How Can I Buy Bitcoin?

So you learned the basics of Bitcoin, and now you are excited about the possibilities and want to buy it. But how?
Purchasing cryptocurrencies is easier every day than when Bitcoin was first launched in 2009. Today, you can buy Bitcoin directly from crypto exchange, peer-to-peer markets, Bitcoin ATMs, and even some traditional brokerage platforms. The list is very extensive. You can also use cash, credit cards, debit cards, or bank transfers, depending on who makes the purchase and where.
Before you buy your first Bitcoin, you need to decide how to store it. Think of it as a physical bank account or wallet to hold your money.
For Bitcoin, you can use online wallets, mobile wallets, desktop portfolios, or offline wallets such as hardware devices and paper portfolios in the form of exchange platforms or independent providers. Here you can find more information on Bitcoin wallets and tips on how to use them. That said, here is a brief overview of how to buy major cryptocurrencies.
Cryptocurrency exchange
One of the easiest ways to buy Bitcoin is to use cryptocurrency exchange. As the name implies, the cryptocurrency exchange is a platform that allows you to buy and sell cryptocurrencies using a variety of traditional fiat banknote options or other digital currencies.
To buy Bitcoin on a cryptocurrency exchange, you need to open an account on the exchange platform. In most cases, you will also need to perform the Knowledge-u-customer (KYC) and Money Laundering Prevention (AML) steps. Cryptographic exchange knows who you are because these are just basic background checks. .. This usually involves submitting an official ID and, in some cases, proof of address. On some exchanges, on the other hand, if you log in only with your email address without verifying your identity, access will be restricted and you will benefit. This is a great option if you remain anonymous and do not intend to buy large amounts of Bitcoin.
When it comes to cryptocurrency, there are hundreds of options, but as a beginner, we recommend staying at popular exchanges such as Binance, Coinbase, Houbi, FTX and Kraken. However, it is always advisable to do your own research before choosing a particular scholarship. Some are only available to people in certain countries, while others are aimed at experienced traders.
After choosing a stock exchange, the next step is to fund your account to buy Bitcoin. Most exchanges can fund your account through bank transfer, credit card, or PayPal.

Keep in mind that most platforms charge a fee for certain funding options, such as credit card deposits. In addition to the deposit fee, you must pay a fee per transaction to encourage Bitcoin miners to process the transaction. Read more: How Bitcoin Mining Works
Once your account is credited, you can buy Bitcoin on the exchange of your choice.
Please note that the wallet will automatically generate a wallet. The disadvantage of this is that you have no control over the private key that determines the true owner of the cryptocurrency stored in your wallet. If your wallet is hacked, you can lose all your Bitcoins. However, it’s a great option if you plan to exchange Bitcoin for other cryptocurrencies and make a small profit from price changes.
If you plan to buy a large amount of Bitcoin without selling it in the short term, it is best to move the money to a physical or offline wallet. Peer-to-peer bitcoin market
Cryptographic exchange has grown into a de facto way to buy Bitcoin, but you can also buy digital assets directly from other Bitcoin owners via peer-to-peer platforms such as LocalBitcoins, Paxful, Binance P2P, Bitquick. .. -Counter (OTC) transactions.
OTC transactions are significantly faster and offer a wider variety of payment options. However, buying Bitcoin directly from an individual is extremely dangerous. It is not always best to meet a completely stranger in person and exchange your personal money for cryptocurrencies. Platforms like LocalBitcoins provide a much more secure solution and use internal escrow services to ensure a smooth exchange process.
Bitcoin ATM
Bitcoin ATMs work like regular ATMs. The only difference is that you can buy and sell Bitcoin as well as withdraw fiat money. These devices send Bitcoin to your wallet in exchange for cash. Simply enter your invoice and display the QR code on your wallet on the screen and the corresponding amount of Bitcoin will be sent to your account. Coinatmradar will help you find a Bitcoin ATM near you. Traditional stock broker
Thanks to the growing popularity of Bitcoin, some traditional brokerage firms are now offering clients the opportunity to buy and sell digital assets on the platform. Robin Hood is a pioneer in this regard. This is the first popular investment broker that allows clients to buy Bitcoin on their platform along with a variety of other cryptocurrencies. The cryptocurrency Robinhood Crypto is also available in most states in the United States. Similarly, you can buy Bitcoin on the platforms of brokerage firms such as eToro and TradeStation.

