, you are now free to transact, buy or sell bitcoin or even make payments to retailers that accept payments in this digital currency.