How can I acquire Bitcoin and store them safely ?
Bitcoins can be acquired in four ways:
- Mining.
- Buying from Exchanges.
- Buying from individual traders in exchange for fiat currency.
- Receiving Bitcoin in exchange for goods or services as a business.
I shall be addressing all 4 scenarios here:
- Acquiring Bitcoin by mining:
Acquiring bitcoin by mining requires that you invest into considerable hardware or online mining resources and would hence receive bitcoins or portions of bitcoin in the form of transaction fees and block rewards. You may redirect all the bitcoin you earn out of this process to different wallets. - Buying from exchanges:
Acquiring Bitcoin from exchanges usually involves a third party that facilitates between a buyer and a seller to execute the transaction. Buying or selling bitcoin through exchanges is highly scrutinized since they act as an intermediary between two people conducting a transaction and often answerable to the government. - Buying from individual traders in exchange for fiat currencies.
Platforms such as Local bitcoins act as a common destination for both sellers and buyers to come together and transact offline.
This is preferred by most for it is emancipated and less troublesome comparatively than having to deal with legal issues.
LocalBitcoins: Fastest and easiest way to buy and sell bitcoins - Receiving Bitcoin by conducting Business:
Bitcoin could be the preferred mode of payment for many businesses for its versatility and convenience it offers not to forget the financial incentive it bears.
It is always recommended to store one’s Bitcoin Wallet’s private key in a computer or a device that isn’t connected to the internet to prevent people from gaining access and spending your bitcoin. Hardware wallets do great job at helping people use Bitcoin in a day to day fashion without much complication.
Hardware wallet — Bitcoin Wiki features a list from where hardware wallets could be purchased.
Utmost safety requires the transaction to be pre signed offline and then transaction synced online. Having transactions signed offline ensures that the private key isn’t accessible by hacking through various internet resources, but also needs to be verified immediately that the bitcoin hasn’t been spent already to prevent double spends.
All the very Best :)
I hope this was helpful.
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