Buying Bitcoins
Buying Bitcoins
Bitcoins are sent from one wallet to another. Each wallet has at least one address that represents it. The wallet is a separate identifier, similar to how an email address is specific to identifying.
Once the decision is made to buy Bitcoins, the question is how to do so. There are several ways to go about acquiring them. They include:
a) Accepting Bitcoins for Goods or Services
b) Bitcoin Exchanges
c) International Digital Wallets
d) Mining Pools
e) Solo Mining
f) Solving Bitcoin Blocks
Accepting Bitcoins for Goods or Services
There are thousands of providers of goods or services that are willing to accept Bitcoins for payment. If you would like to accept such payments, it isn’t hard to get the coding set up on your website. The process can be done in a few minutes. The step by step instructions make it something you can do with a few clicks.
It may surprise you to discover the volume of major retailers that now accept Bitcoins. Overstock.com is the one that many people are using for such transactions. They already love what this retailer offers, and the enjoy the use of Bitcoins there as an additional perk.
It doesn’t matter what a merchant happens to be selling, as long as they accept Bitcoins. They are most often used for the purchase of:
a) Clothing
b) Electronics
c) Games
d) Music
Consumers feel that this type of payment allows consumers to have more power and control. As a result, it can help them with increased volume of sales, especially during tough economic times. Small vendors shouldn’t hesitate to get on board either with Bitcoins.
There isn’t a mess of red tape to get started with it, and that helps make it encouraging to businesses of all sizes. The ability to offer an array of payment options to consumers has always been a big part of increased sales. It is very simple to accept Bitcoins through service providers including Bitpay and Coinbase for payments of goods or services.
One of the benefits of using Coinbase is that they have an established exchange rate before the Bitcoin payment is completed. This allows it to be converted into USD.
Bitcoin Exchanges
There are various Bitcoin exchanges that make it possible to buy and sell the currency with a 3rd party involved. They don’t charge high fees; they are more like a transfer through portal. An example of Bitcoin exchanges is:
BitStamp (In October, 2018, Bitstamp has been acquired by NXMH, a Belgium-based investment company.)
If you decide to purchase Bitcoins through an exchange, you will have a service fee. This is typically going to be about .75%. However, each of the entities can have various rates. Make sure you carefully review all of the terms and conditions before you select an entity to work through.
International Digital Wallets
With an International digital wallet, you have a way to plug into the global use of Bitcoins. One of the best places to obtain one is at Coinbase. You do need to have United States based bank account to get one through them. They have been in business since June of 2012 .
Mining Pools
The process of mining allows for Bitcoin encryptions and mathematics to be solved. Then the block can be created and the start of the block chain. It takes a great deal of time to mine as well as power on a computer. This is why people often pay others to mine for them. These mining pools are often referred to as Bitcoin exchanges.
Solo Mining
It is possible to take part in solo mining but it does take a considerable amount of time and resources to create the Bitcoin blocks. With the market being fairly small, it is a great time for investors to get involved. The returns can be nice if you have the time to spend on solo mining endeavors.
Solving Bitcoin Blocks
If you view Bitcoin blocks, you can see the chain blocks that offer the history of all transactions that have occurred. Navigating a block is simple to do, look for the hash at the start that is all zeroes. Next, drill down to find the transactions that show the amounts that are showing for a given Bitcoin. The address links allow you to view public information about them. There are some great tutorials from :Bitcoin Monitor – Shows events information.
You should also research other valuable resources to find out what is going on with the value of Bitcoins. You do have to be careful about the resources you use. Not all of them are credible or offer you up to date information. In order for you to successfully rely on such information for investing and buying Bitcoins, you first need to make sure you can trust that source.
You also need to take the time to learn how to read the statistics and data. There are videos and other details that can help you to decipher what all of the information means. You can’t put it to good use if it looks like a foreign language to you on paper.
There is no right or wrong method to incorporate when it comes to buying Bitcoin. The one that seems to get the most return on investment though is exchanging for currency. It is a good idea to explore the various methods for buying to determine what is best for you. As you learn more about the possibilities, it becomes easier for you to formulate a strategy that can work well for you.
Some people really like the thrill involved with mining for Bitcoins. If you have lots of time on your hands, this can be something you want to pursue on a daily basis. If time is one of the elements in your life that you don’t seem to have enough of though, it may be best to buy them through other methods that are less time consuming for you.
Disclaimer: Please refer to our disclaimer and seek your own financial advisors on any investments. All information here is intended for educational purposes only.