Most people have heard a lot about bitcoin and cryptocurrencies as a whole, but that doesn’t mean that you could jump right into it. If only it were as easy as dropping by a bitcoin store and giving them your cash for some coins.
Instead, there’s a lot to know about owning bitcoin, from its value and volatility to getting an e-wallet like PayTM Bitcoin. Once you get the hang of it, it’ll be smooth-sailing, but for now, here is a beginner’s guide to owning bitcoin just for you.
What exactly is Bitcoin?
Bitcoin is a decentralized and digital currency using peer-to-peer technology to drive instant payments between people globally. Bitcoin is created and stored electronically, unlike fiat money regulated by governmental authorities or central banks.
Bitcoin is the first cryptocurrency ever created in 2009, and it is so significant that others are called altcoins most of the time. It is the most popular and uses blockchain technology, top computer software used to solve problems. It is also the highest cryptocurrency in terms of market capitalization. The value of Bitcoin is continually increasing, so it’s no surprise that you’re considering owning it.
Why is Bitcoin’s Price so Volatile?
Before diving into owning Bitcoin, it’s also essential to know more about the cryptocurrency price, especially why it’s so volatile. Bitcoin is well-known for its volatile price, and it hit its highest value ever in 2017.
This high level of volatility is caused by speculation. Although Bitcoin can be used as a medium of exchange in purchasing goods and services, this cryptocurrency’s primary use is in trading alternative investment strategy. People continuously buy and sell bitcoin the same way they do for stocks and other traditional assets. This is what makes the currency’s price so volatile.
Acquiring a BTC Wallet
Before you can make a move to purchasing and owning Bitcoin, you need to have a wallet to store it in. With Bitcoin wallets, you can receive, send, and store your BITcoins – it operates the same way your bank account does.
Internet-based Bitcoin wallets are usually seen as the most secure choices, although in today’s digital world, it’s hard to say anything online is 100% safe from hackers. It’s up to you to do your part in securing your wallet. There are other types like cold wallets and offline wallet apps, although if you misplace your hard drive or USB, that’ll be the end.
You can open your BTC wallet with internet-based wallet services like Blockchain.info or Coinbase, or go for MultiBit if you want a desktop wallet application.
When you open your BTC wallet, you will be assigned a wallet address, and that’s what you will supply to anyone that wants to send Bitcoin to you. It’ll be a string of letters and numbers, and you don’t need anything else.
Once you have this covered, you’re halfway there to owning Bitcoin cryptocurrency.
Different Ways to Get Bitcoin
There are four different ways you can start owning Bitcoin and storing them in your new wallet. They include:
- Buying Bitcoin at an Online Exchange
Firstly, you can buy at an exchange, as this is the best, simplest, and most straightforward way to get Bitcoin, especially for a beginner. At an exchange, you can purchase and sell Bitcoin at a given rate. All you’ll have to do is provide your BTC wallet and pay using another cryptocurrency or fiat money, and then the exchange will credit your wallet account.
Vertex Market is presently the most recommended place to visit if you want to buy Bitcoin with fiat and cryptocurrency. The site is easy to use, the exchange rates are favorable, and the security is tight. It’s ideal for beginners finding their footing in the world of Bitcoin.
- Accept it as a Method of Payment.
You can get Bitcoin by accepting it as a payment method for some goods and services you provide online. You have to provide your wallet address to the client, and they will send the coins to you.
You can also use a processing service for cryptocurrencies like Bitcoin such as BitPay. It will process your Bitcoin payments and turn them into fiat money like dollars, euros, or pounds. Once you have that down, you can announce to your clients that you collect Bitcoin as a payment mode.
- Buy from a Friend or Local Trader
If you’re buying from someone you know, that’s fine. But, it’s usually sketchy to meet up with someone you’ve never met before to buy Bitcoin, and so, it is not recommended.
Or, if you have some friends and colleagues that own Bitcoin, you can ask them if they’re willing to sell and buy from them directly.
- Mine Bitcoin
Finally, you can decide to mine Bitcoin, although this is not recommended for a beginner. Mining bitcoin is not only super complicated, but it is also challenging and time-consuming. It requires using software and mining computers, and it costs a lot of money.
Mining Bitcoin is not as profitable as it used to be. It’s only suitable for experienced and tech-savvy Bitcoin owners.
Out of these four methods of getting Bitcoin, the best one is to buy it from an exchange like Vertex Market. This is cost-effective, easy, and straightforward. You don’t have to worry about getting ripped off or losing money just because you’re trying to buy Bitcoin.
You Own Bitcoin: Now What?
Now that you have bought and own Bitcoin, what next? Does this question arise in your mind, how to buy bitcoin in India? There are different things you can do with Bitcoin as a new owner.
You can decide to hold on to it, wait for the value to increase, and then sell it at a higher price. Another thing you can do is use it to buy specific items online, like online gambling.
The prevalent use of Bitcoin today is trading with it. But, it would be best if you got the hang of owning the cryptocurrency first before diving into crypto trading.
The process of owning Bitcoin is not as complicated as it seems. As long as you have your BTC wallet and your source of BTC coins, you can fill up your storage with as many Bitcoins as you can afford. And then, you can use it for whatever you’d like.
If you think Bitcoin alone is complicated, imagine what it would be like once you get the hang of it and move to other altcoins like Ethereum and Litecoin. You can explore a lot in the world of cryptocurrencies, but let’s stick to Bitcoin first, shall we?