Cryptocurrency has recently become the talk of the world. This comes as more individuals realize the numerous benefits of venturing into digital currency to acquire financial freedom.
While Cryptocurrency features a range of currencies, Bitcoin has been outshining them all, and it only makes sense considering that it was the genesis of the cryptocurrency concept.
If you wish to venture into Bitcoin but unsure of where to get started, check out this Bitcoin for beginners guide.
What Is Cryptocurrency?
Before diving into the Bitcoin guide, you should understand the general Cryptocurrency concept. Cryptocurrency can be termed as digital money or payment that can be exchanged online.
You can think of the currencies as tokens that you have to pay to a company in exchange for goods or services. You are required to exchange your real money for Cryptocurrency before assessing the services.
Cryptocurrency operates using a decentralized technology known as Blockchain. The system spreads across numerous computers to manage the transaction records of Bitcoin users. In return, it ensures maximum security while maintaining the anonymity of the Cryptocurrency users.
What Is Bitcoin?
Bitcoin came to be in 2008 as a mere white paper concept. A year later, it went live on the web. Initially, the value of this coin was so low that no one paid attention. But today, a single Bitcoin is worth more than $40,000. The coin is now viewed as wealth storage rather than a currency.
Bitcoin is one of the many digital currencies. By digital, it means that there are no bills to print or coins to mill. Moreover, the coin is not controlled by any government financial institution or authority. Thus, it is a decentralized currency.
Bitcoin owners remain anonymous as there are no account numbers, social security numbers, names, or other identifiers associated with the funds.
Bitcoin transactions are free recorded in a public log for maximum transparency even when the owners remain undisclosed. You do not necessarily need an intermediary to transact with Bitcoin, meaning that you do not have to go via the bank.
Furthermore, you don’t need account numbers or any other identifying aspect to own Bitcoins. You can buy and sell the funds without the money being traced back to you.
How Do I Get Started With Buying Bitcoin?
Now that you understand the basics of Bitcoin, you are better-positioned to acquire the currency. How do you get started?
Set Up a Wallet
Before getting started with Bitcoin, you need a Bitcoin wallet. As the name suggests, a wallet is more of virtual storage for your digital currency. Bitcoin wallet comes in varying forms, including;
- A software wallet, stored in your device’s hard drive
- An online wallet that you can get from a company of your choice
- A physical wallet that comes with a key that only you can access
When selecting the right Bitcoin wallet, consider accessibility, convenience, and, most importantly, the safety of your money.
For instance, if you are a regular or everyday Bitcoin user, consider an online wallet version. Nonetheless, some individuals feel like the online wallet may compromise their anonymity in the long run.
A good example of a web wallet is Coinbase. This one requires you to download wallet software, install it on your computer and store your coins.
The most recommended option for maximum safety of your funds is a hardware wallet. You have a private key to it, so you don’t have to worry about anyone hacking your storage system.
You have a range of hardware wallets such as Ledger Nano, which you can purchase online and get started with your Bitcoin venture.
Select a Bitcoin Exchange
After acquiring a storage system, the next step is to register with a Bitcoin exchange. This is where you exchange your fiat currency to Bitcoin, so you need a company that accepts fiat currency in exchange for Cryptocurrency.
While at this, select a company that you can fully rely on, keeping in mind that the exchange providers highly dictate the safety of your money. It would help if you also considered the exchange rate to ensure you are getting the most favorable.
The exchange companies can set prices and may also charge you an extra fee for the services. Ensure that the exchange fee is reasonable enough to give you good returns.
Besides the exchange fee, consider the location of the company. Using an exchange based in your state is more economical as you will be subject to lower fees. In most cases, it is free to transfer money from a bank account to an exchange in the same state as yours.
Registration and Security Checks
Once you settle with a particular exchange, it is time to register for Bitcoin and verify the security checks.
The process and details may vary from one company to the next. But you will be asked to fill in your email address, enter your password and wait for a confirmation email. A link will be sent to your email, which after clicking, will direct you to the dashboard of your exchange account.
You will then be required to complete a few more security checks before you are good to embark on buying Bitcoin.
Select a Payment Method
You cannot complete your first Bitcoin purchase without adding your preferred mode of payment. You have the opportunity to use your bank account, credit card, or debit card, depending on what works best for you.
For starters, credit and debit cards are most recommended. As you get used to Bitcoins and wish to purchase them in large amounts, you should consider using your bank account.
The final step is to buy Bitcoin with real or fiat cash. If you don’t want to go through the hassle of opening an account and completing the highlighted steps or still have some doubts, you can use a broker.
Bitcoin as an investment tool comes with numerous benefits over transacting with fiat currencies. Some advantages of bitcoin include and not limited to;
You Have Better Control Over Your Money
The primary drive for many Bitcoin users is autonomy. Bitcoin gives users more autonomy over their money than fiat currencies. They can control how they spend their funds without going through an intermediary such as banks for review.
You get to decide when to withdraw your money and how you use it without restrictions.
Bitcoin Offers Discretion
Unless you volunteer to publish your Bitcoin transaction, no one will ever know that you own Bitcoins.
The transactions with the digital currency are discreet, which is the main reason why individuals use it for wealth storage. The money will never be associated with your identity, which you cannot enjoy with fiat currencies. Even better, the user address changes after every transaction.
Forget About Banking Fee
Everyone hopes to save money. And Bitcoin presents the perfect opportunity to do away with the constantly rising banking charges. Although you are subject to the maker and taker fee and the withdrawal charges, Bitcoin eliminates most of the charges you pay at traditional banks.
You no longer have to deal with account maintenance fees, overdraft charges, minimum balance fees, you name them.
Bitcoin Promotes Accessibility
As earlier mentioned, you don’t need to go through the bank to make transactions with Bitcoin. You can quickly send or receive the funds with your mobile phone or any other smart device. This makes Bitcoin a convenient option for anyone, including those without accounts in traditional banks.
Moreover, you can transact from anywhere, provided you have a smart device and internet connection. This, and the fact that you don’t have to reveal your personal information when making a purchase, make Bitcoin super convenient.
Peer to Peer System
The Bitcoin payment system focuses on peer-peer. Therefore, users can send and receive payments from other peers in the network from anywhere across the globe without external.
With this, you can trust that Bitcoin’s value will keep growing as long as the demand for the currency remains higher than the supply.
Going the digital currency way means no more taxes. Bitcoin transactions are free from third-party interception, which means there is no way to implement a taxation system on digital currency.
The fact that you don’t carry the money around in your wallet or your credit cards keeps thieves at bay. What’s more? You are the only authorized person to change the ownership of your Bitcoin.
No one can access your account unless they have access to your computer and use it to send Bitcoin to their account. The chances of this happening are minimal, making Bitcoins the safest way to store money.
Embark on Your Journey to Attaining Financial Freedom with Bitcoin for Beginners Guide
With the above Bitcoin for beginners guide, you are good to get started on your journey to financial freedom. This is a chance for you to accumulate wealth, keeping in mind that the value of Bitcoin is expected to hike even higher in the years to come.
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