How to Buy Bitcoins for Sports Betting
Getting Started with Cryptocurrency
Bitcoin wallets are basically described as programs that are designed to help you send and receive your Bitcoins. Bitcoin wallets generate your Bitcoin address, which acts as your personal address for receiving Bitcoins. If you’re simply buying small amounts of Bitcoin, you can use any trusted software wallet. It doesn’t really matter if it is a mobile wallet or a desktop wallet, you are OK to use either.
That being said, if you intend on buying large amounts of Bitcoin, you’ll want to use only Hardware or Paper wallets. That is because these wallets aren’t connected to the Internet, and therefore eliminate the possibility of your funds being stolen unless they’re actually holding your physical wallet. After you make the decision on which wallet you will use, you will want to open it and write down your Bitcoin address.
How much do you want to invest in Bitcoins?
So you got your address and are ready to buy your Bitcoins? Now, ask yourself this very important question: How much money do you want to invest in Bitcoin? No matter what way you look at it, Bitcoin is a VERY risky asset. That means that you should not invest in any more Bitcoin than you can comfortable afford to lose. This is not a decision you want to make without truly thinking about it and should not be a compulsive decision.
A good measuring stick if this is your first time buying bitcoins, is to select an amount that won’t affect you financially if Bitcoin bottoms out and goes to zero! Overall, we have a tendency to be overly optimistic when we invest our money, and we forget about the very real possibility of our investment bottoming out. Our personal rule of thumb is to never invest more than 5% of your disposable income or total wealth. Let us not forget, we can always buy less than one Bitcoin and at the current price, most likely will be buying less than one Bitcoin.
One Bitcoin can be split up into 8 decimal points. You can buy a half of a Bitcoin, a quarter of a Bitcoin, or even one-hundredth of a Bitcoin. Of course, the amount you’re going to invest on Bitcoins will bring you to the next step in the equation, choosing a Bitcoin exchange.
How to select a Bitcoin exchange
It’s no secret, finding which Bitcoin exchange to use is not easy! Every exchange is different and go by different policies, rules, payment options and fees. One of the first things you should do, and without a doubt one of the most important is verifying that the exchange accepts users from your country. All exchanges are not universal and do not accept clients from all around the world.
Now that you have double checked with the exchange to make sure they allow users from your country, the next thing you want to check is what type of payment methods they accept. Some exchanges will only allow wire transfers, while others will allow various other methods.
One thing to keep in mind when dealing with exchanges is if you choose a payment method that allows you to request your money back, will normally have higher fees due to the seller having a high risk that you could cancel your payment after you receive your coins. This is why exchanges prefer wire transfer and usually make the fees much less because there is less risk on the exchange.
The next thing to find out is what your fees will run you for your transactions. There are three kinds of fees: transaction fees, deposit fees, and withdrawal fees. These fees are not universal and are different. You will want to make sure you check this because they will affect the amount of money you receive.
The next thing you’ll want to know is the actual exchange rate. Some exchanges have low fees, but their exchange rates are higher compared to their competition. This means that the fees are somehow hidden in the exchange rate.
Additionally, you need to know what your initial buying limit will be. Your initial buying limit will normally be restricted and dependent on your method of payment and your identification verification level. If you are trying to buy large quantities of Bitcoins, you may be restricted due to the exchanges lower limits.
The last thing you want to look into is the exchanges reputation. Are they reliable and come as credible within the cryptocurrency community? Do they offer support and if they do, who reliable is the support in case you have a issue that arises during the buying process? Are there large amount of complaints and are the initial issues that people are complaining about resolved? Don’t forget that all exchanges will get a complaint here and there but the important part is to consider the amount of complaints compared to the amount of volume that they deal with?
Trading Platforms vs. The Brokers
It is very important that you familiarize yourself with the differences between Trading Platforms and Brokers. Trading Platforms are generally described as a website that automatically connects the buyer and the seller. This essentially means that you are buying from people who have placed sell orders on the site without ever communicating with them directly.
