How Much Money Can I Make Mining Bitcoin

How to Buy Bitcoin

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Learning how to buy bitcoin is easy, but it's perhaps the most important stage if you want to try your luck in cryptocurrency trading. Regular spikes in the bitcoin price chart make this digital cryptocurrency a potentially lucrative investment if you're interested in making a quick profit. However, it's wise to fully understand what bitcoins are all about, including learning the bitcoin mining system and knowing what drives bitcoin prices. Here's a simple step-by-step guide to buying bitcoins.

Purchase a Bitcoin Wallet

Just like real-world cash, bitcoins need to be stored in a wallet. This digital wallet holds your bitcoins until you're ready to spend them to purchase goods, trade them in the cryptocurrency market or convert them into real-world money. To purchase a bitcoin wallet, go to websites that offer bitcoin digital wallets, such as Coinbase or Blockchain. Wallets come in different types with varying features in terms of security and the platforms for compatibility. It only takes a few minutes to complete the form.

Search for a Reputable Bitcoin Seller

Once you purchase a digital wallet, you're ready to buy your first cryptocurrency. Many other types of cryptocurrency exist, and you can also store them in your wallet. Bitcoins are the most popular cryptocurrency and are available to buy safely on exchanges. Coinbase is a good exchange for U.S.-based bitcoin buyers, while Blockchain is a good choice for European buyers..

The exchanges require you to sign up for a trading account, which involves filling out a form and providing identification, possibly even a live video feed for security measures. It's a good idea to set up a wallet that isn't part of the exchange in case the exchange becomes sluggish from intensive digital trading or goes down for some reason. Good off-exchange bitcoin wallet services include Mycelium and Exodus.

Choose a Method of Payment

You have to pay for bitcoin with your real-world cash. One safe method is to pay with a bank transfer or credit card allowed by the exchange. For instance, if you're going to purchase and trade via Coinbase, link your bank account or credit card details to your Coinbase account, and then choose this option as the method to pay for bitcoins.

Start Buying Bitcoins

Once you're ready to purchase, log in to your exchange account and navigate to the trading page of the website. Enter the amount you're willing to spend on bitcoins in the "Buy" field, and the exchange tells you how much you can buy. As of December 2018, the average price of a bitcoin is $3,500. Depending on how much you want to spend, you could buy multiple bitcoins or just purchase a portion of a bitcoin.

Keep Your Bitcoins in Your Wallet

After making the purchase, the bitcoins automatically transfer to your wallet. If you created an off-exchange wallet, it will prompt you to ask if you want to transfer your bitcoins to your other wallet. Either transfer them or keep them in your exchange wallet to speculate on the market.