This article looks at the practical issues of getting started with bitcoin such as creating a way to store your coins and spend them.
Before you get started, you should download Bitcoin Wallet software for your computer or mobile device from https://bitcoin.org/en/choose-your-wallet
There are several ways how a person or an organization can obtain bitcoins. These ways include earning them and getting paid with bitcoin for products. This being said, buying bitcoins is one of the most obvious and simple ways of getting them.
If you want to exchange some of your regular money, be in United States dollars, euros or some other currency, you will need to visit a website called an exchange. Just like you can exchange local currency to a foreign currency at a physical exchange typically located at an airport or some other place with a lot of tourists, you can exchange regular currency for bitcoins using an online exchange.
When exchanging your money for bitcoin, you are participating in a transaction that is similar to transactions that regular banks perform to allow currency exchange. The exchange transactions by regular banks with regular currencies are also known as Forex transactions.
The word Forex is short for foreign exchange. Some foreign currency exchanges use the abbreviation FX. Forex is similar to the bitcoin in that it is a decentralized marketplace. The volume of trading on this market exceeds USD$5 trillion a day. It includes all aspects of dealing with various currencies, including selling, exchanging and buying. The main participants in the Forex market are large financial institutions and banks.
A bitcoin exchange is similar to a Forex exchange in that to trade bitcoin, you will need to get an account with an exchange. In that account, you will keep some of your local currency and use it to buy, sell and exchange bitcoins. Using an exchange account you can send bitcoins to your bitcoin wallet and then use them in any way you like, similar to how you would use your regular checking bank account.
The goal of the inventors of bitcoin was to create a global universal currency. For this reason, when you send payments in bitcoins to individuals and businesses anywhere in the world, there is no need to convert them into a regular currency. However, you may also choose to use bitcoins to pay your regular bills and this is where you will need to use services of an exchange to facilitate these types of transactions.
A bitcoin exchange is typically a website, though there are several regular exchanges that trade bitcoin and other cryptocurrencies in their brick-and-mortar locations. Korea’s third-largest cryptocurrency exchange platform, Coinone, has announced in September of 2017 that it was opening its first brick-and-mortar branch that would allow offline cryptocurrency exchanges. Mexican Bitcoin exchange platform Bitlem has announced in October of 2017 that it was planning to open a brick-and-mortar cryptocurrency trading location one block away from the Mexican Stock Exchange. Visitors of the new exchange would be able to buy, sell and trade bitcoins and ten other cryptocurrencies using regular cash money and transfers from regular bank accounts.
As of the writing of this article, many governments around the world are coming up with new regulations about cryptocurrencies and platforms that trade cryptocurrencies. For this reason, you will need to do your own research about exchanges that are legal and available in your country. With most exchanges, you will be able to create an account without having to buy any bitcoins or having to own bitcoins before you can open the account.
The typical process of opening an account with a bitcoin exchange is very similar to the process of opening an account with a regular store. You will need to provide basic information including your email, you will then receive a confirmation email with a link that you will need to click and then you will finish the registration by providing your detailed information.
Bitcoin exchanges are the leading indicator of how the prices of cryptocurrencies are changing and there prices can change a lot in very short periods of time.