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How to Buy Bitcoin – The Motley Loser

How to Buy Bitcoin

Bitcoin is a digital cryptocurrency with no intermediaries or banks necessary to conduct transactions. It was designed as open-source software in two thousand nine by an individual or group known only as Satoshi Nakamoto with the intention to minimize transaction costs and deregulate currency. The cost of a bitcoin has skyrocketed this year. When the calendar flipped over to 2017, the price of one bitcoin was just a shade under $1,000. As I write, the price of bitcoin has more than doubled to slightly more than $Two,500.

This massive increase in price has led some investors to not only some to wonder if they should invest in bitcoin, but even how to invest in bitcoin in the very first place. After all, it’s not like they can purchase a bitcoin at their brokerage or bank. Heck, one can’t even buy a bitcoin at Amazon.com, and Amazon sells everything! With this question in mind, let’s look at some different ways investors can buy bitcoins or otherwise build up exposure to this unique asset class.

(If you’re still a little confused about what exactly a bitcoin is, here is an excellent primer on the unregulated virtual currency by fellow Idiot Matthew Frankel).

Photo source: Pixabay.

What’s in your (bitcoin) wallet?

The most popular way to buy bitcoins is through bitcoin wallets, digital wallets for the sensational use of bitcoins. There are many different types of bitcoin-based wallets and you need to be very careful to choose something that will best meet your needs. Some bitcoin wallets are device-specific, while others are web-based.

Coinbase is one of the most popular digital wallets used to purchase bitcoins. As with almost any of these wallets, customers must sign up for an account online and then link a bank account. If they just want to buy, a valid credit card number will do. Coinbase accepts Mastercard and Visa. Before any bitcoin transaction, Coinbase shows users the current value of the digital currency in U.S. dollars. When making a withdrawal from a Coinbase account, account holders can choose to have the funds go to either a linked bank or PayPal account.

Pic source: Pixabay.

Since third-party cryptocurrency wallets have been famously known to be hacked resulting in a permanent loss of funds, investors must be careful to decently secure their bitcoin wallets. Reminisce, bitcoins are not stored in FDIC-insured accounts and most third parties do not suggest insurance in case of theft or fraud. How bad is this problem? Last August, Reuters reported that a utter third of bitcoin exchanges had been breached.

Security is vitally significant in keeping bitcoin accounts safe. Back-ups are critical in cases of computer crashes or stolen wallets. Wallets must be encrypted so anyone withdrawing bitcoins from your account must know a password. Many wallets suggest two-factor authentication, where a unique code is texted or emailed to you before withdrawals can be made. Bitcoin passwords are also critical as, unlike bank accounts, there is no customer service line to reset your password. Bitcoin.org recommends either memorizing the password or writing it down and storing it in a safe place.

Alternative ways to purchase bitcoins

There are other ways to purchase bitcoins; some more exotic than others. Bitcoin Depot, in conjunction with the bitcoin wallet Airbitz, permits users to buy bitcoins with cash at dozens of special ATM locations spread across six states: Alabama, Florida, Georgia, Massachusetts, Tennessee, and Texas. After setting up an account, all customers need to do is deposit cash in the ATM and scan a QR code with a special scanner fastened to the ATM and, within minutes, the purchased bitcoins will be available in the Airbitz account.

The bitcoin-based ETF

The most convenient way to build up exposure to bitcoins is through the Bitcoin Investment Trust (NASDAQOTH:GBTC) . This fund was created so that buying bitcoins could be as effortless as buying any stock or ETF share. All people have to do is buy shares through their regular broker using the ticker symbol. Each share represents about one-tenth of a bitcoin. But, as fellow Loser Jordan Wathen recently pointed out, this convenience comes at a steep cost. According to his calculations, a share costs about 105% more than the value of the underlying bitcoin. Yikes!

As with any security, one should do their due diligence before buying bitcoins. Not only on its worthiness as an investment, but on the right exchange platform that best meets your security and convenience needs.

Matthew Cochrane possesses shares of Amazon, Mastercard, and PayPal Holdings. The Motley Loser possesses shares of and recommends Amazon, Mastercard, PayPal Holdings, and Visa. The Motley Loser has a disclosure policy.

