How To Buy Bitcoin?

How To Buy Bitcoin?
 

The world is changing fast due to the advancement of recent technology. The number of active bitcoin users is increasing at an exponential rate in the global market. Since bitcoin transaction requires no middleman, you can significantly reduce the transaction cost. This digital currency is based on the blockchain technology where all transactions are maintained in a transparent and public ledger. This flawless technology has been created a transparent medium of transaction. The majority of organizations is now embracing bitcoin even though traditional banks are not appreciating the use of bitcoin since it has no standard medium of measurement.

Buy bitcoin in two easy steps

Step -1, Get your bitcoin wallet

Those who are completely new to this cryptocurrency industry might be wondering how to buy Bitcoin? The process is really simple and it doesn’t require any technical knowledge. First of all, you will need a bitcoin wallet where you will store your cryptocurrency for future use. Based on your need you can switch to the Android desktop app where you can receive and transfer bitcoin in a transparent medium. The most popular types of bitcoin wallet are –

  1. Coinbase
  2. Blockchain.info
  3. Trezor
  4. Electrum

Secured bitcoin wallet for iOS and Andriod from coinbase

 

Step -2, funding your bitcoin wallet

Once you have your bitcoin wallet ready, you are can roll the dice on the board. You can easily use your regular credit or debit card to buy bitcoins from popular exchange companies. Even you can go for the ACH (Automated Clearing House) features of the bank to fund your bitcoin wallet. We have shortlisted the most trusted cryptocurrency exchange companies in the world.

  1. CEX.io
  2. Coinbase
  3. Binance

 

Figure: BUY/Sell bitcoins with CEX.io

CEX.io

CEX.io is famous for its low processing fees.You can easily purchase bitcoins from CEX.io exchange via credit card.For those who don’t have the access to the credit card can use bank transfer facilities to fund their bitcoin wallet.

Coinbase

Coinbase is the one of the world largest cryptocurrency exchange broker which offers diversified payment method to fund your bitcoin wallet. They offer service to USA, Canada, Singapore and most of the other European countries. So if you want fast and reliable exchange company, coinbase should be your first priority.

Binance

Binance is often considered as the number one rival of Coinbase.It supports a wide range of cryptocurrency and you can easily exchange your regular fiat currency into bitcoin by using traditional payment method.

Restrictions and common misconceptions

Some banks don’t allow their retail clients to buy any sort of digital currency through online merchant site. They are overly concerned about the price fluctuations of the bitcoins since it might result in significant loss of the users. Some you might think that you need to have Bitcoin wallet and exchange company needs to be the same. But this is not true at all. Exchange companies are just like your traditional exchange brokers who will charge a small commission and allow you to convert your fiat currency into bitcoins.

The new bitcoin users often consider their bitcoin wallet as the prime storage facility for their cryptocurrency. Bitcoins are not stored anywhere in the world rather they are encrypted by using blockchain technology. The public ledger is just like our traditional banking system only with one exception. Here you don’t need to deal with any middleman and all the transactions are done publicly. Your wallet is has a private key which is just like your ATM pin. It will allow you to withdraw or send money to any users in the world. As a cryptocurrency user, you will be using your private key to complete any transactions starting from your big online purchase ending with small retail store purchase.

Useful information for the big investors

If you are looking to buy a huge amount of bitcoins it’s better not to hold onto your positions. Make sure you transfer your cryptocurrency funds to a secure wallet which has dual level security which is often known as a multi-signature facility. Since your funds are held on the electronic device there are small chances of losing a big sum of money due to unprecedented accidental damage to your electronic device. For this many active bitcoin users prefers cold storage technology to maximize the protection of their funds.

It’s true that blockchain technology has the potentiality to change our future banking system. Due to this enormous threat, many banks have already put severe restrictions on the use of bitcoins. Moreover, the anonymous use of bitcoin can also result in the increase of criminal activities. But considering its positive side the cons are almost negligible.

Things that you need to consider before buying bitcoin

  1. Before you buy bitcoin from any reputed exchange like CEX.io you need to consider the current price and market volatility. If the price is too high, it’s better to way for a decent drop. If you buy bitcoin at a high price (assuming at the peak) you might face severe devaluation problem within a few days. Consider the supply and demand zone before buying the cryptocurrency.
  2. The active users often forget about the security factors of the cryptocurrency industry. If you lose your wallet, you are going to lose your money forever. Since there are no regulatory bodies, you can’t retrieve your lost funds.
  3. The most alarming factors lie hidden with bitcoin transactions which are an irreversible process. Once you have hit the transfer fund button there is no way you can cancel the transaction. Make sure you double check the recipient address to avoid unexpected financial loss. Similarly, when you buy the bitcoin you have to extremely careful about your wallet address. The incorrect value can result in a catastrophic loss.
  4. Last thing that you need to check before buying bitcoin whether it’s legal in your country. Some countries have strict laws against the use of bitcoin usage. If it’s banned in your country, never try to buy bitcoins by using alternative methods. Chances are very high that you will have a tough time in using your purchased bitcoins. Moreover, the price of bitcoin is extremely sensitive the global and political issues. So consider the market volatility while purchasing a big amount of bitcoin.
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