Is it that you are hearing the term Bitcoin or Ethereum for the first time and wondering what it is all about? Well, worry not! You are not just an exception; in fact you are one among those thousands who lack a concrete idea about these Crypto Currencies.
Crypto Currency is nothing but electronic money which doesn’t belong to any country in particular and cannot be produced by even any of the government controlled banks. Also popular as ‘altcoins’, these are based entirely upon Cryptography.
Crypto Currencies are produced adhering to a mathematical procedure in particular. The aim of this is to make sure that the currencies don’t end up losing their value due to large circulation. Talking of Crypto currencies, they are namely Bitcoin, Litecoin, Namecoin and Peercoin.
Transactions of these digital currencies are conducted using the mining mechanism. This means those willing to do the same are required to generate crypto currencies in their pc or laptop using software designed for this particular purpose.
Upon creation of the creation, it gets recorded automatically in the network which hence announces its existence. During the last few years, the value of Crypto currencies or Altcoins reached the zenith which thereby made its mining a profitable business.
As mentioned above, while there are different types of crypto currencies available, it is Bitcoins and Ethereum which gained greatest popularity. In this article, you will get to learn about how to buy, invest and store Bitcoins and Ethereum.
Looking for a Bitcoin Buying Guide? Wondering where to start? People have a lot of misconceptions about bitcoin – the very first widely known and accepted cryptocurrency worldwide.
Bitcoin is the most popular crypto-curreny enjoying the biggest market capital amounting to $41billion. Bitcoin is there in the market for around 8 years and is used widely and if its value in the long run is taken in concern, there is hardly any method that will work wonder to exploit its weakness.
Both for storing value and use a payment system, Bitcoin help the users to send and receive bitcoins. This crypto currency is based upon the blockchain concept. Discussing this concept in details, blockchain is simply regarded as a database distribution system which stores all the network transactions into a block or data chunk.
Each of the users has copies of this blockchain which is why when ‘A’ sends one bitcoin to ‘B’, each one present on this network gets to know about the same.
What made Bitcoins Popular?
Bitcoins come with many benefits compared to all other currencies. For instance, you can easily send this crypto currency to another person in the network as a payment without needing to go through any bank middleman. Also, it is faster enough compared to sending money over bank wire or bank transfer.
This means the person on the receiving end will receive the coin within seconds. And with all these advantages in hand, it is no wonder what made bitcoins popular.
How To Buy Bitcoins
Step 1- Get Bitcoin Wallet
This is the first thing you have to do before buying bitcoins. Bitcoin wallet is a virtual wallet for storing your coins. It also comprises of a string of few texts which others can use for sending bitcoins to you. There are numerous types of wallets inclusive of the one you download to the pc or phone, cold storage wallet, offline and online wallets. You can easily download bitcoin wallet to your computer or PC from the main website of the wallet
Step 2-Deciding where from to buy a bitcoin
There are different places from where you can buy bitcoins and the each of these coins are different from the other. You can also get access to online sellers selling bitcoins directly for credit card or cash or bank wire.
Also there are many exchanges whereby you can carry out the activity of buying and selling bitcoins from one another. In short, the concept is quite like that of a stock exchange. Even there are few local exchanges which link you with sellers present in your locality willing to sell bitcoins.
Adding on, even few ATMS allow purchasing Bitcoins using cash and the coins are delivered instantly to your wallet. But as each bitcoin seller comes with their own benefits and drawbacks, you are recommended to conduct a small research before heading with the deal.
Step 3- Buying Bitcoins and moving these to your wallet
Once you are done with the research and have decided where from to buy the coins, prepare for funds. You can use your ATM card i.e. Visa or wire transfer for the deal. Wait for a sound price as the prices of bitcoins usually fluctuate 24*7. Upon getting a good price (i.e. a low one when buying bitcoins and a high one when selling the same) feel free to head with the order.
Once you meet your order and have the coins, the next thing you want to do is send these to your bitcoin wallet. For the same, just enter the address of your bictoin and the seller will send you all your bitcoins. Upon finishing the activity, you will get to see these in your wallet.
Hurray! You are now a bitcoin owner.
Coming to Ethereum, it is yet one more decentralized open source software platform which was launched back in 2015. It enables building and running of distributed applications and Smart Contracts easily without downtime. Applications on this platform need a special cryptographic token named ‘Ether’. As per Ethereum’s core developers, you can use this token for trading, securing and decentralizing anything.
The biggest rival of Bitcoins, Ethereum sustained a massive attack in the year 2016 which resulted the currency to split into two sections- Ethereum Classic and Ethereum.
How to Buy Ethereum?
Step 1: You need to signup for Coinbase account.
This will give you a protective place for storing your Ethereum along with easy payment procedures for conversion of local currency to digital currency. Go to PlayStore or AppStore and download ‘Coinbase Eth’.
Step 2: Get your debit card or credit card or bank account connected
After signing up for the Coinbase account, you need to connect your debit card or credit card or bank account to it. Some steps for verification has to be followed for doing the same following which you can head with the purchase.
Step 3: Buying and selling Ethereum
Once you buy your first ethereum, you can sell it to anyone else on the network as and when your wish or need to.
What you need to remember is both Bitcoin and Ethereum are still in their stage of development which is why they experience hefty price swings. Thus investing in these currencies is risky enough and calls for a sound decision to be taken on your part.