How to Purchase Bitcoins?
Bitcoin (BTC) is a digital currency system, which offers lowest transaction fees and is run by decentralized authority. You can use Bitcoin as an investment, and as a mode of payment, and that too without involving any third parties. In Spite of its increasing popularity, many businesses haven’t accepted Bitcoins yet and its utility as an investment is questionable. Before moving forward to purchase BTC, you need to understand BTC, and its advantages and disadvantages.
Knowing Bitcoins
Know the basics of Bitcoin. BTC is a digital asset that offers users a means to exchange currency for free, without involving the third party such as debit or credit card, bank or any other financial organizations. BTC is not operated by any central authority including the Federal Reserve and all the transactions happen online.
Bitcoin permits the users to buy, sell, and exchange currency instantly with anyone across the world, without generating a merchant account, or using a financial institution.
To transfer money you do not require names that means there can be a small risk of identity theft.
Understand the BTC mining. It is a procedure to generate a Bitcoin. Usually mining needs decoding computational puzzles to find a new block that is connected to the blockchain.
The transactions are then presented publicly in a block chain that shows each transaction, and the owner of individual Bitcoin.
BTC mining includes and validates the records of every transaction throughout the network. Miners get some Bitcoins as a reward; the reward is halved of each 210,000 blocks.
As we know BTC is not supervised by any central authority, mining makes sure that each transfer of bitcoin is enough, that the decided amount is transferred, and the remaining for the individual is correct afterwards.
Understand the legal problems related to Bitcoin. Lately, the federal agency accountable for tackling money laundering announced new rules and regulations for digital assets. The new guidelines will manage Bitcoin platforms, but for now, will quit the rest of the BTC finance alone.
The Bitcoin network does not function under government regulation, and it has gained popularity among people who are involved in illegal activities such as gambling and drug dealing. Although, the transactions are trackable, and the FBI can seize various BTC wallets.
Federal law administration can finally wind up BTC as a money laundering tool and can find reasons to shut it down.
Advantages of the Bitcoin
Know the benefits of Bitcoin. The important benefits of Bitcoin are low fees, secured from payment fraud, secured from Identity theft, and instant settlements.
Low Fees: Bitcoin bypasses the entire traditional economic systems. The BTC network is managed by the miners, who are remunerated with new virtual currency.
Secured from identity theft. BTC usage does not need any ID for digital wallet. Which means BTC customers can operate it anonymously.
Security from payment fraud. As you know Bitcoin is a digital currency, it cannot be pirated, that secures against payment frauds. Also the transaction cannot be changed, like happens with debit card pay back.
Instant transfer & settlements. Without third party interference, the money can be instantly exchanged directly between the people.
Establishing Storage for Bitcoin
Keep the Bitcoins online. Before purchasing BTC, you have to set up a storage site for the BTC. There are two methods to keep the Bitcoins online.
Store the Bitcoin in an online wallet. An online wallet is a computer file that keeps the BTC, similar to your real purse. To generate a wallet for yourself you need to install a Bitcoin client, it is a software to power the money. Anyhow, if your PC is hacked by hackers or you misplace the folders, as a result you can lose the BTC. So make sure to back up the wallet to a hard drive to keep your BTC safe and secure.
Keep the BTC through a third party. You can use an online wallet through third party sites such as blockchain.into and Coinbase. This is easy and secure to create, but you need to trust the third party. These sites are the one of the best and largest third party sites in the market that offers the best security to your BTC.
Make a paper wallet for the BTC. Paper wallet is the easiest, popular, and cheapest option for securely storing the Bicoins. The best thing about the paper wallet is that the keys of the wallet are stored offline. So it is safe for any type of cyber threat or hardware failure.
There are various online sites that provide paper wallet services. They create a BTC address and an image with two QR codes. One is the private key and the other is the public address that can be used for receiving BTC.
Hard-wire wallet to keep the BTC. Hard-wire wallets are few in number and difficult to obtain. They are usually compact, small in size and some look like USB sticks.
The Trezor hardware wallet is one of the best wallets for miners who wish to obtain a large number of BTC, but do not need to depend on third party sites.
The Ledger BTC wallet functions as a USB storage for the BTC. It is the popular and affordable hard-wire wallet in the market.
