How do I buy bitcoins?
Bitcoins can be purchased on internet marketplaces. When a customer creates an account there, they first go through a standard banking verification process:
- Transfer a small amount to prove the existence of the account
- Video or Post-Ident procedure with ID
The Bitcoin account is then activated and connected to a bank account. Then the new customer can buy and sell bitcoins. In Germany, Fidor-Bank offers a current account that can be connected directly to a wallet for Bitcoins.
Bitcoins do not have to be bought in whole numbers, parts are also possible, for example 0.05363757 bitcoins. Buyers got this fraction on Wednesday for 500 euros.
This is how the buying process works:
- When you have decided on an offer, click on “buy”. The site then blocks the offer for other interested parties.
- Now you need to transfer the money to the seller.
- As soon as the seller confirms the receipt of payment, the bitcoins will be credited to you.
Another option is to buy it on a Bitcoin exchange. In contrast to the marketplaces, trading takes place there automatically. The most famous Bitcoin exchanges are Binance, Kraken, Bitstamp and Paymium. You can also buy other cryptocurrencies there – there are more than a thousand besides Bitcoin.
But beware! When buying, you should always keep in mind that bitcoins could theoretically lose their entire value from one day to the next.
It is also possible to trade bitcoins directly with others outside of such marketplaces. Then the buyer and seller exchange exactly the amount that the seller is offering. In this case, however, you should have a precise idea of what a Bitcoin is currently worth in order not to be cheated. In addition, your counterpart does not have to legitimize himself on private marketplaces.
How do I resell the bitcoins?
The prerequisite is that you are registered on a Bitcoin trading platform and have coins.
This is how the sales process works:
- You decide how many units you want to sell. This can be whole bitcoins, but also fractions.
- You decide in which currency you would like to receive the sales proceeds. Usually it is the euro.
- Then you specify the payment, i.e. whether the transaction is via the classic bank account or via PayPal or other payment systems. is handled. Which payment alternatives can be used differs from trading platform to trading platform.
Where do I keep the bitcoins?
Preferably not in an account on a Bitcoin exchange. Platforms have already been hacked and bitcoins stolen. Then they’re gone – just like a bank robbery. The difference is: nobody is liable for it.
Therefore, you should transfer your bitcoins to a private wallet. You can think of it like a virtual wallet.
- Online wallet: There are online wallets (hot wallets) that also carry the risk of something being stolen, but they are much safer. You can register for such wallets online and transfer the money to your account. The whole thing is secured with a private key that is generated from letters of twelve random words (seed). Please never pass this seed on, because everything can be calculated from it – especially the private key.
- Own wallet: If you want to go one step further, you can install a wallet as software on your computer. Then the Bitcoin amount can be saved on the computer, so to speak. If you are not connected to the internet, nothing can be stolen. However, the computer should be well secured so that no hackers or viruses steal your Bitcoins.
- USB stick: If you want to be completely safe, you can put the Bitcoins on a USB stick and put it under your pillow – or in a safe. This path is called “cold wallet” in Bitcoin language.