5 Reasons Why Bitcoin Remains Below $50,000

On September 8, Standard Chartered’s cryptocurrency research team predicted that Bitcoin prices could reach $ 100,000 in the last days of 2021 or the first few months of 2022. global. Advisor.
However, Bitcoin did not attract strong momentum, except that it slightly exceeded the price of $ 50,000 in the first week of September. The price of Bitcoin at the time of pressing is about $ 43,700. This is due to fluctuations between $ 41,000 support and resistance levels close to $ 50,000. So what is causing this downward pressure?
1. DeFi continues to grow exponentially
It goes back to last year. For most of 2020, the decentralized financial sector (DeFi) had unprecedented trading volumes, with thousands of crypto users closing their assets with various DeFi protocols to generate high interest rate returns. As a result, many investors are expected to take part in madness by converting Bitcoin stock into ether or other smart contract-backed tokens. From late 2020 to early 2021, DeFi-related activity declined temporarily, but the sector has seen a second wave of investment in recent months as non-fungible tokens (NFTs) have become prominent. I experienced it. On September 7, DeFi’s closed door set (TVL) totaled nearly $ 100 billion for the first time, according to DeFi Pulse. This latest increase has already outpaced last year’s growth, with TVL increasing 253% from $ 23.8 billion to $ 84.1 billion, compared to last year’s 183% ($ 8.39 billion to $ 23.8 billion).

Much of this new growth is due to the emergence of new competitors in distributed application spaces, including:

