There is a bull run in the bitcoin market at the moment and it is generating a lot of traction. A lot of new investors are now being attracting to bitcoins, seeing the potential of investment in bitcoins. Very few securities in the market currently have the returns that bitcoins are showing at the moment.
All of this new found attention means that a lot of people are looking for ways to buy bitcoins. Bitcoins have been around since over a decade and quite surprisingly many people still do not know how to buy bitcoins. So let us go through a quick guide on how to purchase bitcoin stock in a quick and convenient manner.
Get A Wallet
Bitcoins are a crypto currency that exits on the block chain platform. This means that you cannot physically possess bitcoins like cash, instead you have to keep your bitcoins in a digital wallet. A digital or a crypto wallet is a wallet where you can store your crypto currencies. You cannot purchase any crypto currency without first having a crypto wallet.
Crypto wallets come in different forms for users with different needs. Online wallets are offered by a lot of sites especially crypto exchanges. These are free of cost wallets that you can have simply by signing up on a site like Coin base. The downside to online wallets is that they make you store your bitcoins on the server of the site that has your wallet, this means that if the site is compromised then your coins will be comprised as well. Sites like Coin base are pretty well secured but there are many other sites that are not as properly secured as Coin base.
Desktop wallets are wallet programs that can be downloaded and installed on your desktop or laptop, these wallets store the private keys of your wallets on your desktop. If you intend to use your bitcoins on the go, then you will be better served to have mobile wallet apps, these apps allow you to transact with bitcoins on the go, for maximum convenience.
More experienced bitcoin investors tend to use hard wallets, these are in the form of flash drives and provide the maximum level of data security and protection, however on the downside they are a bit costly and vulnerable to being lost and/or stolen.
Register On a Crypto Exchange
Once you have finalized your bitcoin wallet, you will need to register on a bitcoin exchange before you can actually purchase bitcoins. Bitcoin exchanges are just like foreign exchange markets where people can exchange their currency for other currencies. A bitcoin exchange allows users to exchange their currency for bitcoins and other crypto currencies and vice versa.
There are a lot of crypto exchanges in the market and sifting through them is not an easy task especially for someone who is trying to buy bitcoins for the first time. According to Investopedia the top 4 crypto exchanges are the following
- Cash App
If you are a beginner, you can use any of these exchanges to purchase your first bitcoins. First you will need to register yourself. The registration process will depend on the exchange that you use. Most crypto exchanges require some sort of ID verification because crypto exchanges have to follow the law of the jurisdiction in which they are situated. Coin base for instance operates out of USA and therefore has to follow American laws. Registration on can Coin base require up to 48 hours. Finance on the other hand is much quicker.
The rate of bitcoins that you will get will vary with each exchange because bitcoins do not have any central authority that determines the rate, the rates are determined by every transaction that takes place. This makes bitcoins very volatile and this volatility therefore creates a lot of room for profit if the traders know when to trade and when not to.
Link a Bank Or Payment Method
Once you have managed to successfully register on a crypto exchange you will then need to link your bank account or your credit/debit card with the exchange. Once the mode of payment has been linked, you can purchase your first bitcoins by going to the buy/sell page and defining the amount of bitcoins that you need to purchase.
Once the amount has been confirmed, the site will require you to confirm the payment details and in the end the exchange will ask for your keys so that the bitcoins can be transferred into your wallet. Once the transaction has been successfully made, the bitcoins should arrive in your wallet within a few minutes although sometimes it may take a few hours. Usually the transfer is instantaneous.
By following these simple steps, you can make your first purchase of bitcoins. Subsequent purchases will be simple because you have already got everything set up and you will simply need to log in to your account on the exchange and trade bitcoins.