How to Buy BTC - Get Started With Us and Make a Final Decision
For the first time, the blockchain of such a cryptocurrency as Bitcoin was launched back in 2009. But over the course of two years, it was perceived mainly as an interesting toy, and not as something that carries useful functions. Only in 2011, after the price of 1 bitcoin soared from a few cents to $30, this cryptocurrency attracted the attention of not only computer enthusiasts but also ordinary people. At the same time, the beginnings of cryptocurrency infrastructure began to appear: the first exchanges appeared, some stores began to accept bitcoin for payment for their goods, the first applications for storing cryptocurrencies were developed.
Today, despite the relative volatility of the market, novice traders and experienced investors continue to consider Bitcoin as something worth spending your money on. And if you don’t know where to start, we have prepared this guide to help you navigate and make a final decision about whether to buy bitcoin, or maybe it will be better to pay attention to other cryptocurrencies, or even to store your money under your pillow.
Types of Wallets -The First Thing You Need to Decide on
With the growing popularity of cryptocurrency and bitcoin trading, in particular, there has been growing interest among users in what is the best bitcoin wallet, which bitcoin wallet to choose and how to work with it later. If people used to use regular exchangers before, now questions already arise - why should I spend several hours exchanging, and even use an overvalued rate, if I can just choose a good blockchain wallet, which will give the best bitcoin exchange rate, and send money immediately to a card?
To begin with, a Bitcoin wallet is a program that is used to store cryptocurrency. For newcomers to the world of cryptocurrencies, I very often cannot realize how you can store money in something physically non-existent? And the answer is simple - the best bitcoin wallet is safer than Swiss banks. Therefore, let's look at what types of bitcoin wallets exist.
Online & Mobile Wallets
Online wallets store your private keys on the server of the company that provides the service. The server is constantly connected to the network and is controlled by someone else. Different servers offer various functions, some of which connect to mobile and desktop wallets, copying your addresses through your device.
As for mobile wallets, nowadays this is probably the most popular type of wallet since we solve all issues using a smartphone. They provide users with access to their funds on the go from any device connected to the Internet. Using a QR code or NFC allows you to make transactions anywhere, and this, of course, is convenient. But there is a serious drawback to using such a wallet. This is security. However, mobile wallet providers are paying much attention to solving this problem.
Hardware and Software Wallets
Hardware wallets are physical devices that securely generate and store the private keys of your crypto wallets. Unlike smartphones and laptops, hardware wallets cannot be falsified from the outside. This means that it’s almost impossible for a hacker to access your encrypted private key. These devices connect to your computer, and you authorize transactions by entering the PIN-code on the device itself.
Hardware wallets are safe because no one can steal your assets without direct access to the device and your PIN. If a hacker gains control of your computer or infects it with a virus, he will not be able to steal your money. Even stealing the hardware wallet itself is not enough, since the cracker will still need to know your PIN code to authorize transactions.
A software wallet is a program that is installed directly on a computer. They are light and heavy. Lightweight programs differ in that there is no need to download the entire blockchain to use.
A paper wallet is a kind of analog of your online wallet on physical media, that is, paper. Your funds are thus stored offline and no hacker or another network thief can infringe on them.
You can create such a wallet using sites that will generate a personal paper wallet for you. Using the site, a unique bitcoin address is created, as well as an image with two QR codes. The first code contains the public address that is needed to receive bitcoins, and the second contains the private key that allows you to spend your money.
As you might guess, the second code is secret information that no one should see except you. There was one funny case related to this. One day, a Bloomberg journalist, new to security rules, showed a live QR code with his private key. One of the spectators immediately robbed the journalist. Although legend has it that the careless journalist got his money back. Therefore, hide your secret QR code more reliably and make sure it is secure.
Another important aspect is the safety of your paper wallet. Make sure that your dog does not eat it, the child does not draw a picture on it, or a friend does not pour coffee. Just in case, you can make a copy of the codes and store them separately. Such paranoia is due to the fact that you can no longer withdraw funds from a destroyed wallet.
Best Places To Buy Bitcoin - We Will Help You to Choose the Most Fitted Option
So, what is the best place to buy bitcoin? We are ready to share and discuss some services with which you can trade and transfer your money safely staying assured that every transaction will be will not lose its value.
Bitstamp is a small second-tier cryptocurrency exchange. Bitstamp offers trading at the traders ’own funds without leverage. Users can also buy cryptocurrency instantly with credit card payment. Bitstamp has official apps for mobile devices based on iOS and Android. They allow you to manage the balance, receive data on the latest cryptocurrency quotes, and watch bitcoin price live. In addition, they can be used to place and cancel orders.
