How to buy bitcoin securely
How to Buy Bitcoins Instantly
Now when you take into consideration all these points, they are multiple avenues.
You can buy it like stocks from an exchange or mine it on your own.
Broadly there are four alternatives that you can choose between
These include:
Mining for bitcoin
Buying directly from exchanges
Buying from traders directly
Selling products and getting paid in Bitcoin
So, you have to take a call on the kind of Bitcoin savings that you will like.
You can even look at getting your own PC for mining it.
But you need to make sure you create proper contracts before you commit any cash.
Even when you buy them using hard cash, be careful about the various methodologies.
This is because it is not just a virtual concept.
It is hard cash that you are committing.
You need to store it appropriately in digital avenues.
You can create these digital wallets the same way as a bank account.
Most times you are using an easy to operate interface.
It can be something as simple as an app on your smartphone or even on your computer.
These online digital wallets are cheap and easy to operate.
But at the same time, they can have many security concerns.
There are many instances of theft.
Overall, close to 4 million Bitcoins are lost globally.
A lot of it is as a result of a variety of safety issues.
This is due to the privacy policies of these bitcoin sellers.
As a result of this, you have to be very careful about the way you buy the cryptocurrency.
Different options can be suitable for different individuals.
A lot of it is also an outcome of your understanding.
For example, if you have detailed knowledge, you can even go for mining bitcoin.
- How to Get Bitcoin by Mining
Creating bitcoin or mining for it is one of the most basic ways.
For this, you have to invest in a reasonable amount of hardware.
You need to have the right type of hardware as well as mining sources.
You have to understand the market well and also the technologies.
You can look at exploring various blockchains and ways to attract funds.
You can get Bitcoins or also get bitcoin as transaction fees.
Once you have got the required amount in your account, you can transfer in wallets.
But mining bitcoins also entails relatively detailed know-how.
You have to undertake studies about the market dynamics.
Let’s say that you want to buy a TV from me but want to pay in bitcoins.
But let’s assume I want to make sure that this is genuine bitcoin.
So. I start verifying the overall transaction.
Now there is not just this transaction.
There are many such transactions happening at the same time.
They get collected in a box that can often be likened to a conventional padlock.
This essentially is the Bitcoin blockchain.
A resourceful miner will look for keys that can open this blockchain.
Once you are able to get a handle of these keys, you enter the blockchain.
It is literally like looking for a needle in a big pile of hay.
This is exactly why the blockchain network rewards anyone who manages.
Every new miner gets a reward of 25 bitcoins for achieving this feat.
If you are wondering why a reward, some numbers should clarify this figure
You can take close to 1,789,546,951.05 attempts to actually get the desired result.
But that is not a deterrent.
Every 10 minutes someone somewhere gets this 25 bitcoin reward.
- How to Buy Bitcoin from Exchanges
Buying Bitcoin from exchanges is similar to how you buy stocks.
First of all, you have to look for an exchange that accepts fiat currency.
This is important because otherwise, you will not be able to buy Bitcoin instantly.
Coinbase in that context is a reliable option.
Especially if you are a newcomer in the world of Bitcoin, this is a great option.
The exchange is user-friendly, provides reasonable security and has a proven track record.
So this is your fundamental criterion for deciding where to buy Bitcoin instantly.
The reliability and the track record of the exchange are most important.
It will make sure that your money is in safe hands and you get the right investment value.
Let’s assume if I zero-in on Coinbase, the reason I will go for it is it has support in 32 nations.
Moreover, the overall traded volume is close to $20 billion worth in Bitcoins.
So once you fix the exchange, the next step is about buying it physically.
For this, you have to create an account and then go ahead and get it verified.
You can start transaction once this verification is done.
You can link either a bank account or a PayPal account to the exchange.
So this, no doubt, gives you relative flexibility in taking positions in the market.
Also, look out for the mode of payment available.
If you ask me, I will go for options where I can make payment via credit as well as debit cards.
This is always an added advantage.
In this way, your savings are never dependent on available funds.
You can even pay through your credit card and look at generating more money.
- Buy Bitcoin Via ATM
Buying bitcoin from an exchange is one of the most common ways.
But there are many other ways of buying it too.
One option for you is approaching a Bitcoin Depot.
Essentially this comprises of a large number of ATMs that facilitate Bitcoin transaction.
But this facility is mostly available across the United States.
In terms of convenience, this is one of the best ways to buy bitcoin instantly.
But this also means that you need to stay in some place close to the Bitcoin ATM.
Additionally, you need to stay in a country where it is allowed.
The process is rather simple in this case.
All you need to do is deposit cash, and you get the Bitcoins deposited in your account.
This transaction happens in a matter of hours.
But the problem, in this case, is the high transaction fees.
This entire transaction costs close to 9% every transaction.
As a result of it, people are not too keen about using this mode.
Moreover, there is absolutely no customer support in case of any dispute.
Another major concern is the sub-par dollar-bitcoin rate.
This can significantly compromise your investment.
Moreover, these details are never discussed upfront.
