In March of 2020, the value of a single Bitcoin reached an all-time high of over $9000. This surge in value led many people to wonder if they could buy an actual Bitcoin.
The answer is yes, but it is not as simple as buying a stock or commodity. Here is what you need to know about buying a Bitcoin.
Bitcoins are not physical objects; they are digital units that are used to purchase goods and services or hold as an investment. You cannot go to a store and purchase a Bitcoin like you would a candy bar.
Instead, you must use a Bitcoin exchange to buy or sell Bitcoins.
Coinbase is the largest and most well-known Bitcoin exchange. To buy Bitcoins on Coinbase, you must first create an account and link your bank account or credit card.
Once your account is funded, you can use Coinbase’s user-friendly interface to buy Bitcoins at the current market rate. Coinbase also offers a mobile app, which makes buying Bitcoins even easier.
Another popular option for buying Bitcoins is through LocalBitcoins. LocalBitcoins is a peer-to-peer marketplace that allows people to buy and sell Bitcoins directly to each other.
The benefit of using LocalBitcoins is that you can often find better deals than on large exchanges like Coinbase. However, LocalBitcoins can be riskier because you are dealing with individuals rather than a reputable company like Coinbase.
If you want to own an actual Bitcoin, you will need to use an exchange or marketplace to buy it. Coinbase and LocalBitcoins are two popular options, but there are many others available as well.
Be sure to do your research before choosing an exchange or marketplace, and only deal with reputable businesses or individuals.