Cryptocurrency 101: How To Buy Bitcoins

Are you interested in jumping into bitcoin? All it takes is buying your first coin, and that might be an easier process than you imagine. 

There are many cryptocurrencies out there. Bitcoin is one of the most popular right now because it has been widely adopted. It also has a lot of real-world infrastructures. You can easily find bitcoin ATM Chicago locations, and the same goes for world-class cities like London, Amsterdam, and Los Angeles.

If you’ve decided that bitcoin is the cryptocurrency for you, here are three steps you can follow to collect your first coin.  

Buying Bitcoins in 3 Steps

Step 1: Create Your Wallet

A wallet is a program that stores your digital bitcoins. You cannot buy or trade bitcoins without a wallet, because they store the identifying information for your coins, and enable you to receive or spend them. 

There are many different types of wallets, including some with enhanced security and data tracking features. You should think carefully before you choose your first wallet. Links to wallet files, in addition to a more detailed introduction to them, can be found on the bitcoin organization’s website

Recently passed laws in the US require you to provide your personal identity as part of registering for your wallet. This law was created to prevent tax evasion and money laundering. Have your passport, driver’s license, or social security number ready when registering your wallet.

Step 2: Sign Up to an Exchange, and Complete the Application

Bitcoin Exchanges are sites that directly facilitate the purchase and trade of bitcoins. They provide helpful services such as marketplaces, community discussion forums, and conflict resolution between buyers and sellers.

They also allow you to buy bitcoin with normal currency or turn bitcoins into a range of different currencies and cryptocurrencies. You should be very careful when choosing your exchange. Not all of them have the same commitment to security or the same features. 

The bitcoin organization offers a list of some of the most widely-used exchanges, including ones that cater to specific countries. Remember that this list isn’t an endorsement or a promise that the listed exchanges are safe. You should research any exchange before joining.

Step 3: Purchase Coins on the Exchange

Once you have completed the registration, you can start purchasing bitcoins. In most cases, you’ll need to provide a card number to add funds to your account or a bank account number in order to move money out of the exchange and back into your pocket. 

Once you’ve added those, you can simply purchase the coins you want based on the policies of the site. Make sure that you follow all instructions and policies closely if you want your purchase to go smoothly. Don’t go through with any transaction if you’re asked to break site rules. 

Add Bitcoins to Your Currency Collection

Now you know how to buy your first bitcoin. Creating a wallet, signing up for the exchange, and completing the purchase may sound like difficult work, but most of it can be done in a single day. Follow these steps and you’ll have bitcoin in no time.