Wednesday, March 28, 2018

HOW TO BUY BITCOIN ?

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Bitcoin is in the news today more than ever. Thanks to skyrocketing prices and rollercoaster dips, more people than ever are interested in learning how to buy and sell Bitcoin. As the most popular form of cryptocurrency (and the blockchain technology that powers it), Bitcoin is now widely accepted around the world and has a growing number of applications. But before you can get into any of that, you need to first know where to go to purchase and store it.

There are a few steps you need to take to make your first purchase, but if you’re ready and willing to follow along, we’ll teach you how to buy Bitcoin in no time.

Step 1: Find a Best Bitcoin wallet

Digital “wallets” are used to store Bitcoin until you are ready to spend them or exchange them for another currency. Wallets range in terms of features, platforms they can be used on, and security, so it’s important to choose one that works for you.

When you find a wallet that checks off all your important features, download it to the appropriate platform. For beginners, we recommend starting off with a simple wallet that makes transfers easy. These wallets can be downloaded for free, but fees may apply to currency exchanges when moving money to other accounts.
Here are a few good options:
No. 1: Paper wallet or other cold storage. A paper wallet is simply a document that contains all the information you need to generate the bitcoin private keys you need. It often takes the form of a piece of paper with a QR code that can be scanned into a software wallet when you so desire. By storing your bitcoin offline, trusting nothing and no one but yourself, and you have all the information you need to control and access your bitcoin, you're using the strongest "cold storage" method out there.

"I recommend using a paper wallet so you have a physical backup of the private key," says Ryan Spanier, director of research at Kudelski Security.

"Be sure to generate it using a clean system, such as a Linux live CD. Store this in a safe place, such as a safe or safety deposit box," Spanier says.

The incremental complexity and technological know-how needed for this method are both downsides to the paper wallet approach. Cold storage solutions and hardware wallets are less nimble than other options, too; if bitcoin were crashing, for example, you might find yourself slower to the draw than if you merely kept your bitcoin on a site like Coinbase.
No. 2: Ledger or Trezor (hardware wallets/dongles). When you start thinking about using hardware storage solutions for your cryptocurrency, you know you've gotten serious. These dongles both make the best bitcoin wallet list because of their safety and mobility. Plus, they're good enough for professional investors.

"We have a little bit of experience in this area and prefer using Trezor and Ledger Nano S," says Peter Keenan, director of investments at Hehmeyer Trading + Investments, headquartered in Chicago.

"Both wallets are 'cold storage' wallets which we highly recommend. Cold storage eliminates counterparty risk and greatly reduces cybersecurity risk," Keenan says. "Counterparty risk refers to the risk of losing your bitcoin to the exchange where you bought your bitcoin due to nefarious acts like hacking – Mt. Gox as an example."

The downside of these solutions? First, they're not free, like all the previous wallets mentioned. Trezor's base model costs 89 euros, while the Ledger Nano S costs 58 euros. Both have fancier solutions that cost 229 euros (Ledger Blue) and 139 euros (Trezor model T).
No. 3: Electrum (software wallet). Electrum is a popular, free storage option in the bitcoin community, and is one of the most, if not the most, well-respected desktop storage apps out there. It's been around since 2011 and is also available for mobile, though Apple Inc. (Nasdaq: AAPL) users are out of luck – to date it's only supported by Android.

Electrum gets high marks for its ease of use and user interface, which is always nice, but the real reason it's the best bitcoin wallet for desktop is its safety and reliability. Like any desktop wallet that's worth its salt, users get to control their private key; Electrum doesn't know what it is. Since your private key, a long string of letters and numbers, gives you access to your bitcoin, you need to keep that, you know, private.

