Bitcoin is not known to most people. The main reason why this new currency is not that popular is the fact that, it hasn’t been around for a long time. A lot of people who want to invest in Bitcoin complain that working with the currency is hard.
What is Bitcoin anyway?
Bitcoin is simply a system that allows online users to buy and sell products by exchanging units referred as Bitcoins. The main difference between Bitcoin and currencies such as Euro is that you will need more than one government or company to control Bitcoin.
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If you want to buy Bitcoins, you will first need a place to store them. That store is called a Bitcoin wallet. You can acquire a web-based wallet by registering at any exchange website that provides this type of service.
It is also advisable to host the wallet software on your machine. Since this wallet is a software, you will need to know how to use it.
Purchasing from an online exchange
The simplest way to buy Bitcoins is purchasing them from an exchange. Exchanges facilitate the selling and buying process of Bitcoins. Exchanges do not sell the Bitcoins, but instead, they pair the buyer with the seller. Some good places to buy Bitcoins include coinbase and localbitcoin.
The mining method
The other way you can acquire the Bitcoins is by mining them. All Bitcoins come from a Bitcoin Mining Network. However, the process can be very risky and difficult to make profits out of it.
Buying from a private broker
You can also buy some Bitcoins from a private broker. The main problem with this method is that it is risky since you are transacting with an anonymous seller. You will be required to send your money without any assurance of getting the Bitcoins in return.
Few years to come, Bitcoin currency will be a very hot commodity, according to professionals in this industry. This currency has a lot of advantages, and one is that the transaction happens directly between the buyer and the seller and thus no transaction or any additional fees involved.
Bitcoin is a great way to invest your money, buy it is worth noting that you can lose your money within a couple of seconds. The Bitcoin network is secure, but the direct transaction between the seller and the buyer can be risky since both parties are anonymous to each other. It is advisable to use a reputable exchange and if possible request face-to-face transactions.
Some people believe dealing with Bitcoins is complicated, but that is not the case. The process involves getting a wallet and deciding where you want to buy Bitcoins from. To be on the safe side, consider buying Bitcoins from websites that have a good reputation.