Everyone today wants to get into cryptocurrency. Despite the price fluctuations of Bitcoin, cryptocurrency continues to grow, especially as interest grows in the blockchain technology behind it. A growing list of companies accept Bitcoin as payment and they’re easier to use than ever.
Since the first Bitcoin purchase was ever made (in 2010, in which Laszlo Hanyecz paid 10,000 BTC for a pizza), the list of companies that accept cryptocurrency as payment has continue to grow, and now includes companies like Microsoft, Subway, Overstock, Etsy, Rakutan, and even pizza parlours like Helen’s Pizza in New Jersey, where you can pay for your slice in Bitcoin by flashing your phone.
Before you can get started with Bitcoin, you need to learn how to buy it. Here is your quick 3-step guide to buying Bitcoin for the first time.
Step #1: Research Cryptocurrency Exchanges and Sign Up
Not all cryptocurrency exchanges were created equally. Some cryptocurrency exchanges offer dozens or even hundreds of cryptocurrencies, others only trade coins that are well-established and proven to be legitimate cryptocurrencies.
Sticking to a cryptocurrency exchange that offers a smaller number of coins can help you avoid scams and bogus cryptocurrencies that are often advertised on social media. But you should identify which cryptocurrencies you want to purchase and whether they’re available on the cryptocurrency exchange you’re considering.
Cryptocurrency exchange Bitbuy is an example of an exchange with high standards for trading cryptocurrencies. At the moment, you can buy Bitcoin, Ethereum, Litecoin, and Bitcoin Cash on the platform.
Step #2: Choose Your Method of Payment
How you pay for Bitcoin makes a big difference in how much it costs. The most expensive way you can pay for Bitcoin is using a credit card. Credit card companies dislike cryptocurrency platforms and many have even begun treating a deposit on an exchange as a cash advance. That can lead to major costs over what you deposit, a high as 10%. You can click here to read more about alternative ways to buy Bitcoin.
The most cost-effective method is using an e-Transfer or otherwise depositing money directly to your bank. This requires exchanges to have established relationships with banks, or else banks may hold transfers and force you to wait.
When it comes to exchanging Bitcoin for cash, there is an option to use Bitcoin ATMs directly with your cryptocurrency wallet.
Step #3: Buy and Store Bitcoin in a Secure Wallet
Now you’re finally ready to buy Bitcoin. You will likely want to start off buying fractional amounts, since the price of Bitcoin is now in the thousands of dollars. You decide how much fiat cash you want to spend and get the corresponding value of a cryptocurrency.
You will then need a digital wallet to store your digital cryptocurrency. This is a secure way to store your Bitcoin off of an exchange, though you can also keep coins on exchange if you plan on trading or spending them shortly.
Bitcoin transactions may take longer than other currency trades. They need to be recorded and affirmed on the blockchain, and during busy hours this can take time. However, most cryptocurrencies have been making an effort to increase transaction speeds and decrease fees.
Image Credits: Buying Bitcoin from Wit Olszewski/Shutterstock