All About Bitcoins: 3 Basic Ways of Buying, Selling, and Keeping Track
Bitcoin is a digital currency that has existed since 2009. However, it’s not until last year, when Bitcoin’s price rocketed to a surprising amount of $17,500, that the cryptocurrency has gained great popularity.
A lot of people are now trying to get their hands on cryptocurrency. However, it can be tricky, and understanding the trading process of Bitcoins will take time.
If you want to learn the most basic things about Bitcoin, here’s a guide you should read:
Buying Bitcoins
Unless you have a miner, the only way you can get bitcoins is through buying it. Buying Bitcoins is pretty much straightforward. As the biggest cryptocurrency in the market, there are a lot of platforms that allow you to buy Bitcoins easily.
It is good to be cautious when choosing apps and sites from which you want to purchase bitcoins. Make sure that it is safe and legitimate.
Remember that you are putting yourself at risk once you give your personal information like your name, address, phone number, and bank account information. If you have other cryptocurrencies, it’s better if you use them in buying bitcoins.
Before you can buy bitcoins, you need to set up your bitcoin wallet. You can download your wallet on your phone, so you can bring it anywhere. You can also install it on your computer, so you can pay for your online purchases.
Selling Bitcoins
Now that you have invested in Bitcoins, one way to double or triple your investment is to sell them. However, selling Bitcoins are not as straightforward as buying it. You can have two options: selling it online or selling it in person.
You can check current BTC/USD exchange rates here to get started.
#1 Selling Online
One of the methods you can try when selling bitcoins online is direct trades. In this method, you have to register in certain sites as a seller, and you have to verify your identity.
Indirect trades, there are no intermediaries needed. However, you need to register on sites in order to have a “place” for trading. All you have to do is put a selling order, and the site will verify if someone wants to buy your bitcoins.
Another method you can try is exchanged trades. Like direct trades, you have to register and get verified online. However, you do not have to organize your selling order on your own as the exchange platform acts your intermediary.
All you have to do is place a “sell order”, identify its amount, and specify your selling per unit. Once someone matches your order, the exchange platform will complete the transaction for you.
#2 Selling In Person
If you don’t want to go through all the verification and registration processes of selling bitcoins online, you can always choose a face-to-face transaction.
For this method, both the seller and the buyer must have digital wallets for their Bitcoins. You must agree on a certain price. If a buyer wishes to transact with you, you can simply pass the bitcoins to their wallets and receive cash on hand.
This method may seem easy and hassle-free but be wary when choosing this method. Avoid sketchy transactions and always protect your identity.
Tracking Your Bitcoins
Now that you have finally gotten a gist about selling and buying Bitcoins, you need to find a way to keep track of your transactions.
Since Bitcoin is a digital currency, you store it in a digital wallet. The safest and easiest way to track your investments is to register online through verified and trusted sites. These sites will help you trace your holdings and track of your profits and losses.
Some may even have additional tools that will help you make smart trading decisions.
Final Thoughts
It pays to know about cryptocurrencies before you invest in it. Now that you know the basics of Bitcoin trading, you can try buying and selling it.
Are you thinking about investing in Bitcoin? This cryptocurrency has gained a lot of popularity over the last few month and I would like to hear what you think. Share your comments below.
Cheers!