How to Buy Bitcoin – The Motley Loser

How to Buy Bitcoin

Bitcoin is a digital cryptocurrency with no intermediaries or banks necessary to conduct transactions. It was designed as open-source software in two thousand nine by an individual or group known only as Satoshi Nakamoto with the intention to minimize transaction costs and deregulate currency. The cost of a bitcoin has skyrocketed this year. When the calendar spinned over to 2017, the price of one bitcoin was just a shade under $1,000. As I write, the price of bitcoin has more than doubled to slightly more than $Two,500.

This enormous increase in price has led some investors to not only some to wonder if they should invest in bitcoin, but even how to invest in bitcoin in the very first place. After all, it’s not like they can purchase a bitcoin at their brokerage or bank. Heck, one can’t even buy a bitcoin at Amazon.com, and Amazon sells everything! With this question in mind, let’s look at some different ways investors can buy bitcoins or otherwise build up exposure to this unique asset class.

(If you’re still a little confused about what exactly a bitcoin is, here is an excellent primer on the unregulated virtual currency by fellow Idiot Matthew Frankel).

Picture source: Pixabay.

What’s in your (bitcoin) wallet?

The most popular way to buy bitcoins is through bitcoin wallets, digital wallets for the special use of bitcoins. There are many different types of bitcoin-based wallets and you need to be very careful to choose something that will best meet your needs. Some bitcoin wallets are device-specific, while others are web-based.

Coinbase is one of the most popular digital wallets used to purchase bitcoins. As with almost any of these wallets, customers must sign up for an account online and then link a bank account. If they just want to buy, a valid credit card number will do. Coinbase accepts Mastercard and Visa. Before any bitcoin transaction, Coinbase shows users the current value of the digital currency in U.S. dollars. When making a withdrawal from a Coinbase account, account holders can choose to have the funds go to either a linked bank or PayPal account.

Photo source: Pixabay.

Since third-party cryptocurrency wallets have been famously known to be hacked resulting in a permanent loss of funds, investors must be careful to decently secure their bitcoin wallets. Recall, bitcoins are not stored in FDIC-insured accounts and most third parties do not suggest insurance in case of theft or fraud. How bad is this problem? Last August, Reuters reported that a total third of bitcoin exchanges had been breached.

Security is vitally significant in keeping bitcoin accounts safe. Back-ups are critical in cases of computer crashes or stolen wallets. Wallets must be encrypted so anyone withdrawing bitcoins from your account must know a password. Many wallets suggest two-factor authentication, where a unique code is texted or emailed to you before withdrawals can be made. Bitcoin passwords are also critical as, unlike bank accounts, there is no customer service line to reset your password. Bitcoin.org recommends either memorizing the password or writing it down and storing it in a safe place.

Alternative ways to purchase bitcoins

There are other ways to purchase bitcoins; some more exotic than others. Bitcoin Depot, in conjunction with the bitcoin wallet Airbitz, permits users to buy bitcoins with cash at dozens of special ATM locations spread across six states: Alabama, Florida, Georgia, Massachusetts, Tennessee, and Texas. After setting up an account, all customers need to do is deposit cash in the ATM and scan a QR code with a special scanner fastened to the ATM and, within minutes, the purchased bitcoins will be available in the Airbitz account.

The bitcoin-based ETF

The most convenient way to build up exposure to bitcoins is through the Bitcoin Investment Trust (NASDAQOTH:GBTC) . This fund was created so that buying bitcoins could be as effortless as buying any stock or ETF share. All people have to do is buy shares through their regular broker using the ticker symbol. Each share represents about one-tenth of a bitcoin. But, as fellow Idiot Jordan Wathen recently pointed out, this convenience comes at a steep cost. According to his calculations, a share costs about 105% more than the value of the underlying bitcoin. Yikes!

As with any security, one should do their due diligence before buying bitcoins. Not only on its worthiness as an investment, but on the right exchange platform that best meets your security and convenience needs.

Matthew Cochrane possesses shares of Amazon, Mastercard, and PayPal Holdings. The Motley Idiot possesses shares of and recommends Amazon, Mastercard, PayPal Holdings, and Visa. The Motley Idiot has a disclosure policy.

