Jun 06, · The most popular way to buy bitcoins is through bitcoin wallets, digital wallets for the exclusive use of ute-strohner.de: Matthew Cochrane. Dec 15, · To buy bitcoin you need a digital wallet, personal identifying documents, a secure internet connection, a cryptocurrency exchange, and a form of payment. Sep 29, · To buy bitcoin, the first step is to download a bitcoin wallet, which is where your bitcoins will be stored for future spending or trading.
How to you buy bitcoinHow to Buy Bitcoins (with Pictures) - wikiHow
Part 2 of Become aware of Bitcoin's advantages. Bitcoins major advantages include low fees, protection from identity theft, protection from payment fraud, and immediate settlement. The Bitcoin network is maintained by the "miners", who are compensated with new Bitcoin. Protection from identity theft: Bitcoin usage does not require a name, or any other personal information, simply an ID for your digital wallet the means used to send and receive Bitcoin.
Unlike a credit card, where the merchant has full access to your ID and credit line, Bitcoin users operate totally anonymously. Protection against payment fraud: Because Bitcoin are digital, they cannot be counterfeited, which protects against payment fraud.
In addition, transactions cannot be reversed, like what occurs with a credit card charge back. Immediate transfer and settlement. Traditionally when money is transferred, it involves significant delays, holds, or other hassles. The lack of a third party means that money can be transferred directly between people with ease, and it without complexities, delays, and fees associated with making purchases between parties that are using different currencies and providers.
Become aware of the downsides of using Bitcoin. With traditional banking, if someone makes a fraudulent transaction on your credit card or your bank goes belly-up, there are laws in place to limit consumer losses. Unlike traditional banks, Bitcoin does not have a safety net in place if your Bitcoins are lost or stolen.
There is no intermediary power to reimburse you for any lost or stolen Bitcoins. Price volatility is also a major downside. This means that the price of Bitcoin in dollars fluctuates wildly.
This means if you are converting to Bitcoin, it is important to stay in it, as moving back to USD could result in a significant loss of funds. Understand the risks of Bitcoin as an investment. One of Bitcoins popular uses is as an investment, and this deserves a special word of caution before proceeding. The main risk of investing in Bitcoin is it's extreme volatility.
With prices moving rapidly up and down, the risk of loss is substantial. In addition, because Bitcoin's value is determined by supply and demand, should Bitcoin end up being subject to government regulation in any form, it could reduce the amount of people who want to use Bitcoin, which could theoretically make the currency worthless.
Part 2 Quiz A downside of using bitcoins is It takes a long time to verify and process bitcoin transactions. Bitcoin prices are extremely volatile. Bitcoins can be counterfeited more easily than physical money. All of the above. Part 3 of Store your Bitcoins online. In order to buy Bitcoins , you first need to create a storage site for your Bitcoins, and this is the first step to purchasing Bitcoin. Currently, there are two ways you can store Bitcoins online:  X Research source Store the keys to your Bitcoins in an online wallet.
The wallet is a computer file that will store your money, similar to a real wallet. You can create a wallet by installing the Bitcoin client  X Research source , which is software which powers the currency. However, if your computer is hacked by a virus or hackers or if you misplace the files, you may lose your Bitcoins.
Always back up your wallet to an external hard drive to avoid losing your Bitcoins. Store your Bitcoins via a third party. You can also create a wallet by using an online wallet via a third party site like Coinbase or blockchain. This is easier to set up, but you will be trusting a third party with your Bitcoins.
These sites are two of the larger and more reliable third party sites, but there are no guarantees about the security of these sites. Create a paper wallet for your Bitcoins. One of the most popular and cheapest options for keeping your Bitcoins safe is a paper wallet. The wallet is small, compact, and made of paper that has a code. One of the benefits of a paper wallet is the private keys to the wallet are not stored digitally.
So it cannot be subject to cyber attacks or hardware failures. They can generate a Bitcoin address for you and create an image containing two QR codes. One is the public address you can use to receive Bitcoins and the other is a private key, which you can use to spend Bitcoins stored at that address. The image is printed on a long piece of paper that you can then fold in half and carry with you. Use a hard-wire wallet to store your Bitcoins. Hard-wire wallets are very limited in number and can be difficult to acquire.