Bittrex cryptocurrency exchange is one of the largest exchanges in the world. The Bittrex exchange was founded in 2015 in the United States. Initially, it was planned exclusively as an exchange platform, however, ambitious developers quickly responded to users’ request to have the best way to buy bitcoin and reorganized it into a full-fledged trading platform. Over the two years of its existence, Bittrex has gained very strong global positions. This is a stable platform that proudly bears the title of one of the most reliable and secure exchanges in the world. Verification on Bittrex is a very important point. It is possible to replenish the wallet and perform operations on the exchange without verification, but it is impossible to withdraw funds without it. This is a completely fearless moment, you do not need to send photo documents, just enter certain personal data.
The Chinese exchange Binance, during the first six months of operation, entered the TOP 3 cryptocurrency exchanges in terms of the daily trading volume. From the very start of the project, Binance management has relied on early, exclusive coin placement right after the ICO, which attracted a lot of advanced users. Another factor in the growth of popularity of how to get bitcoins with its help was low transaction fees and the very high speed of the exchange engine.
This cryptocurrency exchange is considered one of the oldest, created back in those days when only a limited number of enthusiasts knew about cryptocurrency. It remains popular now when many have become interested in how to buy bitcoin. Unlike many other crypto exchanges, there is no way to work with hundreds of altcoins; on the Coinbase exchange, work is possible with only 4 digital currencies. And just recently, Coinbase received a patent for the development of a system that will allow Bitcoin transactions directly from email addresses that are connected to hot wallets.
Robinhood is a platform for investing in securities, options and stock funds. The broker has 3 million users and a convenient application for trading and buying bitcoin in a few clicks. But the main thing is the lack of commissions. Among other advantages of Robinhood, we should note its fairly simple interface and easy entry into the stock exchange. We hasten to note that the service is available only for persons who have reached 18 years of age.
Coinmama is another old-timer in the world of selling and buying Bitcoins, which entered the market in 2013. The exchange offers simple ways to buy Bitcoin with a credit card or cash deposit through MoneyGram and Western Union.
How to Invest in Bitcoin with a Bank Card?
There are two big reasons why investing in bitcoin is so difficult using a bank card. We list them:
Refund: When you make a payment using PayPal or Visa, you always have the opportunity to request a refund. This means that you can reverse the purchase and return the money. That is why a refund creates big problems for the owners of exchanges. And that's why Bitcoin exists only on the blockchain.
Blockchains are large repositories of information. The only thing that the blockchain does not store is the names! This means that it is very difficult to confirm who is the owner of Bitcoin. If someone is selling Bitcoin now, then he will not be able to do this right away, because the buyer will not see his name in this database. And by analogy, if you transfer funds to the seller’s card, you can cancel this payment at any time after the seller sends you Bitcoin. Your operator will make a refund and you will receive both your money and Bitcoin will remain with you. Therefore, many exchanges simply do not want to come into contact with working with bank cards. So, the list of places where to buy bitcoin with this method is significantly limited.
Competition: Payment systems such as Visa and PayPal see cryptocurrencies as a serious threat to their business. Bitcoin wants to provide cheap and fast payment services to millions of people around the world. If it succeeds, then many financial institutions will be at risk. Thus, these organizations make it extremely difficult to purchase cryptocurrencies from bank cards. Nothing personal, just business!
But there is good news - you can do this with the Coinmama and Bitstamp services that we already mentioned in our review.
How to Buy Bitcoin With Paypal
Most cryptocurrency users know that buying or selling digital coins through PayPal is a big problem. As a rule, this is simply not worth doing, as you may encounter fraud or a refund. But in addition, it turned out that the operator of this payment system itself is actively freezing user accounts associated with any operations with cryptocurrencies. Although many consider this practice questionable from the point of view of legality, the company certainly has the right to freeze accounts, making the funds on them inaccessible for a sufficiently long time. But if this does not stop you, then it’s enough to really find services that support a couple of Bitcoin and PayPal and conduct an exchange following the standard procedure.
How to Purchase Bitcoin with Cash
Have you decided to buy Bitcoin for dollars? A great solution in this situation is to buy Bitcoin for cash. In this case, the person will transfer under your supervision.
Who can you contact to buy bitcoin? Some owners of this currency are willing to make an exchange. However, the conditions are likely to be less favorable than in the online service. In addition, not everyone is attracted to the idea of conducting major money transactions with a stranger. A more reliable and profitable option is to contact a trusted financial company that specializes in such services.
So, is it worth buying bitcoin and is there a chance to get rich on it? Well, this is a rather controversial and risky issue, as with any other serious investment. To do this, you must constantly monitor the bitcoin exchange rate, and with a sharp decrease in it, buy btc. To be able to earn money, you need to wait for the moment when the digital currency rate begins to grow rapidly.
In addition, you must carefully approach the purchase itself and bitcoin exchange you are using. You should not buy a digital currency from dubious sellers and on suspicious sites. In this case, there is always the possibility of fraud. The seller can take the money, but never transfer the bitcoin to the buyer. It’s best to buy currency through proven virtual wallets.