Buy Bitcoin (BTC) – The simple guide – How and where to buy and store BTC

Bitcoin Lightning Network

Purchasing Bitcoin (BTC) – You will learn how to buy Bitcoin (BTC) and how to store it safely in this comprehensive guide updated for 2019. We will show you how to buy Bitcoin on the most popular exchanges, how to purchase Bitcoin in person, how to store it safely on exchanges, in your wallet and even offline. Useful hints and advice included completely free of charge.

Bitcoin or BTC is by far the most widely known cryptocurrency and probably everyone who uses the internet regularly knows a bit about Bitcoin since its rally back at the end of 2017. The cryptocurrency however has been around far longer than that, however. The initial release of the code through Satoshi Nakamoto was in January 2009. So, Bitcoin has been around for almost 10 years in 2019. Bitcoin as father of all cryptocurrencies is the first fully digital and decentralized currency which allows its users to transfer money without banks as a middleman.

Quick Guide – Buy Bitcoin (BTC) via Credit Card

  1. Register on Binance & set up your account
  2. Click on “Funds” and then “Deposits”
  3. Click on “Buy Bitcoin & ETH with credit card” in the upper right corner.
  4. Choose the amount and click on “Buy now”
  5. Follow the payment processors instructions

Once you have followed these steps your BTC will be added to your Binance balance within a few minutes. It is that easy to buy Bitcoin.

Other popular options:

  1. You can buy Bitcoin (BTC) with FIAT currency on the following exchanges:

How to store Bitcoin (BTC)

After buying Bitcoin the question of most investors is whether it is safer to store Bitcoin in your own wallet or on an exchange. The short is answer is simply: It depends, and the best way is probably to diversify where you are storing your Bitcoin as all options have advantages and disadvantages.

Here are the available options:

  • Software Wallet
  • Online Wallet
  • Mobile Wallet
  • Hardware Wallet
  • Paper Wallet
  • Exchange

Software Wallets

Software Wallets are a staple and known to most Bitcoin users. They are free, easy to install and use and free of interference of third parties. Especially the exclusion of third parties to trust makes software wallets (just like paper wallets) so attractive to many users. Your keys are directly stored on the machine that the software wallet is installed on. The main risk for software wallets are hackers, viruses and thieves.

Online Wallets

Online Wallets sacrifice some safety for increased convenience by giving you access to your Bitcoin from anywhere through your personal login and password. It is usually easy to set up and use such wallets, but you need to be aware that you are not completely in control of your wallet and funds as a third party is involved and your private keys are stored online.

Mobile Wallets

Mobile Wallets are wallets for your smartphone that are distributed as apps, so they are fundamentally similar to the usual software wallets and most software wallets already have mobile versions.

Hardware Wallets

Hardware Wallets are usually devices similar to USB sticks, small MP3-Players or Smartphones which are connected to the internet as needed to transfer Bitcoin. The major advantage is that they are usually offline and therefore cannot be easily hacked as the hacker would need physical access to the hardware wallet. Reputable hardware wallet vendors are for example Trezor, Keepkey, Ledger and Case.

Paper Wallets

Paper Wallets are similar to hardware wallets in terms of security which makes them ideal as long term storage as long as you can keep the paper out of harms way. To create a paper wallet the private and public keys are printed on paper and then sealed.

Exchanges

Exchanges can and will of course store your cryptocurrency as well and offer conveniences like easy access and trading. While most large exchanges have invested serious amounts of money into their security the risk still remains that hackers can infiltrate the exchange and steal funds from the exchange’s wallets. A secondary risk Bitcoin holders should be aware of when storing Bitcoin on a exchange is the possibility that it might not be always possible to access and move your coins any time you want to do so, as exchanges can and will at times impose restrictions for deposits, withdrawals and trading.

As most readers are probably aware of, it is not that easy to store BTC safely and even harder to store it safely and easily accessible. Most traders and investors therefore diversify where they are storing their coins according to their personal risk tolerances. While long-term hodlers prefer options like software wallets, hardware wallets and paper wallets as they give you access to the private keys and do not involve third parties to maximize control, high-volume traders keep funds on one or more exchanges to trade BTC more easily.

Why buy Bitcoin (BTC) or invest in it

Why invest in Bitcoin? Why buy Bitcoin? This is a question asked by many. Not only by cryptocurrency sceptics but also people not yet familiar with Bitcoin and cryptocurrency space. Bitcoin is with no doubt one of the most exciting possibilities for non-institutional investors in recent years, if not the last century as the starting hurdles are low and no regulatory barriers are currently prohibiting investment, speculation and trading with Bitcoin. The past few years have birthed more zero to hero millionaires than most of the things that have come before, and we have even seen the first crypto billionaires with the Winklevoss Twins. Most people interested in Bitcoin probably do not need more reasons of why investing into Bitcoin might be the chance of the century or millennium for investors, but we will list a few compelling reasons anyway.

