So, you have cash burning a hole in your pocket and you want to put it in Bitcoin? Great, you’ve come to the right place!
Today’s topic came from a conversation on Britcoiners — our new Bitcoin podcast. You can listen at the link below (the podcast is available on all major platforms).
Before we get into the HOW of getting Bitcoin, here are a few simple reminders.
- Bitcoin is a cryptocurrency— aka, it’s not like physical cash and you can’t hold one in your hand.
- Don’t buy Bitcoin until you’ve researched what it is and how it works, and you feel confident in what you’re doing.
- You can buy a fraction of 1 Bitcoin as it splits into 8 decimal places, meaning you don’t have to spend £1000s.
Okay, with that out of the way, let’s get into the main purpose of this blog post —giving you 6 different ways to get yourself some Bitcoin.
1. Use a Bitcoin exchange
If you’re new to Bitcoin, one of the easiest ways to get it is by going to a Bitcoin exchange.
What’s an exchange?
Exchanges are online companies which operate in a similar way to foreign exchanges, selling Bitcoin to you for the going rate on their platform (note: the price of 1 Bitcoin is the same globally, BUT exchanges typically offer their own rate).
There are several types of exchanges, including retail, trader and decentralised.
CoinCorner is an example of a retail-focused exchange. Our aim is to make buying Bitcoin easy for everyone.
When using our services and most other exchanges, there are different payment options available, including:
- Credit and debit card
- Bank transfer
This makes the process of buying Bitcoin as familiar as buying from any other online retailer.
2. Go peer-to-peer
In techie terms, peer-to-peer (P2P) means…
Apply that to people, and you have P2P transactions which happen between two people directly and without the help of a “central” middleman (e.g. a bank).
Bitcoin is made up of a number of key characteristics and yes, you guessed it, P2P is one of them. Under the banner of decentralisation — which means that no one (e.g. a Government or company) owns or controls Bitcoin, including its supply —P2P is another popular way to get Bitcoin.
It involves asking family and friends to send you Bitcoin in exchange for the likes of cash or anything else you want to give.
3. Accept Bitcoin payments
Since Bitcoin first began, people have been interested in how it can be used in business. Accepting Bitcoin payments is an exciting way to accumulate the cryptocurrency while helping the industry to grow.
12 years on and there are businesses across the world who accept Bitcoin as a payment method.
It’s taken off well with sole traders or single-person companies as an easy way to take payment without high fees or complicated banking requirements.
BUT any business small or large can accept Bitcoin — from those selling retail goods to professional services and everything in-between.
Learn more about accepting Bitcoin here.
4. Earn Bitcoin
New initiatives are popping up across the Bitcoin space to allow people to earn Bitcoin instead of buying it outright. This is a great option for newbies and industry veterans alike.
Here are a couple of examples:
- Shop online with high-street favourites and earn Bitcoin cashback via CoinCorner
- Complete tasks/projects for companies via Carrot.com
Yep! You can earn Bitcoin while gaming on your phone, thanks to the team at Thndr Games. They have a couple of games available (via Google Play) at the time of writing:
- Bitcoin Bounce
- Turbo 84 (beta)
The CoinCorner team played Bitcoin Bounce tirelessly for a couple of weeks while it was in beta mode and we can confirm it’s VERY addictive — especially receiving Bitcoin rewards from their prize draw along the way.
Bitcoin pay outs can be claimed and withdrawn to an online wallet via the Lightning Network.
6. Mine Bitcoin the old school way
Every man and his dog was mining Bitcoin back in the early days, but over the years it’s become much less profitable, especially as there are now large companies with huge factory mining setups.
What is mining?
New Bitcoins are “mined” by computers worldwide through a process of solving complex mathematical problems.
There’s a vast network of individuals and companies running these computers or “nodes” (find a short nodes summary here) as they’re called, helping to validate Bitcoin transactions and blocks. Our founding team initially mined Bitcoin from a garage!
Known as miners, these people/companies are rewarded with Bitcoin whenever they add a new block of transactions to the Bitcoin network.
Every four years this reward halves (this is automatically coded into the Bitcoin protocol). The last halving took place earlier this year and saw the reward go from 12.5 BTC to 6.25 BTC.