A Quick Overview on Where to Buy Bitcoins
Bitcoin is a cryptocurrency that has no backing from a Country or a bank. Its totally open-source software that was created to minimize transaction costs and fees. With that said the cost of Bitcoin and other have skyrocketed with prices for Bitcoin climbing to over $2,000 in 2017.
With this action in Bitcoin, many investors are interested in how to get Bitcoins. This is a quick guide to knowing where to buy Bitcoins. Currently, you can not buy Bitcoins at your local brokerage or bank. There are only specific ways to buy them and here’s the list how:
You store your Bitcoins in a digital ‘wallet’. This is the most popular method of purchasing Bitcoins and other cryptocurrencies. While there are many types of Bitcoin wallets available the most popular is Coinbase. It’s important to note that the wallet can be device specific meaning it can be an app on your smartphone or on your PC. All wallets you must sign up for and verify your identity. This will then allow you to link it to a physical bank account or credit card. Before any purchase, Coinbase shows the current value of the cryptocurrency and when you make a transaction it will then make a withdrawal from the linked fund you tied to your account.
It’s important to know that these wallets can be hacked into which will result in a permanent loss of funds so it’s important to be secure with your wallet. You need to back up all computers with wallets as well as activate the two-factor authentication before any withdrawals
A ETF is an Exchange Traded Fund and is usually tracking some index like retail or biotech. Instead of buying one retail stock, you can just buy the ETF that will follow the whole sector. There is a Bitcoin ETF by Grayscale that claims to be the first publicly quoted securities based on the day-to-day value of Bitcoin. This made it easy to buy Bitcoins as a tradeable stock on the market. But this convenience comes at a price – 1 share of this ETF cost more than 100% value of the underlying Bitcoin.
If you really don’t want to go the popular route of a wallet with Coinbase or buy the ETF then there are some really exotic versions of transactions on Bitcoin. One is the Bitcoin Depot with is based in a physical ATM located in select states (only six as we write this article today – Alabama, Florida, Georgia, Massachusetts, Tennessee and Texas). This ATM lets customers deposit cash and then purchase Bitcoins and store in a Airbitz account – another Bitcoin Wallet maker.
If you really want the Bitcoin then currently Coinbase will be your best bet. They been around the longest and is the most popular Bitcoin wallet around. Until more ETF are created and bring the cost factor down – buying Bitcoins the traditional way is the best way.