Here is grandma’s guide to buying her first bitcoin. Also if you’re like grandma, this article is for you. For that reason, it will be very simple and straightforward. Maybe you learned the US presidential election will affect the price of bitcoin and wondered how to buy. Next, a million-dollar question: what could be the easiest way to buy bitcoin.
What is Bitcoin?
Before then, let’s assume you are alien to the word “bitcoin”. Bitcoin is a digital currency that allows pseudo-anonymous and peer to peer transactions without the need for trust. Contrary to other digital currencies, bitcoin is built on a trustless system called the blockchain.
Simply put, Bitcoin allows you to pay for bills in a peer-to-peer system without the need for a third party.
Now that you know what bitcoin is, it is not enough. Another is about a bitcoin wallet. Concurrently, a bitcoin wallet is what stores your bitcoin private and public keys. Wallets can be hardware or software, otherwise called cold or hot wallets respectively. By implication, you can secure your keys offline or online, as you so desire.
Steps to buying bitcoin
Having satisfied the prerequisites, below are step by step guide on buying bitcoin;
Sign up on a cryptocurrency exchange
Similar to fiat where you need merchants or exchangers to obtain, you need cryptocurrency exchanges or merchants to own bitcoin. A cryptocurrency exchange is a platform or website that allows you to purchase cryptocurrencies including bitcoin.
Upon signing up, you are required to do account verification to allow you to secure them. After verification, you can make choices of the asset to purchase. Available assets may be dependent on the platform, but Bitcoin as a major cryptocurrency must be there.
Own yourself a wallet
Having created an account on an exchange or with a merchant, you need a wallet. Herein, you have several wallet options. Meanwhile, the broad category is a hot and cold wallet. However, a cold wallet is your best bet to secure your keys.
Examples of hot wallets include Blockchain, Trust, Xapo, etc on the other hand, BC vault, Ledger Nano X, Trezor, among others are good examples of cold wallets. Regardless of the type of wallet you chose, you are entitled to a private and public key.
Also, you’re to create wallets for different cryptocurrencies. For instance, the Bitcoin wallet where you will receive your bitcoin. With the address, you can receive bitcoin from an exchange or merchant as well as peers.
Having gotten the bitcoin wallet, you are required to add the address to the platform and here your bitcoin is on the way, once you made payments.
Note that adding your wallet address in a cold and hot wallet isn’t the same. For instance, hardware wallets like BC Vault as shown here requires you to connect the native app to the exchange. While you simply copy the bitcoin address directly from the cold wallet.
Add a payment method
There are several payment options on different exchanges. Therefore, you are to choose from the available options on your most preferred platform. Such options are Card payment, Paypal, Skrill, bank deposit, etc.
Through any of the aforementioned, you can pay in USD, Euro, Yen CAD, etc.
On the payment interface, you are allowed to select the bitcoin equivalent in the supported currency.
Shop your bitcoin
As soon as you complete the payment, your bitcoin is on the way.
Buying your first bitcoin is as simple as owning a wallet and choosing your exchanger or merchant. However, it is your choice to go for a hot or cold wallet to secure your keys.