On December 7, 2017, bitcoin hit an all-time high with the cryptocurrency being worth $16,623. Just two years ago, the thought of purchasing this virtual currency even close to that price was something no one would have even considered doing. However, the value of the coins increased rapidly in 2013 and was then halved in the mid part of 2015. At the lowest point, each coin was only worth approximately $230.
Due to the covert nature of this currency, many people may not understand how to purchase bitcoin or how to make money with it. The good news is, with the Coinbase app, the process is actually easier than you may think and for a small fee, anyone can trade and purchase bitcoins.
Places You Can Purchase Bitcoin
There are quite a few places and ways you can purchase bitcoin. For this article, we’re going to focus on the easiest and most popular method which is purchasing through an exchange. When using any bitcoin exchange the amount of time the trade takes, as well as the associated fees, are going to vary. It is wise to find out what these are prior to opting for just one service. Here are some of the most popular sites to do this:
After downloading the app, you are ready to get started. With this app installed, you can use your debit or credit card to exchange money for bitcoin. New accounts will be subject to buying limits (normally $500/week via Credit Card and $5,000/week via Bank Transfer). You don’t have to purchase entire bitcoins, you can purchase a smaller percentage that will match the cash investment you have made. Once you’ve made your purchase, the money is taken out of your account and you receive your portion of the bitcoin purchased. Turnaround time will vary depending on the purchase method. Credit card purchases are instant, although subject to higher fees. Bank transfers are free but can take 5-7 days.
Another popular bitcoin exchange is Kraken. This exchange was founded in 2011 and considered the largest exchange in regard to euro liquidity and volume. This exchange allows you to buy and sell bitcoins and you can even trade between euros, British Pounds, Canadian Dollars, Japanese Yen and US Dollars with bitcoins.
Cex.io is another exchange that offers an array of services for the use of all types of cryptocurrencies. With this platform, you can easily trade flat money with various cryptocurrencies and the other way around. If you want to trade the bitcoins professionally, then this platform is the user-friendly option.
How to Purchase Bitcoin
The first step of buying bitcoins is to set up your wallet. After this is done done this, you can use any type of traditional payment including a debit card, bank transfer, credit card or cash to purchase bitcoin on a bitcoin exchange, such as Coinbase or the others mentioned above. Keep in mind, the payment method you can use will be based on the exchange you choose.
If you are selling your bitcoins, you can use the same apps and receive cash. You may also discover it is possible to purchase bitcoins from other sellers on other websites, which will bypass your need to use a broker. When you do this, you will have fewer transaction fees to pay, but the process can be riskier and, in most cases, more complicated – especially for those new to buying and selling bitcoin.
If you have begun to invest in bitcoin, you can opt to purchase them at a Bitcoin ATM by depositing cash. These kiosks have begun popping up and you can find locations online.
Is Buying Bitcoin Safe?
If you are thinking about investing in Bitcoin, or any other type of cryptocurrency, you need to be extremely careful. Keep in mind that the values of this cryptocurrency are extremely volatile, and they may plummet as quickly as they increase.
Additionally, those investing in bitcoin often become targets of criminals and hackers who want to steal their cryptocurrency online. If you plan on using peer-to-peer platforms for buying and selling cryptocurrencies, you need to be especially careful. On these sites, you can never know for sure who you are dealing with.
The Bottom Line
If you are interested in purchasing bitcoin, you will find that the process isn’t that difficult. However, you need to be careful if you are going to use a method other than the apps, such as Coinbase. This will ensure you aren’t hacked and that your investment isn’t stolen.