How to Buy Bitcoins: Everything You Need to Know to Get You Started in the U.S.
The highly-popular Bitcoin cryptocurrency reached a peak market price of $8,200 this month following a significant drop at $2, 900 per coin in September. Just two years ago, many people mocked the idea of purchasing and investing in digital currency. Then, Bitcoin’s value doubled by the middle of 2015 after a sudden increase in cost two years before that. Even then, the ordinary American found it hard to understand the buying and selling process because of the currency’s surreptitious nature.
Basics of Buying Bitcoin
Now it is time to learn how to buy Bitcoins. In the United States, investing in Bitcoin starts with purchasing the currency. The process of purchasing turned out simpler because many traditional enterprises both in the country and abroad took an interest in BTC trading.
For example, Coinbase, the digital asset broker based in San Francisco, California, sells coins to clients at a markup of approximately one percent of the existing market price.
As a result of the ever-increasing reliance on Internet technology worldwide, the virtual currency enticed more investors providing an opportunity for investing in this new asset class. However, it still requires a lot of time and effort to appreciate the coin’s nature before you even understand how to buy Bitcoins.
Where to Purchase and How to Buy Bitcoins
Purchasing the cryptocurrency depends on the country where the person lives. Highly-developed economies provide more options and liquidity. Coinbase remains the most extensive broker of Bitcoin globally particularly in the United States, Canada, the United Kingdom, Singapore, and many countries in Europe.
Be very careful since cyber crooks will surely try to steal your coins. Aside from knowing how to buy Bitcoins, potential investors must use the so-called secure BTC wallets.
Download the Wallet
Download the Bitcoin wallet through a mobile application called the Blockchain Bitcoin Wallet for Internet Operating Systems (iOS) or the Blockchain.info website. Fill out an online form that supplies the fundamental details buyers want to know. The whole process will not take more than two minutes.
Take a look at the website to find out how your account page will appear. The page resembles online banking software the traditional banks use for clients. By now, you are learning the correct process of how to buy Bitcoins.
Use Traditional Currencies to Buy Cryptocurrency
After getting your Bitcoin wallet, choose a mainstream method of payment such as credit card, debit card or bank transfer for purchasing coins from a reputable BTC exchange. The last procedure refers to Automated Clearing House (ACH), an electronic system for financial transactions in the USA.
The network processes massive volumes of credit and debit card payments in several batches. Your preferred exchange will transfer the coins to your wallet. Remember that payment methods depend on the trading floor and area of jurisdiction.
Look for Straightforward Guidelines
Buyers will notice the clear-cut procedures such as clicking the “Buy” tab for individuals who want to make a purchase or “Sell” for those who choose to sell their coins. Choose the particular currency for buying or selling as well as the payment option.
Look for a credible exchange in case you want to figure out how to buy Bitcoins without employing brokers. Remember that exchanges thrive in the cryptocurrency marketplace with different credentials and performance.
Stay Away from Suspicious Exchanges
Avoid dubious providers by checking the BTC exchanges’ websites along with online reviews. Compare exchanges by considering the fees and preferred payment methods. Few exchanges propose to convert coins directly into cash for their customers.
Majority of Americans opt for Coinbase, particularly for first-time buyers. Coinbase ensures a simple process with a user-friendly interface as well as efficient customer care services minus expensive and hidden fees. Users can access Coinbase on both desktop computers and mobile devices.
Exchanges accept various payment methods based on their preferences and convenience. Providers proceed with utmost caution since scam artists used specific platforms to dupe merchants in the past.
Most Bitcoin exchanges favor credit cards and bank account transfers with particular limitations. On the other hand, they regard wire transfers as an unpredictable process. Coinbase permits and uses all the methods mentioned above making it the perfect choice for start-ups.
Bitcoin Automated Teller Machines (ATMs) allow users to exchange coins in matching wallets for cash. You may not find Bitcoin ATMs in all cities of the country. Even then the ATM encourages people to choose a good alternative for withdrawing money from a legitimate exchange.
Connecting Bank Accounts
Once the user finishes signing up, the next step is to connect the bank account to the wallet. Complete several simple steps for verification or confirmation before using the account. You may begin to buy coins immediately after completing the authentication procedures.
Buying and Selling the Digital Currency
Now that you have learned how to buy Bitcoins and sell them, it’s time to proceed to actual trading. The provider will process the purchase and deliver the coin after finishing your initial transaction. This same system applies if you sell first instead of buying. The price of this currency fluctuates without prior notice. Find out the current exchange rate before buying or selling.
Use Your Wallet
You may forget about Bitcoin if you fail to spend the BTC or exchange coins to other currencies. Start using your wallet immediately. Try to check a local store willing to accept cryptocurrency payments. Or, search the Internet for compatible e-commerce sites. Read customer testimonials and comments carefully together with the fine print before making purchases or exchanges.
Regulations change often. Regulatory agencies implement strict rules and regulations that can shape the digital currency’s market position. Hopefully, policies will lead to acceptance and adoption by consumers and institutions alike as well as build public confidence in the Bitcoin. Cryptocurrencies remain in an embryonic stage. Therefore, expect volatile prices, legality issues, and tax concerns ahead of buying these coins.
Read blogs, press releases, customer forums, reviews, and social media posts on how to buy Bitcoins from time to time. The practice will teach you pointers and current trends in digital currencies.