This article helps you to know how to start investing in Bitcoins and provides a guide for beginners as the price of Bitcoin is rising over the time.
The best time to plant a tree was 20 years ago. The second best time is now. This advice in an old Chinese proverb is most apt for the users planning to invest in Bitcoins. If you are someone who has heard about Bitcoin, irrespective of when but have never invested in it NOW is the right time.
Bitcoin, a digital decentralized currency based on blockchain, is going places. Once you know how Bitcoin works, it is obvious that Bitcoin is here to stay. If we try to understand the technology and its underlying principles, it is right to say that the price will keep rising over the years to come. This article helps you to know how to start investing in Bitcoins and provides a guide for beginners.
One of the major reasons for the claim is the finite amount of Bitcoins, making it a great store of value (only 21 millions Bitcoins) and viral adoption around the globe. At the time of this writing, there has been no reported theft or loss of bitcoins from a hardware wallet.
If you are ready and excited to purchase Bitcoins and need a guide for beginners, customize this article according to your current financial situation that suits your needs.
Here is what beginners need for investing in Bitcoins:
- An exchange or website to buy Bitcoins
- A wallet where you can store Bitcoins
These two are must-haves to get started with. Under no circumstances should you miss the understanding of the correct website and a safe wallet, or you might fall prey to some MLM (Multi-level Marketing) or scam, resulting in losses.
Owning Bitcoin is like keeping money. Unlike USD, INR or other currencies that you keep in the bank, you are responsible for buying, selling and securely storing of Bitcoin.
What do you need to start investing in Bitcoins?
#1 Exchange from where you can buy Bitcoins:
If you are living in a country where you have an official Bitcoin exchange, you don’t need to worry much about purchasing Bitcoins. You can quickly sign up for these exchanges and transfer money from your bank account to purchase Bitcoins.
These are a few country wise exchanges from where you can buy Bitcoins:
- USA: CoinBase, Kraken, Gemini
- India: BitBNS, Koinex
- UK, Europe: CEX
- Israel: CoinMama
- South Korea: Bithumb
- Russia: Yobit
- Nigeria: Luno
- Japan: Coinmama
- Australia: CoinSpot
- South Africa: Luno
However, major problem is for people residing in countries with no Bitcoin exchanges. This makes it really hard for the users to hold Bitcoins now and with the prices surging at a rapid pace, it might be too late for many to get hold of Bitcoins. But that is where we come to rescue. We have come up with other options through which you can buy Bitcoins.
These are a few websites from where you can buy Bitcoins in other ways such as:
Initially, when it was not easy to purchase Bitcoins in my country, I used a credit card to buy Bitcoins from Cex.io.
This worked pretty well as the price of Bitcoin differs a lot in my country and internationally. If you are in a country where you can’t buy Bitcoins directly, to start investing in Bitcoins you can use these international sites where they accept credit & debit cards.
Here is a list of sites that allows buying Bitcoins using Credit/Debit card:
Another method which works for the most countries in the world is a P2P exchange. Consider this P2P exchange as eBay where you connect directly with the seller to purchase Bitcoins. These exchanges support various methods of payment such as :
- Online transfer
- iTunes Gift card
- Amazon Gift card
- and many other methods.
The one that I have used previously is Localbitcoins as it worked pretty well.
There are also a few less known methods such as using Amazon gift card & Purse.io to get hold of Bitcoins.
As we discover new working methods, we will keep sharing it on CoinSutra. For now, what’s important is that you need to pick an exchange/website from where you can buy Bitcoins on a regular basis.
Note: If you are in a country where you have no option to buy Bitcoins and wonder how to start buying Bitcoins, do let us know in the comment section below. We will do our best to find a solution for you.
#2 Keeping/Storing your Bitcoin in a secure wallet:
To store Bitcoins, you need a wallet. If you search online for Bitcoin wallets, you will get plenty of options but you need to be careful about choosing the right one. As many wallets have been fraud, you may end up losing your Bitcoins. Just search on Google play store for Bitcoin wallet and you will be shocked to see the number of results.
This is a big mistake to pick any random Bitcoin wallet just because it’s listed on the Google play store or it is on the first page of Google. As Bitcoin prices are rising, the number of scams are also increasing.
Another big mistake is keeping the wallet in an exchange. Most of the exchanges like Localbitcoins, CEX, CoinBase, Koinex, ZebPay, and numerous others offer in-built Bitcoin wallet and let you store Bitcoins in their wallet. Since very few countries in the world are working on regulation of Bitcoin and Cryptocurrency in general, these exchanges can be shut down and you will lose your Bitcoins. That happened in China sometime in September 2017. Exchanges are also at risk of getting hacked and you might lose your Bitcoin if you store it on an exchange. You can read about the biggest Bitcoin hacks here.
Bitcoin is not like a typical currency which you can keep it in your bank. You are responsible for the security of your Bitcoins and that’s why you keep it in a wallet you are in charge of. First it may sound very technical, but it is actually easy to understand and learn.
To simplify your understanding of Bitcoin wallet security, you just need to use a well-recognized wallet that let you, and only you, keep the seed words. This seed word is the password for your Bitcoin. Even if you lose your phone or hardware wallet, you can recover your Bitcoin using the seed words.
We have a few dedicated resources to read more about that”
There are different kinds Bitcoin wallets.
- Mobile wallets which come with a mobile application and are available for both iOS and Android.
- Desktop wallets which come as a software.
- Web wallets which come as a website.
- Hardware wallets which are the most secure ways.
- Paper wallets which are also secure methods but difficult to set up. Here is a guide for setting up a Bitcoin Paper Wallet.
- Security Risks of Mobile, Web & Desktop Bitcoin Wallets [Must Know]
The problem of hardware wallets is their availability. It takes few weeks or sometimes months to get delivered as the demand is very high. If you are starting now, you can use a mobile wallet to store Bitcoin and then transfer the Bitcoins to a hardware wallet. If you need Bitcoins for daily use and need to store a smaller amount, you can use a mobile wallet such as MyCelium, Jaxx or Coinomi.
- The Top 5 Best Bitcoin Wallets That You Should Use For Storing BTC
- Ledger Nano S Review: Things To Know Before Ordering The Ledger Wallet
Few important things before you start investing in Bitcoins:
- Bitcoin is an excellent investment in today’s circumstances. As the adoption of Bitcoin is increasing across the globe, the prices are continuously surging.
- You can buy Bitcoin in the fraction as well, 0.1 Bitcoin or even 0.005 Bitcoin.
- It will take time to learn about all the aspects of Bitcoins . For starters, you need to buy Bitcoins and hold it in a wallet like MyCelium, Ledger or others which I recommended above.
- You are responsible for the safety of your Bitcoins. You should read articles about things you mustn’t do after investing in Bitcoins. That will stop you from making rookie mistakes that many make after buying Bitcoins.
- Only buy from exchanges that are trusted and recommended by reliable resources. I take pride in my recommendations as I understand that even a single dollar is hard earned money by the user.
- Just remember, you are putting your money into Bitcoin. Even if the price reaches a great level, you shouldn’t miss out on doing what you are supposed to do. Treat your Bitcoin investment like any other investment and be wise.
I hope this guide helps beginners investing in Bitcoin and clears your doubts about investing in Bitcoins.
For now, if you still have any kind of questions after this “guide for beginners”, it’s a good time to ask and clarify using the comment section below. You can also ask questions and start a discussion in our Bitcoin and Cryptocurrency forum.