The popularity of cryptocurrency is increasing by leaps and bounds. In this world of cryptocurrency Bitcoin is abuzz with both excitement and curiosity. Different people have their different views over Bitcoin. For some, it’s a future of our financial system and to others, it’s just a digital entity of questionable value and dubious origin.
However, Bitcoin(BTC) is the most popular cryptocurrency or digital currency. If you’re running in a curiosity to know what is Bitcoin? and how can you get Bitcoins? this guide is for you.
Here in this tutorial, we’ll explain to you what is Bitcoin and how the system works?. Also, we’ll discuss how to buy and sell Bitcoins?
What is Bitcoin?
In nutshell, Bitcoin is a cryptocurrency(digital currency), which is used and distributed in a form of electronic cash.
Bitcoin is a decentralized network, means it works without a central bank or any political institution that controls the amount of bitcoin. It uses the rules of cryptography for regulation and generation of units of currency.
Bitcoins have a very limited supply amount- only 21 million bitcoins can ever be created and you can’t print them.
Bitcoin was first introduced by an anonymous programmer, or a group of programmers- Satoshi Nakamoto in January 2009. Around mid-2010, Satoshi named Gavin Andresen a lead developer and now approx 17 million bitcoins are in existence.
Moreover, a lot of people believe that the main advantage of Bitcoin is- independence from world governments, central banks, and corporations which makes it more transparent with a massive distributed public ledger called the Blockchain.
How Bitcoin Works?
Basically, Bitcoin works on the – Cryptography and a decentralized network.
Bitcoin uses the cryptography to encrypt the transaction data. Since Bitcoins are decentralized network- sharing a public ledger called the Blockchain. Your transaction information is stored on a block and these number of blocks known as Blockchain. The users use the private and public keys(a set of long numbers and letters) to make transactions.
However, they can see only Bitcoins amount and transaction results on their Bitcoin wallet. This type of ruthless verification process minimizes the risk of fraud.
How to Buy Bitcoins?
Before acquiring bitcoins, you’ll need a bitcoin wallet to store or access them.
The bitcoin wallet is a digital wallet which stores your transactions(Bitcoin). it is a kind of virtual bank account that allows users to send and receive bitcoins, pay for goods or save their money.
There are a number of Bitcoin wallets available. To buy bitcoins, you can choose a bitcoin wallet from the best cryptocurrency wallets.
How to Buy Bitcoins with a Credit/Debit Card
Once you created a wallet, you have someplace for store your bitcoins. These wallets allow you to connect your credit or debit card in a convenient way to get transactions quickly.
However, buying bitcoin(BTC) with credit or debit card is quite difficult. Luckily, there are still some companies such as- Coinbase(USA, Canada, Europe & UK) and Coinmama(Worldwide) which makes this process smooth and fast.
Here’re some best exchange companies for buying bitcoins with your credit or debit card. Let’s see step-by-step how to buy or sell Bitcoins.
Coinbase is the world’s largest and popular Bitcoin exchange. You can buy or sell up to $150 of bitcoin per week instantly with a credit or debit card. it charges a cost of flat 3.99% on all purchases via credit or debit card.
- First, you’ll need to create an account on Coinbase and confirm your personal details. Now login to Coinbase to upload a scan of ID.
- Go to the navigation bar and click on your name. There will be a drop-down menu where you can click on the settings and then Payment Methods.
- Then, click on the “Add Payment Method”.
- Now, select “Credit/Debit Card” section.
- Enter your credit or debit card information (only Visa and Mastercard).
- Now, you’ll see a confirmation page. That’s mean your credit/debit card has been successfully added!
- After that, you can go to the buy page and select Bitcoin in currency option.
- Here, you can enter the amount you want to buy and click on Buy Bitcoin Instantly. Your bitcoins instantly added to your Coinbase wallet.
Coinmama is another exchange company which offers high limits- $5,000 of bitcoin per day and $20,000 of bitcoins per month. It’ll charge a 6% exchanging fee due to risk and processing fees that come with credit card payments.
- Firstly, you’ll need to create your account on Coinmama and then log in to your account.
- Then, enter your personal details to verify your identity.
- In the next step, upload and verify your ID.
- Select credit or debit card for payment method.
- Here, you can choose the amount of Bitcoins that you want to buy.
