Just a few years ago the idea of buying Bitcoin, or any other cryptocurrency for that matter, seemed far-fetched. If you want to get in on the opportunities Bitcoin price volatility might offer, you’ll need to know how to buy the cryptocurrency. Bitcoin's price recently hit an all-time above the $10,000-level, generating major interest from retail investors in what is arguably the world's most popular cryptocurrency. Buying and selling Bitcoin is easier than you might think. The process can be as simple as signing up for a mobile app.
Step 1
First, sign up for a wallet
The initial, necessary step you must take before you can buy and sell Bitcoin is to open a Bitcoin 'wallet.' A wallet is basically the Bitcoin equivalent of a bank account. It allows you to receive bitcoins, store them, and then send them to others. There are three main types of wallets - software wallet - web wallet - hardware wallet. The most popular Bitcoin wallet at this time is the one that Coinbase offers for download, but there are others, including Bitcoin Core, Electrum, and Breadwallet for mobile.
Step 2
Next, add a payment method
The easiest-to-use option is to connect an existing bank account with your wallet.Other options include linking to a PayPal account or a credit/debit card, but those come with some drawbacks, such as low purchasing limits, higher transaction fees and a longer verification process. Once the verification steps are complete, you can make your first Bitcoin purchase
Step 3
Which Exchange?
Purchase Bitcoins through established Exchanges. There are a number of factors to take into consideration when choosing which exchange to start investing and trading with. Some of these include transaction fees, accessibility, liquidity
conditions, reputation, transparency and even the country where the exchange is located.Some of the most reputable and popular exchanges include U.S.-based Poloniex, Bittrex and Coinbase-owned GDAX, as well as Asia-based Bithumb and Bitfinex. At the end of the day, there is no right or wrong exchange with which to start trading, but doing your homework first and exercising due diligence is highly encouraged.
Summary
The shifting regulatory stance, growing adoption and acceptance, investments in Bitcoin start-ups and products being launched around the digital currency have ultimately raised investor acceptance and confidence in Bitcoin. However, it’s still very early stages for the cryptocurrency market progression. As such you must be cautious of the extreme Bitcoin price volatility and ongoing legal issues within the digital coin marketplace before you start trading
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