Solarium
avalanche
phantom
Cardano
Each of these smart contract-centric platforms has already established its own native dapps DeFi ecosystem, offering lower rates and faster transaction speeds than current Ethereum blockchain technology.
2.2. Rise of NFT
DeFi isn’t the only one stealing the spotlight from Bitcoin. The NFT market was also very successful in 2021. The amount of money spent buying NFTs in 30 days increased dramatically from about $ 10 million in early 2021 to about $ 2.6 billion on September 17.
Due to the decline of DeFi and NFT, Bitcoin’s advantage (the total ratio of Bitcoin’s market capitalization to the market capitalization of cryptocurrencies) has decreased significantly. It was 69.7% at the beginning of the year, but is now about 41.9% lower. In other words, Bitcoin hasn’t received the same interest and attention as it did nine months ago. This may indicate why it was difficult to get the kind of buying pressure needed to exceed $ 50,000.
3. US regulatory pressure.
The US Senate recently approved a controversial infrastructure bill. This means a $ 1.2 trillion budget aimed at improving various areas of the economy. Part of the proposal includes amending the cryptocurrency tax rules to assist in the payment of this huge invoice. One of the changes includes requiring cryptocurrency brokers to report transactions. The requirement itself is seen as a way to ensure better tax compliance with crypto users in mind, but the main point of the controversy is the lack of a clear definition of the term “broker”. Cryptocurrency proponents argue that the term is too broad to be interpreted as including crypto miners, developers, and node verifiers who are not client fund managers.
There has been an attempt by a dual group of parliamentary crypto-friendly members to amend the bill, but many can be done to change the requirements for reporting crypto before it is passed by the bill. The sex is low. Historically, regulatory uncertainties like these have often affected Bitcoin’s performance. Next, there is an ongoing regulatory battle between US government security regulators and cryptocurrency lenders, including Celsius and Blockfi. Regulators claim that the interest-bearing crypto savings accounts offered by both companies violate state securities law. At the federal level, Bitcoin exchange-traded funds (ETFs) have not yet been approved in the United States because the Securities and Exchange Commission (SEC) maintains a cautious approach to cryptocurrencies. Analysts believe that Bitcoin ETF approvals could stimulate a new stream of interest for retail and institutional investors in Bitcoin. This can be essential to achieving a $ 100,000 price forecast.
The SEC does not seem to be very keen on Bitcoin ETFs fixed to physical Bitcoins, but it is unlikely that they will consider approving Bitcoin futures ETFs (ETFs with Bitcoin futures as underlying assets). 4. The dollar goes up
Following the release of the retail report in August, the dollar rose to a nearly three-week high in September. 17. Retail sales increased 0.7%, even though they were expected to decrease 0.8%. These data show that the US economy is on the rise and companies are adapting to the reality of new markets after the closure of COVID-19. Despite the outbreak of delta variants of the coronavirus, the desire to spend did not diminish. Thus, economic recovery means less interest in economic hedge assets such as Bitcoin. Another economic data that may have triggered a weak reaction in the Bitcoin market is that inflation in the US fell from 5.4% to 5.3% in August. Some people think this number is high compared to the historical numbers in the country, but others consider it a positive indicator because the situation may have been much worse.
5. China completely bans Bitcoin for the first time
On September 24, the People’s Bank of China (PBoC) issued a new statement on the illegality of cryptocurrency trading and mining, and cryptocurrency-to-cryptocurrency trading and cryptocurrency-to-legal tender trading are currently banned. I added that there is. This means that virtually all activities related to cryptocurrency trading, such as buying, selling and trading cryptocurrencies such as Bitcoin, Ethereum and Tether, have been banned for the first time in the country.
The central bank of China also revealed that citizens found for cryptocurrency exchange abroad will be investigated.
However, it was not only the PBoC that intervened in the new cryptocurrency, but the National Development and Reform Commission (NDRC) also expressed its intention to strengthen the application of current restrictions on domestic cryptocurrency mining. In a statement entitled “Notice of Cryptocurrency Recovery” mining activity, authorities estimated plans to completely eliminate domestic cryptocurrency mining.
First, new businesses that want to enter the mining industry are limited. Second, local governments are ordered to discontinue all support for existing mining projects. This includes interrupting the direct power supply and encouraging other suppliers to increase the cost of making the mining business economically viable. Finally, the NDRC said it would block the flow of new investment in this sector and block the remaining financial services to crypto companies.
Bitcoin prices have fallen almost 10% with the announcement, from $ 45,099 to $ 40,693. But since then, prices have recovered about 8% to $ 43,890.

What is Bitcoin Lightning Network

Bitcoin scalability issues mean that small transactions can overload the blockchain. Lightning Network was created to fix this.
Each block on the Bitcoin blockchain takes an average of 10 minutes to process, so the number of transactions that can be performed at one time is negligible. In 2016, developers Thaddeus Dryja and Joseph Poon came up with the idea of ​​enabling fast and cheap transactions over the network without changing the block size. They called it “Lightning Network”.

Lightning Network creates a second layer on top of the Bitcoin blockchain that makes transactions more efficient using user-generated micropayment channels.
These transactions are much faster than regular Bitcoin transactions because they do not have to be broadcast across the network. Also, there are no miners who need incentives, so transaction fees are low or none at all.
How to use

