How to Buy Bitcoin
Want to purchase some Bitcoin? The prerequisites of owning Bitcoin are:
Watch a few videos that explain Bitcoin and you'll have the basic concept of this digital currency that had been mentioned all over the internet. Once you had done that, quickly move toward installing a Bitcoin wallet of your choice on your own computer, or choose a platform that offers a cloud-based Bitcoin wallet to possess your Bitcoin.
Let's assume you are aware of Bitcoin and you understand a Bitcoin wallet is where you secret private key is stored. As long as you have access to your Bitcoin Wallet (or actually, have the private key), you'll have the privilege to spend the bitcoin recorded in the Blockchain tied to the Bitcoin Addresses in your Bitcoin Wallet.
You Need a Bitcoin Wallet
The question of how to buy Bitcoin can interpreted as how to pay someone and have him/her send some Bitcoin to a Bitcoin Address that is stored in your Bitcoin Wallet.
A Bitcoin Wallet installed by yourself on your own computer is the place where the Bitcoin Addresses' private keys are kept. To have your own Bitcoin wallet, you may install Electrum or install Bitcoin Core.
A Bitcoin Wallet a cloud-based provider provides you online is also the place where the Bitcoin Addresses' private keys are saved but they'll rather not share with you what the private keys are. It's their private keys, not yours.
Buy Bitcoin from Online Exchange
When you buy Bitcoin from some online exchange, the seller side (exchange) may require you to use specific cloud-based online wallet to receive the purchased BTC before you can send the fund to your own Wallet installed on your computer. There's nothing wrong with the online wallet. You just need to trust the platform that they will not disappear in the cloud one day. Yes, trust. Trust is the key point so you must pick a trust-worthy seller when you buy Bitcoin.
Due to regulation and business decisions, depend on where you live in the world, you have different options to buy Bitcoin. If you're living outside of U.S. in countries where Bitcoin is officially banned, China, for example, you'll not be able to find trusty website online to buy Bitcoin from. On the other hand, if you're in Japan where Bitcoin is officially recognized as currency, you'll find many online places where you can easily buy Bitcoin with Japanese Yen.
In U.S., you can buy Bitcoin using PayPal, credit card, or bank wiring in the U.S. Among all providers, I'd suggest first-time buyers to go with the biggest player in this field in the U.S. - Coinbase. Since 2012, Coinbase is a digital currency wallet service that allows traders to buy and sell bitcoin. To buy Bitcoin on Coinbase, simply follow steps in this Buy Bitcoin on Coinbase Guide.
Buy Bitcoin Over-the-Counter (OTC)
Outside of U.S., especially in places where Bitcoin is officially banned, you can still buy and sell Bitcoin "over-the-counter" (OTC) and have it sent to your Bitcoin wallet. The phrase "over-the-counter" refers to trading Bitcoin via a dealer network of buyers and sellers as opposed to on a centralized online exchange. For example, LocalBitcoins has a network of buyers and sellers from different countries "over-the-counter" and LocalBitcoins offer escrow service to protect sellers and buyers to some extend. LocalBitcoins has many virtual presences in most countries, just to list a few:
Buy/Sell Bitcoin in U.S.: LocalBitcoins U.S.
Buy/Sell Bitcoin in Canada: LocalBitcoins Canada
Buy/Sell Bitcoin in Argentina: LocalBitcoins Argentina
Buy/Sell Bitcoin in Australia: LocalBitcoins Australia
Buy/Sell Bitcoin in Brazil: LocalBitcoins Brazil
Buy/Sell Bitcoin in Chile: LocalBitcoins Chile
Buy/Sell Bitcoin in China: LocalBitcoins China
for other countries, please visit LocalBitcoins.
You'd receive bitcoin at the Bitcoin address you provided to the seller, usually it is a Bitcoin address that you have full control.
Backup Your Wallet
You won't feel totally safe leaving money at any Exchange in the cloud. Move your money to a wallet under your control and take it offline. You can achieve this by using a wallet installed on your own computer and turn off the wifi connection. Be sure to backup the wallet. For example, if you're using Electrum Wallet, you may refer to this how-to.
