Many hear the words “Bitcoin” or “cryptocurrency”. They hear of a financial revolution, that some use as an investment or to send money to other countries, however not everyone knows how to buy and sell cryptocurrencies. How do you access these markets? In the following article we will explain how to buy and sell bitcoins in a variety of ways, some simple and others that involve more work.
Create your Bitcoin Wallet
The first thing you should do to start Bitcoin is to create a wallet.
It’s important that you read some recommendations about what is a bitcoin wallet and the different types.
How to buy and Sell bitcoins
We are going to explain the different methods, easy and complex.
At Bit2Me we have always wanted to make it easier for the user to access cryptocurrencies. That is why we offer a bitcoin purchase service that anyone can access online and get paid in minutes through bank transfer, credit card, and even cash.
- To buy, click here : Purchase bitcoins
We also have an exclusive tool that allows anyone with Bitcoin to exchange them for euros in seconds and allow them to leave the traditional bank teller without the need for cards or bank accounts, 24 hours a day. We have more than 10,000 ATMs connected to our infrastructure. You can also receive them by bank transfer.
- To sell, click here: Sell bitcoins
Once you have created a wallet, you can use any of the many existing exchanges, such as Coinbase, Bitstamp or Kraken.
After creating and verifying the account you will have to link it to a bank account in order to transfer funds between it and the exchange to carry out Bitcoin purchases and sale operations.
Although it is a relatively recent concept, there are several companies that manufacture ATM’s from which Bitcoins can be bought and sold, such as BitAccess or Robocoin. There are not many in Spain, but there are some in cities like Barcelona and Madrid.
If you would prefer to buy or sell bitcoins between users without an intermediary, you have the option. You can contact a buyer/ seller and personally complete the transaction.
LocalBitcoins is the primary Bitcoin trading website for this, it puts people who are offering to buy/sell in contact with others. Whomever is offering the Bitcoins publishes the price and displays the established conditions to carry out the transactions as well as the evaluations from other people who have previously worked with him/her. Each user can publish the price they want, there is no official or standard price.
The site offers a system of escrow (intermediary or arbitrator) as a layer of protection to make transactions more secure.
Normally this type of transaction is more expensive because the seller uses their reputation as a guarantee of the transaction, in addition you will have to adhere to the previously established purchase conditions to receive your Bitcoins.
For purchase transactions of large amounts of Bitcoin, you can choose to go to an Investment Trust, such as the Bitcoin Investment Trust or the ETF of the Winklevoss brothers.
Things to keep in mind about Exchanges, Wallets, and Banks
Despite the required identification processes, keep in mind that exchanges and wallet providers do not offer the same protection as banks.
For example, the coverage that your account has in an exchange is usually limited or nonexistent if the company goes bankrupt or is attacked by pirates, as in the case of Mt. Gox.
Bitcoin is not yet regulated as a currency in many countries and the authorities do not know how to approach these cases.
Some large exchanges have covered the Bitcoin losses of their users after theft or attacks, but so far they are not legally obliged to do so.
Additionally, if someone steals directly from your wallet because it was not properly protected, you do not have a guarantee of recovery of your Bitcoins.