Bitcoin is a worldwide phenomenon, it is the most popular cryptocurrency in the world that has become accepted around the globe and is currently seeing an increase in demand. If only a couple years ago, there were only a few places that you could actually spend it, now there are rumors about Amazon, planning to start accepting cryptocurrency as a payment method.
However, for the general public, cryptocurrency is still a bit of a mystery, since you cannot just walk to an ATM and simply withdraw some coins. So, today we are starting our series of articles to get you caught up on a world of cryptocurrency. Starting with most basic and crucial step, setting up an account and making your first purchase!
First Step – Find a Bitcoin Wallet
Currently, there is a ton of choices, when it comes to digital Bitcoin-wallets, all ranging in terms of functionality, UI (User Interface), platforms that they can be used with and security. Giving a wide spread of options presented to you, it is of paramount importance to choose one that will work best for you.
For starters, it’s a good idea to put a list of essentials that will include features important to you. It is also would be beneficial to put a list of places and platforms that you use for money transactions and find a wallet that overlaps with most. We recommend starting with simple wallets that can be downloaded for free and that have an easy transaction process.
Please note that fees may be applied to currency exchanges, so read Terms & Conditions section carefully.
Examples of such wallets are:
- Coinbase wallet. A user-friendly option that is directly integrated with exchange service of the same name, which makes it probably the go-to option for those, who are just entering the realm of cryptocurrency. This particular wallet is fully compatible with any device and is very trusted by users worldwide.
- Mycelium. This is a mobile wallet that is known for its security since it is compatible with hardware wallets and Tor. It may be not the most user-friendly option out there, but it is worth considering.
- Electrum. If you are planning on storing a large amount of Bitcoin online then you should probably take a look at Electrum. Although it lacks in flexibility and is best, when used on a desktop, it is on a more secure end of the spectrum.
Find Cheapest Way to Buy Bitcoins
Choosing the right Bitcoin exchange is among top priorities since not many people are ready to commit a great sum of money. Currently, there are lots of different exchanges with varying rates. There are several aspects that are needed to be considered when choosing your Bitcoin Exchange.
Right of the back just like with any other currency, you need to consider the exchange rate. There is a global average price of Bitcoin (index), and you want to buy at a price that is closest to that number.
It will also be a good exercise to see recent fluctuations in the exchange rate since we don’t really know what the price of a Bitcoin is at the moment you are reading this article. Historically, cryptocurrency had rapid spikes in rates, so bear this in mind, when purchasing Bitcoin.
You would require finding an exchange that accepts your preferred payment method. But you should read the fine print, since different exchanges apply different fees for particular methods. Most commonly, all credit card transactions are charged with a fee of up to 10%. While the bank transfers can be completely free. So again, read the fine print before making any purchase.
The speed of transaction is something that needs to be considered when choosing the best exchange. Some services may take as long as weeks, when purchasing a large sum of Bitcoin, so if you need your crypto-coins here and now, you might want to search for a fast option. And also, consider that initial verification usually takes about a few days, regardless. So in the end, fastest way to buy Bitcoin would also vary, depending on the amount you are willing to buy and verification requirements
Money limits and fees
Every Bitcoin exchange platform has certain buying limits. The maximum amount would typically vary depending on the verification requirements. If we take Coinbase as an example, users can buy only up to $1,000 worth of Bitcoin in a single day, however, a fully verified user can make a purchase of up to $50,000.
And while you might think that you’ve found the easiest way to buy Bitcoin already, bear in mind that it might not be the cheapest one. If you buy cryptocurrency from a broker, you will most probably pay a flat 1% fee.
Make Your First Transaction
After you choose a wallet and exchange service, all you have to do is purchase your first Bitcoin amount. Find a local shop or online store that accept Bitcoin as a payment method and start using your wallet.
There are countless ways you can buy Bitcoin, but you should always remember that this is a relatively new industry filled with predators, who are willing to scam you, therefore you should always check the reputation of every exchange service and wallet provider.
Also, it is worth reminding that you can get cryptocurrency by mining it yourself. Here at Bitmainmasters, we provide all the equipment necessary to set up your personal mining rig and start earning Bitcoin directly onto your wallet.