The platform usually takes a small fee for the service. Conducting transactions on trading platforms like Binance or Kucoin are usually the cheapest way to get Bitcoins, but often it’s not very user friendly. On the other side of the equation, Trading platforms have measures such as limit orders and stop loss that can confuse new users.
Additionally, when you place an order, there are times when it won’t be fulfilled immediately. This is because there may be a lack of sellers at the price you want to buy it at. The only real way to make certain you will avoid this is to utilize a broker.
So what are Brokers? Well, Brokers are basically websites that make the process easy by letting you buy coins through them at a steady price. That means when you buy your coins from a Broker, you will know the price because it is predetermined ahead of time. While buying your Bitcoins from a Broker is significantly easier, it is also more expensive!
The reality is it doesn’t really matter if you’re buying your coins from a Trading Platform or a Broker, as long as you are with a company that is reliable and you’re happy with the price you’re paying for your coins. Sometimes it’s worth it to spend a bit more money for the convenience and in order to finish the process hassle free. Additionally, if you’re looking to buy large amounts of Bitcoin, say over $10,000.00 worth, then there are specific exchanges and brokers that deal in these sort of transactions.
Buying the coins
So you know a comfortable amount you are willing to invest and you selected your exchange that you want to use, so the next step is to make the trade. The first thing you will need to do is sign up at the website you have selected and complete the registration process. Most exchanges have a “Know Your Customer” process, also known as KYC, that you will need to complete. This means you’ll need to supply the exchange with some additional information like your photo ID, proof of residence, utility bill, and in some cases even a proof of income. As Bitcoin becomes more and more mainstream, exchanges have become subject to strict regulations by the government, and in many cases, they’re unwillingly forced to request this information from you.
Once you finish your registration and your identity is verified, you can buy your Bitcoins. After the transaction is complete, it’s highly advised that you move your Bitcoins from the exchange into your own personal wallet.
Taking your coins off the exchange
If Bitcoin’s history has taught us anything, it’s that if you keep your money on an exchange, you don’t actually own that money—the exchange does. If the exchange becomes insolvent or gets hacked, you risk losing that money for good. This happened in the past with MT.Gox, and it’s happened more recently with exchanges like BTC and Bitfinex.
Once the coins are in your account, make sure to withdraw them to the Bitcoin address you’ve copied from your wallet. After the coins are safely in your wallet, and only after you can verify they are in your wallet, you can proudly say that you’ve bought your first Bitcoin.
Another option to buy Bitcoins are Bitcoin ATMs. Bitcoin ATMs are machines that accept cash, also known as fiat money, and send you Bitcoins in return. Some ATMs allow you to only buy Bitcoins and some will allow you to sell your Bitcoins as well by giving you cash in return. Many people love to use ATMs because of the relative anonymity throughout the purchasing process. You don’t have to wait for long identity verification processes to finish.
You simply enter your money and get your coins, it’s that simple! Bitcoin ATMs are run by companies that usually charge a specific fee for their service, very similar to regular ATM machines at banks, convenient stores and gas stations, so make sure you’re aware of the fees before making the transaction. We recommend purchasing KeepKey and Ledger Nano S for your hardware wallets.
Buying from Individuals
There are some individuals that prefer buying Bitcoins from other people, and refuse to use an exchange. There are several things that you want to be careful of when you are buying your Bitcoins from another person.
First, you are going to want to try to see if you can verify the seller’s identity. Some people will want to remain anonymous, and that’s fine, but verifying someone’s identity will dramatically reduce your risk of being scammed.
Second, try to use some sort of escrow service that will hold your money until after the seller sends you your Bitcoins. Many people don’t want to have to wait so the other options is to physically meet with the person and make the exchange face to face. No matter what way you decide, under no circumstance should you ever use a irreversible payment method before receiving your coin.
Finally, you want make sure you wait for the Bitcoin transaction to have at least 2–3 confirmations before considering the deal complete. This depends on the amount of money you’re exchanging. Smaller transactions can be completed with only one confirmation.
No matter what, buying from an individual usually involves a lot of uncertainty, and sometimes it’s just not worth the few bucks you’ll save in the process.
All that’s left for you to do now is go and get your first Bitcoin.
Preferred Exchanges to Buy Bitcoin