Bitcoin is the most famous cryptocurrency in the world. Initially, the term was used by a narrow group of people, but after the popularization of blockchain technology and the explosive growth in the value of digital money, the entire world got to know about it. The Internet is full of news about changes in the bitcoin exchange rate. There are stories of huge earnings and much debate about the potential for the development of the currency. But before investing in bitcoin, you need to study the peculiarities of this asset, its advantages and disadvantages, differences from other currencies, ways to make money on it, and where to buy or sell bitcoin.
How does the system work?
Digital Wallets are analogous to a bank or electronic account where the money is stored. They are registered using special programs or sites. When creating a wallet, the user receives a public key (account number) and a private key (password for managing funds).
Transactions are required to transfer bitcoins between user wallets. All operations fall into a common pool, which is processed by other members of the system. A commission must be paid to confirm the operation.
Miners – those who “mine” bitcoins – are the backbone of the system’s security and performance. They use computers to power the network in exchange for the rewards they receive. All operations for the extraction of new blocks and processing transactions are performed by miners.
The blockchain is a sequential chain of blocks that record information about transactions. The essence of the technology lies in the fact that data is stored on many independent servers, and in case of problems or failures, the network will remain operational.
Reference: the technical implementation of the Bitcoin network makes the system reliable and protected from outside influences and hacks. The more devices are involved in the mining process, the higher the security level is.
The cost of a cryptocurrency directly depends on the level of user confidence, the number of people willing to buy an asset, and market sentiment. Bitcoin’s price is volatile due to political uncertainty.
What are the dangers of buying and storing bitcoin?
Despite the large number of stories about successful investing in bitcoin, study all the possible risks before buying an asset. The main factors include:
Price volatility. The cost of bitcoin fluctuates daily and can change by 10-15% up or down.
Such volatility provides opportunities for earning but can lead to loss of money.
The issue of the legality of income. Since the state does not pass laws on bitcoin, banks have the right to interpret the income from cryptocurrencies in different ways. Some companies process transactions without problems, while others require confirmation of the legality of money.
Lack of regulation. In the case of brokers or investments in traditional assets, everything is extremely transparent. A person chooses a direction for investments and turns to an intermediary who works following the law. The legality of the operation of most exchanges and exchangers is questionable.
Choosing an exchanger: which Bitcoin exchanger is better?
In order to choose the most suitable exchanger for you, it is important to consider at least 6 aspects.
- Privacy: your information must be reliably protected!
Want to buy Bitcoins privately?
Then you can immediately delete the following payment methods:
Any other method that requires confirmation of your identity
- Limits: Do you need a lot of bitcoins?
If you need to buy a large number of bitcoins at once – say, 25 BTC or more – then go to large brokers or well-known exchange platforms, such as Cryptex.net.
- Speed: when do you want to use the purchased coins?
How urgently do you need bitcoins? Different payment methods work at different speeds.
In fact, buying bitcoins for the first time can confuse or intimidate many. Once you figure it out, subsequent exchanges will be much faster!
The fastest way to buy bitcoins is at Bitcoin ATMs, though only if there is such an ATM near you. To determine this, see the map of available Bitcoin ATMs.
- Exchange rate (quotes)
There is no such thing as an “official bitcoin rate”. If you are interested in knowing the average price of a cryptocurrency across all major exchanges, then you can use platforms such as https://cryptex.net/trade/btcusd
- Reputation: Don’t be fooled!
How long does the selected exchanger exist? Can you trust it?
If you use Cryptex.net, you can be sure about its trading history.
- Commission: is this exchange profitable for you?
What percentage does the exchanger charge for the services rendered to you? The commission can vary greatly from service to service or depend on the chosen payment methods.
Always consider deposit fees, exchange fees, and withdrawal fees. Some exchangers are ready to reduce the commission rate for large trading volumes.
To buy bitcoin, you need to create a wallet and understand the principles of its operation. The main thing is to save the private key and do not transfer it to third parties, since it opens access to the management of funds.
The main options for buying bitcoin:
There is a large number of sites on the Internet that allow you to buy or sell bitcoin for a small commission. Bank accounts, popular Internet banking, and e-wallets are used for transactions. It is necessary to choose an exchanger using reputable platforms that collect feedback on sites, exchange rates, and allow you to search for the best deals.
An intermediary platform between users that acts as a guarantor and protects the interests of buyers and sellers.
Investors can independently find bitcoin holders on thematic forums or websites, and then agree to buy BTC. For greater reliability, it is recommended to use a guarantor
More to the point:
We are sure this information helped you decide which method you will use to buy bitcoins. It can be easy when you know which exchanger is trustworthy and which makes the process, as simple as possible.