How to Buy Bitcoin and Choose Cryptocurrency Wallets

Many average-level investors interested in cryptocurrency have already discovered that purchasing said coinage is not an easy task. Bitcoin itself was next to impossible to purchase with traditional means. Now, in the wake of mainstream attention it is easier to acquire virtual monies. All one has to do is know where to look, and what they need before they exchange any money. There are a wide variety of exchange-capable sources one can turn to. But in order to use any of those one needs to acquire a cryptocurrency wallet. Cryptocurrency wallets hold digital money and conduct transactions. They are also available in a wide variety as well.

Cryptowallets

The choice is cryptocurrency wallets all comes down to preference. If you want security than you want a desktop, mobile, hardware, or paper wallet. Each of them downloads the wallet into a physical form. For desktops that form is a computer program, for mobile it is an app, for hardware is it a file on a USB, and for paper it is literally a piece of printed paper. If you want accessibility then online, mobile, or hardware is the place to go. Each stores the wallet in a movable location that goes where you are. Virtual wallets require a third party to hold the wallet, they are also more open to hackers as they are always online. Physical wallets have their own drawbacks because if the device is lost so is the wallet.

Bitcoin Exchanges

Once a wallet has been acquired it is time to fill it up with currency. Using bitcoin as an example there are many primary ways to attain virtual money. Bitcoin exchanges are companies that buy and sell bitcoins on a live market. Such companies deposit both flat currency and bitcoins and then place orders for the exchange to fulfill. Bitcoin Brokers also buy and sell orders, but they also handle the execution of those orders. OTC markets operate in decentralized zones and create remote transactions. These are not open for varieties of companies to fulfill like an exchange. This is a fund transfer between specific groups. Some cryptowallets also function as brokers themselves. Abra is one such wallet. These companies usually operate through smartphone apps. As they serve as both broker and wallet they effectively eliminate the middleman. In the end it is all about preference once again. If you want to operate like a day trader, then exchange companies are your best option. If you want a simple exchange bitcoin brokers and OTC’s are better. If you want convenience go with a wallet/broker hybrid and get instant satisfaction.

Buying Bitcoin

Purchasing bitcoin is pretty straightforward once you have both company and wallet. The hard part is finding the right fit, once said fit has been discovered buying bitcoin is akin to any other financial transaction. You put the money in, it is exchanged for its worth in bitcoin, and then you after confirmation the funds appear in your wallet.