Bitcoin is in the news today more than ever. Thanks to skyrocketing prices and roller coaster dips, everyone and their dog want to learn how to buy and sell Bitcoin. As the most popular form of cryptocurrency ( and the blockchain technology that powers it), Bitcoin is now widely distributed around the world and has a growing number of applications. But before you can deal with it, you must first know where to go to buy and store it.
There are a few steps you need to take to make your first purchase, but if you are willing and willing we will then teach you how to buy Bitcoin in no time.
Although every step requires some consideration, these are the key points that you need to think about when it comes to making your first Bitcoin purchase:
- Install an offline Bitcoin Wallet and set up a strong password to protect it.
- Set up an account on Coinbase (and GDAX if you want extra control).
- Select your preferred payment method]
: Find a good Bitcoin wallet
Digital wallets are used to store Bitcoin until you are ready to spend them or exchange them for another currency. The wallets range from features, platforms to use, to security, so it's important to choose one that suits you best.
It is best to use the wallet, which will automatically be provided to you, our recommended exchange, Coinbase. However, it is also a good idea to set up a wallet that is not connected to a stock exchange, if the exchange is ever interrupted or rammed with traffic, you still have access to your Bitcoin.
Here are our recommended options:
Exodus An all-in-one offline application with support for a range of cryptocurrencies, including Bitcoin, Exodus is free to use, has Shape-Shift Trade built and some simple graphic tools to help you visualize your cryptocurrency portfolio  Mycelium is a popular mobile wallet that is known to work with more advanced technologies like Trezor hardware wallets (for maximum security) and gate to be compatible.
For a Look At Here's a more in-depth guide to the best Bitcoin wallets.
Note: Although an online wallet is fine for your first purchase of Bitcoin, if you find a lot of valuable cryptocurrency due to trading or a rebound in value, store it in an offline "cold storage" wallet for maximum protection ,
Step 2: Choose the Right Bitcoin Dealer
The Best Place to Make Your First Bitcoin purchase is on a stock exchange. There are quite a few stock exchanges with different services. Some are less trustworthy than others and some can be quite limited. Therefore, it is important to first make the right exchange. We recommend using Coinbase, although it can not hurt to check out the competition through a Bitcoin Exchange comparison page.
Signing up for a Coinbase account is easy, but you must provide some form of identification. You may need to send a copy of your Photo ID and possibly also send a live image of your face using a webcam. These rules are important to follow as they allow the sites to comply with the rules of the "know-your-customer".
Although Coinbase alone allows you to buy and sell Bitcoin, it's also worth logging in to the linked Exchange platform, GDAX, which gives you more control over your purchases.
If you prefer a more direct way to buy Bitcoin, you can use a peer-to-peer service such as LocalBitcoin or BitQuick. They offer a wider range of payment options and you can buy Bitcoin directly from a seller without the Exchange Middle Man. In other words, make sure when planning a trade for cash in person.
Step 3: Choose Your Method of Payment
Exchange accept a variety of payment options based on what they are willing to use. This is a kind of sore point for many exchanges, as some payment methods have been used to cheat sellers for a quick buck in the past. Coinbase allows both bank account and credit or debit card transfers for payments, and a payment solution must be linked to your account before you can trade. Paypal is not supported by Coinbase for a good reason.
Note: Bitcoin ATMs allow you to exchange Bitcoin in compatible wallets for cash. These ATMs are available in a limited number of cities, but offer an alternative to withdrawing money through a stock exchange. Again, most exchanges and online wallets will not deal directly with cash.
Step 4: Buy Bitcoin and keep it in your wallet
You will find that the exchange provides information about how many (or how much) Bitcoins you can buy for specific amounts of money. However, due to its volatility, bitcoin prices can change dramatically through exchange and moment to moment – especially in recent times. That means, even if you have a lot of money to burn, you'll probably buy a fraction of a bitcoin. There is nothing wrong with that and for most people the way they will go as less, but the rich can afford more.
Enter the amount of Bitcoin you want to buy in the space provided and click on the buy button. On Coinbase or GDAX this will be a basic "market" order that Bitcoin buys at the best market price. Alternatively, you can place a "limit" order, which allows you to set a price that you are willing to pay for a certain amount, and a trade will only be executed if that amount is displayed at that price.
Once you're done When you buy, your new Bitcoin is stored in your Coinbase wallet. You should then seek the option to transfer these funds to the address of the Bitcoin Wallet you have created and which is not listed. You'll have to pay a small fee for that, but that's an essential part of Bitcoin transfers. Fortunately, the fees for such businesses are far from being reached.
Important Note: Bitcoin transfers can be a bit sporadic. Unlike other currency transactions, when you buy Bitcoin funds. The transaction must be recorded and confirmed in the blockchain. This can take time, especially during busy trading hours. It is not uncommon for a trade to take an hour or two to prevent you from immediately switching to your account and starting to transfer funds.
Step 5: Get Ready to Use It