Bitcoin (BTC) is the most commonly reached out cryptocurrency or digital currency. This is because it the largest cryptocurrency that is measured by the highest market capitalization and the quantity of data stored in the blockchain. The history of Bitcoin dates back to 2009 when an Australian entrepreneur Satoshi Nakamoto invented the cryptocoin. After its creation, it became the first and the most widely used decentralized ledger currency bearing the highest market capitalization. It can also be stated that Bitcoin is an open-source peer-to-peer (P2P) online transaction facilitating digital coin that is censorship-resistant. Bitcoins are rigorously used in the darknet transactions across the online marketplace for dark web and dark web forums. In order to transact in Bitcoin, you need first to buy Bitcoin. At this point, you may ask how to buy bitcoin, which we will get though as you stick with us.
In this article, we will elaborate on how you can buy and sell bitcoin online with ease in just a couple of minutes. We would also let you know how strongly do you need to invest in Bitcoin this year and if it is safe enough. This guide would help the dummies or the newcomers, who might have been looking for such an elaborate one.
So, without further ado, let’s check out on buying Bitcoins online.
How Do You Buy & Sell Bitcoin Online?
Here are all the required steps that you need to follow accordingly to have a successful Bitcoin purchase.
Step 1: Get Yourself A Bitcoin Wallet or Digital Wallet
The first step that you should take is to own a digital wallet, preferably a bitcoin wallet. A Bitcoin wallet can simply be defined as a virtual wallet that performs as a storehouse for your bitcoin cryptocurrency just as your regular non-digital wallet would do for cash, coins and cards. You can buy bitcoin instantly as you set up your wallet.
You get two options to choose for – Hot Wallet and Cold Wallet. Hot wallets are online digital wallets meaning, that they are connected to the internet anyways. For example, say any online web-based wallet. Examples of hot wallet are – Electrum, Coinbase etc. You can choose to store all your Bitcoins in a software wallet that is stored on the hard drive of your computer. You might also like to opt for a vault service that keeps your bitcoin safeguarded offline or a multisig wallet using a number of keys that protects your account. These are cold wallets or offline wallets. Some other forms of cold wallet are paper wallet (a document containing necessary details) or USB wallet (bitcoins stored in USB). The challenge with the cold wallets is that you will lose your cryptocoins if you lose them.
Step 2: Buy Bitcoins Using Bank Accounts, Credit or Debit Cards
After you have your Bitcoin wallet ready and you have completed the necessary steps for opening it, you can add some Bitcoins to your wallet. For this, you can either use your bank account, conduct a wire transfer or a credit card or even a debit card. On the Bitcoin exchange, you would find an option to add bitcoins. Follow the steps and add your required bitcoins. You do not need to purchase Bitcoins as a whole but instead, opt for buying them in fractions. Make sure you check the transaction fee beforehand and proceed.
Step 3: Transfer Bought Bitcoins To Your Bitcoin Wallet
At this point, you have a digital wallet and your bought bitcoins. Considering you to be a newbie, you might not know how you can combine both of them. This is where you would need your wallet ID or the address of your Bitcoin wallet. Every time you transact with the Bitcoins, you need to enter the correct BTC wallet address.
Alternate Ways To Buy Bitcoin Online
Alternatively, you can make Bitcoin investment via three other methods:
- Bitcoin Exchange / Cryptocurrency Exchange:
You can go ahead and purchase Bitcoin through some cryptocurrency exchanges or bitcoin exchanges such as Bitfinex, Bitstamp or Kraken. These are the three largest crypto exchanges while there are few more that you can choose. All you have to do is just visit one of these websites, create an account, verify your credentials, add some fiat currency and purchase Bitcoins. If you already have Bitcoins, you can add that to the exchange and later trade. Also, note that you have to pay a certain trading fee against each trade.
If you want to buy and trade bitcoins directly, you can do so via websites like CoinBase. This particular website does not charge a trading fee for trading with different users.
- Bitcoin ATMs:
The Bitcoin ATMs perform similar to the in-person bitcoin exchanges. You have to insert cash/fiat currency into the Bitcoin ATMs and purchase the bitcoins as instructed. The bitcoins you bought will then be transferred to a secured digital wallet. You can trace the nearest Bitcoin ATMs with the help of Coin ATM Radar.
- Peer-to-Peer Exchanges:
Peer-to-Peer Exchanges, also known as the P2P exchanges, offers more direct contact between the users, unlike the other decentralized platforms. An example of such an exchange is LocalBitcoins. The users need to create an account, post requests to buy and sell Bitcoins while including information on the price and payment methods. Next, the users have to browse through the requests that the other people have posted and choose one to deal with. However, the P2P exchanges do not offer that much anonymity what the decentralized platforms provide. But the former one allows you to choose from a list of deals and opt for the best one. Some of the exchanges bear rating systems that help to select the best trading partners.
- Buy Bitcoin With PayPal:
Some of the businesses permit the users to buy Bitcoin with Paypal payment processor. To do so, you would need a PayPal account at the very first place. Alongside you need to register yourself with a brokerage service or trading platform that sell the virtual currencies with PayPal. Additionally, you would need a crypto wallet that supports digital assets.
Now, we can jump straight to how to sell bitcoin easily online. For selling bitcoins online or conducting Bitcoin trade, you need first to buy bitcoin following the above-mentioned steps and then trade them accordingly when the Bitcoin price is favourable through the stated platforms.
How Will You Negotiate Bitcoin Price?
Bitcoin price (BTC price) is ever fluctuating. Thus, the final rate of the Bitcoin is decided over a meeting. While in most cases, people rely on exchange rates, you can also consider the bitcoin price index. Sometimes, to cover the costs, anonymity and convenience, the sellers charge an extra fee on top of the current exchange rates. The closing amount is usually set at 5% to 10%.
The exchange rates vary with the country. This might come with specific difficulties while dealing with the local, national currency. Alternatively, you can visit in person for the local Bitcoin meetup and considered safest for conducting person-to-person trades. But you have to be prepared as you have to negotiate on the spot. You can use services such as meetup.com.
In this regard, security becomes a priority as you will conduct bitcoin trading with a stranger. When meeting in person, choose the place wisely, and the area must have active internet access. Never meet in private residence and transport.
Withdrawing funds online could be a little problem. The most common method is wire transfer as most of the prominent exchanges support this transfer method. Some of the other exchanges also accept transfers through credit and debit cards. Alternatively, you can use SEPA or Single European Payments Area. The latter is most common for the people of the European Union (EU). Transfers usually consume a long time and depend on the amount of money transferred and the location from where it is transferred. On average, it may take up to four days to get processed. Additionally, both these systems have additional charges.
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