How can I buy Bitcoin?

How can I buy Bitcoin?

Blockchain 101
July 13, 2018 Editor's Desk
564
If you are also amazed by this digital asset (Like Bitcoin), you would probably want to buy one for yourself… but how can you buy one? If you would have asked me this question back in 2009-10 when bitcoin just entered the ecosystem, I would have replied that it’s difficult to acquire one. Since there
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If you are also amazed by this digital asset (Like Bitcoin), you would probably want to buy one for yourself… but how can you buy one?

If you would have asked me this question back in 2009-10 when bitcoin just entered the ecosystem, I would have replied that it’s difficult to acquire one. Since there were very few bitcoins in circulation and since no one owns and controls it, the only way out for you would have been to sell an item in return for bitcoin(s). However, the story is very different now – you can easily buy bitcoin(s) in either of the following two ways:

  1. Through an exchange, or
  2. Directly via the market

However, in any of the above scenarios, you would need a bitcoin wallet to secure your bitcoins, just as you would need a wallet in order to keep your cash or cards. A common misconception about bitcoin wallet (or any crypto wallet per se) is that your bitcoins are stored in the wallet. This is far from true; it is the private key of the individual, which is stored in the wallet so that no one, except you, can access it. Since bitcoin is an encrypted currency, it cannot be stored, it can only be secured through a private key.

To get your own bitcoin wallet, you can go to any one of the providers such as Coinbase, Exodus, Mycelium, Electrum (there a lot more and you can have a look here) and sign up with them to create your wallet.

Once you have your own wallet, you are ready to purchase your first bitcoin(s). Let’s have a look at both the ways of acquiring bitcoin(s);

THROUGH AN EXCHANGE

Just as you would require an exchange in order to purchase stocks or shares, you can purchase bitcoin(s) through an exchange. You can purchase bitcoin(s) either through fiat currency or through other cryptocurrencies such as Ethereum, Bitcoin Cash etc. if you happen to own them.

Coinbase, BitStamp, CEX.io etc. are some of the most popular fiat-to-crypto exchanges, whereas, Binance, Bittrex, Poloniex etc. are crypto-to-crypto exchanges.

Again, to buy bitcoin(s) from an exchange you need to register with them by signing up. After signup, you can finally go to the exchange’s buy section and purchase bitcoin(s).

DIRECTLY VIA THE MARKET

As previously mentioned, you can also acquire bitcoin(s) by following the traditional method, i.e., sell something in return for bitcoin(s). However, seeing the popularity of bitcoin soar to an all-time high, numerous peer-to-peer trading platforms have emerged where it is possible to buy bitcoin(s) (and other cryptocurrencies) from others who are willing to sell.

Altcoin.io,  Bitsquare, Victorium are some of the peer-to-peer crypto exchanges.

Make sure that you invest your money wisely in bitcoin or other cryptocurrencies since the market is volatile and subject to risk. Even though you could earn fortunes, you should be prepared to lose all your investments.  Only invest the amount which you can afford to lose.

Happy investing!

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