Now that you know the basics about bitcoin, you may already be thinking about buying your fair share. In fact, you may even be excited enough to start emptying out your savings and other accounts too. But wait, before you go to great lengths financially in these type of investments, you need to take into account the fact that bitcoin prices are volatile. Which means, the prices can go down as well as up. Hence, one general rule of thumb is to never buy more in bitcoins than you can really afford to lose.
That said, here is some information that you need to become familiar with as you make plans to buy your first stash.
First of all, as you begin to allocate the amount that you want to invest, you should know that bitcoin is available in different financial vehicles, including direct access from people via bitcoin marketplaces or indirect access from exchanges. You can also pay for these coins with a variety of different tender, ranging from cash and other cryptocurrencies to wire transfers and credit/debits cards. The financial medium that you choose will usually depend on where you live and who will be paying for them. Before you can begin to make your purchases, here are XX common ways that you can purchase your bitcoins.
- Set Up a Bitcoin Wallet
To get started with How to buy bitcoin alternatives, it is important to note that your first in buying your bitcoins is to set up a bitcoin wallet to store this cryptocurrency. This bitcoin wallet is not a luxury to have but a necessity for any method that you choose to pay. The process of setting up your wallet varies based on the actual method that you use. For instance, you may set up a mobile wallet, a desktop wallet or a paper wallet. Each of these 3 wallets is appropriate for storing your bitcoin currency as you make your investment. The wallets that you purchase may also be set-up within an exchange platform or from an independent provider. Before you make your choice, however, it is important that you do your homework. Particularly, as you make your decision based on the services offered, the versions that suit your financial needs best, its ease in use and the security feature that protect your access.
- Open an exchange account
Depending upon your geographical location, you may also open an account for yourself via an exchange. Finding which exchange is the most reputable, however, may not always be simple to do today as some may think, especially since there are hundreds of exchanges available to make your selection from. Choosing the right one can be challenging too because they are varying degrees of security and liquidity. Hence, you will need to do a good job of searching which bitcoin wallet options are the best in this industry.
Once you have decided which exchange or exchanges that you want to use, they will play a key role in not only buying bitcoins for you but will also sell your bitcoins to other buyers when you have a need. When you are doing your research, you will probably find that the largest exchanges are those with the highest volumes available. Though the largest exchanges may be a viable alternative for you, you need to know that they normally cater to the needs of spot traders. Bitfinex, Coinbase, Bitstamp, and Poloniex are a few examples of high-volume exchanges. Additionally, when you are dealing with many of these exchanges, the most common tender for making payments is through credit card, paypal, or payments via a bank. In either case, the payments that you make for bitcoins will also include additional fees to complete these transactions. After each payment, the bitcoins will be deposited into the appropriate wallet that has been previously set up on the buyer’s behalf.
- Buy Bitcoins with Cash
If you prefer to buy bitcoins with cash, the option is available for those of you who have an interest. The cash payments are usually individuals who reside in a place that is already near your location. To gain access to individuals who will accept cash as a payment for the bitcoins that they want to sell, you may want to look for specific platforms like LocalBitcoins, Paxful, and Bitquick.