They are dedicated devices that can hold private keys electronically and facility payments. Hard-wire wallets are usually small and compact and some are shaped like USB sticks. It is one of the more affordable hardwire wallets on the market. Part 3 Quiz What's one advantage of using a paper bitcoin wallet? It saves you from having to transfer your bitcoins digitally. It cannot be hacked. It means you don't have to rely on a third-party site for any part of the bitcoin process.
Part 4 of Choose an exchange service. Obtaining Bitcoin through an exchange is the easiest way to obtain Bitcoin. An exchange works like any other currency exchange: You simply register and convert whatever your currency is into Bitcoin. There are hundreds of available exchanges, and the best exchange option depends on where you are located, but the more well known exchange services include: Cryptaw: This is a Singapore Based wallet service which allows user to trade Singapore Dollars for Bitcoins.
The company currently has only web platform which is also mobile friendly. CoinBase: This popular wallet and exchange service will also trade US dollars and euros for Bitcoins.
The company has web and mobile apps for more convenient Bitcoin buying and trading. Circle: This exchange service offers users the ability to store, send, receive, and exchange Bitcoins.
Currently, only US citizens are able to link their bank accounts to deposit funds. Xapo: This wallet and Bitcoin debit card provider offers deposits in fiat currency that are then converted to Bitcoin in your account. Some exchange services allow you to also trade Bitcoins. Other exchange services act as wallet services with limited buying and selling capabilities. Most exchanges and wallets will store amounts of digital or fiat currency for you, much like a regular bank account.
Provide proof of your identity and contact information to the service. When signing up for an exchange service, you will need to provide personal information to the service to create an account. Most countries legally require any individual or financial system using a Bitcoin exchange service to meet anti-money laundering requirements. You are not protected against hackers, or given reimbursement if the exchange goes out of business.
Buy Bitcoins with your exchange account. Once you set up your account via an exchange service, you will need to link it to an existing bank account and arrange to move funds between it and your new Bitcoin account. This will usually be done via a wire transfer and entails a fee. This will be done face to face, rather than through an ATM. If you are required to link to a bank account to use the exchange service, it will likely only admit banks from the country where the exchange service is based.
Some exchanges allow you to transfer money to overseas accounts, but the fees will be much higher and there may be a delay changing the Bitcoins back into local currency. Part 4 Quiz Why do you need to provide proof of identity when signing up for a bitcoin exchange service? To give you protection in case your bitcoins are lost or stolen.
So your identity can be stored in the block chain. To comply with anti-money-laundering laws. Part 5 of Search for sellers on LocalBitcoins. You can arrange a meet up and negotiate prices for the Bitcoins. The site also has an added layer of protection for both parties.
Use Meetup. If you are not comfortable with one on one trades, use Meetup. You can all then decide to buy bitcoins as a group and learn from other members who have used sellers to buy Bitcoins before. Negotiate the price before the meet up. Some seller may allow you to use a PayPal account to pay, though most seller prefer non-reversible cash as payment.
A reputable trader will always negotiate the price with you before you meet up. Meet the seller in a busy public place. Avoid meeting in private homes. You should take all the precautions, especially if you are carrying cash on you to pay the seller for the coins. Have access to your Bitcoin wallet. When you meet the seller face-to-face, you will need to access your Bitcoin wallet via your smartphone, tablet, or laptop.
You will also need Internet access to confirm the transaction has gone through. Always check that the Bitcoin has been transferred into your account before you pay the seller. Part 5 Quiz Where should you meet a bitcoin seller? In your home. In their home. In a public place. You should never meet with a bitcoin seller face-to-face. Part 6 of Locate a Bitcoin ATM near you.
Bitcoin ATMs are a relatively new concept, but they are growing in number. Take out cash from your bank account. Most Bitcoin ATMs only accept cash, as they are not set up to process debit or credit card transactions.
Insert your cash into the ATM. Then, scan your mobile wallet QR code or access the codes needed from your account via your smartphone to load bitcoins onto your wallet.
True Correct! False Nope! PWR Capital. You can start trading bitcoin by opening an account on CoinBase or any other exchange platform.
There you will add your information and, upon hooking up a payment method, you will be able to purchase bitcoin in real time. Not Helpful 1 Helpful Each coin has units. You may buy any number of units you want or can afford. Not Helpful 5 Helpful There's not really any way to do this, but check out this article on How to Mine Bitcoins , as this is the next best thing. Not Helpful 10 Helpful Be wary of mining Bitcoins.
