I guess it all started back in 2009 and the cryptocurrency boom began to gather momentum, and the momentum led with bitcoin being first and most prominent cryptocurrency to have been created, and it paved the way for other cryptocurrency technologies. However, this article is about how to purchase bitcoin, so we will just focus on bitcoin. Bitcoin is currently the most popular and expensive digital coin that is available for purchase, and during the winter of 2017, it experienced an insane level of growth that can only be described and monumental. Before the surge in value, one bitcoin was priced at roughly $3000 and that was in September, and if we speed up the clock all the way to December 2017 one bitcoin was worth approximately $19,000.
The cryptocurrency market hasn’t experienced such a rapid growth rate since and had baffled analysts and economists, nevertheless, ever since then hordes of people have been trying to capitalize off of bitcoin. Some crowds have taken unthinkable steps to get a slice of the pie by taking out loans, or remortgaging their homes just so they have enough money to “put into bitcoin”. What many don’t understand is that the bitcoin price is dependent on a number of factors that determine its worth.
How do you actually buy bitcoins?
A question that is often asked is “how do you actually buy bitcoins”? Well, there are ways to get hold of bitcoins other than buying it but these are more complicated processes, which we won’t be discussing today. Thankfully, the act of buying bitcoins on the cryptocurrency market is relatively straightforward. The first thing you need is somewhere to store your bitcoins, and you can use something called a bitcoin wallet, which of course isn’t like the wallet we carry round in our pockets (although you can purchase hardware wallets too).
There are a host of different software wallets that are readily available for you to download onto your computer, the wallet will provide you with a storage facility as well as the public and private keys that you can use to send and receive other bitcoins. That being said, hardware wallets do offer more protection because when you buy your bitcoins from the cryptocurrency market, storing them on your hardware wallet means they will reside in an offline environment free from any cyber attacks. Furthermore, hardware wallets are more likely to be lost or misplaced, so it is whatever suits you the best, you can use a desktop wallet as long as you have relevant anti-virus programs on your computer. Or you can use hardware wallets if you want that added protection as long as you don’t lose it.
Steps in purchasing bitcoins
The next step is creating an account on a cryptocurrency exchange platform such as Coinbase, which is one of the most used platforms available. To be able to create an account and gain access to the cryptocurrency market, you will first need to have a form of identification such as a passport or driving license that you can send a copy of and this will go on file and prove your identity. Once you have passed through these security checks, you can then navigate to the buy and sell area where you can deposit your money into your account, and go about exchanging it for bitcoins. In order to do this, you will need to link your bank account to your Coinbase so you can easily deposit your capital.
The bitcoin price is constantly changing and it varies from platform to platform, but Coinbase usually offers the best. Upon purchasing your bitcoins, which should only take a few minutes you are free to do what you want with them, but it is recommended that you immediately transfer them to your storage facility to protect them. You can do this by sending your bitcoins to your wallet address, which is just a string of random letters and numbers and this is used to identify your wallet and where the transfer is going.
It should be noted that cryptocurrencies are extremely volatile, and can experience rapid changes in price and should be approached with caution. It is recommended that you do not risk more money than you are willing to lose.