Buzz
In previous articles, Mytour introduced you to some basic information about what Bitcoin is and whether you can earn Bitcoin on your own. In this article, Mytour will provide you with more information on where to buy Bitcoin and from whom? How? to better understand this digital currency system.
Where to Buy Bitcoin and How?
Depending on the level of security you desire, different bitcoin wallets provide varying degrees of security. Some offer security levels similar to everyday wallets used for purchasing household items, while others provide military-grade protection.
There are two main options: (1) a software wallet stored on your computer's hard drive, (2) an online service, web-based, or (3) a 'vault' service for storing and protecting your bitcoins, or a multi-purpose electronic wallet using keys to secure the account.
Bitcoin wallet vulnerabilities: if you store bitcoins locally on your computer, ensure you regularly back up your bitcoin wallet to guard against hard drive failures, and enhance the security level for online bitcoin wallets to defend against hackers from highest (multi-factor authentication) to lowest (ID and password).
Online bitcoin transactions and wallets
Newcomers to bitcoin will encounter various types of transactions and bitcoin wallets competing with their businesses.
Some are developing transactions for merchant organizations, while others are simpler bitcoin wallet services with limited buying and selling capabilities. Most bitcoin transactions and wallets will store your digital currency, similar to regular bank accounts.
Bitcoin transactions and wallets are the best choice if you want to engage in regular trading and speculation without the need for anonymity and without concern for establishing 'know your customer' (KYC) and anti-money laundering (AML) procedures.
That's the law in most countries, and no transaction can occur because current financial system-operating companies must meet your customer (KYC) and anti-money laundering (AML) requirements.
Additionally, the best trading options also depend on your location, where you reside.
At this time, the largest digital currency exchanges are Bitfinex (Hong Kong), Bitstamp (USA), BTC-e (uncertain), Kraken (USA), Huobi (China and Hong Kong), OKCoin (China), and BTCC (China).
Coinbase is considered the most popular bitcoin exchange and wallet service, which facilitates transactions converting USD or Euro to bitcoin. The company also offers web and mobile applications. Initially available only in the USA, Coinbase recently expanded its services to European countries.
Circle provides users worldwide with a platform to store, send, receive, and conduct bitcoin transactions. Currently, only US citizens can link bank accounts with deposit funds, but credit and debit cards are also an option. iOS and Android apps are now available.
Bitcoin wallet and debit card provider Xapo has also joined this race, offering the option to convert fiat currency into bitcoin in your account.
Bitcoin exchange and wallet service provider Coinjar leads the market in Australia. The company launched the Coinjar Swipe debit card service in February 2015.
Unocoin targets the Indian market, allowing users to buy, sell, and store bitcoin. Deposits can be made through any national online bank or via NEFT / RTGS. Register a PAN card to use the website's services.
After setting up your account, you'll need to link your current bank account to transfer funds between that account and your new trading account via bank transfer.
Transferring funds incurs a fee. Some exchanges allow you to deposit directly into their bank accounts (meaning, through non-ATM cash machines).
If you're required to link a bank account to use the exchange, it means transactions can only accept banks from that country.
Warning about transactions, bitcoin wallets, and banks
Despite identification requirements, it's worth noting that bitcoin transactions and wallets do not offer the additional security measures that banks do.
For instance, lacking or limited insurance coverage for your accounts if transactions are compromised by hackers, or unable to withdraw from the market, ... .
Bitcoin differs from legal tender currencies in most countries around the world, and regulatory authorities often struggle to apprehend thieves. Some larger transactions have reimbursed customers' funds following theft during transactions.
If theft occurs with your bitcoin wallet due to security breaches or lost passwords, there is no way to guarantee the recovery of your funds.
Direct transactions, or through the OTC (over-the-counter) market
If you live in a city and prefer anonymity, avoiding hassle with banks, the simplest option to exchange bitcoin is to conduct direct transactions with local sellers.
LocalBitcoins is the main website where such transactions are arranged and prices negotiated. This website also provides escrow services to provide an additional layer of security for both parties.
Consider and evaluate security issues for both buyers and sellers, especially when conducting large transactions. And remember, if you're conducting direct transactions, you must access your bitcoin wallet using a smartphone, tablet, or laptop. Additionally, you need direct internet access to confirm transactions.
If you prefer not to conduct bitcoin transactions directly, you can visit Meetup.com to see if there are any groups in your area offering bitcoin.
Depending on the seller, you may need to pay upfront about 5-10% of the transaction amount for direct transactions, while you can transfer the rest for convenience and safety. Some sellers may allow you to use PayPal for payment.
Additionally, it's advisable to check and choose a safe transaction location. Police may suspect you of conducting illegal business if exchanging cash in certain public places.
Where and from whom to buy Bitcoin? How?
Bitcoin mining
You may have heard of bitcoin mining using computers or graphics cards. This happened not long ago, and with the increasing popularity of bitcoin, devices dedicated to bitcoin mining (called ASICs) have emerged.
Most mining operations are primarily domains of large mining groups called 'pools' and companies established solely for bitcoin mining. You can choose to buy shares in a 'pool' or company.
If anyone tells you that you can use a regular computer or even an old graphics card to mine bitcoin, be cautious as they're just trying to convince you to buy their outdated stuff.
Another relatively new option is 'cloud mining,' where you mine bitcoin without investing in expensive and modern equipment. Users pay to use the company's data center to mine on their behalf.
Managed investment options
If you're not keen on the idea of buying and storing a large amount of bitcoin in a secure location, you can turn to managed investment options such as Bitcoin Investment Trust (BIT) or The Winklevoss ETF.
These managed investment options are exclusive to bitcoin and use a modern protocol to securely store bitcoin on behalf of shareholders. To date, these investment trusts are only available to potential investors (such as wealthy investors), but there is hope for expansion to all other investors.
Bitcoin Superfund is a new option set to launch in the UK.
Bitcoin ATMs
Although a relatively new concept, the number of bitcoin ATMs is also increasing significantly.
Some bitcoin ATM providers include BitAccess, CoinOutlet, Genesis Coin, Lamassu, and Robocoin.
Similar to direct bitcoin transactions, but you'll have to deal with the ATM, insert your card, and scan the QR code of your mobile wallet or receive a receipt with a code to load bitcoin into your bitcoin wallet.
Exchange rates can fluctuate from 3% to 8% on standard transaction prices.
Through the article on where to buy Bitcoin, from whom? How? you can gain a better understanding of how to trade with Bitcoin, the most famous Bitcoin services worldwide. Overall, Bitcoin at the current time has very high value and can bring huge profits if you have a reasonable bitcoin mining, bitcoin earning method.
Along with investing and researching where to buy Bitcoin, readers also need to learn about popular cryptocurrencies in the market, including USDT. To learn more about USDT, its exchange rate, trading methods, stability, and make the right investment decisions for yourself, you need to refer to the article What is USDT? Is it a scam? Should you invest? below.