So there is a huge amount of uncertainty in the complete transaction.
But at the same time, users are quite excited about its potential.
As a result, you have more than 1600 Bitcoin ATM now globally.
Of these, over 900 of them are in the United States.
You will be surprised to know on a daily basis there are more than 2 ATMs being added.
When you consider this ATM addition on a global scale, you can work out mathematics.
So in the not so distant future, you may well have one near you.
- How to Buy Bitcoin via Investment Fund
But if you are looking for options to buy Bitcoin instantly, there are many still.
If you think buying these from ATM or an exchange is not personal enough, try LibertyX.
This helps you buy bitcoin in retail stores.
Have you ever made any transaction via Western Union money transfer?
Well in many ways, this is similar to that type of transaction.
Needless to mention this is significantly up close.
But as of now, this service is limited only to the United States.
Users can access this by entering their zip code and looking for a reliable retailer.
The zip code enables you to easily look for someone closer to home.
There are a few more variants in this category.
Have you noticed how a Mutual Fund works?
Investors derive value from the value of the underlying stock.
They do not have any direct exposure.
This is no doubt one of the most attractive forms of owning bitcoin.
It facilitates adequate exposure but at the same time limits risk.
This particular Bitcoin Investment Fund is traded on OTCQX exchange.
This particular fund started in 2013 September.
Since then, it has managed to muster popularity in a slow and gradual manner.
Its current valuation is north of $800 million.
The YTD returns, in this case, is almost as much as 300%.
However, some have however raised a word of caution against it.
Many have even termed the fund speculative in nature
However, the robust returns work in its favor.
This often convinces many seasoned investors to bet on this.
Moreover, it is an indirect exposure in Bitcoin.
So, the relative amount of safety is much pronounced in this case.
Is Buying Bitcoin Safe?
But even when you are faced with these many options to buy, concerns remain.
The question is, should you buy Bitcoin at all?
Is it safe to buy this cryptocurrency?
Though you have options, will it be reliable to commit your cash?
The primary point, in this case, is utmost care.
Indeed care is the most repeated buzzword when you are dealing with Bitcoin.
It is a wide and hugely unregulated market.
The value of the Bitcoin is never extremely stable.
Volatility is the name of the game in most cases.
They are like the whimsical small caps.
Price can go up really sharply, but at the same time, they can nosedive as well.
For example, the entire investment community saw the price volatility in early 2018.
The markets turned jittery when Coinmarketcap decided to exclude South Korea.
Global process fell over 20% the world over.
The risk of hackers and theft is quite real.
If you make a simple back of the hand calculation, theft leads to huge losses.
Over $4 million worth of Bitcoins is lost today globally.
No one really knows how or why.
But the fact is that much of bitcoin is unaccounted for today.
Another risk factor is in the peer to peer transfer.
You have to be very careful about who or what you are transacting with.
This is exactly where the Bitcoin verification plays a crucial role.
It makes sure that you are very clear about the whereabouts of your partners.
Unpredictability When You Buy Bitcoin
This is another primary risk irrespective of where you buy Bitcoin instantly.
The huge price volatility is primarily on account of uncertainty.
The lack of accountability plays a very important part in it.
As a result, the swing in prices can be huge in a matter of days.
So if you are planning to buy Bitcoin instantly, you also have to assess this.
This is also a kind of security breach.
If you cannot follow a clear direction, how will you take a call on next Bitcoin movement?
In the most recent bout, we saw a swing comprising of $9000 in a matter of days.
This means it is a pronounced risk when you are dealing with Bitcoin.
As a result, a lot of people are asking investors not to get involved.
Now as a result of this, no one knows how it can affect the future.
Will the market turn jittery and collapse eventually?
Well, it is this kind of unpredictability that makes this cryptocurrency very unstable too.
This is the key reason why there are many naysayers dissuading people from buying it.
It is surely an extremely time consuming and tedious exercise.
The risk is the reward potential despite all of it is very bleak.
Role of Technology
Another important factor in assigning the safety of Bitcoin is the role of technology.
Technology empowers investors.
But at the same time, it can be an immense risk too.
The anonymity of Bitcoin trade often encourages many illegal traders to use this route.
This means that you have a host of illicit trades being planned and manipulated.
Therefore when you consider the relative safety of Bitcoins, you have to factor in these elements.
Additionally, the ownership of the private keys and the public keys also make a difference.
For example, if an exchange has the right to private keys, are your investment safe?
Theoretically speaking the Bitcoin exchange can simply walk away with your money.
Perhaps this is why it is extremely important to consider precautions.
Take a Comprehensive View If You Want to Buy Bitcoin Instantly
Therefore, if you want to buy Bitcoin instantly, you have to take a comprehensive view.
It is not just important to determine where to buy and how much to buy.
The most important factor is the security of the vendor you are buying from.
Think about the amount of risk that you are exposing yourself to.
It is essential that you consider the pros and cons of this investment carefully.
This will make the foundation of your investment in Bitcoin strong.
It will also be an impetus to help you buy bitcoin instantly.