You’ve heard about bitcoin, you know what it is and now you want to buy some, but how? We are going to explain to you how you can buy bitcoin yourself in a simple way. Whether you want to save your bitcoin for the long term, or just start trading with it right away, is of course up to you.
Where do I Buy Bitcoin?
There are several online parties which sell bitcoin. They buy several cryptocurrencies in bulk and then sell them on their own website or platform. Back when Bitcoin was just founded, there was a clear difference between brokers and exchanges.
At a broker you are able to convert fiat currency to most of the major cryptocurrencies, like Bitcoin, Ethereum, XRP and XLM, Polkadot and ICP. Whereas, at exchanges it was only possible to trade cryptocurrencies for other cryptocurrencies such as BTC/ETH or BTC/XRP. Currently, the lines between brokers and exchanges have dissapeared. As a result many brokers offer crypto to crypto trading now as well (such as Coinbase), whereas exchanges also offer FIAT to crypto trading (such as Binance).
Brokers (and exchanges) are official companies and support multiple payment methods such as wire transfers or IDEAL payments. You can also turn to these sites if you want to sell your bitcoin back for euros. Most sites have a certain limit to the maximum amount of bitcoin you can buy or sell per 24 hours. This limit can often be increased by verifying your identity or bank account number, for example by linking your bank or phone number.
Why should I Buy Bitcoin?
Before you actually start buying bitcoin, you will first need to ask yourself why? Below are several arguments why Bitcoin could be interesting to buy:
- As an investment; You expect bitcoin to rise in value in the coming period and you don’t want to miss this boat. If this is the case you can buy bitcoin on one of the websites where it is offered. It might be a good idea to store it on a (physical) hardware wallet afterwards. This way you can be sure that your coins are safe and you don’t have to look after them any further.
- For purchasing altcoins; You do not want to invest in bitcoin itself, but in other cryptocurrencies. Often you need bitcoin for this first; you can then trade these on so-called exchanges.
- As a means of payment; You may also want to use bitcoin as a means of payment. Ask yourself: Why would you choose bitcoin over the euro as a means of payment?
Bitcoin has a number of advantages and disadvantages over traditional currencies, read more about this in our article about Bitcoin.
Where will my Bitcoin be Stored?
There are several options where you can send your bitcoin, depending on which provider you buy them from. Typically, you provide your wallet address and then your purchased bitcoin will be sent there. This can be to either an online wallet or a soft or hardware wallet.
Another possibility is that the provider leaves your purchased bitcoin on their internal wallet. The providers do this because it allows you to trade faster with it. However, it is often possible to send the purchased coins to your own wallet. Many crypto enthusiasts will opt for the latter, as independence is one of the reasons they are fans of bitcoin and other crypto currencies.
What are Alternative Cryptocurrencies – Altcoins?
Alternative cryptocurrencies, also called altcoins or alts, are a collective term for all cryptocurrencies besides bitcoin. Pretty soon after bitcoin appeared, countless other coins were launched, each with its own particular function. For example, you have XRP intended for international payments in the banking system, IOTA focused on “Internet Of Things”, and lots of altcoins based on so-called “smart contracts”. There are also many altcoins that have the same function as Bitcoin but claim to be faster or better. Litecoin and Bitcoin Cash for example.
Exchanges often offer such altcoins in addition to Bitcoin and several of the other largecap cryptocurrencies. If you want to buy an altcoin that is not available on some of the major exchanges, you can trade your purchased bitcoin on a smaller exchange where this altcoin is available.
How do I trade Bitcoin for altcoins?
First, you should send your purchased bitcoin to an exchange wallet. An exchange is a place where you can trade cryptocurrencies. On an exchange you can use your Bitcoin to buy for example Ethereum or another altcoin. There are currently many exchanges.
Would you like to know which exchanges are reliable and safe to buy bitcoin or other cryptocurrencies? Then take a look at the different Cryptocurrency exchange reviews we have written, which you can find by following this link.