The process of using bitcoin is simple. Bitcoin can be purchased online and spent in places where it’s accepted, like at online and offline retailers. But although bitcoin appears to be gaining traction, investing in cryptocurrency can be a gamble as its value fluctuates heavily in a short period of time.
Numerous stories have appeared on news outlets in recent weeks detailing the rise of cryptocurrencies like bitcoin. Perhaps you’re inclined to invest yourself and get in on the action while the timing’s right.
It’s worth noting that bitcoin isn’t an actual currency and is more like a trade based on anticipated future value, which is why the value shifts so much. It’s not uncommon to see peaks and valleys of 25 percent or more in a short period of time, though recently there’s been an overall increase in value.
You should also understand that bitcoin is not accepted everywhere regular currency is. You’ll have a hard time relying just on cryptocurrency when it comes to bills and daily expenses, for instance. Only a few places take bitcoin at the moment, so you’ll still want to hold on to your cash and debit card in the meantime.
For those still inclined to try, here’s how to invest in bitcoin…IE how to buy Bitcoin.
1. GET THE COINBASE APP
Download the Coinbase app from Google Play or the App Store. You’ll need to sign up for a Coinbase account and agree to the terms and conditions for the location you’re in.
2. MONITOR TRENDS
Once you have your account up and running, you can start trading. Remember that bitcoin is speculative in nature, so the value can rise and fall dramatically even in the course of a single day. Pay attention to daily trends.
3. SET A PAYMENT METHOD
You can purchase bitcoins through the Coinbase app. Select the “buy” button at the bottom of the app to set a payment method. You can purchase bitcoins instantly with debit and credit cards, but you are limited to $150 in bitcoin purchases during the course of a week. Linking bank accounts allows you higher buying limits, but can lengthen the trading process by several days.
4. BUY BITCOIN
Once you’ve set a payment method, you’ll be able to buy. Select the “buy” button and you’ll be shown the current price of bitcoin value along with your buying limit. If you’re satisfied with the price and you’re ready to buy, tap the “buy” button again. Congratulations: you now have bitcoin!
5. CONSIDER OTHER CRYPTOCURRENCIES
The Coinbase app also allows you to buy Ethereum, which is a cryptocurrency similar to bitcoin and you can buy it easier than Ripple. There are limits to the amount of ether you can buy each week, like bitcoin. Currently, a single ether trades for $327 apiece.
6. YOU MAY GET A FRAUD PREVENTION CALL
Your bank may call you to verify your initial cryptocurrency offering (ICO) purchase. Some banks have been known to call account holders in as little as five minutes after the transaction takes place. Simply approve the purchase and you’ll be set.