Interested or buying bitcoin, but don’t know where to start? Everyone who might consider themselves a bit of an expert today was once right where you are now.
While the concept is quite different than what we’re used to with our regular bank accounts, you can get started with bitcoin in no time when you follow these five easy steps.
1. Learn about bitcoin.
Don’t go downloading anything or spending money before you read up on what you’re getting into. Learn the basics of blockchain, acquaint yourself with the origins and security of bitcoin, and think about why you want bitcoin in the first place.
Do you want to use it as you would any other source of funding? Is it a curiosity you want to partake in, or are you considering it an investment?
2. Study common pitfalls.
Your study doesn’t stop at foundational knowledge and interesting factoids. Understand that bitcoin is rather volatile and can drop even faster than it soars.
And in addition to keeping an eye out for various scams associated with bitcoin, you’ll have to develop faith and trust in a wallet that you’ll never see or touch. It’s an algorithm, not a checkbook.
3. Get a bitcoin wallet.
Once you’re ready to dive in, you’ll need to get a bitcoin wallet. Signup should be simple enough, and at this point, you should already be aware that you’re not actually keeping bitcoin “inside” of this wallet.
The wallet is necessary for security keys and completing transactions. You have plenty of options to choose from, and while many go for mobile apps, you may choose a hardware wallet if you’re planning to make cryptocurrency a way of life. If you go for a web or app wallet, select one with plenty of good reviews.
4. Buying Bitcoin
Now, it’s time to purchase bitcoin. To do so, you’ll need actual money. The most common ways people Buying Bitcoin is with a credit card, or through a bank transfer.
While it might be best to get your bitcoin this way at first, just so you’re familiar with the process, you can start accepting bitcoin as payment in the future if you want more.
6. Use your bitcoin.
If you want to use bitcoin in brick or mortar shops locally, this is where a mobile app wallet comes in handy.
It generates QR codes that can be used to easily pay for goods and services in person. QR codes may also be used when spending bitcoin online, or payment may be rendered manually.
When paying with bitcoin, make sure you’re aware of any extra fees you may be charged, and always review a vendor’s policy.
Most have a limited window of time through which you can complete the purchase, and some vendors drop and add bitcoin as a payment option depending on the market at the time.
It’s safe to say that bitcoin is unlike any other payment method we’ve grown accustomed to. As cryptocurrency becomes more and more attractive to frustrated consumers who don’t like relying solely on banks, bitcoin will continue to find legitimacy as a solid alternative.
Also Read:
A Beginner’s Guide to Bitcoin Mining (Bitcoin Mining 101)
The debate of Ethereum vs Bitcoin: Can the Ethereum Take the Throne?
The Technology Behind Bitcoin: The Background, Challenges, and Regulations