- Know what Bitcoin is, and
- Have the concept of how Bitcoin is stored.
Watch a few videos that explain Bitcoin and you'll have the basic concept of this digital currency that had been mentioned all over the internet. Once you had done that, quickly move toward installing a Bitcoin wallet of your choice on your own computer, or choose a platform that offers a cloud-based Bitcoin wallet to possess your Bitcoin.
Let's assume you are aware of Bitcoin and you understand a Bitcoin wallet is where you secret private key is stored. As long as you have access to your Bitcoin Wallet (or actually, have the private key), you'll have the privilege to spend the bitcoin recorded in the Blockchain tied to the Bitcoin Addresses in your Bitcoin Wallet.
You Need a Bitcoin Wallet
The question of how to buy Bitcoin can interpreted as how to pay someone and have him/her send some Bitcoin to a Bitcoin Address that is stored in your Bitcoin Wallet.
A Bitcoin Wallet installed by yourself on your own computer is the place where the Bitcoin Addresses' private keys are kept. To have your own Bitcoin wallet, you may install Electrum or install Bitcoin Core.
A Bitcoin Wallet a cloud-based provider provides you online is also the place where the Bitcoin Addresses' private keys are saved but they'll rather not share with you what the private keys are. It's their private keys, not yours.
Buy Bitcoin from Online Exchange
When you buy Bitcoin from some online exchange, the seller side (exchange) may require you to use specific cloud-based online wallet to receive the purchased BTC before you can send the fund to your own Wallet installed on your computer. There's nothing wrong with the online wallet. You just need to trust the platform that they will not disappear in the cloud one day. Yes, trust. Trust is the key point so you must pick a trust-worthy seller when you buy Bitcoin.
Due to regulation and business decisions, depend on where you live in the world, you have different options to buy Bitcoin. If you're living outside of U.S. in countries where Bitcoin is officially banned, China, for example, you'll not be able to find trusty website online to buy Bitcoin from. On the other hand, if you're in Japan where Bitcoin is officially recognized as currency, you'll find many online places where you can easily buy Bitcoin with Japanese Yen.
In U.S., you can buy Bitcoin using PayPal, credit card, or bank wiring in the U.S. Among all providers, I'd suggest first-time buyers to go with the biggest player in this field in the U.S. - Coinbase. Since 2012, Coinbase is a digital currency wallet service that allows traders to buy and sell bitcoin. To buy Bitcoin on Coinbase, simply follow steps in this Buy Bitcoin on Coinbase Guide.
Buy Bitcoin Over-the-Counter (OTC)
Outside of U.S., especially in places where Bitcoin is officially banned, you can still buy and sell Bitcoin "over-the-counter" (OTC) and have it sent to your Bitcoin wallet. The phrase "over-the-counter" refers to trading Bitcoin via a dealer network of buyers and sellers as opposed to on a centralized online exchange. For example, LocalBitcoins has a network of buyers and sellers from different countries "over-the-counter" and LocalBitcoins offer escrow service to protect sellers and buyers to some extend. LocalBitcoins has many virtual presences in most countries, just to list a few:
Buy/Sell Bitcoin in U.S.: LocalBitcoins U.S.
Buy/Sell Bitcoin in Canada: LocalBitcoins Canada
Buy/Sell Bitcoin in Argentina: LocalBitcoins Argentina
Buy/Sell Bitcoin in Australia: LocalBitcoins Australia
Buy/Sell Bitcoin in Brazil: LocalBitcoins Brazil
Buy/Sell Bitcoin in Chile: LocalBitcoins Chile
Buy/Sell Bitcoin in China: LocalBitcoins China
for other countries, please visit LocalBitcoins.
You'd receive bitcoin at the Bitcoin address you provided to the seller, usually it is a Bitcoin address that you have full control.
Backup Your Wallet
You won't feel totally safe leaving money at any Exchange in the cloud. Move your money to a wallet under your control and take it offline. You can achieve this by using a wallet installed on your own computer and turn off the wifi connection. Be sure to backup the wallet. For example, if you're using Electrum Wallet, you may refer to this how-to.
