Bitcoin Legal Trading – Guide To Mining & Spending With Bitcoin

You may be eager to learn about Bitcoin, which is the first ever digital currency and the most valuable (with a market cap of about $250 billion), as of now.

The traded volumes in the crypto currency exchanges are also huge.

I recommend you to go through the articles explaining how the crypto currency is created and how can it be used. There is nothing mystical about Bitcoin, which is quickly gaining acceptance in society. It is proving to be very popular with people all over the world because it supports a borderless world.

In fact, a lot of people are investing in Bitcoin, with a hope of generating substantial profit from its appreciation.

How Bitcoin Came About

It would be interesting to know that Bitcoin was a brainchild of an anonymous inventor, who used the name Satoshi Nakamoto for presenting his white paper “Bitcoin: A Peer-to-Peer Electronic Cash System“. The invention quickly became popular among people interested in peer to peer money transfer.  

Cryptocurrency Exchanges Where to Buy Bitcoin

Mining Bitcoin

The thing that does tend to confuse most people about Bitcoin is the way it is mined. What you have to keep in mind is that Bitcoin is not backed by any government, precious metals or in fact any other commodities. That makes it unique.

Anybody can mine Bitcoin using their computers and a custom built hardware.  However, it is a time consuming  process and require huge investments due to the amount of computing power needed.

Buying Not Mining Bitcoin

Instead of investing in equipment needed to start mining Bitcoin, it will be beneficial to purchase any desired quantity of that digital currency from the crypto currency exchange.

There are a several things that you will need to be able to purchase a supply of Bitcoin. Firstly, you should have a suitable payment mode suitable to purchase Bitcoin. Secondly, you must know where to buy it. Finally, you must have a digital wallet to store the Bitcoin.

Get a Bitcoin Digital Wallet

A Bitcoin Wallet allows you to store your Bitcoins. It is very easy to use to operate. Wallets are provided free of cost by several companies. After signing up with one of the major digital wallet providers you will be able to buy, sell and exchange your Bitcoin in a safe and highly secure way.

Choosing a Bitcoin Exchange

Once you have set up a Bitcoin Wallet, then you will need to find a suitable Bitcoin Exchange. It is where you are going to place an order for Bitcoin and then have them sent to your Bitcoin Wallet.

There are several Bitcoin Exchanges available, but be aware that there are going to be fees and charges associated with buying and also selling. So keep that in mind while choosing the exchange for buying or selling Bitcoin.

Investing in Bitcoin

If you are considering using Bitcoin for investing your savings, then please do understand the risks that are associated with Bitcoin.

The value of Bitcoin, much like any other digital currency, is always going to be volatile. That mean, it can appreciate or depreciate significantly. So, it is better to familiarize yourself with the risk of using Bitcoin as an asset for investment.

Ways to Pay for Bitcoin

It is also important to know that not payment options vary from one Bitcoin Exchange to another. So, you may have to find the one that offers you a convenient payment option for Bitcoin transactions.

Having said that, you will find most exchanges will allow you to buy Bitcoin using a debit or credit card. Some of them accept bank wires and bank transfers. There are also crypto currency exchanges which accept payments in other digital currency.

The Spot Rate of Bitcoin

The price you are going to have to pay when you wish to purchase Bitcoin at any digital currency exchange is always going to be determined by the price traded in the exchange you have chosen to make use of.

The spot rate you will be offered can vary in value at different Bitcoin and other digital currency exchanges. So, you can realize better value for your investments, if you shop around for the best exchange rates.

Bitcoin Exchange Fees

Similar to other businesses, Bitcoin Exchanges are there to provide a service and generate a profit for itself. With that in mind, you should be aware that exchanges will charge fees for their services when you perform a transaction. The fees vary from exchange to exchange. So, you should be prepared to hunt for an exchange that charges minimum fees.

Buying Goods with Bitcoin

The way in which you are going to be able to buy goods online using Bitcoin is very simple. It should not pose any problems when you buy things with that digital currency.

You have to get details of the merchants or online retailers digital wallet, as that is where you are then going to send your payment from your own Bitcoin Wallet, and those transactions are processed instantly too.

Paying for Services with Bitcoin

It is not only goods, which you can purchase using Bitcoin. There are a number of services you can pay for with that popular digital currency. Much like buying goods with Bitcoin, you would require the digital wallet address of the service provider.

Anonymous Payments

You will be able to use Bitcoin anonymously, if you so desire. Many people like that aspect of Bitcoin. However, you may need to provide your own personal details if you are using certain payment methods to buy Bitcoin from a Bitcoin Exchange.

For example, if you are using a debit or credit card, then you will need to supply personal details to the exchange. The exchange will verify whether you are the legal owner of the card, for obvious security reasons.

Bitcoin ATM’s

You are probably well versed in using an ATM for withdrawing money from your bank account using the debit card linked to that account. In the same manner, you will be able to buy and sell Bitcoin at quite a number of ATMs.

Those ATMs are installed in many locations in towns and cities across the globe. You can buy or sell Bitcoin using those machines, at any time.

Bitcoin Accepting Gambling Sites

Anyone having a passion for gambling online is going to find that many poker, bingo, casino and sports betting sites have started accepting Bitcoin deposits. Those sites pay out your winnings in Bitcoin too.

Obviously, as long as you sign up ad gamble at a fully licensed and regulated gambling site, you are not going to run into any type of problems.  You may face issues if you gamble at any site that doesn’t hold a full and valid gambling license!

How to Sell Bitcoin

There are many ways to sell Bitcoin. One way of doing that is to track down a Bitcoin ATM and sell as many Bitcoins you wish to do via those machines. You will get paid instantly in local currency.

However, if you want to sell them via a Bitcoin exchange then you are more than welcome to do so. Such exchanges will charge you fees depending on the quantity you wish to sell and the mode of receipt of payment.

Is Bitcoin Suitable to You?

Please do keep in mind that there are many other digital currencies are available and you need to weigh the pros and cons of the ones that you are planning to use.

With that in mind, please do spend time to read the articles and news stories dedicated to Bitcoin and all other digital currencies too.

Conclusion

You may get tempted to start using Bitcoin due to huge profits realized by people who have invested in that digital currency. However, you need to assess the risks associated with Bitcoin as its value is not going increase always.

Therefore, I would advise you to spend enough time to do your own research about Bitcoin. I have compiled a huge number of Bitcoin related guides that are free to access on this website. That will provide a good beginning for your research.

Frequently Asked Questions

You will no doubt have a few questions relating to Bitcoin. I will now present you the most frequently asked questions about that digital currency and answer each of the questions.

Is Bitcoin a scam?

Should I invest in Bitcoin?

How many digital currencies should I use?

Why is Bitcoin so expensive?

Can I exchange Bitcoin for another digital currency?