How to Buy Bitcoins

The concept of Bitcoin is relatively new to the world. Let us first understand what is bitcoin? Bitcoin is basically an online payment method where there is no intermediators like banks in case of conventional currency transactions. In a Bitcoin exchange, the transaction is verified by network nodes and then they are recorded in the block chain, which is nothing but a public distributed ledger. The unit of this public distributed ledger is known as bitcoin. Bitcoin exchange is carried out in a decentralized digital currency mode since the entire system works without a single administrator.

Buy Bitcoins, How to?

There are many Bitcoin calculator tools available on the web that allows to convert any amount to and from most of the currencies of the world to the bitcoin value. The value of the bitcoin fluctuates and therefore the amount of conventional currencies required to convert to bitcoin also changes with time. The Bitcoin behaves like any other conventional currencies which are traded in the currency exchanges.

Let us know see how to buy bitcoins? There are many ways to buy bitcoin, but one must be very careful while buying bitcoins through the Bitcoin operators since Bitcoin transactions are not highly controlled or centrally regulated like other conventional currencies.

Most importantly the investors carry out their business with just an online identity which can be comprised. Therefore, it is imperative for anyone to check the credential of the operator before paying any amount for the purpose of buying it.

PayPal does not allow its users to directly buy Bitcoins using the PayPal account. One of the reason behind PayPal’s intolerance towards Bitcoin is the fact that Bitcoin is a potential threat to the PayPal’s business model. However, there are certain workarounds to use the PayPal money for the purpose of buying Bitcoin. Direct Bank Transfer is allowed only in US to buy Bitcoins. A buyer who wishes to use his bank account balance to buy bitcoins directly must be a US bank account holder.

To buy Bitcoins, one must create a Bitcoin wallet which is nothing but an online tool to store the digital value of the bitcoins and then make transactions using the bitcoin digital values. Once the Bitcoin wallet is created, the Bitcoin address will have to be located which will be required to receive the Bitcoin money. Once the bitcoin address has been obtained, once can buy the bitcoins.