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Bitcoin (BTC) is the most commonly reached out cryptocurrency or digital currency. This is because it the largest cryptocurrency that is measured by the highest market capitalization and the quantity of data stored in the blockchain. The history of Bitcoin dates back to 2009 when an Australian entrepreneur Satoshi Nakamoto invented the cryptocoin. After its creation, it became the first and the most widely used decentralized ledger currency bearing the highest market capitalization. It can also be stated that Bitcoin is an open-source peer-to-peer (P2P) online transaction facilitating digital coin that is censorship-resistant. Bitcoins are rigorously used in the darknet transactions across the online marketplace for dark web and dark web forums. In order to transact in Bitcoin, you need first to buy Bitcoin. At this point, you may ask how to buy bitcoin, which we will get though as you stick with us.
How Do You Buy & Sell Bitcoin Online?
Here are all the required steps that you need to follow accordingly to have a successful Bitcoin purchase.
Step 1: Get Yourself A Bitcoin Wallet or Digital Wallet
The first step that you should take is to own a digital wallet, preferably a bitcoin wallet. A Bitcoin wallet can simply be defined as a virtual wallet that performs as a storehouse for your bitcoin cryptocurrency just as your regular non-digital wallet would do for cash, coins and cards. You can buy bitcoin instantly as you set up your wallet.
You get two options to choose for – Hot Wallet and Cold Wallet. Hot wallets are online digital wallets meaning, that they are connected to the internet anyways. For example, say any online web-based wallet. Examples of hot wallet are – Electrum, Coinbase etc. You can choose to store all your Bitcoins in a software wallet that is stored on the hard drive of your computer. You might also like to opt for a vault service that keeps your bitcoin safeguarded offline or a multisig wallet using a number of keys that protects your account. These are cold wallets or offline wallets. Some other forms of cold wallet are paper wallet (a document containing necessary details) or USB wallet (bitcoins stored in USB). The challenge with the cold wallets is that you will lose your cryptocoins if you lose them.
Step 2: Buy Bitcoins Using Bank Accounts, Credit or Debit Cards
After you have your Bitcoin wallet ready and you have completed the necessary steps for opening it, you can add some Bitcoins to your wallet. For this, you can either use your bank account, conduct a wire transfer or a credit card or even a debit card. On the Bitcoin exchange, you would find an option to add bitcoins. Follow the steps and add your required bitcoins. You do not need to purchase Bitcoins as a whole but instead, opt for buying them in fractions. Make sure you check the transaction fee beforehand and proceed.
Step 3: Transfer Bought Bitcoins To Your Bitcoin Wallet
At this point, you have a digital wallet and your bought bitcoins. Considering you to be a newbie, you might not know how you can combine both of them. This is where you would need your wallet ID or the address of your Bitcoin wallet. Every time you transact with the Bitcoins, you need to enter the correct BTC wallet address.
Alternate Ways To Buy Bitcoin Online
Alternatively, you can make Bitcoin investment via three other methods:
- Bitcoin Exchange / Cryptocurrency Exchange:
If you want to buy and trade bitcoins directly, you can do so via websites like CoinBase. This particular website does not charge a trading fee for trading with different users.
- Bitcoin ATMs:
- Peer-to-Peer Exchanges:
- Buy Bitcoin With PayPal:
Now, we can jump straight to how to sell bitcoin easily online. For selling bitcoins online or conducting Bitcoin trade, you need first to buy bitcoin following the above-mentioned steps and then trade them accordingly when the Bitcoin price is favourable through the stated platforms.
Top 5 Bitcoin Exchange Platforms
The bitcoin exchange platforms have been helping out people who want to buy and sell bitcoin. Some of them also provide cryptocurrency wallets as well. Despite being beneficial to people, certain exchanges also come with specific disadvantages. In this segment, we have clubbed together some of the most renowned bitcoin exchanges along with their pros and cons. This will highly help you in choosing the right BTC exchange for you.
- CoinMama
Pros:
I. It is amongst the oldest and reputable cryptocurrency exchanges.
II. It offers a simple verification process.
III. The services occur pretty fast.
IV. Customer support is worth mentioning.
Cons:
- The services are limited to solely the U.S. residents as of the current scenario.
- Coinbase
Pros:
- The cryptocurrency exchange’s user interface is quite user-friendly and is easier to access for all types of buyers.
- The fees are lowest in the market.
- The firm is a reputable one.
- The services offered are limited and are only provided to 33 countries currently.
- The customer complaints are not resolved efficiently especially those with the suspended accounts.
- CEX.io
Pros:
- Its services are not limited to a certain number of countries.
- It is a reputable and age-old cryptocurrency exchange platform.
- The buying limits set out for the buyers are quite high.
- Corporate users can buy unlimited BTC.
- The fee that has been levied on the purchases are much higher as compared to the other similar bitcoin exchanges.
- LocalBitcoins
Pros:
- All payment methods including credit cards undergo strong verification procedures.
- The prices offered are pretty attractive.
- Customers located all across the world can enjoy its services.
- Owing to the high risk of fraud, one needs to go for escrow.
- The procedure is a little tedious.
- Bitstamp
Pros:
- It accepts a broad range of payment options along with credit cards.
- It has an uber reputation in the cryptocurrency industry.
- Its services are available to the customers located all over the world.
- The fee per transaction is very high.
- The verification process is time-consuming and is slower than most of the other crypto exchanges.
- The platform is not user-friendly.
Bitcoin price (BTC price) is ever fluctuating. Thus, the final rate of the Bitcoin is decided over a meeting. While in most cases, people rely on exchange rates, you can also consider the bitcoin price index. Sometimes, to cover the costs, anonymity and convenience, the sellers charge an extra fee on top of the current exchange rates. The closing amount is usually set at 5% to 10%.
The exchange rates vary with the country. This might come with specific difficulties while dealing with the local, national currency. Alternatively, you can visit in person for the local Bitcoin meetup and considered safest for conducting person-to-person trades. But you have to be prepared as you have to negotiate on the spot. You can use services such as meetup.com.
In this regard, security becomes a priority as you will conduct bitcoin trading with a stranger. When meeting in person, choose the place wisely, and the area must have active internet access. Never meet in private residence and transport.
Fund Withdrawal
Withdrawing funds online could be a little problem. The most common method is wire transfer as most of the prominent exchanges support this transfer method. Some of the other exchanges also accept transfers through credit and debit cards. Alternatively, you can use SEPA or Single European Payments Area. The latter is most common for the people of the European Union (EU). Transfers usually consume a long time and depend on the amount of money transferred and the location from where it is transferred. On average, it may take up to four days to get processed. Additionally, both these systems have additional charges.
