Bitcoin is at the moment on a bull run and the price is expected to go even higher as this run continues. This bull run is therefore generating a lot of interest in bitcoin. Bitcoins have been around since over a decade and people of have a general understanding but it has been observed that most people do not know how to purchase bitcoins or the potential benefits and investing opportunities that come with bitcoins.
Purchasing bitcoins is not just very easy but also very convenient but the problem is that the masses do not yet have the required level of awareness. If only more people were consciously aware of bitcoins and how to trade using bitcoins, the market for bitcoins would have been many times more than what it is right now and governments too would have been forced by public demand to facilitate bitcoin users.
Nevertheless, let us focus on ways of buying bitcoins but before we can start of let us first briefly discuss what bitcoins are.
What are Bitcoins?
Bitcoins are a crypto currency. A crypto currency is a currency that is issued on the block chain platform, which means that firstly it is not regulated by any monetary authority, so its supply cannot be controlled by any Central bank and secondly it protects the data of the users. Blockchain based currencies are virtually unhackable, so they are safe in this regard.
Blockchain based currencies have lower transaction costs, can be accessed from anywhere in the world and have multiple other uses that make them better as compared to fiat currencies.
Bitcoin was the first crypto currency and it has been trading successfully for almost 12 years now. Bitcoin serves both as a currency and as an investment option. Users can use their bitcoins to pay for their purchases and they can also use bitcoins to earn profit through short and long term trading.
How to buy bitcoin stock?
Buying bitcoins should take hardly a few moments if you have got all of the pre requisites in place. If you do not have the pre requisites in place then you should get them in order first.
Pre-requisites for purchasing Bitcoins
First of all you will need a secure internet connection. Try not to use a public connection as it will not be secure and you may end up losing private data. The internet connection will be required to secure your online wallet and to access crypto exchanges and P2P platforms to purchase bitcoins.
Next you will need a bitcoin wallet. A bitcoin or crypto wallet is a place where you store your crypto currencies. Your bitcoin/crypto wallet will have public and private keys. Your public key is the key that you will use to purchase/sell bitcoins, public key is the address through which others can locate your bitcoin wallet and send/receive transactions from it. Whereas the private key is your authentication key, without it you cannot authenticate any transaction. Private keys cannot be reissued so make sure that you keep your private key safe and secure.
For amateur users, online wallet will be enough to do the job. An online wallet is a free wallet offered by sites such as Coinbase where users can keep their crypto currencies. The online wallets are stored on the server of the site and can be accessed anytime from anywhere.
There are also other types of wallets such as desktop wallet, which allows you to store your bitcoins on your desktop PC or hard wallets that appear as flash drives but offer the highest form of protection. Hard wallets are preferred by more professional bitcoin users. There are also wallet apps that allow users to access their bitcoin wallets from their smart phones, these wallets are ideal for people who have to use bitcoins on the go, especially for carrying out transactions.
Once you have got your bitcoin wallet sorted out, you will also need to have a bank account and functional cards if you want to purchase bitcoins through your cards instead of a bank transfer. You should also have scans of your id documents as some sites require them for identification purposes.
After getting these pre requisites ready, you will now have to decide how you want to purchase your bitcoins. There are three main ways through which you can purchase bitcoins.
Crypto exchanges are websites that are very much like online foreign exchange sites except that they deal in crypto currencies. These are regulated sites which means that when you sign up on a crypto exchange your data will be shared with the respective government. When it comes to safety, security and convenience then crypto exchanges are the best option. They do not only offer bitcoins but other crypto currencies as well. Try to go for the most well known crypto exchanges as they have the most credible crypto currencies. As for bitcoin, almost every exchange deals in them.
The rate for bitcoins will vary with each exchange slightly and each exchange may have its own terms and conditions, so be sure to carry out your due diligence before settling for any single exchange.
There are also P2P platforms where buyers and sellers of bitcoins can come together and trade their coins. P2P platforms are generally less safer and less transparent as compared to exchanges but since they are usually not regulated, they allow users to carry out transactions with a level of anonymity. Most P2P platforms have a rating system to establish credibility of the sellers but one must be cautious on a P2P platform. The rates on P2P platforms may also be higher, as individual sellers may charge their own rate.
Bitcoins can also be purchased for cash from a dedicated bitcoin ATM, this is convenient for those who live near a bitcoin ATM location.
Using these three methods anyone can easily purchase bitcoins, the actual transaction takes a few minutes to process. This means that you can purchase bitcoins within a few moments, if you have all the pre requisite and know where you want to purchase bitcoins from.