Being interested in Bitcoin means more than just money: it is about being part of a revolution. Cryptocurrency is creating an entirely new system where anyone, as a free individual, can make their own moves. But it is also true that any investment in cryptocurrency should be done with utmost precaution. There is generally no consumer protection when dealing with cryptos, which means fraudsters can easily get away with your money if necessary precautions were not taken during the buying phase.
There are many ways you can acquire Bitcoin, and each method comes with different risks and benefits. While it is possible to get your Bitcoin through mining or earned as a reward for a service or product, you can also buy it. However, when buying your Bitcoin, you need to ensure you buy only from trusted sources or platforms.
In this post, we will be taking you through some essential parts of buying Bitcoin and where you can safely purchase it.
Get the Basics First: How Much is a Single Bitcoin Worth and Why Does it Have So Much Value?
If you are new to cryptocurrency and thinking of getting started with Bitcoin, you probably want to know how much Bitcoin is worth in dollars. Well, Bitcoin is the first and the most popular cryptocurrency, setting the pace for other cryptocurrencies. As of June 16, one Bitcoin (BTC) is worth $38,671 in U.S. dollars.
Like all cryptocurrencies, Bitcoin is experimental and subject to much more volatility than many tried-and-true investments, such as stocks, bonds, and mutual funds. Wondering why Bitcoin has so much value and popularity? See some reasons below.
Supply and demand
Just like it is in any other currency, demand and supply also have a role to play in cryptocurrencies. The high demand for Bitcoin is one factor that helped drive the price well over $10,000 in the past year.
Also, there is a limited supply of the currency: only about 21 million of it are available. Since not everyone can easily mine bitcoin, the precious little amount available has tremendously increased in price.
It is difficult to get
Like gold, Bitcoin is also very difficult to mine. It requires a lot of energy and specific technology for it to be mined. And the harder something is to get, the more people want and value it, hence raising its value across border.
Its acceptability is increasing
Bitcoin is becoming more and more acceptable across the globe. Many big organizations like Dell, Microsoft, PayPal, and more now accept Bitcoin as a legitimate payment. Even in some countries like Australia, Bitcoin is now seen as the same as traditional currencies.
Things to Get Right Before Buying Bitcoin
Before you think of where to safely buy your Bitcoin, there are some things, apart from the basics of Bitcoin, that you need to get right.
· Have information you may need handy
When thinking of buying Bitcoin, you should know that you will need to set up a cryptocurrency account for that purpose. Therefore, you will need some information, such as the number to your bank account, your social security number, debit or credit card to fund your bitcoin account, and picture ID. You will want to get those information handy to make cryptocurrency account opening easy for you.
· Protect yourself when buying
Any time you are making financial decisions online, it is important you protect yourself by using secure, private internet connection. Buying Bitcoin while in your hotel room, at the coffee shop, or using other public internet connections is not recommended.
· Decide where to store your Bitcoin
After buying the BTC, you will need a place to store and keep it safe. That is called your digital wallet. There are two types of these wallets: the hot wallet and the cold wallet. While transactions are generally faster with a hot wallet, it doesn’t provide as much security as a cold wallet.
A hot wallet, which is also called an online wallet, provides a means of storing your Bitcoin in the cloud on a trusted exchange or provider, and accessed through a smartphone app, computer browser, or desktop. Common examples of online wallet providers include Exodus, Mycelium, and Electrum.
On the other hand, a cold wallet is an offline device used to store your bitcoins without having to connect to the internet. Because these wallets don’t require internet connectivity, they are considered more secure and protected from hackers. Some examples of this include Ledger and Trezor.
When creating accounts for your digital wallets, use a strong password and two-factor authentication.
Where to Safely Buy Bitcoin
There are a few different options for buying Bitcoin and other cryptocurrencies, including exchanges and traditional brokers. Let’s take a look at some of them.
#1: Online exchanges
Bitcoin exchanges provide a good platform to buy and sell Bitcoin online. They often offer the best rates but usually take more time and require the most personal information. So, before you sign up for an exchange, ensure it is reputable. Ask about it in your community and also check online for reviews about the exchange. Any exchange you will be using should be completely trustworthy and competent. Even small bugs and inconsistencies in a website should send up a red flag.
Also, never leave a large amount of Bitcoin or fiat currency with a Bitcoin exchange. Always withdraw your BTC into your wallet as quickly as possible. Some of the most popular exchanges out there include Coinbase, Binaance.US, Gemini, and Coinmama.
#2: Traditional brokers
Traditional brokers also offer a safe way for customers to buy and sell their Bitcoin. Most brokerage platforms charge little to no fees for Bitcoin trades. Some examples of traditional brokers you can trust are Robinhood, which is also the first mainstream investment broker for Bitcoin, eToro, and AnyCoin Direct. AnyCoin Direct has been around for a while too. And when it comes to determining the trustworthiness of a brokerage platform, one important factor to consider is how long the platform has been in existence.
We will talk more about AnyCoin Direct later in this post, showing you how you can safely buy your Bitcoin from them.
#3: Peer-to-peer bitcoin owners
This is another option for buying Bitcoin. You can buy your Bitcoin directly from other Bitcoin owners willing to sell. This is much like you would buy items on Craigslist. You can buy your BTC through peer-to-peer tools like LocalBitcoins.com, Bisq, and Bitquick. However, to consider this a safe option, you need to use extreme caution when buying directly from anyone.
#4: Dedicated Bitcoin ATMs
This works just like normal ATMs work, just that you can only use them to buy and sell Bitcoin. This is a safe and convenient option for buying BTC, and there are more than 7,000 Bitcoin ATMs around the U.S. However, as with other sorts of ATMs, you need to also practice extreme caution when using Bitcoin ATMs. Be careful of people observing you too closely.
Anycoin Direct; a Safe Platform to Buy Bitcoin
Like we earlier said, AnyCoin Direct is one of the long-existing brokerage platforms you can trust for buying and selling your Bitcoin. That is why we always recommend them to anyone looking to buy BTC. The platform makes the process super easy while also keeping you safe.
In a few steps, you can have your coin transferred to your wallet without the fear of any hidden agenda or speculations on your money. You only need to set up an account with them in a few steps to begin your purchase process.
They accept a wide range of payment methods. That means whether with a credit card, debit card, SEPA, or Giropay, and more, you can easily and quickly purchase your Bitcoin without stress. Plus, it accepts residents from all over Europe.
More Questions about Buying Bitcoin
Can I buy with a credit card?
Yes, buying Bitcoin with a credit or debit card is possible on most platforms. For instance, AnyCoin Direct accepts this payment method, and will immediately send your BTC to your wallet after making payment. But you will need a Bitcoin wallet before you buy.
Can I buy Bitcoin with PayPal?
PayPal is a popular payment method on most platforms. It is now possible for people to buy Bitcoin using their PayPal account.
Is it safe to buy Bitcoin?
Because Bitcoin transactions happen over the internet, they are even easier to steal and much harder to return and trace. Bitcoin, on its own, is secure, but you also need to get a secure wallet to keep your coins safe.
Can you buy less than 1 BTC?
Most people are scared of investing in BTC because they think they have to buy at least 1 BTC to get started. That is not the case. You don’t have to buy 1BTC: you can easily buy less than that. You can buy Bitcoin in bist – as low as 0.00000001 BTC if you want.