There are several ways available to buy or sell bitcoin. It is an attractive investment for those who want to take their first steps in trading or for those who want to diversify their asset portfolios. How to buy bitcoin is an easy procedure however it can come with some risks. Here is everything you need to know about these cryptocurrencies.
What is bitcoin?
Like the dollar or the euro, it is a monetary unit. Like the latter, which are physical currencies, this one is a virtual currency. Indeed, it only exists on the Internet. Created in 2009, this alternative monetary system does not depend on any central authority. In this sense, it is neither issued nor administered by any bank. It was originally created to facilitate electronic payments online. This cryptocurrency works on the blockchain protocol. This technology allows information to be stored and transmitted transparently. This electronic money offers total freedom to its users. The latter take full responsibility for the safekeeping of their assets. To accommodate them, the user must open an account and create a secure wallet with private keys.
How much does a bitcoin cost?
You should know that there is no official bitcoin value. Indeed the price of bitcoin is determined by the law of supply of demand. As a result, the higher the demand, the more the price soars and vice versa. However, several factors can come into play to impact the price of this electronic money. These include the number of competing cryptocurrencies, the exchanges on which it is traded and the regulations in force regarding its sale.
Other points still need to be taken into account, in particular internal governance. We can then see the price differences applied on the platforms. However, keep in mind that the price displayed on these is probably higher than their actual prices. To hope to know roughly the real cost in euros of this currency, it is advisable to consult the Chicago Mercantile Exchange site. One of the largest American exchanges, it advances an average price that it calculates in real time on the main exchanges.
On which sites to buy bitcoin?
There are many purchasing platforms for this cryptocurrency on the net. These offer the advantage of offering a method of payment such as bank transfer. So you can buy currency on ZeBitcoin. It is one of the old online shopping sites. This offers excellent customer service with a quick ID verification process.
Other platforms are still available, in particular Etoro. The latter is one of the most used platforms in Europe. It offers social trading function. So you can copy the positions of other traders. You can also short this currency. With it, you will have the chance to buy or resell shares of listed companies. It also offers a mobile application.
You can also turn to Coinhouse. This company has a physical store. Their site is easy to use with a simple platform while offering smooth operations. You can also use other platforms like Coinbase, Binance or even Localbitcoin.
Buy bitcoins with Paypal
There are many payment methods for this cryptocurrency. Indeed, you can do it by cash or using your bank account either by transfer or credit card. In addition, you can also buy bitcoins with PayPal, the second online payment method just behind the credit card. Although widespread, this payment method is not popular on virtual currency purchasing platforms, as it has many drawbacks. The ability to cancel payments, fraud through fake accounts, and PayPal disputes are examples of this.
Buying this virtual currency with PayPal comes at a cost. It is probably the most expensive payment method of all. To do so, you must pay the currencies you want and wait for its validation. Most platforms, however, require identity verification using ID scans. This is to verify the identity of the owner of the PayPal account. You should know that this kind of manipulation takes time.
Buy bitcoins at the tobacco shop
It is now possible to call on tobacconists to buy electronic money. This payment method is faster and easier. They are therefore put on sale in the form of tickets available in more than 5,000 tobacconists scattered throughout France. Thus, users can buy tickets of 50, 100 and 250 euros. However, you should know that the transaction costs in this kind of practice are quite substantial. Indeed, it is estimated at 5.5%.
What are the risks ?
Buying this digital currency is an investment. The market for it is completely different from conventional markets. As a result, there are many investment opportunities in this market. However, these opportunities may present risks that are equal to the size of the profit potential. So you have to be careful not to lose too much money. This electronic money has no official price. The variations in spreads offered by exchange platforms are significant. For good reason, each platform offers its course according to the supply and demand between its users. Caution is therefore required before buying.