Bitcoin is not the only way to get the currency. In fact, bitcoin mining is quite annoying. It needs specialized software, a sophisticated device to power devices and a large amount of electricity to run everything. Thus, the simplest way to collect Bitcoin is simply to buy it. Of course, this is a kind of process in itself.
Before you're ready to enter the world of Bitcoin, you need to create an account with one of the major exchanges (such as Coinbase or CEX), or link a bank account or credit card and transfer money. That process, the details of which we'll explain later in this article, should take about 10 minutes or so. But some kind of interruption may occur while doing so - which is increasingly common (and worrying).
Where can I buy Bitcoin?
There are many other entry points into the world of Bitcoin. You can work as a daily trader and use an organized exchange such as GDAX (owned by Coinbase). On the other hand, you can find a local who wants to trade money for Bitcoin, if you prefer to meet strangers in the parking lot. If you are running a business, you can accept Bitcoin as a payment for goods or services.
Can I trade in the Bitcoin market without buying Bitcoin?
You can trade bitcoin without owning it directly. EToro does not sell Bitcoin, but allows you to follow traders and bookmakers - or in the form of a "copy" app - their performance and profits (or losses) from price fluctuations. It is only a matter of time before large institutional investors discover how to introduce Bitcoin to the masses through ETFs and indices.
Factors to consider when buying Bitcoin
Despite its under-track record of customer service, it is not surprising that most Bitcoin buyers go to Coinbase. This platform has the largest trading volume, project support and making the complex process fairly simple and easy to use.
However, each crypto currency and stock exchange has its own protocols and rules, some of which are more stringent than others. Some require verification of your identity before buying and selling. Some impose strict purchase limits, while others will take any amount of money you want to pay.
With the price of Bitcoin fluctuating dramatically from hour to hour, transaction time - how quickly a currency is converted from your bank account or credit card to a Bitcoin wallet - can vary depending on the exchange you use and the type of payment. Then there is the issue of fees, which can quickly weaken your balance. We'll take a look at each of these factors below.
Can I buy Bitcoin anonymously?
Bitcoin is not entirely anonymous. Each transaction is publicly visible once it is engraved and published in the blockchain. However, these transactions are linked to a Bitcoin address - not a name or account number - so there are ways to trade while keeping your identity withhold. (That's why Silk Road, the dark internet market for drugs, illegal goods and other illicit goods and services, was an early and enthusiastic bitcoin contractor.)
How much bitcoin can I buy at once?
Even if you're sitting on piles of money and want to buy Bitcoin, there are limits. Some platforms and exchanges limit weekly or daily the amount of bitcoin you can purchase based on the payment method you use, how long your account has been active and your purchase history. Even if you verify your identity, you may still be limited to buying bitcoins for $750 a week using an Uma credit card between $10,000 and $15,000 per week if you're using a bank account.
Of course, you can buy smaller quantities as well. Coinbase allows you to buy Bitcoin for $1.99 - but will charge 99 cents from the top in the form of a fee.
That's great. I bought some Bitcoins. Now what?
Bitcoin remains a niche currency, although an increasing number of companies, including Microsoft and Subway, are now accepting it. (In 2015, payment processor BitPay claimed that more than 100,000 merchants around the world had accepted Bitcoin.) To put this into perspective, Apple Pay is accepted in more than 2 million stores and "tens of millions" of stores in more than 200 countries that accept payment by Visa. (Note that Coinbase offers a debit card that allows you to buy things using Coinbase anywhere visa is accepted.)
You can sell Bitcoin on all the same exchanges and services you can buy from. Although the sale process may take a few seconds, it is likely to take a considerable time to withdraw the proceeds from that sale from your Bitcoin wallet to your bank account. When I sold some bitcoins on Coinbase in early December and then immediately started depositing into my bank account, it took a whole week to get the money there.
How do I keep Bitcoin safe?
If you're trading in smaller volumes, you're likely to use the portfolio provided by the stock exchange or other software portfolio (and there's plenty to choose from). If you're trading heavily, you definitely want a portfolio of equipment, which has a number of complex encryption options.