Think of the major Bitcoin blockchain as a highway and the Lightning Network as a series of side streets. This alleviates congestion on smaller transaction paths.
First, two parties that want to trade with each other set up a multi-signed wallet (multiple signatures are required to perform a transaction). The wallet contains a certain amount of Bitcoin. Next, the wallet address is stored on the Bitcoin blockchain and the payment channel is set up.
Both can now execute an unlimited number of transactions without touching the information stored on the blockchain. In each transaction, both parties sign an updated balance to reflect the amount of Bitcoin stored in each wallet.
When both parties complete the transaction and the channel closes, the resulting balance is placed on the blockchain. In the event of a dispute, both parties can use the last signed balance sheet to regain their share of the wallet.
You don’t need to set up a channel directly to trade on Lightning Network. You can send payments to someone through a channel with the people you are connected to. The network will automatically find the shortest route. The purpose of the network is to allow users to make small payments without transaction fees or delays.
Where are we now on the Bitcoin Lightning Network? Lightning Network released a beta in 2018, but it was far from fully functional. Since then, the number of Lightning Network nodes has doubled year by year, and the project is approaching its goal of making Bitcoin a viable currency for everyday transactions.

Can the Bitcoin Network Scale?

You have some bitcoins in your wallet and you want to use them for your daily purchases. What about a world where Visa, Mastercard and other financial services still dominate the market?
Bitcoin’s ability to compete with other payment systems has long been debated in the crypto community. When the mysterious author Satoshi Nakamoto limited the block size of Bitcoin to 1 megabyte (MB) in 2010 to prevent people from decentralizing the network, the scalability of Bitcoin was also limited.
Each block takes an average of 10 minutes to process, so the number of transactions that can be performed at one time is negligible. That’s a big obstacle for systems that many wanted to replace trust payments. Increased demand will inevitably lead to higher fees, further limiting the usefulness of Bitcoin.
The debate over scale has sparked a wave of innovation in the quest for alternative solutions. There are significant advances, but sustainable solutions are clearly far from clear.
Bitcoin block size discussion
Initially, the simple solution was to increase the block size. But the idea doesn’t seem to be easy.
Increasing the block size can weaken the decentralization of the protocol by giving more power to miners with larger blocks. The competition for faster machines can ultimately make Bitcoin mining profitable. The number of nodes that can handle much heavier blockchains can also be reduced, further centralizing networks that rely on decentralization.
Second, not everyone agrees with this change. How are system-wide updates performed when participation is decentralized? Does anyone need to update their Bitcoin software? What if some miners, nodes and traders don’t?
And finally, Bitcoin is Bitcoin, why waste it? If someone doesn’t like it, they can customize the open source code and start their coins. Introducing SegWit
One of the first solutions to this problem is called Segregated Witness (SegWit), which was proposed by developer Pieter Wiulle in 2015.

This process increases capacity without resizing the Bitcoin block by changing the way transaction data is stored. More specifically, SegWit involves removing the signature data (token information) from the base transaction block (1 MB main block) and adding it to another block called the’extension block’. You can add transaction data to the main block.
SegWit was deployed on the Bitcoin blockchain via a soft fork in August 2017 to comply with non-upgraded network contributors. A soft fork is a software protocol change that disables a previously valid transaction block. Many wallets and other Bitcoin services are gradually adapting their software, but the risks and costs are perceived and other services are hesitant to adapt. Players in several roles in the industry claimed that SegWit wasn’t advanced enough. This may help in the short term, but sooner or later Bitcoin will again experience constraints on its growth.
In 2017, at the same time as the CoinDesk consensus conference in New York, a new approach, Segwit 2X, was announced. The idea is to combine SegWit with increasing the block size to 2MB, effectively doubling the transaction capacity before SegWit.
Instead of solving the problem, the proposal created a new wave of disagreement. The way it was announced (through public announcement rather than renewal proposal) and lack of reprotection (transactions can occur in both versions and can lead to double payments) are very It was exciting. And while developers’ claims to redistribute power to miners and businesses are ultimately avoided, they can cause fundamental divisions in the community.
Bitcoin scale alternative solution
Other technical approaches have been developed as possible ways to increase capacity.
Schnorr Signature-Provides a way to integrate signature data, reducing the space occupied by Bitcoin blocks (and improving privacy). Combined with SegWit, you can enable far more transactions without changing the block size. Lightning Network: The second layer of protocols that run on top of Bitcoin. The Lightning Network opens a channel for high-speed microtransactions that is established only on the Bitcoin network when the channel participants are ready. Acceptance of upgrades will slowly spread throughout the network, increasing transaction capacity and lowering charges. To date, over 74% of Bitcoin transactions use SegWit. Compared to last year’s 44%. Advances are accelerating with more advanced solutions such as Lightning, and the potential for Schnorr signatures is gaining more and more attention, with various developments working on detailed features and integration.
The use of Bitcoin as a payment mechanism has been replaced by its value as a speculative investment asset, but more because the rewards charged by miners for processing are now more expensive than their trustee equivalents. The need for many transactions remains urgent. Improved scalable functionality is important to unlock the potential of the underlying blockchain technology as it continues to earn viable forms of currency.

