How to buy Bitcoins
One of the primary questions every new trader has is how to buy Bitcoins and where to trade them. The most secure way to purchase them and sell them is through a verified cryptocurrency exchange.
You will need to create a profile and open an account on a virtual trading platform to buy Bitcoins. Every exchange determines the process of registration according to their internal guidelines, and it can take from one to several days, depending on the personal information you have to provide to gain access to the platform.
Once you gain access, you are free to start exchanging fiat currencies for Bitcoins or other cryptocurrencies, and learn more about the processes of market capitation, prices fluctuahreftion and innovative trading subtleties. There are a few tips when it comes to choosing the right exchange, but the most important one is to find a local exchange so you can avoid additional conversion charges and ensure auxiliary layers of legal protection.
How to get Bitcoins
Another important question is how to get Bitcoins. Since we already answered how to buy Bitcoins in the previous section, now we are going to focus on the other methods used to get Bitcoins.
- Bitcoin lending - requires you to have some Bitcoins to start with and the concept is very straightforward. You will lend your crypto coins to other people, and they will pay them back with interest.
- Mining Bitcoins - you would need the proper equipment, constant electricity, cooling instruments and a very advanced computer (a regular one would break down after a few months or weeks). Mining is a costly option for a beginner.
- Bitcoin-related services - would require previous expert knowledge on Bitcoins. This is an excellent option for everyone that has extensive know-how in Blockchain technology, mining, online marketing or other related professions.
- Bitcoin escrow agent - this option also entails previous knowledge on the Bitcoin subject and a good reputation, especially if you want to earn crypto coins through mediation in Bitcoin transactions.
- Micro Earnings - are very easy to understand but are also burdensome because viewing ads and visiting websites is not going to correspond to the earnings and the time invested in the activity.
You can find sites online that offer playing games or answering questions for Bitcoin micro earnings, or if you are more tech savvy, you can open a Bitcoin faucet/rotator to generate traffic through referral links. However, if your focus is on more significant profits than buying and trading, then Bitcoins is the way to go.
How does Bitcoin work?
If you understand the concept of cryptocurrency wallets, you will also understand how Bitcoins work. Your public address and private key are linked, so when someone sends you a Bitcoin on your public address, you can access it by using your private key. At that moment, a block containing the information about the transaction is added to the ledger, and it is unalterable. Bitcoins work via the Blockchain technology.
The prices of every other cryptocurrency, including the Bitcoin, can go up and down at any given moment and are influenced by a lot of external factors, some of which are still unidentified by experts.
What everyone agrees on is that the price of the world’s most famous cryptocurrency is worth what people decide to pay for it. The supply and demand variables dictate every market, including the cryptocurrency one, but the more liberal rules of the new Bitcoin exchanges are very appealing to traders and individuals all around the globe.
The simplest way to explain Bitcoin is software. Bitcoins are snippets of codes protected by cryptography using the P2P network and the Blockchain to store data. The success of the Bitcoin depends on many aspects, from the revolutionary Blockchain technology to the decentralisation of the currency and the safety that brought to the virtual world.
Bitcoin explained in a few words would be full ownership of digital “gold” without third party interference. Moreover, that is why people value and buy Bitcoins in a world filled with fiat currencies.
The Bitcoin Blockchain
The Bitcoin Blockchain is what made the Bitcoins possible and prominent. The primary mission of the technology was to find a way that would cut out the middleman, and at the same time, it would make it possible for everyone to feel safe without him. The intermediaries in this instance are the governments and the banks of the world.
When every transaction is recorded on a ledger, you would feel safer, but what if that transaction is permanent? Moreover, what if the ledger was not owned by a bank? The Bitcoin Blockchain gave a ledger to everybody, and at the same time, it made every transaction irreversible, which is not always the case with bank transfers.
It is very hard to establish trust in the virtual realm, and the Blockchain changed that by using cryptography and introducing the public and private key elements. It also made it possible for people to have full control over their cryptocurrencies, without the fear of centralisation or data corruption because of the P2P network integrated into the Blockchain.
In this segment of the guide, we explained how to buy Bitcoins, how to understand the technology behind it and how to trade them on a local exchange.