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How Can I Buy Bitcoin?
Bitcoins can be purchased directly from exchanges or others through the marketplace.
You can buy bitcoins in a variety of ways, ranging from hard cash to credit and debit cards to wire transfers, or other cryptocurrencies, depending on where you are buying them from. And where do they live.
The first step is to set up a wallet to store your bitcoins - you will need one, whether online or improving buying bitcoins. It can be an online wallet (either part of an exchange platform, or through an independent provider), a desktop wallet, a mobile wallet or an offline one (such as a hardware device or paper wallet).
You can find out more about some pockets out there, as well as tips on how to use them here and here.
The most important part of any wallet is protecting your keys and / or passwords. If you lose them, you lose access to the bitcoins stored there. Also, never invest more than you can afford to lose - cryptocurrencies are volatile and their prices can go down.
If you want to buy bitcoins online, you can open an account at a cryptocurrency exchange that will buy and sell bitcoins on your behalf. There are currently hundreds of operations going on, with varying degrees of liquidity and security, and new ones continuing, while others are shutting down due to hacking. Like wallets, it is advisable to do some research before choosing - you may be lucky that you have several reputable exchanges to choose from, or may just have one or two depending on your geographic area.
The largest bitcoin exchange in the world at the moment is in terms of US $ volume, although it is primarily aimed at saver traders. Other high-volume exchanges are Coinbase, Bitstamp and Polonyx. For small quantities, the most respected exchanges should work well.
With a clampdown on address-your-customer (KYC) and anti-money-laundering (AML) regulation, many exchanges now require verified identities for account setup. This usually includes a photo of your official ID and sometimes a proof of address.
Most exchanges accept payments via bank transfer or credit card, and some are willing to work with PayPal transfers. They typically charge for each transaction, which includes the cost of using the bitcoin network.
A bitcoin transaction depends on the traffic in the network as well as the fees associated with that transaction, from a few minutes to a few days after being processed.
Once the exchange receives payment, it will buy an amount equal to bitcoins on your behalf, and deposit them into the wallet automatically generated in the exchange. You should then transfer the funds to your off-exchange wallet.
If you prefer to buy bitcoins with cash, platforms like LocalBeatox will help you find individuals near you, who are willing to exchange bitcoins for cash. In addition, LibertyX lists retail outlets across the United States, at which you can exchange cash for bitcoins. And Wallofsof, Paxful and BitQuick will direct you to a bank branch near you that will allow you to deposit cash and get bitcoins a few hours later.
Bitcoin ATMs are machines that send bitcoins to your wallet in exchange for cash. They work in a similar way at bank ATMs - you feed in bills, hold the QR code of your wallet up to a screen, and the corresponding amount of bitcoin is kept in your account. Coinatmradar can help you find a bitcoin ATM near you.
Why Use Bitcoin?
An additional benefit (less for users) for merchants was that it was irreversible, removing the risk of costly charge-backs. In return, consumers benefit from a wider selection of merchants, both domestic and international, without having to worry about exchange fees. In addition, the details of their transactions are encrypted which protects their personal data.
Improvements in domestic payment methods and the rapid development of alternative (non-cryptocurrency) forms of international transfers have, however, reduced bitcoin's advantage in the region, especially given its increasing fees and frequent network bottlenecks.
In addition, increased oversight and regulation to prevent money laundering and illegal transactions have restricted the use of cryptocurrencies for privacy reasons.
In some parts of the world, bitcoin is still a more efficient and cheaper way of transferring money across borders, and many remittance startups use this feature. Last year, Coinbase added cross-border transfers and custody services for high-volume customers in Asia and Europe. A recent partnership between crypto exchange Bitex and Uruguay-based banking services provider Buntotal now facilitates direct bitcoin payments at 60 banks in Latin America.
However, the cost and speed advantages of bitcoin are being eroded, as traditional channels are improving and network fees continue to increase and availability remains a problem in many countries.
Also, many large and small retailers accept cryptocurrency as payment, although reports suggest that the demand for this function is not high.
And many people feel more comfortable keeping a portion of their funds in a securely stored bitcoin wallet, where a central authority cannot block or cut access. Since coronovirus lockdown began in March, the demand for bitcoin wallets has seen an increase as users search for alternative self-custody solutions. The epidemic has also seemed to accelerate the widespread adoption of blockchain technology, as more and more businesses, payment companies and e-commerce marketplaces turn to digital currencies, particularly stable stocks.
More recently Bitcoin has projected the role of an investment asset, as traders, institutional investors and small savers have awakened to potential gains from price appreciation.
According to some sources, bitcoin is being used for money laundering. But blockchain analytics startups and crypto tracing firms are rolling out new tools to help exchanges comply with anti-money laundering standards. And anyway, bitcoin is not, as is commonly believed, a good vehicle for money laundering, extortion or terrorism financing, as it is both traceable and transparent - as a companion to recent arrests can do.
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