I wonder where to start? People have a lot of misconceptions about Bitcoin, the first known and widely accepted cryptocurrency around the world.
Many people believe, for example, that only hackers and suspicious people use it. However, Bitcoins have become prevalent with everyone from TigerDirect to Forex, Dell and Subway, which now accept payments in Bitcoin.
Why is it so popular?
Well, bitcoin has many benefits compared to other currencies. For example, you can send bitcoins to someone as payment without going through a bank broker (and receiving an additional fee). It is also much faster than sending money via electronic or bank transfer. You can send bitcoins to someone and get them to receive currencies in seconds.
With all this, it’s no surprise that so many people are trying to buy Bitcoin Australia for the first time. However, it’s not as easy as going to your bank and pulling bitcoins or going to a store and spending some hard-earned money on bitcoins.
The system works a little differently than that. This Bitcoin buying guide will touch on some of the things you need to know before buying, so you can shop safely.
First of all, while the price can exceed US$11000 per currency, you don’t have to buy a full Bitcoin. Most places will allow you to buy parts of Bitcoin for less than $20, so you can start small and go from there where you become more comfortable with the way things work.
Second, this article is for general purposes only and should not be considered financial advice. Bitcoin can be risky and before you make any purchases, you should check with your financial advisor to see if this is right for you.
So here are 3 easy steps to buy Bitcoins:
#1 Get a Bitcoin Wallet
The first thing to do before buying your coins is to get a virtual wallet to store your coins. This wallet is a text series that people can use to send you bitcoins.
There are several different types of wallets, including those that you download to your phone or computer, online wallets, and even cold offline storage wallets.
Most people prefer to have a wallet on their phones or computers. Famous portfolios include Blockchain, Armory, BitgoMyCelium and Xapo.
It’s usually as simple as downloading a wallet to your phone as an app or downloading the software to your computer from the main wallet site.
#2 Decide where to buy
There are several types of places to shop and each is slightly different. Some online sellers sell you bitcoins directly in cash (or bank transfer or credit card).
There are stock exchanges where you can buy and sell Bitcoins from others, like the stock market. There are also local exchanges connecting you to vendors in your area looking to sell.
There are also ATMs where you can buy cash and pick up your coins in your wallet in minutes.
Each Bitcoin seller has its advantages and disadvantages. For example, ATMs are great for privacy, but they will charge you up to 20%
No matter where you decide to shop, remember to do your research and go with a trusted vendor with a good reputation and strong customer service. First-time buyers will have special questions and may need additional support to help them with their first transaction.
Take your time and look for different places to shop before you decide. Factors to consider include currency rates, surcharges, payment method and customer service.
#3 Buy Bitcoin and transfer it to your wallet
Once you find a place to shop, set up your money (i.e. you can send an electronic transfer or use your Visa to fund your account). Then expect a good price. (Bitcoin prices always fluctuate 24 hours a day, 7 days a week.) Then place your order when you’re ready.
Once your order is complete and your coins are obtained, you will want to send them to your wallet. Just enter your Bitcoin address and ask the seller to send you your bitcoins. You should see it appear in your wallet within minutes to an hour (depending on the speed the seller sends).
The last thing to remember bitcoin is still in its infancy. There are big fluctuations in prices and it could be the currency.