How to Buy Bitcoin – The Motley Loser

How to Buy Bitcoin

Bitcoin is a digital cryptocurrency with no intermediaries or banks necessary to conduct transactions. It was designed as open-source software in two thousand nine by an individual or group known only as Satoshi Nakamoto with the intention to minimize transaction costs and deregulate currency. The cost of a bitcoin has skyrocketed this year. When the calendar spinned over to 2017, the price of one bitcoin was just a shade under $1,000. As I write, the price of bitcoin has more than doubled to slightly more than $Two,500.

This ample increase in price has led some investors to not only some to wonder if they should invest in bitcoin, but even how to invest in bitcoin in the very first place. After all, it’s not like they can purchase a bitcoin at their brokerage or bank. Heck, one can’t even buy a bitcoin at Amazon.com, and Amazon sells everything! With this question in mind, let’s look at some different ways investors can buy bitcoins or otherwise build up exposure to this unique asset class.

(If you’re still a little confused about what exactly a bitcoin is, here is an excellent primer on the unregulated virtual currency by fellow Idiot Matthew Frankel).

Picture source: Pixabay.

What’s in your (bitcoin) wallet?

The most popular way to buy bitcoins is through bitcoin wallets, digital wallets for the sensational use of bitcoins. There are many different types of bitcoin-based wallets and you need to be very careful to choose something that will best meet your needs. Some bitcoin wallets are device-specific, while others are web-based.

Coinbase is one of the most popular digital wallets used to purchase bitcoins. As with almost any of these wallets, customers must sign up for an account online and then link a bank account. If they just want to buy, a valid credit card number will do. Coinbase accepts Mastercard and Visa. Before any bitcoin transaction, Coinbase shows users the current value of the digital currency in U.S. dollars. When making a withdrawal from a Coinbase account, account holders can choose to have the funds go to either a linked bank or PayPal account.

Pic source: Pixabay.

Since third-party cryptocurrency wallets have been famously known to be hacked resulting in a permanent loss of funds, investors must be careful to decently secure their bitcoin wallets. Recall, bitcoins are not stored in FDIC-insured accounts and most third parties do not suggest insurance in case of theft or fraud. How bad is this problem? Last August, Reuters reported that a total third of bitcoin exchanges had been breached.

Security is vitally significant in keeping bitcoin accounts safe. Back-ups are critical in cases of computer crashes or stolen wallets. Wallets must be encrypted so anyone withdrawing bitcoins from your account must know a password. Many wallets suggest two-factor authentication, where a unique code is texted or emailed to you before withdrawals can be made. Bitcoin passwords are also critical as, unlike bank accounts, there is no customer service line to reset your password. Bitcoin.org recommends either memorizing the password or writing it down and storing it in a safe place.

Alternative ways to purchase bitcoins

There are other ways to purchase bitcoins; some more exotic than others. Bitcoin Depot, in conjunction with the bitcoin wallet Airbitz, permits users to buy bitcoins with cash at dozens of special ATM locations spread across six states: Alabama, Florida, Georgia, Massachusetts, Tennessee, and Texas. After setting up an account, all customers need to do is deposit cash in the ATM and scan a QR code with a special scanner affixed to the ATM and, within minutes, the purchased bitcoins will be available in the Airbitz account.

The bitcoin-based ETF

The most convenient way to build up exposure to bitcoins is through the Bitcoin Investment Trust (NASDAQOTH:GBTC) . This fund was created so that buying bitcoins could be as effortless as buying any stock or ETF share. All people have to do is buy shares through their regular broker using the ticker symbol. Each share represents about one-tenth of a bitcoin. But, as fellow Idiot Jordan Wathen recently pointed out, this convenience comes at a steep cost. According to his calculations, a share costs about 105% more than the value of the underlying bitcoin. Yikes!

As with any security, one should do their due diligence before buying bitcoins. Not only on its worthiness as an investment, but on the right exchange platform that best meets your security and convenience needs.

Matthew Cochrane wields shares of Amazon, Mastercard, and PayPal Holdings. The Motley Loser possesses shares of and recommends Amazon, Mastercard, PayPal Holdings, and Visa. The Motley Idiot has a disclosure policy.