The top reasons to invest into Bitcoin

  • Bitcoin is on the verge of recovering from a major price correction and most indicators point to the start of a new bull run with even known Bitcoin bears changing their tone.
  • Bitcoin has proven itself to be very reliable, if not more, than traditional banking systems. The last major hiccup in Bitcoin’s operation dates back to a few hours of unreliability back in 2013.
  • Bitcoin’s lightning network means easier scalability for mass adoption. The concerns of exorbitant transaction fees and long transaction times seem to have been alleviated by the introduction of the lightning network. The scalability issues back at the end of 2017 will not likely reoccur with a new bull market.
  • Bitcoin is not a niche phenomenon anymore. Not only technology enthusiasts are embracing blockchain technology but also large businesses like Facebook and JP Morgan are openly hiring for crypto development positions and are mulling the creation of their own crypto coins.
  • Institutional money is coming and with it large amounts of capital itching to push Bitcoin and blockchain technologies. The question is not anymore if institutional money will start investing into crypto but when. All the stops might be off, if the last regulatory hurdles fall and investors can finally easily invest into Bitcoin and its related tech.
  • A future global recession may start Bitcoin’s golden age of adoption. The shock of the 2008 financial crash is still remembered, and many experts are voicing their concerns that we may be teetering on the verge of another crash. While that may be a serious issue, it probably would push the adoption of blockchain technology and Bitcoin because sheltering savings from failing banks and inflation is much easier if they money is decentralised and not under the control of central banks.
  • Cash is being phased out. The worldwide trend is to get rid of cash in the near future. Most payments are made or could easily be made through digital means like digital payments, credit & debits cards, online banking, payment apps and so on. It is easy and convenient.
  • The Bitcoin Reward Halving is scheduled for May 2020 and so far, we have always seen a surge in prices 6-12 months before the halving.
  • Monetary Autonomy is possible through blockchain technology. One of the most alluring factors for Bitcoin and cryptocurrencies in general is the independence from third parties. Right now, banks can or could control if, how and when you spend your money and prevent you from accessing your hard-earned cash if they wanted. With decentralised cryptocurrencies this middleman is eliminated, and transactions can be made without involving a third party, which gives all parties autonomy on how to use their money.

Technology has always been the one thing that had the potential to bring change and wealth to the people and the blockchain technology behind Bitcoin might be the start of a new technological revolution in the way how we use money and transfer assets. Currencies have been invented to facilitate the exchange of goods, assets and labor but these currencies have for the most part always been centrally controlled by governments and powerful elites. Cryptocurrencies will bring some more democracy into the monetary systems and offer more personal control over one’s assets than before. The system will change in ways probably not yet predictable and we will see where crypto tech will go in the future but that is something that has always been true with truly disruptive technology.

How high could Bitcoin rise in the future?

The potential for Bitcoin depends on many factors, so one can only guess. Should Bitcoin take over the financial world as lead currency its inherent scarcity would probably blow the price per Bitcoin of the charts. While traditional bankers predict Bitcoin going to zero sooner than later, there are other opinions ranging from numbers near Bitcoin’s last all-time high to up to 1.000.000 USD per BTC or even 10 million and these numbers may not be too far-fetched because Bitcoin is very small, when compared to the stock market and tiny even, when compared to the derivatives market. Just capturing 1% of the derivatives market would send BTC and its market capitalization to unseen heights.

How to speculate with Bitcoin (BTC)

Quite a few investors and cryptocurrency enthusiasts are quite eager to take risks to maximize extreme profits. Speculating with Bitcoin is certainly an option if you belong to one of the mentioned groups or if you have some gambling money. Cryptocurrencies and especially Bitcoin offers profit multipliers of unseen magnitude to investors who can tolerate the equally big risk to lose everything and a bit more. As with stocks and other assets there are specialized brokers who offer products like margin trading, leveraged trading, options and much more through which a trader can try to maximize his profits.

