Buy Your First Bitcoin: How To Do It

Bitcoin, created in 2009, is arguably the most successful and interesting digital currency ever created. The market capitalization of bitcoin (and many other cryptocurrency tokens) is currently booming and is generating great interest in understanding bitcoin, as well as learning about the wider field of blockchain technologies and the ever-expanding cryptocurrency universe.

One of many methods to start understanding bitcoin is to learn how to buy it. Although the current value of a single bitcoin token is in the thousands of dollars, it is possible to purchase any desired quantity or units of this currency using many existing and familiar mediums of exchange (Dollars, Euros, Pesos, Rubles, etc.) and bank products (checking accounts, savings accounts, credit cards, etc.).

The first step is to find an available and comfortable source to exchange your currency into bitcoin. The most popular options include purchasing via an online exchange, buying from a bitcoin Automated Teller Machine (ATM), or a person to person cash-bitcoin exchange. The bitcoin wiki currently lists over 100 options for purchasing bitcoin. For a beginner, it might be easier to initially focus in on some of the more established and popular options. To do this use an internet search engine and look for notable bitcoin exchanges or over the counter trading (OTC) and research the method and source that is most comfortable, appealing and reliable. In addition, it may be preferable to seek out an exchange that operates in the same geographic region where you are physically located and where you normally conduct your business affairs and banking activities.

If an online bitcoin exchange has been selected it will be necessary to first establish an account with the exchange in order to conduct the financial transactions involved in purchasing bitcoin. Banking and personal information will need to be supplied and verified, and the added steps of Two-Factor Authentication (2FA) and establishing a bitcoin wallet will also be necessary. The wallet stores the cryptocurrency key(s)or digital credentials associated with your bitcoin balance that is recorded on the bitcoin blockchain. “A blockchain is a public ledger of all Bitcoin transactions that have ever been executed.” http://www.investopedia.com/terms/b/blockchain.asp

If a physical ATM is the desired option to purchase bitcoin, it is possible to use any number of popular maps. The internet has many videos and explanations on how to use a bitcoin ATM.

Face to face meetups to exchange bitcoin are also possible for the sale and purchase of bitcoin, and services such as LocalBitcoin can be used. Be sure to use prudent precautions associated with the exchange of valuable goods with new or unfamiliar contacts made over the internet.