How to Buy Bitcoin: Best Practices, Where to Buy, Tips

Obtaining Bitcoin is not as simple as purchasing fiat currency. There are several things you need to know to secure such a purchase. The first thing you need to know becomes where to store the Bitcoin you buy. Since it is a digital currency, you need a digital storage area, known as a wallet in the cryptocurrency world. The wallet essentially stores private keys you use to access your funds when you need to spend them. The keys are like your ATM card pin, without which you cannot access your money.

You can then go ahead to buy your digital currency once you have your wallet in place. There are currently six secure places where you can purchase Bitcoin.

ATM

Automated teller machines designated for Bitcoin dispensing are a completely new concept. They offer the most private purchasing experience and will quickly gain ground across the world. You get charged a 3-8 percent commission on your purchase above standard exchange price. And all you have to do is feed the machine funds then scan your wallet’s QR code to get the digital currency deposited. You can optionally get the systems in paper form with directions on how to collect the BTC. These ATMs can never get found in countries that have outlawed Bitcoin or digital currencies.

Gift Cards

Gift cards often get purchased by Bitcoin, and the reverse is also true. You can buy Bitcoin using gift cards as several Bitcoin exchanges have sellers who deal in this particular exchange type. You purchase a gift card from a retail store and log into a Bitcoin exchange service. You may need to send an image of the gift card’s code plus the receipt of purchase or send an e-code. The difference depends on the seller with whom you connect. Gift cards tend to save you money as you can purchase them at even 60 percent of their actual value, making them one of the most affordable ways to buy Bitcoin.

Exchanges

Exchanges offer the most open platform for traders to purchase cryptocurrency. They get regulated by the country’s government and require that their clients give their details before engaging in trade. They also need clients to connect active bank accounts to their exchange accounts before they can begin transactions.

 Giving details can be a deterring factor to some individuals as it takes away anonymity from Bitcoin trading. The advantage exchanges bring to provide a variety of options to traders and allow fair competition among sellers.

Exchanges also offer Bitcoin storage facilities. The downside to that is they are prone to hackers or even shutting down suddenly, making them unfavorable for cryptocurrency storage. Such incidents have happened before with traders undergoing irreversible losses.

P2P

Peer to peer involves buying Bitcoin from an individual seller. The advantage of this kind of purchase is you can keep the transaction anonymous. You have the option of meeting face to face, meeting in a group setting, or transacting online. The most secure of this becomes the group setting, with several buyers and sellers coming together for mutual benefit. You get to learn a lot from those who have gone before you and gain exposure from different approaches to Bitcoin trading.

Take utmost precaution while transacting online or face to face with a seller as many have been duped this way by fraudsters. Always have a witness with you if meeting physically with a seller. Meet in an open and public space where you can raise the alarm if something goes wrong. For online deals, try to get trusted sellers who have a proven track record in the trade. Referrals work better in such transactions where you are referred to a seller by a friend.

Bitcoin Investment Trust

This investment body is one-of-a-kind. You get to invest in Bitcoin without purchasing any cryptocurrency. You save your money in the trust, which pools the funds sent by investors and funds on your behalf. It currently has an investment pool of $1.8 billion with an appreciation of 1,600 percent from its inception.

The ingenuity of this approach ensures you never have to buy Bitcoin yourself. You also learn about cryptocurrency without the fear of undergoing losses or being duped in a deal.

Final Take

While Bitcoin has been around since 2009, it is still evolving. Because of this, some governments are still wary of it. Sellers prefer hard cash or direct deposit from the bank to sell you the digital currency, so they don’t get the transaction reversed after transferring Bitcoin. Bitcoin currently has no reverse option in its system.

Remember also to be cautious when buying the cryptocurrency as there are many fraudsters out there. Use trusted sellers as much as possible. The digital currency world is a continually evolving space, and there will be other avenues created for accessing Bitcoin in the future. Security measures will get better and digital currency will continue to get embraced globally.

 

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