As you already know, Bitcoin is the first cryptocurrency ever created. It is a digital form of money that is highly fraud-proof and used within a decentralized financial system. Now Bitcoin is widely accepted worldwide, and there are a growing number of applications that use it. Because of this, but mainly because of its skyrocketing price, the question is how to buy Bitcoin?
Create Bitcoin Wallet
The first and primary step is to create a crypto wallet. Since Bitcoin is a digital currency, you need a secure place to store it after purchase. Wallets vary in terms of features, security, and platforms that can be used, so it’s essential to choose one that works for you.
A Crypto wallet is the tool you can use to communicate with the blockchain network. There are different types of cryptocurrency wallets. They can be divided into three groups: software, hardware, and paper wallets. Depending on their working mechanisms, they can be defined as hot (somehow connected to the Internet) or cold (they use a physical environment to store keys offline, making them resistant to online hacking attempts) wallets.
Most crypto wallet providers are software-based, making them more convenient than hardware wallets. However, hardware wallets are the surest alternative at the moment. On the other hand, paper wallets are printed on a sheet of paper, but their use is now considered as obsolete and unreliable.
But how do that wallets work? The crypto wallet can generate the necessary information to send and receive cryptocurrency through blockchain transactions. In fact, cryptocurrencies never leave the blockchain. They just move from one address to another. Therefore, the wallet also includes that address, which is an alphanumeric identifier that is generated based on public and private keys. The public key is where the transactions are deposited and withdrawn. This is also the key that appears in the blockchain registry as a digital signature of the user (as opposed to a username on social media channels). The private key is the one required to buy, sell, and trade Bitcoin in a wallet.
In summary, the address is essentially the specific „location“ of the blockchain to which coins can be sent. This means that you can share your address with others in order to receive funds, but you must never reveal your private key to anyone.
Provide Secure Internet Connection
To buy or sell Bitcoin, you need to get into the virtual world of cryptocurrencies, especially if you decide to use a hot wallet. To do this, you need to be sure of your secured Internet access. It is not recommended to trade Bitcoin on an insecure or public Wi-Fi network as this may make you more vulnerable to hacking attacks.
How to Buy Bitcoin with Credit Card
The places from which you can purchase cryptocurrencies as Bitcoin are online markets called „exchanges.“ They are similar to exchanges where traders buy stocks through trading platforms. Depending on the crypto exchange you have chosen, there may be differences in the payment methods and fees you have to pay for the transfer. No matter which exchange or payment method you will select, after the transfer is done, you need to find your Bitcoins added to your crypto wallet. And voilà you already own a piece of Bitcoin. Now the main question that follows is: How to buy Bitcoin with a credit card? Below we will have a look at a few places where you could do so.
Coinmama is a brokerage established in 2013 for people wanting to buy cryptocurrencies. The company has an excellent reputation for buying and selling crypto with them. You can learn more about coinmama here.
Crypto.com is a great place to buy Bitcoin or other cryptocurrencies with a credit card. The best thing about the company is that you could use their MCO crypto debit card. That allows you to buy everything with your Bitcoin by converting it to fiat if you wish to. You could check our article about crypto.com here for more information.
Binance is the largest cryptocurrency exchange established in July 2017. You could order Bitcoin with a credit card directly with them. Which is a good option if you want to trade Bitcoin against other cryptocurrencies and stable coins.
Celsius.network is a lending platform founded in 2017 by Alex Mashinsky. You could purchase Bitcoin with credit card trough their application and also lock it to earn interest weekly. Find out more about the Celsius network here.
How to buy Bitcoin with Cash?
If you want to buy bitcoin and you are valuing your privacy, cash is the best way to do so. You need to know that buying Bitcoin with cash is often related to higher fees. Also, you need to go to the place you are buying from or meet someone in person. That will increase ad additional cost to your Bitcoin purchase. Also, you should be careful when purchasing BTC from someone you don’t know. The coins could be blacklisted from agencies and exchanges so you could be in trouble later. Blacklisted coins are the ones been involved in illegal activities or money laundering. Below are a couple of ways that you could buy bitcoin with cash.
Cryptocurrency ATM is the best way if you want to buy Bitcoin with cash. Purchasing BTC from ATM is probably the safest option of using cash. There are thousands of ATMs around the world, and you could find them in every major city. Different countries have different laws for using Bitcoin ATM, as most of the time, KYC (know your customers) is not required to a certain amount. Of course, this varies in every country, so you need to check local laws before buying Bitcoin.
LocalBitcoins.com is the place where sellers and buyers are connected. To do so, you need to find a seller who accepts cash and plays the order for the amount you want. After that, the seller needs to send you his bank details so you could deposit the cash in his account. Before receiving the coins, you need to upload the receipt on the website to prove the deposit.
What can you do with your Bitcoin?
You have several options. Most traders hold their crypto assets in the hope that its value will increase. If this happens at one point, you can sell your bitcoin and withdraw your profit to your bank account or credit/debit card. The opposite scenario is worse – if the price of Bitcoin falls below the value at which you bought it. So, in this case, if you decide to sell it, you will lose money. At the same time, you may find other more attractive cryptocurrencies. You can convert any part of your Bitcoin balance to another cryptocurrency. Or send Bitcoin to anyone worldwide almost instantly. And because Bitcoin is being adopted in more and more places around the world, such as shops, restaurants, service companies, etc., you can pay with it. Last but not least, you can donate bitcoin to people in need without involving 3rd parties and paying unnecessary fees.
With the growing popularity of digital money and Bitcoin, there are many places where you could spend it. The first purchase with BTC is made Laszlo Hanyecz on 22 May 2010. He ordered two pizzas from Papa Jones and paid 10,000 Bitcoins. Since then, there are places where you could directly pay with BTC. For the business, don’t accept cryptocurrency, yet you could use a crypto debit card like the one we mentioned above. Another way is to buy a gift card directly with Bitcoin. Gift cards are available for a business like Amazon, Wallmart, Adidas, Best Buy, and many more outlets around the world. There is almost no industry that you could pay with cryptocurrency these days from your daily shopping to buying a car.
Before you pick up a piece of Bitcoin pie, there are a few things to think about. Bitcoin is highly volatile and is not a place to invest money that you cannot afford to lose. While there are some stories of people who gained a fortune from Bitcoin in 2017, many people lost when the price dropped from its high.
However, if at the end of the day you decide to start trading cryptocurrencies and create a crypto wallet, you should remember that it is crucial to back up your wallet regularly. Although an online wallet is suitable for your first Bitcoin purchase, if you find yourself with valuable cryptocurrency because of trading or increasing its value, be sure to store it in an offline cold storage portfolio for maximum protection.