How to buy Bitcoin?
Before starting your adventure on buying and selling bitcoins, first you need a place to store them, not the bitcoin itself but the data of transactions. For cryptocurrencies the account you store them are called ‘wallets’.
Every wallet has two attributes; a private key and a public key.
The account in cyrptocurrency world that we call wallet is not to store your bitcoins but private key which manage the funds in the wallet. This private key’ also known as xPriv is necessary to send your bitcoins to another user. A public key, also known as xPub, is used to monitor how muck bitcoin the wallet is storing. Public key is essential to receive bitcoins from other users.
The keys responsibility belongs to account user so it’s crutial not to lose them otherwise you’ll lose your bitcoins.
Various forms of wallets exist with advantages and disadvantages respectively. Main types of bitcoin wallets are desktop, mobile, online, hardware and paper.
Different Type of Cryptocurrency Wallets
1 – Desktop Wallet
It’s a ‘on your computer’ downloaded wallet. Only from the computer the wallet has been downloaded can be used by the client. There are thin and thick desktop wallets. Thick wallets provide the option to download network blocks, so that authenticity control is likely beside independent security management. On the other hand thin wallets can be downloaded to a portable device.
Desktop wallets need to have highest levels of security. If your computer is hecked then you’ll be losing all your funds most probably. Keeping it offline will be a advisable precaution.
2 – Light Wallets
Light wallets or mobile wallets run on apps on your mobile device. They are quite useful because you can reach your account any time and anywhere you need to. Convenience of paying by scanning QR-codes is the major advantage of mobile wallets. However, mobile wallet owners can not be considered as full Bitcoin clients where a mobile wallet would probably not have enough space to download entire blockchain.
3- Online Wallets
Online wallets are software wallets and are not tied to a specific device. Considering the fact that not all devices will live forever, an online wallet might be preferable to software wallets. In case of a lost wallet, it’s recoverable. This might be a disadvantage as well since you need to verify your idenitiy. Online wallets are in the cloud so it’s still a question mark how safe it is. Most users prefer online wallets just for daily transactions.
4 – Hardware Wallets
Hardware wallets are not online and they are separate devices. They are unhackable, closed and easy to use but on the other hanf they are expensive, non-recovarable and always might have a backdoor as a risk.
5 – Paper Wallets
Paper wallet can be considered as the most primitive wallet management; a printout of two QR-codes including your public and private keys. It’s basic and safe. On the other hand being a single-use paper makes it unpractical and if lost, it’s not recoverable and all is gone unless you do not remember the private key. Making a back-up is a must.
WHERE TO BUY BITCOIN
Buying bitcoins is not easy as it sound there are some options which even do not require internet access.
Bitcoin ATMs is an easy Option to buy Bitcoin into some Countries
Maybe not possible to find them in bitcoin banned countries but they are prevalent in most countries. All you need to do is insert cash and receive a receipt with codes and instructions to transfer it to your wallet. Or more easy, you can directly scan mobile wallet QR code.
It’s an easy way to buy bitcoins. You go to a shop or to a kiosk, buy a gift card and use the code on the gift card to receive your coins. Paying high fees for this kind of transaction is a downside, however it’s preferable in Austria, Korea and Mexico.
Gift cards are an easy way for scam so better to be careful and choose trusted sellers.
Using exchange option to buy bitcoins take long bureaucratic procedures. To connect to an existing bank account which reveals full detailed personal information will be required to avoid money laundering before exchange . So if anonymity is important it’s better to think twice. Mostly used exchanges are Coinbase and Binance.