Buying Bitcoin directly – the fastest entry into the Bitcoin market
To participate in the Bitcoin hype, many private individuals are considering buying Bitcoins directly. The Bitcoin fan base is in agreement: a direct purchase is the fastest entry into the Bitcoin market.
Of course, you can always get Bitcoins via mining. However, it takes far too long to actually get hold of a decent amount of Bitcoins. Therefore, a direct purchase is still popular and trade exchanges are very popular among investors.
In the past, price corrections have been an occasion for many interested parties to consider buying Bitcoin directly. Advocates say it still makes sense to buy when a purchase is cheaper, since the signs are so good.
How to buy Bitcoins? What are the options?
The first point of contact is the Internet, as it is for any digital currency. There are marketplaces and digital wallets where Bitcoins can be stored. If you only buy Bitcoins to trade with them temporarily, you don’t need to worry about storing them, as they will resell soon anyway.
You should also consider aspects such as fees and payment methods, as there are often huge variations.
Buying Bitcoin directly – online or in real life?
As well as buying Bitcoins directly on the Internet, there is another method that ensures even faster access – these are Bitcoin machines that function like ATMs and can be found in real life on the high street. Bitcoins can be bought via the machine in exchange for cash.
A card payment is also possible. If you don’t have online access, it’s not possible, as the data for the current Bitcoin price is taken from the Internet.
As with Internet purchases, the buyer needs a wallet to store the Bitcoins. Depending on the location of the Bitcoin machine, you might also first need to provide identification by fingerprint or scanning of your national identification document.
Online platforms such as Bitpanda, Bitcoin.de and similar providers also provide a registration with extensive identification control. Buyers, for example, must first send in a photo of the ID document, including a handwritten note, to gain access to the platform.
After that, investors can buy Bitcoins directly. The usual payment options are SEPA direct debit, immediate transfer and credit card payment. Some providers also accept Neteller or PayPal payments.
It should be noted that every purchase incurs a charge that users must pay to the platform. Bitcoins are only credited and can be transferred to the wallet after the respective platform has confirmed the transaction.
Buy Bitcoin directly – requirements and tips
To enter the Bitcoin market, you first need a wallet. This can be obtained online by registering with an appropriate provider. Alternatively, you can buy directly from a trading platform, but you still need a wallet address if you want to transfer or store the purchased Bitcoins.
Sending Bitcoins is relatively easy. You enter numerical codes and wait for confirmation of the transaction. Bitcoin is known to be a decentralized currency, so a transaction must always go through multiple checks before it is completed.
Although a low price is not a requirement to buy Bitcoins directly, it is a good time to get some if you are thinking about investing. The price is low and a quick profit is very likely. However, you should be very wary of buying Bitcoins anywhere other than a vending machine – there aren’t any yet in Germany.
There are many scammers on the Internet who try to tempt people with cheap transaction fees or bonus payments. To avoid disappointment, buyers should only deal with well-known provider platforms.
Buying Bitcoin directly – conclusion
Buying Bitcoins directly is the fastest way to own the cryptocurrency. There are two ways to make the purchase. If you live in a country where Bitcoin ATMs are located, you can buy them at the machine with cash. These are, however, predominantly in the USA; in Germany, there aren’t any Bitcoin machines yet.
The second option is to buy Bitcoins on the Internet from appropriate providers, ideally at a time when the price is low. In both cases, you need a wallet. To gain access to an electronic wallet, buyers must undergo a comprehensive legitimization process.
Mining is an alternative to direct purchase. However, it takes a long time before miners come into possession of a significant amount of Bitcoins, because you must first reach the break-even point.
Alexander Weipprecht is the managing partner of Provimedia GmbH. As a trained IT specialist for application development, he has been advising leading companies on the following topics for more than 10 years: online marketing, SEO and software. Cryptocurrency is becoming increasingly important to businesses and investors. Through Coin Report and Krypto Magazin Germany, Alexander wants to give all people easy access to the subject matter.