For beginners, there are two main ways of getting hold of Bitcoin. If they have the budget to match and are prepared for enormous electricity bills, they can buy a top of the range computer and start mining the coins themselves – a process whereby the cryptographic codes which keep the network running are cracked. For most people, however, this is out of their price range and technical capability, so the alternative is to buy.
It is now easier than ever to buy Bitcoin because a number of consumer-friendly websites have been created to support trading in a range of digital currencies. However, there are still a number of steps which need to be followed before you can buy your first coin.
1. Set-up a Bitcoin wallet
A wallet is the digital equivalent of a bank account, allowing you to receive, store and sell bitcoin. There are two basic types of wallet. A software wallet is one that is downloaded and installed by a user on a computer or mobile device; a web wallet is one hosted by a third party supplier. Web wallets are generally much easier to use, but unlike software wallets where you have complete control over the security of your coins, you are reliant on the service provider to do this for you.
There are a wide number of wallets available, but among the most popular are Coinbase, Electrum, Mycelium and Blockchain.info.
2. Verify and secure your account
Most wallets have security protocols which have to be followed to ensure your bitcoins are secure. These normally consist of email verification and an authentication process. It is important these steps are followed for security purposes.
3. Sign-up with an exchange – or choose a broker
For many people, the next step is to sign-up with an exchange – a digital marketplace where Bitcoins are bought and sold. There are a number of exchanges available – although not all of them are trustworthy or offer a full range of services. It is important for the newcomer to take the time to review them in advance, taking into account factors such as fees charged, payment methods accepted, buy and sell options offered, and the customer-user interface.
Coinbase, CEX, Kraken or Bitcoin exchange search are some of the better-known and reputable exchanges.
Some people, however, may prefer to go to a Bitcoin broker. A broker acts as a middleman, trading bitcoin on your behalf. There are several reasons for using a broker. One is that signing up with an exchange can mean a lengthy verification process. Brokers also have their own KYC (Know Your Customer) procedures, but these can be quicker and easier to navigate than going through an exchange. The principal reason, though, for going to a broker is that there is less price volatility. When using an exchange, there can be a delay whilst a customer waits for somebody willing to match their buy or sell request. A broker will just buy or sell Bitcoin at a fixed price (although their brokers’ fees have to be taken into account).
4. Buy some Bitcoin
Atthis point a customer can begin to buy Bitcoin and store them in their wallet. Given Bitcoin’s current high price, it is likely that the first time buyer will be acquiring a fraction rather than a whole coin, but this still has value. The general advice is to start small and trade-up as you get more familiar with the market.
The critical piece of information that you need is a Bitcoin address – the unique identifier that represents your account with the Bitcoin network. This is where your store your secure bitcoin wallet. This address will be provided either directly by the exchange or, if you are using a broker, through them.
5. Sell or spend
If you want to sell your Bitcoin, there are normally plenty of interested buyers, although the price you will get can vary tremendously. On the other hand, there are an increasing number of stores and outlets that accept Bitcoin, so you may want to start spending them on goods or services.
How To Store Your Bitcoins?
It is important for you to have a Bitcoin wallet first to receive, send and store Bitcoins. These wallets have private keys, which are secret codes that will give you the permission to buy and spend the Bitcoins. If you are looking to buy with Bitcoins, then you need to store Bitcoins in wallets, which are of different kinds. There are different wallets on offer to suit various purposes. You need to pick one that is most suited for your use. Some wallets offer great security, whereas some wallets focus mainly on privacy.
Online or hot wallets
The online wallets are web based wallets that stores your private key online on a system that is controlled by someone and the system has to be connected to the internet. There are many online wallets on offer with some also offering links to desktop and mobile wallets. The main advantage of web based Bitcoin wallet is that it can be accessed from anywhere. You should treat the hot wallets just like your purse or pocket. This is the place where you need to keep your day to day spending money and should not be considered as a place to store your savings. The online wallets have your private keys stored in the cloud and hence you can access your wallet using multiple devices. The private keys are encrypted and hence the application provider will not have any access to your Bitcoin accounts.
If you have downloaded the original Bitcoin client, then in all probability you are running a wallet on your desktop. This software will not just relay transactions on the network, but also creates a private Bitcoin address to facilitate easy buying and selling of Bitcoins. It will also be the place where your private key is stored. There are many other desktop wallets on offer for all kinds of operating systems like Mac OSX, Linux and Windows. Some of the desktop wallets are made with importance given to security and the others are made with primary focus given to privacy. Choose one that suits your needs and wants.
Before you look out for answers on how to buy with Bitcoin, you need to find out where you can store the Bitcoins. If you are not too comfortable with online and desktop wallets, then you can think of opting for a hardware wallet. It is a small device that looks more or less like a USB. This device will generate a private key and keep it safely for you in an offline environment. You can make use of this option to spend Bitcoins securely and also to store them. Upon activation, a hardware wallet will create a 24 word seed randomly and it will only be generated once. It is capable of bringing out a list of addresses depending on the seed.
Before looking for choices for what to buy with Bitcoins, you need to first secure your Bitcoins in a proper manner and store it in a place safely. Some of the ways to secure your Bitcoin wallet is by encrypting with a password, having backup and using multi-signature transactions.
The Cryptogaga 2017 Award (Maiden Edition)
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1. Vote For ‘The Satoshi Nakomoto Award’ by clicking here
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3. The Cryptopian Award will be won by the second runner-off to The Satoshi Nakomoto Award
4. Vote For ‘The Best Crypto Investor Award’ by clicking here
5. Vote For ‘The Most Influential Crypto Investor Award’ by clicking here
6. Vote For ‘The Best CryptoJournalist/Writer Award’ by clicking here
7. Vote For ‘The Best Crypto Exchange Award’ by clicking here
8. Vote For ‘The Best Crypto Merchant Solution Award’ by clicking here
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Top 30 most resourceful Bitcoin/Blockchain Websites
Top 30 most resourceful Crypto/blockchain or Bitcoin websites where users can obtain handy tools, guides and tips on Cryptocurrencies, Blockchain, Altcoin are as follow:
1. Official Bitcoin Guides
2. Official Etherum Guides and Documentation
3. Coinmarketcap- Cryptocurrency Market Capitalizations
4. CryptoCompare – Latest streaming pricing data in the world of cryptocurrencies
5. Blockchain- Monitor and analyse any bitcoin address – Blockchain
6. Coin Spectator – this site aggregates cryptocurrency-related news from over 100 sources
7. Etherescan – tracks all the transactions in the Ethereum blockchain
8. Coin Dance – BitcoinBlock details
9. Bit Info Charts – stats
10. ETH Gas – latest information about the Ether gas price
11. ICO Alert- initial coin offerings
12. CoinSchedule – another website for initial coin offerings
13. Token Data – Comprehensive website containing statistics about the ICO market
14. Token Filings – Directory for all the news and articles about token projects
15. Bitcoin Talk – The most visited, engaging, interactive and source of almost all information regarding Bitcoin,Blockchain and cryptocurrency.
16. MyEtherWallet – secure and reputable site for a browser based ethereum wallet, have many different functions.
17. Parity – Ethereum Browser-bases Wallet
18. Mist – Ethereum Browser and Wallet
19. Metamask – Ethereum Browser and Wallet
20. Ledger Wallet – cold storage
22. Trezor – Cold Storage.
23. Crypto Aquarium – Crypto Aquarium is a community of blockchain and cryptocurrency enthusiasts