Bitcoin is a cryptocurrency and worldwide payment system. It is the first decentralised digital currency as it runs without a central bank or single administrator. The network is peer-to-peer, and transactions take place between users directly, without an intermediary. All the transactions are verified by network nodes through the use of cryptocurrency and will be reported in a public distributed ledger called ‘Blockchain‘. Bitcoin was introduced by an unknown person or group under the name Satoshi Nakamoto’ and published as open-source software in 2009.
How to Buy Bitcoin
First of all, you have to think deeply about how to buy the Bitcoin. To buy Bitcoin, you can choose bitcoin exchanges according to your wish. There are two ways to buy Bitcoin wallet. First one is Coinbase and the second one is LocalBitcoins.
Coinbase operates in 32 countries, and it accepts debit and credit cards and bank transfers. For some payment methods, it requires ID verification. Coinbase can have low buy limits at first, increase with use.
LocalBitcoins works in worldwide and accepts Paypal, Western Union, gift cards, bank transfers and many more. Another feature is that it doesn’t require ID for some payment methods.
How to Buy Bitcoin by Using Coinbase
- By signing up to Coinbase, you will get ten dollars of free coins when you spend over $100 (or the equivalent in your currency.
- Then press the ‘sign up’ button and fill your required details such as name, email, password and location.
- Just like a US bank, Coinbase is regulated by the US government; we have to obey strict financial rules. Then only they take verifying your identity very seriously. This is what makes the Coinbase a reputation for being the most trusted way to convert fiat currency to cryptocurrency.
- For verifying your account, you need to give a phone number, upload an image of your photo ID and verify a credit/debit card or bank account before you can buy.
- You can choose credit/debit card on Coinbase that requires higher fees but gives instant purchasing. If you are using bank transfer, you can save money, but it takes time (taking up to a week to get your coins).
- When your payment details are verified, click ‘buy/sell’ on the top menu.
- Select ‘Bitcoin’, and from the bottom of the page select how much to spend in your local currency/how many coins you want to buy.
- If you are happy with the amount, click the big “Buy” button.
- Then you have to confirm your purchase. So click the ‘Confirm Buy’ button.
- You now own your Bitcoin.
How to Buy Bitcoin by using LocalBitcoins
- First of all, go to the official website of LocalBitcons, then click ‘Sign up’ on the top right menu.
- Then enter a username, your email and a strong password that you won’t forget. Then click ‘Register’.
- Then an email will be sent to you with a link to confirm your email address. Find the link and click the link.
- Then a new window will be opened hat will have automatically logged you into your new account.
- Click ‘Buy Bitcoins’ on the top menu.
- Then press ‘Quick Buy’.
- In the first input box, Fill how much money you want to spend on Bitcoin
- From the first drop-down menu, choose your currency.
- After that select the country you are in.
- To buy Bitcoin without requiring to give any ID, press the checkbox beside ‘ID not required’. In the final drop-down menu, you can find a wide range of buying methods. You can select to search for sellers that accept Paypal, bank transfers, Amazon gift cards etc. If you are happy with your selection, press search.
- Then you will be provided with a list of sellers that will be matching your criteria. Beside their usernames, you will get the number of transactions they have completed on the site, and their feedback. You can also view the payment methods they accept, the price they are selling Bitcoin at and any limit to the amount they will sell in one transaction. Then you can select the seller that you would like to use, and click ‘Buy’.
- Then you must be aware of trade with your selected user. Make sure you are comfortable with them. Give attention to the opening hours and also pay attention to the ‘payment window’.
- If you are ready, input the amount of Bitcoin that you would like to buy in your chosen currency. There may be a limit to a smaller amount as this is your first time using LocalBitcoins. Your limit will increase when you get positive feedback.
- Then press ‘Send trade request’.
- Now you will be given the payment details for the seller such as their bank account details, Paypal address etc. By using these details, you can send the correct amount of money to the seller within the payment window.
- Don’t forget to add the reference message to your payment, so the seller knows the money came from you.
- After that press the ‘I have Paid’ button.
- Then you have to confirm that you have made the payment. If you’re happy to accept it, then press ‘confirm payment complete’. Then you have to wait till the seller confirm that they have received the payment.
- Then the Bitcoin will be released soon into your account; you will get a message on the site as well as an email to confirm it.
- Finally, your coins will appear in your wallet. Then click it.
Congrats! You now own some Bitcoin.
How to Store Your Bitcoin
Now you must decide where you are going to store it. You can choose one of the three options.
1) Keep it on Coinbase
Many people prefer this option as it is the easiest option as well as pretty safe. But exchanges have been hacked before, and people favour having their coins under their control.
2) A desktop/web wallet
A lot of wallets are available for desktop and mobile, and you can find out more about the wallets by searching. You can store your coins in a wallet on your computer, it is safe, and if you forgot your password, you could lock your coins away forever. If your computer is hacked and security compromised you can be vulnerable to having your coins stolen. This is perfect for those who are confident.
3) A hardware wallet
Another line of defence is necessary to keep your coins from being syphoned out of our wallets. Many websites are running illicit code to steal passwords. Hardware wallet will be helpful for people from stealing information from their computers.
Hardware wallets plug into your computer like a USB stick, and they have one job- to be a firewall between your coins and the outside world. By doing this, it encrypts private keys to your cryptocurrency wallets so that nobody can access it. That person who has physical access to your hardware wallet will be the one who knows its password.
You can set up a simple Bitcoin wallet on your computer. You can download and install the Electrum wallet. Click ‘download’ on the Electrum site. Then select the correct file for your computer and download it.
Once the file has completed downloading you should run it and then follow the installation instructions.
Then open the wallet, then you can view it under the name ‘Electrum’ on your computer. Then you have to give a new name to your wallet. Then click ‘Next’. Then on the screen, you can select ‘standard wallet. Press ‘Next’.
On this screen keep ‘Create a new seed’ selected. Press ‘Next’.
Now you will be shown with your wallet seed. This seed is a backup of your wallet. Which can be used to open it from any computer without realising your password.
Then press ‘Next’. Then you have to write your seed into the box to confirm you copied it correctly. Then click ‘Next’.
Then you will be asked to enter a password. Then create a password and do not forget your password. Then press ‘Next’.
Your wallet is now open. Congrats!
Click ‘Receive’ to get your wallet address. Copy the address safe as we will require it soon.
Now return to Coinbase, click ‘Accounts’ at the top menu, then find your Bitcoin wallet listed on the left. Click ‘Send’.
Then paste your wallet address into the ‘Recipient’ box that we copy earlier. Then type how much Bitcoin you wish to send. Click ‘Continue’.
Finally, you have to wait for the Bitcoin to travel to your wallet. It takes time between 5 to 20 minutes. Then it will show your Electrum wallet ‘balance’. bitcoin price, how to mine bitcoin, bitcoin to usd, bitcoin exchange, bitcoin price chart, bitcoin paper wallet, bitcoin exchange rate, bitcoin price today, bitcoin price drop, bitcoin price usd, bitcoin mining softwarem how to buy bitcoin using coinbase, how buy bitcoin using localbitcoins.