How to Buy Bitcoin – The Motley Idiot

How to Buy Bitcoin

Bitcoin is a digital cryptocurrency with no intermediaries or banks necessary to conduct transactions. It was designed as open-source software in two thousand nine by an individual or group known only as Satoshi Nakamoto with the intention to minimize transaction costs and deregulate currency. The cost of a bitcoin has skyrocketed this year. When the calendar spinned over to 2017, the price of one bitcoin was just a shade under $1,000. As I write, the price of bitcoin has more than doubled to slightly more than $Two,500.

This ample increase in price has led some investors to not only some to wonder if they should invest in bitcoin, but even how to invest in bitcoin in the very first place. After all, it’s not like they can purchase a bitcoin at their brokerage or bank. Heck, one can’t even buy a bitcoin at Amazon.com, and Amazon sells everything! With this question in mind, let’s look at some different ways investors can buy bitcoins or otherwise build up exposure to this unique asset class.

(If you’re still a little confused about what exactly a bitcoin is, here is an excellent primer on the unregulated virtual currency by fellow Loser Matthew Frankel).

Pic source: Pixabay.

What’s in your (bitcoin) wallet?

The most popular way to buy bitcoins is through bitcoin wallets, digital wallets for the special use of bitcoins. There are many different types of bitcoin-based wallets and you need to be very careful to choose something that will best meet your needs. Some bitcoin wallets are device-specific, while others are web-based.

Coinbase is one of the most popular digital wallets used to purchase bitcoins. As with almost any of these wallets, customers must sign up for an account online and then link a bank account. If they just want to buy, a valid credit card number will do. Coinbase accepts Mastercard and Visa. Before any bitcoin transaction, Coinbase shows users the current value of the digital currency in U.S. dollars. When making a withdrawal from a Coinbase account, account holders can choose to have the funds go to either a linked bank or PayPal account.

Photo source: Pixabay.

Since third-party cryptocurrency wallets have been famously known to be hacked resulting in a permanent loss of funds, investors must be careful to decently secure their bitcoin wallets. Recall, bitcoins are not stored in FDIC-insured accounts and most third parties do not suggest insurance in case of theft or fraud. How bad is this problem? Last August, Reuters reported that a total third of bitcoin exchanges had been breached.

Security is vitally significant in keeping bitcoin accounts safe. Back-ups are critical in cases of computer crashes or stolen wallets. Wallets must be encrypted so anyone withdrawing bitcoins from your account must know a password. Many wallets suggest two-factor authentication, where a unique code is texted or emailed to you before withdrawals can be made. Bitcoin passwords are also critical as, unlike bank accounts, there is no customer service line to reset your password. Bitcoin.org recommends either memorizing the password or writing it down and storing it in a safe place.

Alternative ways to purchase bitcoins

There are other ways to purchase bitcoins; some more exotic than others. Bitcoin Depot, in conjunction with the bitcoin wallet Airbitz, permits users to buy bitcoins with cash at dozens of special ATM locations spread across six states: Alabama, Florida, Georgia, Massachusetts, Tennessee, and Texas. After setting up an account, all customers need to do is deposit cash in the ATM and scan a QR code with a special scanner fastened to the ATM and, within minutes, the purchased bitcoins will be available in the Airbitz account.

The bitcoin-based ETF

The most convenient way to build up exposure to bitcoins is through the Bitcoin Investment Trust (NASDAQOTH:GBTC) . This fund was created so that buying bitcoins could be as effortless as buying any stock or ETF share. All people have to do is buy shares through their regular broker using the ticker symbol. Each share represents about one-tenth of a bitcoin. But, as fellow Loser Jordan Wathen recently pointed out, this convenience comes at a steep cost. According to his calculations, a share costs about 105% more than the value of the underlying bitcoin. Yikes!

As with any security, one should do their due diligence before buying bitcoins. Not only on its worthiness as an investment, but on the right exchange platform that best meets your security and convenience needs.

Matthew Cochrane wields shares of Amazon, Mastercard, and PayPal Holdings. The Motley Loser possesses shares of and recommends Amazon, Mastercard, PayPal Holdings, and Visa. The Motley Idiot has a disclosure policy.

