Cryptocurrencies are digital or virtual tokens that use cryptography to secure their transactions and to control the creation of new units. Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control.
The first cryptocurrency, Bitcoin, was created in 2009. Since then, numerous other cryptocurrencies have been created.
These are often called altcoins, as a combination of alternative coin.
Bitcoin and other cryptocurrencies are bought and sold on exchanges. Some popular exchanges include Coinbase, Binance, and Kraken.
In order to buy Bitcoin on an exchange, you will need to create an account and verify your identity. Once your account is verified, you can link your bank account or credit card to buy Bitcoin and other cryptocurrencies.
You can also buy Bitcoin directly from individuals through marketplaces and peer-to-peer platforms. LocalBitcoins is a popular marketplace where you can connect with people in your area to buy and sell Bitcoin.
Another option is to use a Bitcoin ATM. Bitcoin ATMs allow you to purchase Bitcoin with cash.
Some ATMs also allow you to sell Bitcoin for cash.
Bitcoin can also be purchased through a process called mining. Mining is when people use specialized computers to solve complex math problems in order to verify cryptocurrency transactions.
When a transaction is verified, it is added to the blockchain ledger. As an incentive for verifying transactions, miners are rewarded with cryptocurrency.
Cryptocurrency wallets are used to store, send, and receive digital currency like Bitcoin. There are many different types of wallets including software wallets, hardware wallets, and paper wallets. Software wallets can be mobile or desktop apps.
Hardware wallets are physical devices that look like USB drives and store your cryptocurrency offline on the device. Paper wallets are simply printouts of your public and private keys which you can use to store your cryptocurrency offline in a safe place like a lock box or safe deposit box at a bank.
Now that you know how to buy Bitcoin, you may be wondering how do I store my Bitcoin? After purchasing Bitcoin, it is important to transfer your Bitcoin into a secure wallet that only you have access to. This will help protect your cryptocurrency from hackers and thieves.