What Can You Buy with Bitcoin?

When we talk about buying things with Bitcoin, many are in the black market full of dubious deals, off-record sales and illegal products, or millionaires looking for luxury yachts and private jets. Awaken the image. In fact, the list of products now available for purchase with Bitcoin is long.
In the United States, more than one-third of small businesses accept only cryptocurrencies as a payment method, so the list of products and services available for purchase with “Digital Gold” is growing day by day.
From large companies like Microsoft and AT & T to smaller places like local farmers markets, the benefits of Bitcoin as a payment method: ease of cross-border transactions, anonymity and irreversible transactions are welcomed by companies. It has been. industry.
Here are some common items you can buy with Bitcoin. Gifts, exchanges, trade

motor
Tesla was talked about in May 2021 when founder Elon Musk announced that it wouldn’t accept Bitcoin as a payment method, but the used car market is still bitcoin-friendly and has been around for a long time. I am.
BitCars is an example of an online retailer that sells all types of luxury cars, including Tesla, the list of which is traded on BTC. If you need speed, you can buy a Lamborghini Huracán for 12,432 BTC from the BitCars website. Do you go on a road trip? For 38.68394 BTC, you can own a Vario Perfect 1000 garage.

How to sell Bitcoin

Just like when you buy Bitcoin, you have different options for selling your digital assets.
As mentioned in the previous section, Bitcoin can be purchased directly from cryptocurrency exchanges, Bitcoin ATMs, P2P markets, or traditional brokers. With the exception of some Bitcoin ATMs, you can also sell cryptocurrencies through any of these channels.

By placing a sell order, you can sell Bitcoin on the same exchange or broker where you bought it. As the name implies, a sell order tells a broker (cryptographic exchange) to sell an asset at a specific price.
Bitcoin can also be exchanged or exchanged for other cryptocurrencies or stable currencies (such as ether and tether, respectively). This is useful if you want to make a profit on your Bitcoin investment, or if you want to keep your portfolio from devalued. If you plan to withdraw fiat money equivalent to Bitcoin, you must first place a sell order that prioritizes fiat currency. Once your order is complete, most exchanges allow you to withdraw money directly into your bank account. Please note that most exchanges have a minimum withdrawal amount. This means that if you leave a small balance on your exchange account, you may need to pay more to get the remaining amount.
Read more: How to change the purchase order
In general, Binance, Coinbase, Huobi, FTX and Kraken are examples of exchanges where you can buy and sell Bitcoin. Volume refers to the amount or digital assets traded on the stock exchange at any given time. In large quantities, it means that you are likely to complete the sale at any time.
It’s also worth mentioning that depending on the size of your order and the amount you want to withdraw, you may need to verify your identity in some way. Like traditional financial institutions, many crypto exchanges require the KYC (Know Your Client) procedure. Therefore, to verify your identity, you will need to provide information such as a valid ID card, a utility bill with your home address or social security number.
In addition to crypto exchange and Bitcoin ATM, another alternative is through the peer-to-peer market. In this case, the transaction is direct between you and the buyer. You can register as a seller on platforms such as LocalBitcoins, Paxful and BitQuick.