Everybody has already heard about the cryptocurrency, but some people are indifferent to this issue, the others are actively interested and ask a reasonable question: “How do I get bitcoin?” Banal curiosity, the desire to join the new business with ambitious plans for the future - however, it is useful for everyone to know where the bitcoins come from.
Table of content:
- The origin and aims of BTC
- Mining as one of the ways to get bitcoins
- Where and how to buy cryptomoney?
About bitcoin briefly: the origin of virtual gold
All of us use cash every day or pay with a bank card. You can often hear that money is ordinary paper, and gold reserves are not their equivalent. Moreover, if in the past coins were minted on the metal - gold, silver and copper - which represented their value. Now the value of each note is guaranteed by the state. Any instability influences the rate of such a currency. It can go down rapidly and depreciate during a day. There are many such examples in the history.
Why was bitcoin created? Just for fun or it is an only way to protect and guarantee the value with the help of the advanced technology? Analysts are arguing about the issue. Some of them see the cryptocurrency and the blockchain as reliable protection from counterfeiting, inflation and external influence. Others believe that this is another way to profit from the people’s trust. Anyway, bitcoin has been already created, is working and demonstrating certain results, so it would be a good idea to learn about the best way to get bitcoins.
Mining: traditional and cloud
The first miners extracted virtual coin gold playfully, i.e. on their home computers. It was necessary to install a simple program for self-searching blocks. Later, due to the increased number of participants, it was necessary to improve their capacities, one graphic chip was not enough. Rigs with several graphic chips were required, but soon their time passed too and they were replaced super devices ASICs.
The investment in equipment for bitcoin mining is very significant. One ASIC costs 2 – 3, 000 USD, and hundreds are needed. For large farms equipping one should pay a lot, so the system can work solo. In the case of bitcoin no man is an island so you will have to join the community and register on a pool. This service allows owners of different levels capacities to receive some income as a result of joint mining.
Working with the pool you will have to think of the place to put the equipment, as well as to pay for electricity every month. Forget about registering your home PC or a rig with 4 graphic chips on the resource. First, such equipment will quickly wear out. Secondly, the cost of electricity will be ruinously expensive. There is a third factor: the pool will not accept such shares as yours. If you really want to try yourself in the role of a GPU miner, choose other cryptocoins.
There is another way of mining, which we highlighted on the blog. It is called “cloud mining”. It allows to make a profit without any equipment at all. You rent a capacity, or rather some hashrate from a company that professionally deals with mining and offers such services. As a rule it is a remote data center, situated in another country where the cost of electricity is comparatively low. The contract is concluded for a certain period.
How do I get bitcoins on Exchanges, exchangers, terminals, P2P platforms?
You have some fiat money and you want to buy bitcoins for these bills, don’t you? Perhaps there is a necessary amount on the bank account for the same purpose? Well, you have several ways how to replenish the bitcoin wallet.
The exchange is a platform for traders. The exchange rate is formed according to the offer, therefore it is "clean" and without additional price. Before you run a financial transaction on a particular resource, analyze the conditions of the exchange and the current exchange rate for the pair, for example, BTC-USD. There are special sites where information on the most beneficial offers is presented. Among the most popular exchanges are CEX and EXMO.
If the exchange is a service that only provides a trading platform, the exchanger is a party to the financial transactions with the cryptocurrency. Before you deal with the exchanger, check its reputation and fee rate. There are no hidden payments, which are revealed after the operation. Also, the exchanger rate should not be too higher than that one presented on the exchange.
The number of terminals for the cryptocurrency purchase is increasing, but most of them are in the US. In Europe the devices can be found in large cities, and they are still considered to be a wonder. Operating the ATM is not more difficult than withdrawing cash from a bank card. To purchase BTC, you will need some cash and a phone, from the screen of which the scanner reads QR-code addresses. It is needed to send the purchased cryptocoins.
It is a good idea to find people who are ready to sell you cryptocurrency. In this case, you will receive a full guarantee of the transaction transparency, but what happens when there are no any bitcoin holders among your friends? A P2P platform is a unique opportunity to find a seller in the nearest city. As a rule, people register on such resources to perform regular operations, so trust the users with a good background.
How do I get bitcoins into my wallet?
This question is also very important. Whatever method of obtaining virtual coins has been chosen, they need to be kept in a certain place. Of course, it is a BTC wallet. You can create one:
- Register online wallet on the site
- download the client with a full blockchain or a light version
- purchase a device for the cold storage (a hardware wallet)
- print codes from the site in the form of a paper document
A bitcoin wallet represents a combination of two types of keys. One of them is private, and the second is public. Knowing the public key code, a pool, an exchanger or an individual that sells you the cryptocurrency, can send BTC directly to your account. So, imagine that you have a wallet in the desktop format, an online client, and a mobile application or Trezor device.
To receive funds, activate the "Get" function in the program interface or on the site. In the window that opens, you will see your wallet number. Give it to a person who is going to send you crypto. An alternative way of transferring money is QR code. The sender needs to scan it to find out your wallet number. A paper wallet contains the necessary data on the side that is open for viewing.
Those who read this article do not ask the question "How do I get bitcoin?" They got acquainted with the most profitable and guaranteed ways to mine or buy the cryptocurrency. It is worth remembering that bitcoin is an asset which can be paid alongside the ordinary money for somebody’s service and goods. So if you run a business you can ask your customers to pay with cryptocoins if they have such an opportunity.