Purchasing cryptocurrency still represents a tough task for people in many regions. One can imagine many reasons why he or she would want to buy Bitcoin or any other major digital asset (or a less liquid token). The most obvious reason is investing; crypto assets are reasonably young players in the field, and three years ago regular investor hardly news anything about blockchain and distributed ledger technology. Today, digital currencies are recognized by major Wall Street banks such as Goldman Sachs and Morgan Stanley, and the segment has a total market cap of nearly $300 billion.
Investing in cryptocurrencies
Over the course of its existence, BTC (a trading ticker for Bitcoin) started from single digits and skyrocketed to almost $20,000 price levels at its peak. Obviously, this may sound as every speculator’s dream, to buy into the Crypto #1 at $1,000 in 2017 and sell Bitcoin today booking “many x-ses” profits and, say, redecorating the news house which he or she got from the same amazing process.
Many believe that we are still far from the peak, and Bitcoin deserves some more credit. Anyway, there is more fish in that sea: aside from BTC, there are its “forks” (or spin-offs) like Bitcoin Cash. There is also Ethereum, a platform created by brilliant Vitalik Buterin in late 2013 to support digitization worldwide. For instance, Ethereum allows creating “smart contract” which are basically automated programs that will be executed under any circumstances and can’t be terminated.
Let’s have a glance under this car’s hood. To do so, we need to establish a difference between centralized and decentralized. Each of you owns a banking card, which can be a debit card or a credit one. The card is just a piece of plastic, and the real record is kept on your account run by the bank. When some money is wired to you by an employer, the bank adds to the amount. At the moment the payment is made, the same bank makes a deduction. All records are kept in a centralized manner and can be, however sad this may sound, hacked and changed (and there are plenty case to illustrate that).
With blockchain, things are different: for BTC or any other major cryptocurrency, when you get address, you basically create an account, and records are stored in thousands different places simultaneously verified by different computers in different countries all around the world. Without going into much detail, this is called Bitcoin mining. All blockchains are unique, they have their own parameters, some are fast, other have low speed, there are reputation trusted limits that depend on the way consensus of this particular blockchain is organized. Experienced investors will look into the coin’s total supply but this is something to discuss at a later stage.
But all-in-all, distributed ledger systems have better transparency and higher security that traditional financial institutions, even banks and exchanges.
Whether you are an experience user, or just a beginner, it is mandatory to maintain basic principles of security. We prepared a separate article to tell you more about the ways to protect your digital funds, however, those key rules are in order:
First, don’t share your password, pin codes and security phrases with anyone. At some step you may get a sequence of words or digits to access your assets. Threat those data the same way: write it down on a piece of paper and store this note securely in some place only you have access to.
Never hesitate to use double and triple step protection: Google uses two factor identification system, and it can be extremely helpful if someone tries breaking into your mail or account. And, obviously, limit access to your electronic devices.
You may have different approach to your savings. Some prefer “pension style approach”: keeping a penny every payday and storing on the debit card or opening a saving account. Others like to trade their assets, even on daily basis: buy one Tesla stock today, watch Elon Musk dancing in China and sell the next day with some profits. Jump into Amazon shares ahead of the online Black Friday, see what they have to offer to customers on their site for the Grand Day and grab some money off the table later.
But once you want to do the same trick with digital assets, you need to change from “fiat” (aka fiduciary) to crypto. The are many ways for Buying Bitcoins but doing this with Google Wallet looks like the easiest way, and may be a perfect solution for your jurisdiction. You buy BTC, move it to a Bitcoin exchange and nothing stops you from active trading!
What is Google Wallet and what it does
Google Pay Send was initially known as Google Wallet. It is a P2P wiring service developed by Alphabet that allows people to send and receive money from a mobile device or desktop computer at no cost to either sender or receiver.
Late in 2019, Coin Ninja, a respected blockchain player, started a collaboration with cryptocurrency remittance company Wyre, gave users an option to buy Bitcoin with no intermediaries via Apple Pay and Google Pay. The Bitcoin purchases is claimed to take less than two minutes from installation to completion, with integration easy for even unsophisticated users to leverage. Several clicks — and cryptocurrency goes to your Bitcoin wallet. The application can be installed from Google Play, and purchase can be done with the current Google Pay credit.
Other options out there
There is a company called Paxful that helps to buy Bitcoin safely, easily and instantly. Certainly, we would recommend this option to those willing to trade Bitcoin globally. Paxful’s system supports multiple payment methods and offers its own free Bitcoin wallet. Once you log it, you can use any banking plastic including prepaid debit cards, credit card or payment codes to pay for the deal. Importantly enough, Paxful allows to buy and sell Bitcoin for big discounts on popular gift cards from iTunes, Amazon and more.
On top of that, you can use one of global peer-to-peer services like LocalCryptos (formerly known as LocalEthereum), or LocalBitcoin. Those platforms emerged from open boards; with blockchain in action, they had an important function added: escrow accounts. These services study buyers and sellers and the way those want to pay, and make matches. You, being the buyer, may offer any sort of payment, including a gift card, a phone payment, cash-in operation or even offline meeting to exchange money. It is convenient for newbies that the system limits high buy and prevents you from making a silly mistake.
People buy cryptocurrencies for different purposes:
- to save in the long run protecting their fund from insecurities of the fiat world,
- to invest in lucrative new markets, like cryptocurrencies,
- to wire funds to their friends,
- and to trade on crypto exchanges.
Buying Bitcoin is just the beginning of the long and inspiring journey, and currently the market offers plenty ways to buy cryptocurrency legally and securely.
And one more thing to keep in mind: strategic vision. When you do your financial planning, it is important to think long-term. Anyone in 1980s would be happy to know about opportunities that come from such names as Microsoft and Apple, and decades later every person should have bought Amazon, Facebook and Twitter. Those companies represented the new era.
Currently, a new class of assets is emerging, those are not companies but rather ecosystems. Imagine you could “buy into the internet itself”, like, make a bet on the whole new trend and new concept. Well, cryptocurrencies today represent precisely this opportunity. Don’t miss your chance.