5 July 2020
The popularity of Bitcoin has been soaring over the years. It’s likely that you’ve heard about Bitcoin and all the fantastic things that it can potentially do for you and the rest of society. However, even with widespread advertisement and growing number of applications, many people still don’t know how to buy and use Bitcoin.
Here we explain step by step how you can get started and buy your first Bitcoin. It’s pretty easy. Let’s dig in and explore:
Create a Bitcoin/ Crypto Wallet
First thing first, you need a crypto wallet. A crypto wallet is almost similar to the conventional wallet you carry around every day in your pocket. Its job is to enable you to conduct transactions on the Bitcoin network. With a wallet, you can send and receive Bitcoins anytime you want.
Now, there are several types of crypto wallets. Your job is to find the safest and most secure one to hold your Bitcoins. You have hot wallets that include web, desktop, and mobile wallets and cold wallets that include hardware and paper wallets. Different wallets have different pros and cons.
Where Can You Buy Bitcoin?
Once you have a secure crypto wallet, it’s time to choose a reliable broker or exchange to buy your Bitcoin or other cryptos through.
A cryptocurrency exchange is an intermediary service that helps you convert your fiat currency (dollars, pounds, and euros) to cryptocurrency. It also helps with buying and selling of your cryptocurrencies.
You will find that there are many crypto exchanges in the market, such as Coinbase and Kraken. You will find that the different exchanges offer different degrees of access to different cryptocurrencies that you can use your Bitcoin to purchase. In general, Bitcoin is available on every cryptocurrency exchange and you should be focused on fees if your strategy is to focus on this specific asset. Provide user information
To use your preferred cryptocurrency exchange, you’ll have to create a user account. Different exchanges will require different information while signing up.
In some cases, you’ll need to provide some personal information, such as an ID. In other cases, you’ll provide your SSN or driver’s license. All this information is to allow sites to comply with Know-your-customer regulations.
Select Payment Method
The next step is to choose your preferred payment method. Different exchanges accept different payment methods. It is vital you choose a payment method that you are comfortable with. You can choose between both your bank account and credit cards for payments. Some sites even allow you to buy Bitcoin with Paypal.
To start trading in Bitcoin, you have to ensure you have some sort of payment method linked to your account. This is received for both depositing funds into the exchange to purchase Bitcoin, as well as withdrawing funds once you decide to sell.
Once you have a secure Bitcoin wallet, a reliable crypto exchange, and a profile, you can start buying and selling Bitcoins.
Note that to transact in Bitcoin, you need a reliable device (computer, laptop, or smartphone) and secure internet connection. Your internet connection should always be secure to avoid giving hackers room to hack and steal your funds.
Where to use Bitcoin
With the widespread usage and adoption of cryptocurrencies, there are various places you can use Bitcoins.
- Online shopping: Overstock is an example of an online retailer that accepts Bitcoin as a mode of payment. The e-commerce retailer also allows customers to pay with other cryptocurrencies like Ethereum, Dash, and Bitcoin Cash.
- Pay for your flight: CheapAir and Surf Air are examples of flight booking sites that allow Bitcoin as a payment form. CheapAir accepts Bitcoin payment for both domestic and international flights. AirBaltic and Webjet also accept Bitcoin payments for a variety of flights.
- Pay for your taxi: there are many taxi services around the world that are quickly embracing Bitcoin payment. In Italy, Cooperativa Radio Txi, one of the largest taxi companies, accepts Bitcoin payment. Taxis in Hungary Budapest also accept Bitcoin payment.
- Book for hotels, cruises, and car hire: Expedia is an online travel agency that allows customers to pay for hotel bookings with Bitcoin. AirBaltic and Webjet also accept Bitcoin for hotel bookings, car hire, and cruises.
- Buy games and movies: Microsoft, a popular tech giant, allows customers to deposit Bitcoin into their Microsoft accounts to buy games, movies, and apps in Windows and Xbox stores.
- Buy meals, drinks, pizza: a good number of eating joints have been accepting Bitcoin payment for years. PizzaForCoins in California, USA, allows customers to pay for pizza with Bitcoins. Pembury Tavern Pub in London allows customers to pay for drinks using Bitcoins. Burger Bear, a food joint in London, accepts Bitcoin payment, so does The Pink Cow, a dinner joint in Tokyo.
Buying Bitcoin is easy. In general, you can set-up an account with a popular cryptocurrency exchange within 30 minutes or less. Once you have your bank synced and identity verified, you’re ready to begin investing.
For more information on how to get started with Bitcoin, check out our step-by-step “Getting Started in Bitcoin & Crypto | The Ultimate Beginner’s Guide.”