What is Bitcoin?
A Bitcoin is a digital currency which is used worldwide without any single authority or a bank. It is a crypto currency and a payment system which is accepted throughout the world. Bitcoin is the first decentralized digital currency. It is created as a reward for mining. It can be exchanged with other currencies, products or services.
Pre-requisites to buy bitcoin:
Before making a decision to buy Bitcoins, it is very necessary to work for a reliable source to store the Bitcoin. There are multiple sources to store crypto currency such as hardware wallets, software wallets, web wallets, desktop wallets and mobile applications, some of these wallets come with a price while others are almost free to use and store the digital currency. For instance, the hardware wallet is to be purchased while the web wallets may have some service charges.
How to purchase Bitcoin?
- Where to buy a Bitcoin:
A Bitcoin or any crypto currency can be bought through brokers or any online exchanges that offer the exchange of Bitcoin with currency.
- Choosing the correct exchange:
In addition to brokers, there are a number of exchanges which offer the purchase and sale of bitcoins. It is very important to choose a right exchange for the purchase of a Bitcoin because each exchange has different performance value, where to purchase bitcoin some might have exchange rates more than the others. Before buying a Bitcoin, it is necessary to ask for the fee and the payment method before the purchase.
- Selection and verification of payment method:
After the exchange is selected, the selection and verification of the payment method are the next step. Exchanges accept different forms of payment options. Some might accept a direct bank transfer while others might give you the option of transfer through a credit card.
- Buying and storing Bitcoin:
After the negotiation of payment method, the exchange will guide you about the number of Bitcoins you can purchase and the storing of Bitcoins. The price of a Bitcoin is changing every moment so you have to make a quick and smart decision at the right time to get maximum advantage. The Bitcoins can be stored in any wallet, you choose from the above given options.
It is advised to start with a small amount of trade of purchase bitcoin to get used to of the process of the trade and use of the crypto currency. Once you get in the game, you can experiment with more.
- Using the Bitcoin:
The value of Bitcoin changes very drastically, so if you decide to exchange with any currency, a prompt and a right time decision has to be made. A Bitcoin can be exchanged with the currency, some products and for some services as well.