There was a time a few years back when bitcoins were all the rage, they still are but since then a lot of different cryptocurrencies have appeared in the market. Nevertheless bitcoin remains the most popular and most widely accepted and used cryptocurrency in the market.
Bitcoin is a cryptocurrency that is based off the blockchain technology. Ever since bitcoins have been introduced, they have proved their mettle when it comes to security and flawless function of the system. The only hurdle that cryptocurrencies are facing right now is of their decentralized nature and anonymity of transactions. Governments across the world are reluctant to completely embrace crypt currencies because they cannot be centralized and when you issue a centralized digital currency, it crease to be a cryptocurrency as the purpose of being decentralized and secure is defeated.
Nevertheless, bitcoins have proven that they are here and here to stay.
This chart shows the historical value of bitcoin against the dollar. 2018 saw bitcoins rise steeply in value, it was crazy that year and when the value crashed many people believed that bitcoin was done for and not going to recover from the crash again. Many experienced campaigners advised investors to hold on to their investments as bitcoin was going to recover from the crash. This is what we saw in 2019. Bitcoin began to recover its value and at present it is trading at $8300 approximately.
Keep in mind that many economists expected 2019 to be the year of global economic slowdown and we are seeing this in 2020 now. Coronavirus has caused the global economy to slow down considerably and as it slows down, investors are showing more confidence in bitcoins and gold to secure their investments. Furthermore, there is a genuine fear in countries where corona virus outbreak has already happened that using cash is helping the spread of virus, so people are looking to use digital currencies and cash less transactions as a precautionary measure.
With all this, it makes sense to know how to buy bitcoins because the increase in demand may soon drive up the price, so if you are looking to invest in bitcoins, the time is ripe. But before you can do that you will need to know how to buy bitcoins. Well the process is simple enough.
Think of bitcoins as a currency because they are a currency, but not tangible like bank notes. So where do you keep your cash and your cards? In your wallet right? But since bitcoins are not tangible you cannot really keep them in your wallet now can you?
If you are totally new to the concept of bitcoins then think about the difference between mail and e-mail. The regular mail that you get form the post man, that goes into the mail box right and you collect it form the mail box. Where does your email go? Well it goes into the email inbox which is a digital space and intangible in nature. Bitcoins work in the same way. They are real currency but since they are digital you will need a digital wallet to store your bitcoins.
Now digital wallets today are also available for your bank account and other cryptocurrencies, what you need specifically is a digital bitcoin wallet. There are different types of bitcoin wallets available that depend upon your usage and need for security and encryption. If you are looking for maximum security then you should get a paper or hardware wallet. These 2 wallets are tangible and thus have the highest level of safety since hackers cannot access them and the only risk with them is of losing them or them being stolen from you, which is the risk with normal currency.
If however, you do not fuss about security that much and you prefer convenience for your daily transactions then you can use mobile or desktop wallets. Mobile wallets in particular are useful for using bitcoins on the go. You will simply have to use your smart phone to make payments. It isn`t like mobile wallets are insecure, they provide a relatively high level of security and encryption if you do not use them carelessly i-e do not use them over public networks.
If you are a novice and want to test around with the idea of owning fractional bitcoins and do not need a high level of security then you can use online wallets. These wallets are stored on websites like Coinbase. Your public and private keys are stored on their servers so basically the server of your hosting site will have your data. Coinbase is a trustworthy site but there are many sites out there that may not be so trustworthy, so make sure you do your own research before choosing where to store your online wallet.
Once you ave got your bitcoin wallet, you should be ready to purchase bitcoins. You will obviously need to have cash in your bank or cards to exchange your money for bitcoins. You may also need to have your personal documents like your social security number and verification documents because many countries require verification before the initial purchase of bitcoins.
In order to purchase bitcoins now, you will need to visit a bitcoin exchange. A bitcoin exchange is a website that functions like a foreign exchange platform. Coinbase is an exchange, so is Coinmama and many more. You will simply have to log in, make up an account, provide your verification details and then you can buy bitcoin with debit card, or even your bank account. As you may have read above, a single bitcoin is valued at over $8300 right now so many people cannot afford to buy whole bitcoins, that`s no issue. Remember bitcoin is a digital cryptocurrency and it comes with the convenience of buying fractional bitcoins. You can buy bitcoins for $100 or $200 or whatever you have.
Bitcoin P2P Networks
You can also buy bitcoins from peer to peer exchanges. There are many peer to peer exchange sites such as local bitcoins, these P2P sites function as a platform to bring buyers and sellers together. Buyers can post requests of the mount of bitcoins that they need to purchase and sellers can post offers of the bitcoins they are willing to sell at their stated price. The value on P2P sites will be different from the trading value of bitcoins but this is one of the fastest ways to transact in bitcoins.
You can also purchase bitcoins through Bitcoin ATMs. A bitcoin ATM requires the user to insert cash in the ATM and then provide their key to transfer the purchased bitcoins into the digital wallet. Coin ATM radar can help you find your nearest bitcoin ATM.
Once you have purchased your bitcoins, you can do whatever you want with them. You can either use them for transactions or you can save them up like an investor and trade them to speculate on profit.