- Now, it’ll ask for your Bitcoin wallet address. enter your Bitcoin wallet address that you have been selected form the best Bitcoin wallets.
- Then, enter your credit/debit card information to complete the process.
It is a Bitcoin broker company for Europe residents located in Austria. Bitpanda allows you to purchase coins with a credit card or debit card. It charges 3-4% fees for buying Bitcoins with a credit/debit card.
- First, open an account on BitPanda and log in to your account.
- Click on “Buy” in the top menu bar and select “Visa/Mastercard” and also enter the amount of bitcoin(BTC) you want to buy.
- Now, choose Visa/MasterCard as your payment method.
- In the next step, you’ll need to confirm your amount and click the checkbox to agree the BitPanda’s exchanging rate.
- Now, verify your process via SMS or phone call and the PIN code you received.
- After the verification process, you can click on “Click here to start the payment process.
- In the next page, you can enter your credit/debit card details and get the Bitcoins instantly.
How to Buy Bitcoins with PayPal
Whereas many banks always been wary of bitcoin, PayPal worked on integrating it and allows users to buy bitcoins with Paypal. It is the easiest way to buy bitcoins with PayPal. Let’s see how to buy bitcoins with VirWox using PayPal?(step-by-step).
- First, you’ll need to create an account on VirWoX and verify your account with the necessary information.
- In the next step, go to the “My Account” on the left side and click on the “Deposit”.
- Scroll to the “PayPal Express Checkout” section and fill the amount you want to deposit and then click on “Check out with PayPal”.
- Find the “Exchange” section on the left side and click on “USD/SLL” and enter how much BTC you want. Under the “Exchange SLL to BTC” section.
- Now, you can “Withdraw” your Bitcoins instantly under “My Account”.
How to Buy Bitcoins with Cash (Bitcoin ATMs)
In this digital currency world, Bitcoin ATMs are becoming more and more popular. these are just like normal cash ATMs but in Bitcoin ATMs, you can only deposit cash instead of withdrawing. there are around 18,000 Bitcoin ATMs in 58 countries. You can use Bitcoin ATMs map to find out your nearest Bitcoin ATM.
Using Bitcoin ATMs, you don’t have to register or create an account. you’ll need to follow these steps-
- First, find a Bitcoin ATM nearby you.
- Go to the ATM and verify your identity with a valid phone number if it asks.
- The ATM will send you a verification code, enter this code into the ATM.
- Now, it’ll ask for cryptocurrency wallet address. In case, you don’t have a crypto wallet, the ATM will create a new cryptocurrency wallet for you.
- Input your cash into the ATM
- Then cryptocurrency reflected into your wallet and ATM prints a receipt of your transaction.
How to sell Bitcoins
Cashing out your Bitcoins is not as easy as buying them. There are a number of options to sell your Bitcoin. You can sell your bitcoins online or offline and withdraw your money.
Here, we’re providing you some best options to sell your bitcoins(in nutshell).
- Exchanges: Exchanges is the best way to sell. you just need to set up an account with an exchange of your choice. And go to sell offer to sell your bitcoins.
- Direct trades: Direct trade is another way to sell bitcoins. First, you’ll need to register as a seller and verify your identity. then you can trade bitcoins on these websites- BitBargain, Bittylicious, Coinbase, and LocalBitcoins.
- Online P2P trading: Peer-to-peer selling is another best way. You can sell bitcoins some of the websites providing P2P services such as Purse, Brawker, and OpenBazaar.
- Via ATM: Bitcoin ATMs also offer the selling services but you can trade bitcoins from only a few ATMs those have bi-directional functionality.
- Selling Bitcoin in person: Selling bitcoins in person, you’ll need to scan a QR code on someone’s phone and receive cash instantly.
The Bottom Line
**Note: Information contained in this guide is not an offer or solicitation to buy, hold, or sell any security. We’re not financial advisors and are simply providing information for educational purposes. Investing in cryptocurrencies involves a high degree of risk and should be considered only by persons who can afford to sustain a loss of their entire investment.
Investors should consult their financial advisor before investing in cryptocurrencies. Furthermore, the SEC has warned investors residing in the United States and other jurisdictions that ICOs may constitute securities.
Hope! This guide helped you with what is Bitcoin and how it works. Also, we’ve discussed step-by-step how to buy and sell Bitcoins.
If you run into any issue, feel free to comment below and we’ll try to help.
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