For most people, Bitcoin is still a strange term to them. The main reason to this could be the fact that, it is only a few years since the introduction of Bitcoin in the market. A lot of people who want to invest in Bitcoin complain that working with the currency is hard.
What is Bitcoin?
This is a virtual currency system which is designed to enable Internet users to conduct transactions by using Bitcoins as their currency. The only difference between Bitcoin and common currencies such as Euro is that Bitcoin requires more than a single company or government to control it.
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The starting point
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The first thing you will need to do is to find where you will be storing the Bitcoins. That place is the Bitcoin wallet. A web -based wallet can be acquired by registering with websites that offer those services.
You should also host a wallet software on your computer. Since this wallet is a software, you will need to know how to use it.
How to buy Bitcoins
Buying from an exchange
The best place to buy Bitcoins is in online exchanges. Exchanges facilitate the selling and buying process of Bitcoins. Exchanges do not sell the Bitcoins, but instead, they pair the buyer with the seller. Some good places to buy Bitcoins include coinbase and localbitcoin.
The mining method
The other way you can acquire the Bitcoins is by mining them. All Bitcoins come from a Bitcoin Mining Network. This technique is usually risky and it is almost impossible to make any profit.
Buying from a private broker
Another way to buy Bitcoins is purchasing them from a private broker. The main issue with this technique is that you can get conned as you don’t have useful information about the seller. You will have to send the money to the seller, only hoping they will send the Bitcoins in return.
According to experts, this digital currency has a huge potential and will be the most used currency in few years to come. One benefit of this currency is the fact that there is no transaction fee involved as no middlemen are involved.
Bitcoin is a great way to invest your money, buy it is worth noting that you can lose your money within a couple of seconds. 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. The safest method is to buy from a well-known website and always go for the face-to-face transaction.
Some people believe dealing with Bitcoins is complicated, but that is not the case. You just buy a wallet and then find your favorite way of funding it. The safest place to buy Bitcoins is purchasing them via exchange websites that are trustworthy.