Bitcoin is a decentralized digital currency, without a central bank or single administrator, that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries. Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain.
Bitcoin is unique in that there are a finite number of them: 21 million.
Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services.
As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment.
Bitcoin can be bought on exchanges, or directly from other people via marketplaces. You can pay for them in a variety of ways, including credit cards, bank transfers, PayPal, and cash.
The first place to start your research is on an exchange like Coinbase or Kraken. These exchanges are designed for buying and selling Bitcoin, and will usually charge a fee for each transaction.
Once you have found an exchange that meets your needs, you will need to set up an account and verify your identity. This process can vary from exchange to exchange, but typically involves uploading some form of government-issued ID and proof of residency.
Once you have set up your account and verified your identity, you will be able to link your bank account or credit card to the exchange. This will allow you to buy Bitcoin with USD or EUR.
You will also be able to sell Bitcoin and withdraw your funds back to your bank account or credit card.
If you would like to buy Bitcoin without going through an exchange or linking your bank account/credit card, you can use a peer-to-peer marketplace like LocalBitcoins or Paxful. These marketplace allow you to buy Bitcoin with USD or EUR using a variety of payment methods including PayPal, bank transfer, cash deposit, Western Union, MoneyGram, and more.
When buying Bitcoin on an exchange or via a marketplace, always remember to diversify your holdings into different wallets and exchanges. This will help protect you from loss in the event that one platform is hacked or experiences technical issues.
Now that you know where to buy Bitcoin in USA, the next step is finding somewhere to store it. A popular choice is the online wallet provided by Coinbase.
However, if you are planning on holding larger amounts of Bitcoin (or any cryptocurrency), we recommend using a hardware wallet like the Ledger Nano S .