Buying Bitcoin and Cryptocurrencies in 2020
The interest in Bitcoin and Cryptocurrency is rising every day. When Bitcoin sets new records everyone is searching for buying Bitcoin, the new internet gold. So we thought to create a guide on How to buy Bitcoin in 2020.
What is Bitcoin?
Bitcoin is a digital currency invented by Satoshi Nakamoto in January 2009. Bitcoin boasts lower transaction fees without the need for traditional centralized authority, unlike the fiat currencies. With the help of an online ledger-based system, the Bitcoin transactions took place and verified using extensive computer power.
How to Buy Bitcoin?
Unlike a few years ago, buying Bitcoin or other Cryptocurrencies is not a difficult job these days. We can list out several ways to buy Bitcoins.
- Buy Bitcoin physically
- Through an exchange
- Direct bank transfer or credit card
Buying Bitcoin Physically
Buying Bitcoin in person is one of the oldest ways used to trade Bitcoins. The person that wishes to buy Bitcoin has to find someone willing to sell Bitcoin. This person should be willing to sell Bitcoin for the exchange of traditional fiat or a different value exchange method. Sometimes it can be a little tricky to find a suitable person to buy Bitcoin from due to various reasons.
Buying Bitcoin through a Bitcoin ATM is also another way. Bitcoin ATMs are becoming famous in today’s world. There are more than 11960 Bitcoin ATMs reported across 70 different countries worldwide. You can go to the coinatmradar.com site for more information related to Bitcoin ATMs and find the closest ATM to your city.
There are few sites that will help you to find the correct people to buy Bitcoin in person. These platforms will allow users to connect with potential buyers and sellers to exchange Bitcoins with cash through various payment methods in a secure manner.
Localbitcoins is one of these sites which allows users to meet personally or use other payment methods backed by escrow services provided by the platform. Paxful is also a similar platform that facilitates users with a great experience to find buyers and sellers to buy and sell Bitcoin.
Buying Bitcoin through Exchanges
We can explain a Bitcoin exchange as a digital marketplace where traders can buy and sell Bitcoin using various fiat currencies or altcoins. These exchanges act as an intermediary to connect buyers and sellers through an online platform.
Buying Bitcoin through these exchanges is one of the most complicated ways to buy Bitcoin. Most of these exchanges require their users to register with them and verify their information using strict verification methods. Users sometimes have to facilitate different identification material and usually wait a few days to get verified before carrying out transactions.
Sometimes these platforms set buying and selling limits for its users upon registration and, limitations are usually lifted upon carrying out few transactions. The users have to, deposit fiat currencies in their accounts initially and then they can start exchanging fiat to Bitcoin and other Cryptocurrencies. The Bitcoin price will be shown in real-time and it will depend on the market’s supply and demand. Most exchanges will accept credit cards, SEPA, and Wire transfer methods when buying Bitcoin. Below are a few of the exchanges that currently in the market.
Storing Your Bitcoin
For beginners it is always best to buy through a trusted crypto exchange and these exchanges are available in most countries. You can store these coins in the exchange itself after your purchase of the coins or you have the flexibility of transferring the coins to your own exchange. To store the Bitcoin you will require to sign up with an Online Bitcoin Wallet (hot wallet) or buy a hardware wallet (cold wallet). We will elaborate more on the wallets in our future posts. For the time being, a few examples of wallets are:
- Blockchain: Best for beginners (Hot wallet)
- Exodus: Best for beginners (Hot wallet)
- Electrum: Advanced Users (Hot wallet)
- Ledger Nano X: Best Hardware Wallet (Cold Wallet)
- Trezor Model T: Best Hardware Wallet For a Large Number of Cryptocurrencies (Cold Wallet)
What are your thoughts on Buying and Selling Bitcoin? Let us know your thoughts on the comment section below.
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