Bitcoin Buying Guide for Beginners
Bitcoin is not known to most people. This is probably because this digital currency hasn’t been around for too long. A lot of people who want to invest in Bitcoin complain that working with the currency is hard.
What exactly is Bitcoin?
Bitcoin is simply a digital currency system that is designed to allow online users process their transactions by exchanging units called Bitcoins. The main difference between Bitcoin and currencies such as Euro is that you will need more than one government or company to control Bitcoin.
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If you want to buy Bitcoins, you will first need a place to store them. You do that by getting a Bitcoin wallet. You can get a web-based wallet from a website that offers Bitcoin services.
You should also host a wallet software on your computer. A wallet being a software, you will have to learn how to use it.
How to buy Bitcoins
Buying from an exchange
The best place to buy Bitcoins is in online exchanges. These exchanges enable people to find buyers and sellers. The only task that these websites do is to bring the buyers and seller together. Some great websites to buy Bitcoins from are coinbase and localbitcoins.
Getting Bitcoins via mining
The other way you can acquire the Bitcoins is by mining them. Bitcoins are originally mined from a Bitcoin Mining Network. This technique is usually risky and it is almost impossible to make any profit.
Buying from a private broker
You can also purchase Bitcoins from a broker. The main problem with this method is that it is risky since you are transacting with an anonymous seller. In this method, you will have to transfer your funds without any guarantee of getting the Bitcoins in exchange.
Few years to come, Bitcoin currency will be a very hot commodity, according to professionals in this industry. One advantage of using Bitcoins is that the transaction takes place only between the seller and the buyer and hence no cost of the transaction is incurred.
Although Bitcoin is a good way of investing your money, it is important to note that, you can easily lose a lot of money. The Bitcoin network is secure, but the direct transaction between the seller and the buyer can be risky since both parties are anonymous to each other. It is advisable to use a reputable exchange and if possible request face-to-face transactions.
For those who believe working with Bitcoins is hard, the fact is that it is not as complicated as you think. The process involves getting a wallet and deciding where you want to buy Bitcoins from. The safest place to buy Bitcoins is purchasing them via exchange websites that are trustworthy.