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How to Buy Bitcoin

Bitcoin is called “digital gold” — and for a good reason. Like gold, the price of Bitcoin has been driven by the scarcity of its tokens. Like gold, people and companies are “mining” it by running purpose-built computers that maintain the global Bitcoin network. Given Bitcoin’s somewhat shadowy nature, many people don’t understand how it actually works. They are intimidated by the risks of failure and often struggle with their first Bitcoin purchase. But paying with Bitcoin is easier than most people think.

Investing in Bitcoin?

Investing in Bitcoin could potentially result in a big payoff, although Bitcoin investments — like most investments — are much riskier than saving in a bank. Savings are usually guaranteed — investments are not. But you don’t have to invest tons of money and get a whole Bitcoin. Invest as much as you want: Spend a few hundred bucks, purchase fractions of a Bitcoin and start building your portfolio. The biggest Bitcoin’s drawback is that it’s too volatile: The price can swing in both directions unpredictably over a short period of time. The majority of people buy and sell Bitcoin on “regulated” Bitcoin exchanges. For the longest time, exchanges have been sought as the weakest link in the whole Bitcoin ecosystem. Through the years, many exchanges have gone bust robbing people of all their deposits. But much has changed. Now, regulated exchanges operate under strict control, and the more regulated they are, the more protections they give to the traders. However, if you are unbanked or don’t want to give any personal info to the Bitcoin exchange, there is a simple fix for that: You can buy BTC with no verification on a peer-to-peer, anonymous Bitcoin exchange. It is much riskier than trading on a regulated exchange, but anonymous exchanges let you buy Bitcoin instantly, no verification needed.

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Bitcoin Properties

Uninflatable

Traditional currencies are subject to inflation, BTC is not. The number of tokens is capped at 21 million — and mining is the only way to release new tokens into circulation. The rate with which new tokens are released decreases by half every four years, so the same amount of mining produces fewer tokens, which increases the price of BTC over time.

Decentralized

Even if a part of the blockchain goes down, the whole network will not collapse. It is maintained by many different entities all over the world, and no one has the authority to force users to reveal their identities.

Transportable/borderless

Bitcoin is instantly transportable. You can send it anywhere in the world at very little cost — and it will move across borders seamlessly.

Divisible

Each token can be broken down into 100 million pieces and used in exchange for goods and services.

Hard to counterfeit

Bitcoin’s complicated encryption algorithm and powerful global network makes it almost unhackable.

Recognizable

Every Bitcoin wallet can confirm whether BTC is legitimate or not.

Bitcoin exchanges

The majority of people buy and sell Bitcoin on “regulated” Bitcoin exchanges. For the longest time, exchanges have been sought as the weakest link in the whole Bitcoin ecosystem. Through the years, many exchanges have gone bust robbing people of all their deposits. But much has changed. Now, regulated exchanges operate under strict control, and the more regulated they are, the more protections they give to the traders. However, if you are unbanked or don’t want to give any personal info to the Bitcoin exchange, there is a simple fix for that: You can buy BTC with no verification on a peer-to-peer, anonymous Bitcoin exchange. It is much riskier than trading on a regulated exchange, but anonymous exchanges let you buy Bitcoin instantly, no verification needed.