Investing in bitcoins is literally as easy as purchasing anything online however most people are not aware of this because they see bitcoin as some exotic new tech concept. When you think of it, this is the reason why in spite of being over a decade old Bitcoin is still not as mainstream as it should have been.
Don`t get me wrong though, bitcoin is doing great at the moment but the concept behind bitcoin is such that it should have taken the world by a storm but it didn`t because most people simply do not understand how it works.
So in this article we are going to understand what are bitcoins and how can a common person purchase bitcoins with ease. So let`s get started
What is a Bitcoin?
A bitcoin is a cryptocurrency created on the blockchain platform. To understand bitcoin we first need to understand blockchain. In simple layman terms, blockchain is a network of computers connected with each other, that serve as the infrastructure for transactions on the block chain network. Blockchain allows for cheaper, faster and globally accessible transactions.
Bitcoin is one of the many cryptocurrencies that exist on the blockchain, although it is one of the many but it is the most well known and perhaps also the most credible one. You can use bitcoin to carry out your daily transactions with vendors who accept bitcoins and if you are looking to invest in bitcoins, then you can also invest in bitcoins and profit from the daily fluctuations or invest for the long term.
Bitcoin can therefore be used as a currency and also as an investment option, very similar to gold. At the moment bitcoin is going through a phase where if you play your cards sensibly, you can make a lot of money.
After staying around the $9000 mark, bitcoin has suddenly shot up to $11000 mark and according to industry experts, it is expected to rise further because the run has not ended yet.
So, has all this information about bitcoin suddenly got you interested? If yes then you must be thinking of ways to invest in bitcoin. So let’s look into ways through which you can invest into bitcoin.
How Can I Begin To Purchase Bitcoins?
If you know how to do it, then bitcoins can be purchased with as much ease as online shopping. In order to purchase bitcoins you need to understand that they are a cryptocurrency, you cannot just go to foreign exchange and buy bitcoins. You will first need to have a digital wallet and a bank account.
A digital wallet is where your crypto currency will be stored, just like your wallet where you keep your cash and cards. You can get your digital wallet free of cost from any site that provides such wallets, most crypto exchanges provide free online wallets, like Coinbase for instance.
Bitcoin wallets come in many different forms, most amateur crypto investors do not need anything more than an online wallet however the downside of an online wallet is that it stores your cryptocurrency on the server of the site. Which is why the most professional crypto investors prefer to have desktop wallets or hard wallets, that are much safer,
Once you have got your wallet in order, you will need to sign up with a cryptocurrency exchange. There are a lot of crypto exchanges such as Coinbase, Binance, Bisq, and CashApp. A crypto exchange is an online platform that allows users to buy and sell cryptocurrencies.
What Is A Cryptocurrency Exchange?
Crypto exchanges are regulated platforms which means that when you sign up on an exchange and use it for transactions, your details will be shared with the respective governments. The level of your id data shared depends on the jurisdiction where the exchange is based.
Coinbase, for instance, carries out a very rigorous id check and it takes anywhere from 24 to 48 hours to get an active user account whereas Binance allows users to instantly trade after making an account.
If you want to purchase bitcoins from a crypto exchange, first of all, search online for the crypto exchange that you feel is the best for you. Every crypto exchange will have slightly different rates to offer and different terms and conditions, so it is better to carry out your own due diligence first.
Coinbase is generally good for all intents and purposes and it is the most popular exchange in the USA, Binance, and Bisq are good for Altcoins whereas CashApp is good for beginners. In a similar manner, other exchanges to have their strengths and weaknesses. Whichever exchange you use, make sure that you choose one that is credible and has been in the market for a long time with an established user base.
Once you have chosen your crypto exchange, you will need to sign up on it. Some exchanges, a stated above may require your ID details for verification purposes. Once you have signed up you will need to connect your bank account or link your card with the exchange and once this is done, you can simply proceed to the buy bitcoin page of your respective exchange and purchase as many bitcoins as you wish to.
There are other ways to purchase bitcoins to such as peer-to-peer networks and Bitcoin ATMs but these methods are riskier and less feasible as compared to crypto exchanges. It can also be said that if you are a beginner then it is better that you use a crypto exchange to purchase bitcoins and get used to the system before trying a P2P exchange, which is a lot riskier for beginners.