How to Buy Bitcoin – The Motley Idiot

How to Buy Bitcoin

Bitcoin is a digital cryptocurrency with no intermediaries or banks necessary to conduct transactions. It was designed as open-source software in two thousand nine by an individual or group known only as Satoshi Nakamoto with the intention to minimize transaction costs and deregulate currency. The cost of a bitcoin has skyrocketed this year. When the calendar spinned over to 2017, the price of one bitcoin was just a shade under $1,000. As I write, the price of bitcoin has more than doubled to slightly more than $Two,500.

This enormous increase in price has led some investors to not only some to wonder if they should invest in bitcoin, but even how to invest in bitcoin in the very first place. After all, it’s not like they can purchase a bitcoin at their brokerage or bank. Heck, one can’t even buy a bitcoin at Amazon.com, and Amazon sells everything! With this question in mind, let’s look at some different ways investors can buy bitcoins or otherwise build up exposure to this unique asset class.

(If you’re still a little confused about what exactly a bitcoin is, here is an excellent primer on the unregulated virtual currency by fellow Loser Matthew Frankel).

Pic source: Pixabay.

What’s in your (bitcoin) wallet?

The most popular way to buy bitcoins is through bitcoin wallets, digital wallets for the sensational use of bitcoins. There are many different types of bitcoin-based wallets and you need to be very careful to choose something that will best meet your needs. Some bitcoin wallets are device-specific, while others are web-based.

Coinbase is one of the most popular digital wallets used to purchase bitcoins. As with almost any of these wallets, customers must sign up for an account online and then link a bank account. If they just want to buy, a valid credit card number will do. Coinbase accepts Mastercard and Visa. Before any bitcoin transaction, Coinbase shows users the current value of the digital currency in U.S. dollars. When making a withdrawal from a Coinbase account, account holders can choose to have the funds go to either a linked bank or PayPal account.

Picture source: Pixabay.

Since third-party cryptocurrency wallets have been famously known to be hacked resulting in a permanent loss of funds, investors must be careful to decently secure their bitcoin wallets. Recall, bitcoins are not stored in FDIC-insured accounts and most third parties do not suggest insurance in case of theft or fraud. How bad is this problem? Last August, Reuters reported that a total third of bitcoin exchanges had been breached.

Security is vitally significant in keeping bitcoin accounts safe. Back-ups are critical in cases of computer crashes or stolen wallets. Wallets must be encrypted so anyone withdrawing bitcoins from your account must know a password. Many wallets suggest two-factor authentication, where a unique code is texted or emailed to you before withdrawals can be made. Bitcoin passwords are also critical as, unlike bank accounts, there is no customer service line to reset your password. Bitcoin.org recommends either memorizing the password or writing it down and storing it in a safe place.

Alternative ways to purchase bitcoins

There are other ways to purchase bitcoins; some more exotic than others. Bitcoin Depot, in conjunction with the bitcoin wallet Airbitz, permits users to buy bitcoins with cash at dozens of special ATM locations spread across six states: Alabama, Florida, Georgia, Massachusetts, Tennessee, and Texas. After setting up an account, all customers need to do is deposit cash in the ATM and scan a QR code with a special scanner linked to the ATM and, within minutes, the purchased bitcoins will be available in the Airbitz account.

The bitcoin-based ETF

The most convenient way to build up exposure to bitcoins is through the Bitcoin Investment Trust (NASDAQOTH:GBTC) . This fund was created so that buying bitcoins could be as effortless as buying any stock or ETF share. All people have to do is buy shares through their regular broker using the ticker symbol. Each share represents about one-tenth of a bitcoin. But, as fellow Loser Jordan Wathen recently pointed out, this convenience comes at a steep cost. According to his calculations, a share costs about 105% more than the value of the underlying bitcoin. Yikes!

As with any security, one should do their due diligence before buying bitcoins. Not only on its worthiness as an investment, but on the right exchange platform that best meets your security and convenience needs.

Matthew Cochrane possesses shares of Amazon, Mastercard, and PayPal Holdings. The Motley Idiot possesses shares of and recommends Amazon, Mastercard, PayPal Holdings, and Visa. The Motley Idiot has a disclosure policy.

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