If you’re one of the many who are curious about how this cryptocurrency is bought, sold, and used, keep reading.
Get Bitcoin With a Digital Wallet
Bitcoin is meant to be an entirely anonymous platform, like the way cash works in the physical world. You are supposed to be able to buy and sell things on digital platforms without financial details or records being exchanged. In reality, it doesn’t work that way for most people. For the average person to buy and sell Bitcoin, they have to use what is called a “Bitcoin wallet.” A Bitcoin wallet doesn’t come with any kind of government guarantees, so if Coinbase goes under, or if your bitcoins are lost or stolen, you have very little recourse, meaning you will probably never get your money back.
Purchase Bitcoin Electronically
It can be pricy to buy one single bitcoin. In 2021, the cryptocurrency hit a record high of nearly $68,000 per BTC. You don’t have to buy whole bitcoins. Just like you can use a fraction of a dollar (a penny, nickel, dime, or quarter), you can use and buy a fraction of a bitcoin. The smallest fraction that can currently be bought or sent is a hundred-millionth of a bitcoin, called a “Satoshi,” after the mysterious founder of the cryptocurrency. You can purchase Bitcoin directly through one of several crypto platforms such as Coinbase, Crypto.com, Voyager, Binance, KuCoin, Kraken, Gemini, Poloniex, Upbit, Webull, Hodl, or Robinhood (to name just a few), in whatever fraction or whole amounts you choose.
Buy Bitcoin Locally
This is a piece that many people who are new to Bitcoin don’t know about. You can buy Bitcoin locally through a site called LocalBitcoins.com, which allows you to meet people in person at public places and exchange cash for Bitcoin. It seems strange, but it’s no harder than a Craiglist transaction. Always use caution, though, as there have been Bitcoin scams in the past.
Shop Online and Pay With Bitcoin
A limited number of retailers take Bitcoin in exchange for goods and services, but unlike its reputation, they are often regular, run-of-the-mill companies, not black market operations. Currently, some Shopify store owners (under a variety of brands) take Bitcoin, as do Overstock.com and Newegg. There are others, as well, but it’s really a hit-or-miss scenario. If a store takes Bitcoin, you can use it just like a credit card to pay for products and services.
The Bottom Line
Because Bitcoin exists mostly outside of government regulation, it poses more risk than dealing with banks and government currency. However, it’s not hard to buy or sell, although the value can fluctuate wildly. You can also use Bitcoin to make a limited amount of purchases, mostly on the web. If you decide to dabble in Bitcoin, it’s important to know that you can lose money if the value drops. Understand that it’s still a very new technology, and even the best futurists aren’t sure what’s going to happen with it. It’s a good idea to use the philosophy of “Buyer beware” when it comes to Bitcoin.
