How to Buy Bitcoin
Bitcoin is becoming increasingly more popular in today’s economy. Bitcoin can be used in exchange for goods and services across the country. Many different types of businesses accept Bitcoin and Cryptocurrency. The digital currency has many benefits over traditional currency. Businesses that Accept Bitcoin & Crypto tend to offer discounts when you pay using the virtual currency. Crypto-payments are super FAST, SECURE, and cost very little in transaction fees. For small business owners, accepting crypto is a lot better than accepting cash and especially debit / credit cards for online businesses. Merchant fees for debit and credit card transactions can be anywhere from 2.25% per transaction to 4.5% per transaction.
So, how does one buy bitcoin? It’s honestly quite simple. The price of Crypto can be represented by familiar currencies such as the US Dollar. It can be purchased in any dollar increments and there are dozens of popular currencies to choose from. The most popular cryptocurrencies that businesses accept are: Bitcoin, Litecoin, Ethereum, Bitcoin Cash, Ethereum Classic, Dash & Ripple. One common misconception is that the price of a coin is how much you need to purchase said coin. For example, if Bitcoin is currently worth $10,000 USD, than that is the price you need to own Bitcoin. THIS IS NOT TRUE. You can purchase any denomination of Bitcoin; $10 USD, $100 USD, even $1.00! (although quite impractical). You can own 0.5 Bitcoin (BTC), 0.1, 0.01, 0.001, and so on.
Before you purchase any cryptocurrency you need a digital “wallet”. In order to carry cash you need a physical wallet weather that is a leather wallet, your pocket or purse. It is where your coin is stored. A wallet is specific for your crypto, and contains a public address that is similar to a PayPal email, or debit card number. When you create a wallet you will generate a “passphrase” which is a string of randomly generated words used to restore your wallet. Bitcoin has it’s own “wallet” (program), Litecoin as it’s own and so on. The most secure wallets are the Ledger Nano S and the Trezor. These are also called, “cold storage” wallets, because they are only accessible when connected to the internet. You may receive coins while your wallet is safely stored in a physical safe in your home, and the balance would be updated once it is connected to your computer, and to the internet.
See Also: Who Accepts Bitcoin?
The most popular place to purchase Bitcoin and Cryptocurrency is Coinbase. This trusted exchange is one of the only sites where you can use your debit / credit card to exchange fiat (USD) for crypto. For a small fee, you may purchase crypto instantly with your debit card or by you can wait a few days for a bank transfer. Coinbase also allows you to store your coins on your account on directly on their website. You can leave them in your wallet or store them in your “vault”. Although, there are more secure ways to store your crypto, as previously mentioned, this method is fine for temporary storage. Coinbase currently allows you to purchase Bitcoin, Litecoin, Ethereum & Bitcoin Cash. Another popular exchange is Robinhood, which offer much smaller fees. Both exchanges are available in the US, and are the only exchanges allowed to operate in New York.
That’s It! Now time to Spend your Crypto!
Now that you’ve learned how to buy bitcoin you can now buy, sell, trade or HODL. To pay using Bitcoin & Cryptocurrency you can scan a QR code to instantly send your coin or carefully enter in the public wallet address you wish to send coin to.
When shopping online, you can pay with your Bitcoin & Cryptocurrency directly at checkout! It’s no more different than using PayPal or your debit card.