Bitcoin came to the limelight by the end of 2017 when its value was indeed touching the moon. It was selling at as high as $12,000 then. If we dig a little back, the history of bitcoin starts in 2009 when its price was almost zero!
The story of Bitcoin is fascinating and it’s potential to replace traditional fiat is immense!
As a believer and investor in this digital asset, I believe that it has a huge potential if held for a long time. I assume that BTC may touch as high as 1 million USD per coin in a few years from now. However, it is ought to go through lots of ups and downs in that long journey.
In this article, I would like to discuss How to buy and trade Bitcoin in 2020.
I hope that the reader of this article is already aware of the currency and is interested in buying and holding the Bitcoin.
Where and How to buy Bitcoin?
Broadly speaking, there are only two ways by which one can obtain BTC (Short form of Bitcoin)
- Through Mining.
- Buying from others.
I will be writing in detail on how does the mining of bitcoin work. However, for now, I will give you a brief introduction to that part as our primary focus will be to the second point “Purchasing Bitcoin”
Bitcoin uses blockchain technology. Blockchain means nothing more than a Public ledger where a fixed number of users have to verify to approve a particular transaction. This verification is done by solving some complex mathematic problems for which one needs a powerful computer. The user will be rewarded with Bitcoin for helping solve a particular mathematical riddle, a process called mining.
As you can see here, mining requires a powerful computer and it in turns requires a lot of energy in the form of electricity the cost of which the miner has to bear. In addition to that, sound knowledge in coding and other related technology is required to become a successful miner. Most of us common people lack these abilities.
Here comes the part of Buying Bitcoin and making huge Profit…
One doesn’t need sound technical knowledge to buy Bitcoin which is sold by the miners. All one needs to have is to have some basic knowledge of using the internet and have some money in hand.
Let’s assume you have both and searching for a place to buy bitcoins from. You can buy bitcoins from two sets of people
- Direct sellers (Peer 2 Peer)
- From crypto exchanges.
Purchasing from direct sellers (p2p transactions)
As you already know there is a bunch of miners who want to make money out of selling their Bitcoin holdings and also there are a lot of people who are willing to sell their assets without the intervention of any broker.
All you need to do is to look for people who hold bitcoin with them and ask them if they are selling now. There might be BTC holders among your friends and relatives. It is your job to find who they are and get your job done.
Another way is to seek help from exchanges that offer p2p transactions. These exchanges will match the buyer and seller after taking a small fee for their services. There are several p2p exchanges such as Wazirx and Instashift available in this space.
They are p2p in the sense that they match a buyer and seller. However, it is your responsibility to transfer your funds to a more secure wallet.
Both these exchanges are operating based on India and their service is available in several countries.
If you want to buy Bitcoin from Wazirx please Click Here and sign up.
If you want to buy Bitcoin from Instashift, please do Click Here sign up.
The best thing about Instashift is that you don’t need to give your email Id and other stuff. Your phone number alone will act as a wallet.
Buying Bitcoin from Crypto Exchanges.
Crypto exchanges are somewhat bigger and allow you to do a lot many things. In crypto exchanges, you will be allowed to set a ‘Stop limit’ for your order and make more logical decisions based on various charts available out there.
It should be noted that different exchanges show a different price for Bitcoin. This is because of the variation in trading volumes in these exchanges. Some of these exchanges even offer security for any potential threat against the asset you store in their wallets.
I would suggest you go and buy bitcoin from some exchanges out there as they offer a lot of services and are approachable 24*7.
Although a lot of crypto exchanges are out there, I have fallen in love particularly with these three exchanges.-
Binance, Bittrex and Wazirx.
Binance is the top class crypto exchange where the volume is very high. You can buy and sell Bitcoin at any time. UI is simply amazing and clean. I recommend using this exchange as I personally regard this as the best exchange out there.
To create an account in Binance you need an email and also you will be asked to provide KYC to enjoy more benefits.
To Buy Bitcoins from Binance Click here and signup
Bittrex is yet another world-class crypto exchange where the trading volume is pretty high. There is going to be no issues with liquidity as there will always be hundreds of buyers and sellers at any given time. The user interface is pretty amazing and this exchange is a close competitor of Binance.
To create an account and trade in Bittrex do Click Here.
Wazirx is built in India and the design is made taking into account the Indian users. If you are reading this article from India, without a second thought you must create an account and buy Bitcoin from Wazirx. Wazirx has recently been acquired by Binance which makes it easy to transfer funds between these two exchanges without having to pay any fee.
Another speciality of Wazirx is that it allows you to deposit and withdraw INR instantly. You will have to pay a small charge like 10 rupees per transaction.
To Buy Bitcoins from Wazirx do Click Here.
I wish you all a great trading experience on your first ever Bitcoin purchase.
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