It looks as though the value of Bitcoin as currency is increasing with each passing week. Whether the cryptocurrency craze has piqued your interest, or you're just thinking about buying a bit of it yourself to see how it works, you may be hesitant to move forward. Going to a marketplace to exchange money for coins and then trying to store them properly can be daunting. If you'd rather get started quickly because this is just a test run for you, there is another way to do so.
Buying Bitcoin through an iPhone app is probably the most efficient way to get started in Bitcoin quickly. Coinbase is easy to acquire and set up in a matter of minutes, and the application will let you buy Bitcoins right from your iPhone as long as you are in the U.S. There are other examples of Bitcoin exchanges which include Gemini, Bitpanda, Localbitcoins, Spectrocoin and Bitquick. However, Coinbase is the most well-known so we'll show you how to buy Bitcoin with Coinbase in the steps below.
Signing up with Coinbase is quick and easy. Once you're a member, you may be entitled to free Bitcoins, either as a new customer or based on whether you sell a minimum amount of digital currency.
If you sign up for Coinbase with this link, you will get $10 in free Bitcoin once you buy or sell $100 worth of Bitcoin in Coinbase. (Note: Wirefly will also receive $10 in Bitcoin).
(If you want a Coinbase alternative, CEX.IO is another online exchange and app that lets users buy Bitcoin and Ether with their country's fiat currency.)
Because Coinbase operates as a financial exchange of sorts, it aims to keep all transactions legitimate and above board. As such, the algorithm will not sell Bitcoin to anyone who cannot verify that they are who they say they are. Although having to verify your identity goes against the basic anonymity that a digital currency like Bitcoin is supposed to provide, it is still the easiest and quickest way to dive into Bitcoin quickly. The more verifications you go through, the higher your limits will be.
Coinbase will ask you to connect your bank account to your Coinbase account. Note that the precise steps for verifying who you are may be slightly different depending on the country or state in which you reside. The same is true for linking your bank account, with the steps varying depending on your location. The basic premise will remain the same, however. Once your bank account is linked, buying Bitcoin will take 5-7 days for the Bitcoin to reach your Coinbase wallet.
If you want to buy Bitcoins immediately, you have the option to use a credit or debit card. This is faster, but will have lower limits. Connecting your bank account will take one or two days in the meantime.
Coinbase will inform you once the identity verification and bank account linking processes are complete. Once they are complete, you're free to start buying Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC). You'll notice the current price for these cryptocurrencies at the top of your Coinbase dashboard.
Just tap on the 'Buy' button and enter the amount of Bitcoin you'd like to buy. You can either enter the amount of Bitcoin you want to buy, or the amount of fiat currency (such as US Dollars) that you'd like to spend. Select the digital wallet you'd like to place your Bitcoin into and your method of payment. After a short authentication process, everything is done and you own some Bitcoin, which you can view in your Coinbase account.
It's pretty convenient for users to buy Bitcoin with a credit card, but the processing fee is usually higher than for bank transfers. Furthermore, there is greater risk of fraud involved in credit card transactions. There is also a significant drop in the maximum daily purchase to as low as $50 to $500. Those want to make big transactions will want to use their bank account.
Related: The Best Cryptocurrency Apps for iPhone
It is extremely important for users to check the credentials of any Bitcoin exchange with which they do business. If they aren't clearly displayed on the website, steer clear. It's fairly easy for a con artist to steal money through a fake Bitcoin exchange and get away with it. It's up to buyers to do their research.
Buying Bitcoin is a bit different than buying other currencies or investments, such as stocks or bonds. Buyers can't just give someone money for it straight from their pockets or bank accounts and take the Bitcoin directly. Because it is completely digital, turning cash into Bitcoin is a little confusing. Buyers are going to need a digital wallet. Thankfully, that's easy enough.
If you are planning on buying a lot of Bitcoin, it's best to do some research and figure out how best to store your wealth. Storing the coins offline on an encrypted drive is one of the safest ways. To keep your Bitcoin extra secure, you should consider storing it in "cold storage" in case the exchange goes out of business or cannot honor the Bitcoin for other reasons. You can also store it in a hardware wallet such as a Trezor or Ledger, or leave it on the exchange your purchased it on.
Blockchain is a good example of a digital wallet that can hold Bitcoin. Users simply create an account and use it to store digital currency. Its convenient smartphone app lets users handle their accounts right from their iPhone or iPad. They can get a digital wallet directly from the Bitcoin exchange they decide to use, but there are security risks involved. Instead, they will want a digital wallet that focuses on security more than shifting currency around. A great digital wallet outside of the exchange isn't going to cost a penny, so it's worth it.
The process of selling Bitcoins is as simple as buying them. Once again on the home screen, you just tap 'Sell.' Keep in mind for selling, you do need to have connected your app account to your bank account. Enter how much Bitcoin you wish to sell in terms of local currency, choose the appropriate bank account, authenticate, and that's it.