The following exchanges offer margin trading

  1. BitMEX
  2. Huobi Pro
  3. Poloniex
  4. Kraken

The following exchanges offer leveraged trading

  1. BitMEX
  2. OkEX
  3. Kraken
  4. Bitfinex
  5. Poloniex

If you are looking for the highest possible leverage the unchallenged winner is BitMEX as it offers truly staggering leverage options in comparison to its competitors. On BitMex you can speculate with 100x leverage for BTC, 50x for ETH, 33.3x for LTC, 20x for ADA, BCH and XRP when trading against Bitcoin with long or short positions. Low fees included.

A cautionary note: When margin trading or using leverage, you should always be aware of the risks. Your longs and shorts might be called, and your leverage can put you in debt.

FAQ – Frequently asked questions

This section covers the most frequently asked questions regarding the purchase of Bitcoin (BTC). Please let us know if you have a question that is not covered yet and we will gladly include it in our FAQ for everyone to see.

Is it safe to buy Bitcoin on the listed exchanges?

While CryptoRitter cannot guarantee the safety of these exchanges with 100% certainty, the crypto community at large seems to trust the listed exchanges. It is however always advisable to minimize your risk by diversifying the places where you store your Bitcoin and doing your due diligence research when deciding where to buy your BTC. We have researched the exchanges listed on our website extensively and will update this information as diligently as possible.

Is it legal to buy Bitcoin or to own it?

There has been widespread FUD in the past that Bitcoin is only a tool for criminals to launder money but that is far from the truth. Bitcoin is perfectly legal in most jurisdictions and some countries even allow settling taxes or other payments directly in Bitcoin. Laws and regulations however can change and it is therefore advisable to investigate whether owning, buying or trading Bitcoin is legal in your country.

Is Bitcoin used for illegal activities?

Just like everything else Bitcoin can be used for illegal activities like normal FIAT money, gold, cars, etc.. While it is a common belief that BTC makes it easy to launder money or finance criminal activities it is becoming harder and harder to do so. Bitcoin is foremost an open and transparent ledger of all transaction and once your identity has been linked to an transaction it is easy to trace everything back to its source.

Is Bitcoin anonymous?

Bitcoin is based on an open transaction ledger meaning that all transactions can be traced on the Bitcoin network. Bitcoin transactions are by design not linked to one person the network is pseudo-anonymous and your identity can only be traced if you link your identity to it in some way like a regulated exchange.

Does someone control the Bitcoin network?

The Bitcoin network is not controlled by a central authority. The network itself is completely independent from centralized control and controlled through all Bitcoin users worldwide. Not even the developers of Bitcoin can change Bitcoin without consent of the majority of users. This is what makes Bitcoin and most other centralized cryptocurrencies unique and attractive.

Are there any negative points about Bitcoin?

As with everything there are positive and negative things about Bitcoin. If you intend to use Bitcoin as store of value then the frequent large price fluctuations might a negative point for you. Another

Why do users trust Bitcoin?

Bitcoin is trusted because it is open source and decentralized. The main advantage is that Bitcoin cuts out the middleman payment processor or banks and that all transactions can be verified by all users in real-time. In short you do not have to trust your anyone for a safe transfer of BTC.

Can you earn money with Bitcoin?

Apart from speculating on an increase of Bitcoin’s price you cannot earn money by simply holding BTC. You can acquire BTC through mining, exchanging FIAT or other cryptocurrencies for BTC or offers goods or services in exchange for BTC.

Are profits guaranteed?

No guarantees can be made, even though the future of Bitcoin is looking quite positive with the traction it has gained in the past few years. It still is an extremely risky investments, which is natural as possibly extreme profits are always balanced through an equal amount of risk. No one can for sure predict whether Bitcoin will take over the financial system or if it will fizzle out and drop to zero. Never invest more than you can lose!

What happens with lost Bitcoins?

Bitcoins that have been lost can only be recovered if someone has the private key. If the private key has been irrecoverably lost as well, then the Bitcoins are lost forever. According to some studies it is estimated that 2,7-3,7 million Bitcoins have already been lost and are not recoverable.

Can Bitcoin inflate?

Bitcoin is an inherently deflationary cryptocurrency. After all 21 million BTC have been mined it will not be possible to increase the supply further and the supply will instead shrink with every Bitcoin irrecoverably lost.

Will Bitcoin ever run out?

Bitcoin could run out if all 21 million Bitcoin have been lost irrecoverably but as users are getting better at safeguarding and using their BTC this will not happen for a long time.

Can Bitcoin be regulated?

While the network itself cannot be directly be changed or controlled by governments or other entities it is possible for countries to regulate Bitcoin like any other currency or financial instrument for their citizens. This means no government or entity can simply stop transactions or shut the network down.

Misc.

Introduction video to Bitcoin & Cryptocurrencies & why you should buy Bitcoin!