Bitcoin, and cryptocurrency in general, has started to become bigger ad bigger with each passing month. Now that more people are interested in buying it, the market of new people who want to purchase crypto has become even larger, but a lot of them do not even know how to start.
Where should you buy Bitcoin, and how can you do it safely? More importantly, does it matter where you buy it?
The Cryptocurrency Exchange
A proper cryptocurrency trading platform is part of the cryptocurrency exchange, the market that people use to buy and sell Bitcoin or other crypto types for real-world cash. This covers dozens (if not hundreds) of sites, some larger than others. Just like the real stock exchange, they also track the value of each cryptocurrency, allowing you to see how each one has risen and fallen.
In theory, any cryptocurrency exchange site would be enough, but some are much better at helping new crypto owners than others. On top of that, some are just more trustworthy or have their own systems that can easily track the values of various currencies in real-time.
Where to Buy Bitcoin
The best places for buying Bitcoin are sites like Swyftix, which have an official setup and do not turn new users away. Swyftix itself is a demo mode that allows new users to get an idea of how they are supposed to read the values before they buy, which can ease you into this kind of trading if you have never done it before.
While most sites take information straight from the same sources, some have slight biases due to their user base. If a site has most of its users buying Etherium, for example, then Etherium will become the focus, which can make it harder to use for buying other currencies. A general-purpose cryptocurrency trading platform is more accessible than niche services.
Using a site like Swyftx means that you also get professional-level customer support and security features, things that really help when you are putting your own money at risk. One of the site’s key features is actually an automatic price-triggered set of buying and selling options, meaning that you can auto-sell if the price drops too far.
Why Don’t I Mine Bitcoins?
While some people see mining bitcoins as a way to get them for free, that is actually not the case. Mining them requires a very powerful computer, a lot of energy, and some free time to set it all up. On top of that, mining them can become increasingly harder as the supply limit gets closer and closer.
For example, there is a limit of 21 million Bitcoin tokens. That means that there can never be more than 21 million in existence, and if you try to mine them once that limit is reached, you will not be able to.
Mining Bitcoin needs a strong computer, and people have been buying computer parts specifically for Bitcoin mining, making them much more expensive due to high demand and low supply. Unless you were already prepared for it, mining Bitcoin is very expensive and not worth the time investment.
Where Does My Bitcoin Go?
Once you buy Bitcoin, it usually goes into your digital wallet, a safe place to store all of your cryptocurrency coins. From here, it is yours to use how you please – you can sell it, spend it, or transfer it somewhere else.
Selling it means that you trade the Bitcoin back for cash on the exchange, ideally at a higher price than you paid for it. This means that the coin goes to whoever bought it, and you get the cash value that it was sold for.
Spending the Bitcoin means that you purchase something with it rather than selling it. For example, buying a product online with a Bitcoin would be like spending cash, except you are using your Bitcoin wallet for it. Since the value of cryptocurrency can fluctuate, there is no guarantee that the price will always stay the same, just like on the exchange.
Whatever you do with your Bitcoin, it is just like a regular currency, only digital. You can keep it for as long as you want, sell it whenever you feel ready, or spend it on anything that accepts BTC as payment.
Disclaimer: This content does not necessarily represent the views of IWB.