With bitcoin becoming a buzzword these days, practically everyone is talking about it. Bitcoins are being discussed by the governments in parliaments, broadcast-ed on national media and by financial policymakers behind closed doors. It is being discussed in offices, in homes and on the streets. However, while everyone knows about Bitcoins, not everyone knows how to get hold of Bitcoins and where to buy them from! Learn below step by step guide of Easy Steps To Get Bitcoins.
Primarily speaking, there are only to ways in which you can get Bitcoins. Either by mining for them or buying them. Let us first take a closer look at the difference between mining and buying Bitcoins and then proceed to the various methods using which you can buy Bitcoins.
Difference Between Mining Bitcoins and Buying Bitcoins
Mining for Bitcoins is basically the process using which new Bitcoins are generated. The process involves setting up mining devices using which complex mathematical algorithms are solved – this process is called ‘solving a block’ – which results in generating new Bitcoins. For this purpose, there are various Bitcoin mining calculators are also available where after submitting the required information, one can calculate the approximate no of bitcoins generated. Without going into details, the two major differences between mining and buying bitcoins is that
- Bitcoins generated using mining are virgin coins – i.e., they’ve never been traded/used before.
- Bitcoin mining involves a greater investment as it involves setting up of mining devices as well as a heavy consumption of electricity.
Different Ways To Get Bitcoins
There are multiple ways in which you can get Bitcoins. Let us take a detailed look at each of them and understand how can you get bitcoins using each of these methods. However, while there are multiple options – the best method to get Bitcoins depends upon your preference, as well as your preferred method of payments, etc.
- Via Trading Platforms
Trading platforms are the most basic source of getting Bitcoins. These platforms often offer multiple currencies which you can buy or sell from the platform directly. However, the biggest difference between these platforms and a cryptocurrency exchange is the fact that a cryptocurrency exchange has many more features and allows purchasing currencies using other cryptocurrencies at times. These platforms are also known as brokerage platforms. Trading platforms have limited features but are often simple and easy to use. One such example of a trading platform is Coin-base.
- Via Cryptocurrency Exchanges
As detailed above, Cryptocurrency trading platforms are quite similar to exchanges, but they have a few differences. Exchanges have a much broader variety of functions. For instance, while Coinbase is a trading platform, GDAX is a full fledged cryptocurrency exchange. In exchanges, you can not only get cryptocurrencies in exchange for fiat currencies, but some currencies may also be available in exchange for other cryptocurrencies – such as in the case with Bittrex.
Cryptocurrency exchanges offer users with tools of analysis – using which they can check out the historic data of the currency and how it has been traded over the past. Moreover, users can also set various targets and stop-losses and automate their trading activities. Examples of some of the top cryptocurrency exchanges are Binance, Bittrex and Poloniex.
- Via Cash
While cryptocurrency trading platforms and cryptocurrency exchanges are a good avenue to buy cryptocurrencies, most of them ask for some KYC details (Know Your Customer) which involve personal details about the customers. These details are a governmental requirement so that the authorities can ensure no money laundering is going on, etc.
However, for those who want absolute privacy of these transactions – they can actually use cash to buy Bitcoins. Simply ask your friends who are willing to sell Bitcoins and pay them in cash. Another option would be to check out websites such as localbitcoins.com which allow you to go select your preferred mode of payment and your locality – and you can find people who are willing to sell bitcoins using that means of payment. However, these deals need to be carried out with extreme care.
- Via Bitcoin ATMs
Last but not the least, Bitcoin ATMs are a rising trend, especially in the US and South-East and East Asian nations. Bitcoin ATMs are machines which accept cash in exchange for Bitcoins. The number of these machines has been on a constant rise over the years. While Bitcoin prices may be on a decline of late – the number of these machine installations is on a rise! They are very popular in the US as well as in Singapore.
Conclusion: Selecting the Method of Choice
While there are multiple options and each option has multiple options you could choose from, you need to ask yourself some questions before you go with the method of your choice
- What is the fees charged by this method?
- Does the means of payment in this method suit me?
- Am I OK with the amount of privacy that this method offers?
- Is this method safe to use?
If the answers to these questions suit your needs – then you should proceed with the method of buying Bitcoins.