yBitcoinMagazine
7/16/15
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Wondering how you can buy your first bitcoin? Fortunately, it’s much easier today than it was even a year ago, and thanks to innovative companies entering the market, it’s getting easier all the time. There are multiple ways to get started: you can mine them yourself, trade goods for them, or apply for a loan in bitcoin. Some employers—especially those in the Bitcoin space—will even pay a portion of your salary in bitcoin. However, the simplest way to break into the world of Bitcoin is simply to purchase them. There are a variety of ways to do so, and this guide will walk through some of the most popular options.
Buy Directly Online The simplest way to buy bitcoin online is by using a consumer site like Coinbase, Circle, Expresscoin, or Trucoin. Each of these companies will walk you through the process of setting up a wallet and linking your credit card or bank account to complete your purchase. However, the companies must verify your identity to comply with U.S. “Know Your Customer” (KYC) regulations. The availability of these services varies worldwide due to regulatory restrictions, although Coinbase and Circle maintain a presence in multiple countries. In order to control fraud, these sites typically impose limits on the number of bitcoin you can buy, and they charge transaction fees.
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The bitcoin you purchase through these companies are held in an online wallet linked to your account. From there, you can send bitcoin to another user, make an online purchase of items that sell in bitcoin, or transfer them to a different wallet. Many of these companies offer insurance for your bitcoin stored with their wallets, and they implement security features like two-factor authentication and multi-signature wallets to keep your account safe. If this is your first journey into the world of Bitcoin, consider these companies for a relatively quick and convenient way to get started.
Use a Traditional Bitcoin Exchange Traditional exchanges such as Bitstamp or Bitfinex are the most common sources for traders or large investors. These sites allow you to create an account and fund it with a deposit of fiat currency such as U.S. dollars. (“Fiat” refers to a currency that is issued or considered legal tender by a government e.g., euros, pounds, or dollars.) You can deposit your local currency into an exchange trading account using either a wire transfer or an ACH withdrawal directly from your bank account. The deposit options vary by exchange, and this process can take several days depending on the method you use. Once you’ve moved money to your exchange account, you can buy and sell bitcoin with other traders using the exchange. The exchange doesn’t actually sell you bitcoin directly, instead it