Finance

A Simple Guide to Purchasing and Selling Bitcoin

buying selling bitcoin

You’re reading this article because you already know about Bitcoin. However, you want to know how to purchase and sell this cryptocurrency. Bitcoin is the first decentralized money globally. Its reputation and value have continued to expand since its introduction back in 2009. Being a virtual currency, Bitcoin has attracted many investors’ attention since we live in a digital era.

Bitcoin doesn’t have a physical manifestation. And this automates or eliminates third-party institutions like governments and banks in transactions. Essentially, Bitcoin eliminates the fees charged by governing or regulatory authorities like central banks. What’s more, geographical borders do not limit Bitcoin. As such, the exchange rates for fiat currency do not affect Bitcoin’s value.

Transferring Bitcoin across countries or states is quick, anonymous, and cheap. Additionally, a public ledger records all Bitcoin transactions. Ideally, this cryptocurrency puts financial control in everybody’s hands. It also brings people from different parts of the globe into a global financial system.

What’s more, the availability of this cryptocurrency is finite. That’s because its cap is at 21 million. Therefore, Bitcoins have an intrinsic value that makes many people see them as an investment. Nevertheless, they use it to purchase commodities and pay for services. But, how do you buy and sell Bitcoin? Here’s a guide to assist you in buying and selling this cryptocurrency.

How to Purchase Bitcoins

Initially, people earned Bitcoin through the mining process. Bitcoin mining is about verifying transactions and making coins as a reward. But this process requires a significant investment in electricity and computers. Thus, not many people can afford to mine Bitcoins.

Consequently, buying Bitcoin is currently the most consumer-friendly option. Today, platforms like Immediate-Edge which allow people to purchase and sell Bitcoin quickly. And the process of buying Bitcoin using fiat money is pretty fast and straightforward. Here are the main steps to follow.

Set Up Your Bitcoin Wallet

A Bitcoin wallet is like an account with a digital bank. It allows you to receive, send and store Bitcoins. Currently, Bitcoin users choose from different types of digital wallets. They include software, online, physical paper, and hardware wallets. Each of these wallets has its pros and cons. Therefore, learn about them before choosing the wallet to use.

Register with a Bitcoin Exchange

A Bitcoin exchange is a platform where you purchase Bitcoin using fiat money. It also lets you find a buyer for your Bitcoins. Upon registering with a Bitcoin exchange, fund it with fiat money.

Buy Bitcoins

Bitcoin is a limitlessly divisible cryptocurrency. And the value of Bitcoin keeps changing. Therefore, decide on the amount you want to spend and then purchase Bitcoin on the exchange.

How to Sell Bitcoins

Selling Bitcoin to a person you know is simple. For instance, a user can scan the QR code on another person’s phone and then accept their cash. However, cashing out on Bitcoin on a larger scale can be complicated. However, you can manage.

Most people use the same crypto exchange they use to purchase Bitcoin to sell their coins. Standard options for selling Bitcoins include exchange trade, direct trade, and peer-to-peer trading.

With direct trade, you have to be more involved personally. With exchange trade, a broker acts as the intermediary that holds funds for the individuals in a transaction. Brokers charge a fee for keeping the funds. Individuals that want to purchase Bitcoin place their “sell order.”

The last option brings two groups together. That is the people that want to use Bitcoin on websites where people don’t accept it yet, and those intending to get Bitcoin through debit and credit cards.

Crypto exchanges make purchasing and selling Bitcoin easier. However, choose a reputable platform to avoid losing money when trading Bitcoin.

Related posts

Is Robinhood Safe for All Kinds of Investors?

Akarsh Shekhar

Important Investing Tips for Beginners

Akarsh Shekhar

Should I Buy Pfizer Stock?

Akarsh Shekhar

Leave a Comment