Sites like Coinbase. com, Coinmkt. com, Blockchain. info and Hivewallet. com are are just a few examples of reputable, reliable and user-friendly sites for beginners to create their first wallet.
Note that you may also be asked to provide contact information, like a phone number. To be clear, linking your bank account to your Bitcoin wallet is not any more of a risk to your personal security than it is to shop online. Virtually all reputable Bitcoin services make a point to advertise their high standards for security and encryption. While Bitcoin services have been targeted by hackers in the past, so too have many major online retailers. [3] X Research source [4] X Research source It may also be possible to use your credit card to buy Bitcoin instead of your bank account.
Note that the price of Bitcoin can (and does) change from day to day — sometimes significantly. Because Bitcoin is a relatively new form of currency, its market has yet to become stable. The current dollar-to-BTC exchange rate should be clearly listed when you buy it — as of October 2014, 1 BTC was equal to about $350. [5] X Research source
In the US, CoinCola, CoinBase and LocalBitcoins are three websites that offer this sort of selling service. In the UK, BitBargain and Bittylicious are two reputable options. In addition, some sites like Purse. io allow sellers to give Bitcoin to buyers who then use their own money to purchase goods online and send them to the seller — in essence, this is a roundabout way of using Bitcoin to buy from vendors that do not accept the currency.
Reputable, well-known exchanges include Circle, Kraken, and Virtex. In addition, some exchange sites like Binance, Bittrex, Bitfinex and Bitcoinshop allow you to trade Bitcoin for other digital currencies (like Dogecoin, Ethereum, Litecoin and Monero).
Localbitcoins. com is one of the most prominent local bitcoin marketplaces online. The site allows you to search for buyers in over 6,000 cities and 200 countries, including the US. [6] X Research source
The entire mining process is a complicated one that is beyond the scope of this article. For more information, see our Bitcoin mining article. In addition, it’s important to understand that because Bitcoin are awarded in “blocks” of multiple Bitcoin at once, it’s usually in your best interest to join an established “pool” of miners, which will allow you to work together towards solving the block and share the rewards. Going it alone can make you very uncompetitive as a miner — you may go a year or more without making a single Bitcoin. [8] X Research source
As an example of the Bitcoin market’s volatility, in October 2013, the price for Bitcoin was hovering around $120-$125 per Bitcoin. Within a month and a half, the price had shot up almost tenfold to nearly $1,000 per Bitcoin. A year later, the price was a third of its peak value at about $350 per Bitcoin. It is unknown when the next price spike will occur (if ever).
You may also want to become a member of Bitcoin discussion forums (like, for instance, the forums at Bitcointalk. org) so that you can communicate with other investors about market predictions. Keep in mind, however, that no investors, no matter their expertise, can predict the Bitcoin market with certainty.
Don’t buy into the sunk cost fallacy — the idea that you’re “too deep” into an investment to pull out. Missing a price spike and selling at a slight loss is better than waiting and selling at a large loss.
