Bitcoin has swept the trading market and the financial world as a whole by becoming an integral part of the investment portfolio of some of the world’s biggest investment banks and houses. A massive increase in its value has been seen these past few years, and it is still increasing today. Financial experts and analysts see Bitcoin as a part of recommended investment primarily because they also see it as a hedging tool in lowering inflation.
So, how do we acquire Bitcoin? There are three ways. First, by “mining,” otherwise known as “crypto mining,” where a hashing power (computer power) is used to solve a certain puzzle in pursuit of a number known as “nonce.” The second method is when you receive it as payment, and for the third one, you have to buy it. We will then inform you of ways on how to buy your bitcoin.
Bank Transfer
Before you prepare to transfer any funds to any bank accounts, there is a first step that you must make sure that you do, and that is to make sure that you have a wallet or, to be more precise, a digital wallet (e-wallet). If you do not have one yet, you should create one first. The creation of a digital wallet is not only for trading cryptocurrencies; there are many ways to use your digital wallet, especially with almost all applications that we use today accepting digital payment.
Bank transfers are easy enough to understand as they are usually free, and they offer a very simple way to deposit your funds, but you also need to make sure that the bank accepts or supports crypto exchange. The drawback of buying coins from individuals is that it always involves the risk of the exchange being a scam because cryptocurrencies are prone to cyber-attacks, particularly if the transaction is being done online.
With your funds deposited, you can now be ready to buy bitcoins using the next method that will be explained below.
Trading platforms
With the growing trend and demand in the digital currency field, digital currency thefts and scams have also increased. That is why more and more people prefer to buy digital currency through a trading platform. Buying through the crypto exchange trading platform has been preferred and seen as the easiest option with relatively convenient commissions.
- Binance. This is the most popular form of a trading arena in the world. For the purchase of digital coins, its process is very convenient and simple, along with its commission matter. Every transaction is completely transparent, and before every end of the purchase, you can already see how much you will pay and how much you will get in your Spot Wallet.
- Changelly. Unlike Binance, this trading platform only aims to facilitate the process of buying and converting cryptocurrencies through a convenient interface and identification by using email. Conversions and purchases are made in front of your wallet. This platform does not hold coins, but it only argues the trading and buying of bitcoins.
Keep in mind that choosing a crypto exchange platform calls for some research on your end. What could be the best platform to use in your country might not be the same for another country, so it never hurts to do some digging. For instance, DebtBombshell put together this guide for Australians on good crypto exchange options in that country. Some of them provide custom features such as Australian-based live chat or local certifications. You could opt for something similar depending on where you live.
Paypal
Who is not familiar with this financial technology? Since it operates an online payment system, it is not surprising that this can also be used to buy Bitcoin. Venmo is a PayPal-owned mobile wallet where it lets its customers buy and sell cryptocurrencies. PayPal also launched an ad effort that let its users invest in cryptocurrencies like Bitcoin by as little as $1.
If you are new to the crypto world, whenever you purchase a Bitcoin, you are given two things to make your ownership official: a private and a public key pair. With the use of PayPal, you can access your public key, but the company controls the private key. This company mechanism helps its users to secure both key pairs in an event that the user may be misguided in using their cryptocurrencies or if they may be lost their public key.
This also means that PayPal users cannot move their bitcoins into cold storage, nor are they allowed to transfer their tokens to a wallet that is outside of the PayPal ecosystem. It will also help its users be free from potential issues such as Anti-money laundering schemes through wallet-to-wallet transactions using other platforms.
Credit Cards
Buying Bitcoin using your credit card is possible, but you have to make sure that the credit card issuer allows this kind of transaction. Although you can buy it through this method, this can be a very unsafe undertaking especially since we know that cryptocurrency has high volatility. The potential to lose money quickly and with high interest rates are the liabilities.
P2P
P2P or peer-to-peer is a type of computer network that is often used for digital media files distribution. It is also a decentralized service platform wherein two individuals can interact directly without mediation from any third party. With this kind of service, you only need to create a free account, choose a seller you would like to trade with, send the payment, and the seller will send the Bitcoin directly to your wallet.
Specialized ATM or Bitcoin ATMs
Yes, it is what you think it is, an Automated Teller Machine where you can buy and sell cryptocurrencies. Here is how it works:
- To buy from a Bitcoin ATM, you need to enter your crypto wallet address, deposit your funds into the ATM, and send you the crypto.
- If you are looking to sell using the Bitcoin ATM, you need to get the deposit address from the ATM itself. It provides a QR code that you can scan. Then, you need to send your crypto to that address. You only need to wait for the ATM to pay you in cash.
Whichever method of buying Bitcoin you prefer, if you are still new to the crypto space, always make sure that you have been thoroughly educated when it comes to trading this type of cryptocurrency to avoid any loss on your part.
You may be interested in: Everything You Need to Know about Digital Currency
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By: Alexander Joe
Title: How to Buy Bitcoin
Sourced From: marketbusinessnews.com/how-to-buy-bitcoin/280491/
Published Date: Wed, 03 Nov 2021 19:17:40 +0000