You can buy shares in a pool or a mining company, but mining is no longer something an individual can do on their own and reap a profit.
Helpful 0 Not Helpful 0. Beware of anyone who tries to sell you software that allows you to mine Bitcoins on an ordinary computer, or equipment that helps you mine. These products are likely scams and will not help you mine Bitcoins. Make sure your OS is reasonably secure.
In terms of desktop wallets, Electrum electrum. Familiarize yourself with how to sell your Bitcoins as well. Related wikiHows. More References About This Article. Co-authored by:. Vinny Lingam. Co-authors: Updated: July 9, Categories: Featured Articles Bitcoin. Article Summary X If you want to buy Bitcoins, you will need to set up an online storage site by either installing a wallet on your home computer or creating an account with a third party site.
Nederlands: Bitcoins kopen. Bahasa Indonesia: Membeli Bitcoin. Italiano: Acquistare Bitcoin. Thanks to all authors for creating a page that has been read , times. Reader Success Stories Kathleen O. Aug 9, The article explained it in easy-to-understand language and I also liked the explanation of upside and downsides.
Haroon Rasheed Dec 10, A bitcoin wallet should not be used for long-term storage. Bitcoin or its key should be stored in a secure wallet, such as one that uses a multi-signature facility for security. The U. Securities and Exchange Commission requires users to verify their identities when registering for digital wallets as part of its Anti- Money Laundering Policy.
If you choose to trade bitcoin online, use discretion about when and where you access your digital wallet. Trading bitcoin on an insecure or public wifi network is not recommended and may make you more susceptible to attacks from hackers. Once you have a bitcoin wallet, you can use a traditional payment method such as a credit card, bank transfer ACH , or debit card to buy bitcoins on a bitcoin exchange. The availability of the above payment methods is subject to the area of jurisdiction and exchange chosen.
The user clicks the "Buy" tab to buy digital currency and the "Sell" tab to sell digital currency. You select which currency you are buying or selling and which payment method your bank account or credit card you want to use. Depending upon the exchange, there may be benefits and disadvantages to paying with cash, credit or debit card, or bank account transfer. For instance, while credit and debit cards are among the most user-friendly methods of payment, they tend to require identification and may also impose higher fees than other methods.
Bank transfers, on the other hand, typically have low fees, but they may take longer than other payment methods. Exchanges connect you directly to the bitcoin marketplace, where you can exchange traditional currencies for bitcoin. Remember that the bitcoin exchange and the bitcoin wallet are not the same things. The exchanges are digital platforms where Bitcoin is exchanged for fiat currency—for example, bitcoin BTC for U. While exchanges offer wallet capabilities to users, it is not their primary business.
Since wallets must be secure, exchanges do not encourage storing large amounts of bitcoin or for long periods. Therefore, it is advisable to transfer your bitcoins to a secure wallet. Because security must be your top priority when choosing a bitcoin wallet, opt for one with a multi-signature facility. There are many well-established exchanges that provide one-stop solutions with high security standards and reporting, but due diligence should be exercised when choosing a bitcoin exchange or wallet.
IO and Gemini. While an exchange like Coinbase remains one of the most popular ways of purchasing bitcoin, it is not the only method. Below are some additional processes bitcoin owners utilize.
Bitcoin ATMs act like in-person bitcoin exchanges. Individuals can insert cash into the machine and use it to purchase bitcoin that is then transferred to a secure digital wallet. Unlike decentralized exchanges, which match up buyers and sellers anonymously and facilitate all aspects of the transaction, there are some peer-to-peer P2P exchange services which provide a more direct connection between users.
After creating an account, users can post requests to buy or sell bitcoin, including information about payment methods and price. Users then browse through listings of buy and sell offers, choosing those trade partners with whom they wish to transact. Local Bitcoins facilitates some of the aspects of the trade. While P2P exchanges do not offer the same anonymity as decentralized exchanges, they allow users the opportunity to shop around for the best deal. Many of these exchanges also provide ratings systems so that users have a way to evaluate potential trade partners before transacting.
Securities and Exchange Commission. Buy Bitcoin Worldwide. Your Money. Personal Finance. Your Practice. Popular Courses. Part Of.