If you’re seeking to get into the game of Bitcoin and hold your own coins, there are many options available. Here are some of the different methods available for acquiring some Bitcoin of your.
Purchase them from an exchange
One of the most common ways to acquire bitcoins is via an exchange. Websites like Bitstamp, BTC-E, or Cavirtex through The us, allow you to purchase Bitcoin. They don’t sell Bitcoin themselves, but how it works is the transactions pair you as a buyer with a seller who’s selling for whatever price you’re looking for.
This sounds like a great option, and in some ways it is, but it has its disadvantages as well.
One of the major ones is that the transactions need you to add your personal information to them via Know Your Client legislation that’s present in many countries in terms of currency-related businesses. This might not be significant for everyone, but in a post-NSA scandal era, it’s becoming a lot more clear, at least to me, that data you put out there is more accessible than you think.
I might be a little paranoid, but who knows what might happen in the future. After all, just a decade ago the idea that the government is spying on everything we do was purely the realm of container foil hat conspiracy theorists, and now it’s just common knowledge. Who knows what’s next? bitcoin to paypal
As you can tell, I’m not a big fan of the transactions. The idea that I have to give up the information to an thing which might have to release that information generally seems to not in favor of the spirit of Bitcoin.
Fortunately, there are creative options.
My own them
Of course, there’s only one place Bitcoins really come from; mining. Every Bitcoin you’ll ever own, see, or hear about, was at one point mined via the Bitcoin mining network.
When you’re in ownership of a mining rig, just my own away! Or if you have a computer fast enough to make it worthwhile, that’s cool too.
But be careful! If your computer isn’t cooled properly, you run the risk of overheating it, which could potentially stone it.
Honestly, mining with your computer isn’t actually worth it. This is certainly. As the mining difficulty increases, it becomes more and more difficult to gain any cash in on it. And unless you have a dedicated mining rig, your chance of getting any type of return from mining is pretty low.
Some claim that mining is coming out, and even buying a dedicated mining rig isn’t actually a valid option anymore. I disagree, but what a topic for another day.
Purchase them from a private broker
If you’re able to find a private broker, you can get together with them and exchange. It’s some obvious benefits, but it also has drawbacks.
First off, it’s completely unknown. Even if you meet personally, there’s no reason you should employ your real name, or any details about yourself other than your wallet number for them to transfer the funds to you. And if you pay cash, the banks can’t find it either. So in the event that’s significant for you, you’re in operation.
But of course with anonymity comes some risk as well. Dealing via an exchange, the risk of getting cheated is gloomier. Of course, transactions have faded in the past, taking everyone’s Bitcoins with them, but the bigger, well-versed transactions have had time to build their brand and prove themselves as more trustworthy.
You may pay an amount premium for that anonymity as well. From my experience, it can be as much as 15-20% higher than average exchange prices. But again, if anonymity is important to you, what a small price to pay.
When you trade with someone anonymously, you don’t have the security of the transactions. They may be legitimate and honest, but they could just as easily be sketchy and happy to tear you off. That said, buying from a private broker is my preferred method of purchasing Bitcoin. But it’s important to have security precautions in place, otherwise you’re leaving yourself open to getting burned.
Accept them as payment for goods and services
This one is so obvious, yet often people forget about it. Despite all the investors getting involved with Bitcoin and the excitement around the movement, you can forget that Bitcoin is not just a hot item or high value stock. It’s designed as a form of currency. And if you run a business, you can accept Bitcoin as payment instead of cash.
There are many different businesses which accept Bitcoin as a form of payment. If you live in The us, check out this directory of businesses which accept Bitcoin.
In fact, several directories have sprang up to help people find local businesses which accept Bitcoin. And, if you’re a denizen of the web (and if you’re scanning this, you obviously are), there are lots of places which accept Bitcoin as payment. Tiger Direct, Reddit, and WordPress are just some of them.
In short, there are many different ways to acquire Bitcoin. Some are easier than others, but with so many options, you’re positive to find something which works for you. Get into the game now, don’t lose out!