How to Buy Bitcoins (and other Cryptocurrency)
Do you want to learn how to buy Bitcoins? Perhaps the latest Bitcoin to USD price is far too steep for you and you are considering another cryptocurrency like Ethereum? If you are confused yet intrigued by the Bitcoin and cryptocurrency frenzy, then you are not alone. The search volume (number of Google and other search engine queries) for the word “Bitcoin” is over 300,000 searches daily. The phrase “how to buy Bitcoins” is Googled by more than 8,000 people every day. With the sky rocketing prices and the rumors of US lawmakers and regulators considering clamping down on the cryptocurrency exchanges, it’s no wonder so many people are interested and yet confused by the process of buying Bitcoins.
This is the first post in a series that will detail the process of buying Bitcoins, Ether, and other cryptocurrencies like the newest, Venezuelan Petro. There are a few ways to obtain Bitcoins. One is to mine it. Mining involves setting up hardware and contributing to the computing effort that generates new coins. Mining Bitcoin is expensive and not cost effective for individuals. However, groups of miners work together in pools to make it more lucrative.
Another way to obtain Bitcoins is to work as a network node. Nodes do not mine Bitcoins, but verify the validity of mined coins. Network nodes are paid a small fee in the form of Bitcoin in exchange for their services. A node also requires computing power, but is not as costly as mining.
Willing investors can also buy Bitcoins online through cryptocurrency exchanges. They manage their Bitcoin in online wallets. Not all exchanges deal with all cryptocurrencies. Buyers also must choose a wallet that works with the cryptocurrency they want to buy. Of course, the exchange and the wallet must work together as well.
The next post will talk about the Bitcoin buying process, exchanges, wallets, and how to get your dollars changed in to Bitcoins.
Michelle writes about cyber security as well as how to protect your data online. She has worked in internet technology for over 20 years Michelle earned a B.S. in Engineering from Rensselaer Polytechnic Institute. She published a guide to Cyber Security for Business Travelers