Many online wallets and online exchanges don't give you ultimate control of your private key, adding an extra layer of risk. You have to both trust the counterparty is a good actor, and hope their servers don't get hacked, if that could compromise the service or your information.
No. 4: Blockchain.info (online wallet). Exchanges are ripe pickings for ambitious hackers. Web-based wallets can pose some security and hacking risks too, but they don't have quite the glaring target on their backs that exchanges do. Nor do they have the nightmares of Mt. Gox and Bitfinex hanging over them.Claiming to be the "world's most popular digital wallet," Blockchain.info boasts more than 15 million wallets and has supported more than 100 million transactions. Security is a top priority, and with many longtime cryptocurrency enthusiasts comfortably keeping their spoils there for years, even as Mt. Gox and Bitfinex were breached, it would have to be. 
No. 5: Coinbase (online exchange). Online exchanges are, by and large, less secure than the methods described below. But Coinbase seems to have learned from the lessons of its predecessors, and is one of the biggest bitcoin exchanges in the world. It's also user friendly; not only can you buy, sell, exchange and trade bitcoin on Coinbase, but you can store your bitcoin in a wallet there, too.
But the risks of keeping bitcoin on the same site where you buy it are steep, and there's a poor track record.

Step 2: Choose the right Bitcoin trader


 If you want to know how to buy Bitcoin without a broker, the easiest way is to use an exchange. There are a whole lot of exchanges out there, with varying performance. Some are less trustworthy than others and some can be quite limited, so it’s important to pick the right exchange to start with. When comparing exchanges, remember to look at the fees charged for buying Bitcoin and what payment methods are offered. Few exchanges will offer to turn Bitcoin directly into cash for you, but here are a few to try out:

Coinbase is the most obvious suggestion for people buying their first Bitcoin. It’s very simple to use, has a great interface, and shows consistently high quality when it comes to taking care of customers — without pushing fees too high. It’s also available on both desktop and mobile devices. We highly suggest you start here if you’re not sure where to go.

CEX offers even more simplicity for those who are a bit more used to exchanges in general. It gives you immediate exchange rates and basic buy/sell options without any hoops to jump through. However, its payment options are a bit limited.

Bitcoin exchange search is Bitcoin.com’s own exchange search. Put in your country, and you can take a look at available exchanges, as well as check out the current “featured exchange.” It’s a good option to investigate more choices, but remember to check reviews and history before choosing any particular exchange.

If you would rather take a more direct route in buying Bitcoin, you can opt to use a peer to peer service, such as LocalBitcoin or BitQuick. They offer a wider array of payment options and let you purchase Bitcoin directly from a seller without the exchange middle man. That said, make sure to be safe if you plan to do a trade for cash in person.

Step 3: Select your payment method

Step 4: Buy some Bitcoin and store them in your wallet


You will notice that exchanges provide you with information on how many Bitcoin you can buy for specific sums of money. However, due to its volatile nature, Bitcoin prices can vary dramatically by exchange and from moment to moment — especially lately.  That means that even if you have a lot of money to burn, you’ll probably be buying a fraction of a Bitcoin — for example, paying $500 for 0.06 Bitcoin. That’s where the market is right now, and nothing to worry about as long as you keep an eye on the numbers.

Start small and make your first trade. This will typically store your Bitcoin into an automatically generated account on your exchange. You should then seek out the option to transfer these funds to the address of the Bitcoin wallet you have created. The exchange may charge for the transfer, especially if you want it expedited.

Important note: Bitcoin transfers can be a bit sporadic. Unlike other currency trades, when you buy Bitcoin funds. the transaction needs to be recorded in the blockchain and affirmed. This can take time, especially during busy trading hours. It’s not uncommon for a trade to take an hour or two to complete, so you may not want to immediately leap over to your account and start moving funds around.

Step 5: Get ready to use it


Whether you plan to ultimately sell your Bitcoin (hopefully at a profit) or use it to purchase something, be ready to do so at a moment’s notice. The way Bitcoin value fluctuates it’s important to have your end-game planned out early on. Be prepared by setting up a seller account now, or figure out how to buy what you want with it before you actually plan to. That way when the time comes, you’ll not have a panicked rush while everyone else is trying to do the same.

For a look at where you can spend your Bitcoin, here’s a list of compatible online stores. Always read reviews and fine print before making any purchase or exchange with your Bitcoin.

 

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