The Process of Buying Bitcoin: A Step-By-Step Cryptocurrency Guide - Coindoo

The Process of Buying Bitcoin: A Step-By-Step Cryptocurrency Guide

Editorial Team Avatar
Jun 14, 2018
5 min reading time

It seems that the excitement and interest in Bitcoin won’t be ending any time soon. It has come to a point where people are willing to do everything they can, mortgage their residential properties even, so they can invest more in cryptocurrency. The value of Bitcoin ballooned into a whopping $14,129 for every single coin on the 31st day of December last year; it’s no wonder a lot of people wanted in on the hype.

You probably reached this article because you want to know how you can invest in Bitcoin. However, before we head to the details on what you need to do before you invest, we’ll first discuss what Bitcoin is so you’ll know what you’re getting yourself into.

What is Cryptocurrency?

When we talk about cryptocurrency, we are talking about any type of digital currency where cryptography is used to ensure the security of transactions. The oldest cryptocurrency is Bitcoin (BTC), which was created in 2009. Other cryptocurrencies like Ethereum and Ripple were created after.

Understanding Bitcoin

Bitcoin is just like any commodity; it can be traded, sold, or bought. You can use this digital currency when buying goods like clothes, gadgets, or food. To operate with Bitcoin, a peer-to-peer technology is required, and that’s what makes it different from the U.S. Dollar. Central authorities are not needed to issue or keep track of monetary transactions because those are functions that are already embedded in Bitcoin. It is powered by the blockchain technology or a public ledger that’s accessible to everybody. It establishes trust and transparency in the system which makes it attractive to the investors.

The Mining Process

The network generates Bitcoins as a reward or premium for the mining process where transactions in the blockchain are confirmed. This process requires solving mathematical problems, strict schedules, and a software that will solve everything. There’s an additional block on the chain whenever solutions to mathematical problems are discovered. Once the network accepts these blocks, they cannot be altered or removed. Six blocks can be mined every sixty minutes in the Bitcoin system. Since the level of difficulty increases as time passes, the generation of Bitcoins decreases.

Buying Bitcoins

There are different ways to buy Bitcoins. You can go for direct purchases from other people or use digital currency brokers such as GateHub, Bitstamp, Coinbase, and Kraken. You will need to store your digital currency in a wallet, which also contains your private key. This private key is a 256-bit string secret number that makes your Bitcoins accessible. Through this key, you can move around different marketplaces and see what they have to offer.

You can choose between a hardware or a software wallet. The hardware wallet keeps all of the user’s private keys inside a hardware device that looks very much like the flash drive. Some people find that hardware wallets are more secure because they can be disconnected from the online world, which means the risk that someone can hack their private key is low. The software wallet, on the other hand, is an application that you can link to your bank account.

Creating your Wallet

The first thing that you need to do when buying Bitcoins is to create a wallet. The most hassle-free way to do this is by doing it through Exodus, MyCelium, or Coinbase. You just need to go to their website and create an account.

Be ready with your full name, password, and email address. If you decided to go for the software wallet, you will be required to download the application on either your desktop or mobile phone, depending on the design. Once your wallet is ready, you can visit and register the exchange of your choice. Fair warning: a lot of these exchanges will require you to link your bank account when paying for the Bitcoins you purchase. Some exchanges like Coinbase also function as a wallet which means you can buy, trade, and store your Bitcoins through their app. To buy Bitcoins, just go to the “buy” section of the exchange and choose the amount that you want to purchase.

Now, what can you do with these Bitcoins? Well, you can earn more by investing in a cryptocurrency ad platform like, for example, ADconity. You have the option to sign up as an advertiser or a publisher. An advertiser can choose an ad format and earn through POP, cost per 1000 impressions (CPM) or cost per click (CPC).

The publisher, on the other hand,  can earn by selling ad space on their website. Investing in a cryptocurrency ad platform presents possibilities for passive income, and you can be sure that your money is in good hands because of the high-quality system, transparency, and security it provides to its clients.

It’s true that there’s limitless earning potential when it comes to Bitcoins. However, given how unpredictable things can be, it would still be good to keep the funds rolling by investing in platforms that allow you to grow your money.

* The information in this article and the links provided are for general information purposes only and should not constitute any financial or investment advice. We advise you to do your own research or consult a professional before making financial decisions. Please acknowledge that we are not responsible for any loss caused by any information present on this website.
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