Table of content:
- How is it going with buying cryptocurrency for today?
- How to buy and sell cryptocurrency?
- When is it better to sell and buy cryptocurrency?
- So, we bought cryptocurrency! But where is it better to store?
The bitcoin rate after the sinking on December 1 to $9,300 increased to $20,000, after fell again, but all the same a lot of people wonder how to buy cryptocurrency. Another bitcoin record was set after the US the Commodity Futures Trading Commission officially authorized the futures trade on December 1 on this cryptocurrency on the Chicago Mercantile Exchange and Cboe Global Markets Inc.
As at 7 February 2018, on the US stock exchanges Poloniex (it is very convenient and easy to understand after a few minutes of research, it can be exchanged for a lot of other cryptocurrencies) and Bitfinex bitcoin costs $8,279.
In this article we will consider questions about how to buy bitcoins and other cryptocurrencies.
How is it going with buying cryptocurrency for today?
Today to buy cryptocurrency is not more difficult than pay for cellular communication in the Internet bank. But first we give you a little information for understanding where and how cryptocurrencies are stored. There are exchanges and wallets. Only you have an access to the wallet, as a rule, and even if the service that provides these wallets, is hacked, scammers will not be able to get your money. The exchanges are created to convert different currencies and large exchanges give you at once a lot of wallets for each of currency. But hacking the exchange, scammers will easily gain access to your money, so storing large amounts on the exchange is more risky. From this follows the fact, that it is better to store cryptocurrency in your own purse, and convert it on the exchange.
How to buy and sell cryptocurrency?
The most popular exchanges are built on the principle of “man-man”, where the exchange acts as a certain guarantor. It only helps to meet those people who want to sell cryptocurrency with those who want to buy them. On such exchanges, as a rule, the best course exists. The exchanges also provide their wallet for storing and transferring cryptocurrency. The process looks something like this – you need to choose from which bank you prefer to make a transfer and find a seller with the most profitable rate (and with the ability to transfer the right amount, because for example some sellers work with amounts up to $ 35, and someone with amounts from $ 600). Next, you select the seller, enter the amount in your preferable currency, the transaction is confirmed by the seller and this amount is blocked in cryptocurrency. You have a card number to which you need to transfer the required amount (you make it), the seller confirms that he received the money and cryptocurrency are transferred to your wallet on the stock exchange. And if the seller does not confirm? In this case, everything is simple – you can open a dispute. The seller has already blocked the amount, and you have all the checks (from the Internet bank) about transferring the required amount to the desired card. The dispute will be dealt with by the representative of the exchange and you will clearly win it. Blocked amount of cryptocurrency will be transferred to you, and the seller’s reputation will be severely downgraded. However this situation, as you understand, is extremely rare. The obtained cryptocurrency can easily be transferred from the exchange to a purse or to another exchange.
One of the popular exchanges are kuna.io and btc.trade, where you can buy bitcoins. If you need a big amount of bitcoins – you can repeat transactions or use several bank cards, but in any case it is better not to exceed the amount of $5, 550 a day, not to attract unnecessary attention of fiscal bodies.
The very scheme of buying bitcoin through the exchange is simple: you need to replenish your account with your bank card and issue a warrant on which you are ready to buy cryptocurrency. As soon as the desired price appears in the offer, the transaction will be closed.
It is advisable to place an order not far from the market price, otherwise it will take a long time to wait for the purchase. It is also possible to redeem an already sold warrant of the cryptocurrency seller, but this will usually cost more.
At BTC Trade, before you buy bitcoin, you also need to replenish your balance by using a bank card.
Similarly, you can sell your bitcoin – on the exchange at the current exchange rate or by placing an order with the price of your interest. As soon as cryptocurrency is sold, the money will go to your bank card.
You can also buy bitcoin via the Bitxfy mobile wallet: after installing the application, you need to specify the amount of cryptocurrency, after which the service will redirect you to the card page. After authorization, you will be charged the cost of the purchase. The minimum amount is 0.0301, which at the current exchange rate is about $ 350.
You can also store your cryptocurrency in the electronic wallet. So a person can control his or her funds without intermediaries. A person gets access to his wallet, his electronic key and can sleep peacefully. However, it is necessary to create a backup copy of the key (a phrase of 12 words), so not lose it, otherwise the funds will be blocked, this is the most important risk.
Old exchangers are another way to get cryptocurrency or sell. There is a special aggregator Best Change, which contains the main proposals for the purchase and sale of cryptocurrencies with the indication of the rate.
A potential buyer needs to choose a payment method and specify the purchase object (bitcoin).
Unofficial money changers work on the market. If you plunge into this market, start attending bitcoin-hangouts, the right people who trade cryptocurrency find you themselves. The main plus is that they have no restrictions on the amount of the purchase. Experts admit that on the wave of excitement in this business there may be a lot of scammers, so the advice is to select the bitcoin-exchangers very carefully, and it is better for beginners in this business not to use their services.
For example, on the Swedish platform Local Bitcoins, offers of owners of cryptocurrencies from different countries of the world are displayed ( they indicate the amount and method of payment). Similarly, you can try to sell your cryptocurrency.
When is it better to sell and buy cryptocurrency?
Those who want to “play” with cryptocurrency, can earn on a growing course, however there are several simple rules.
This market is now at the stage of formation, it is highly profitable, but at the same time, it is risky. You can both earn and lose money on cryptocurrency, so it is recommended to spend the exact amount you can say goodbye to. It is better to buy cryptocurrency at the stage of reducing of their prices.
Fans on the collapse of the course discard the cryptocurrency, and experienced investors, on the contrary, acquire currency. However, there are no prophets in this market. Nobody knows what the course will be tomorrow, but it is more reliable not to play with cryptocurrency, but to store it for 1-3 years, believing in forecasts that the course will by then really skyrocket.
So, we bought cryptocurrency! But where is it better to store?
After all, the exchange can be hacked or it can close, taking all your money. Not to let it happen, there are wallets. The most reliable way is considered to be “cold storage” – directly on a separate hard drive, but all this is quite difficult for a standard user, so web wallets and mobile wallets were invented.
Blockchain.info wallet is really great. There are mobile platforms for both the web usage and for mobile one. They are assured that they do not have access to your means. On mobile platforms there is an input on a fingerprint.
Coinbase.com is also a very famous wallet + exchanger. Large American online shops, for example NewEgg, conduct transactions through it. Another plus is that in addition to bitcoin, you can also store the ether.
Mycelium.com is the most favorite wallet in the professional environment. Available only on mobile platforms. Soon it will become multicurrency.
We described ways of how to buy cryptocurrency. Initially, it was thought that bitcoin would be used precisely as a means for buying and selling goods and services. But now because of the cosmic growth rate, holders bitcoin perceive this cryptocurrency only as a way to make money on speculation. Obviously, for the market this is unstable, so you need to be careful in this question.