Bitcoin is a decentralized digital currency proposed by Satoshi Nakamoto in 2008 and officially released in 2009. It does not rely on traditional banks or government agencies for management, but achieves decentralized transactions and ledger records through blockchain technology. Blockchain technology ensures the transparency and security of Bitcoin, with every transaction being publicly recorded in a continuously growing chain database that anyone can view but cannot change.
How to buy Bitcoin without relying on online exchanges or websites involves alternative methods such as peer-to-peer (P2P) transactions, Bitcoin ATMs, or in-person purchases. P2P platforms allow buyers and sellers to connect directly, enabling payments through cash, bank transfers, or even gift cards. Bitcoin ATMs, available in various locations worldwide, provide a simple way to purchase Bitcoin using cash or debit cards, often requiring only a wallet address for the transaction. Additionally, some individuals buy Bitcoin through over-the-counter (OTC) trades, where large amounts are exchanged directly between parties, often facilitated by brokers. Regardless of the method, ensuring security by verifying the seller’s credibility and using a secure Bitcoin wallet is essential.
The value of Bitcoin comes from its scarcity and decentralized nature. The total supply of Bitcoin is set at 21 million coins, which means it cannot be freely issued and therefore has a “hard currency” characteristic similar to gold. With the increasing uncertainty in the global economy, Bitcoin is gradually being recognized as an asset to combat inflation and financial crises.
To purchase Bitcoin, the first step is to choose a reliable trading platform. Here are several common ways to purchase Bitcoin:
1. * * Digital currency exchange * *: This is the most common way to purchase Bitcoin. World famous exchanges such as Binance, Huobi, OKEX, etc. provide convenient purchase methods and support the exchange between legal currencies such as RMB, US dollar and Bitcoin. Most exchanges require users to undergo identity verification first to ensure the security of transactions.
2. * * P2P trading platform * *: P2P platform refers to the direct way of Bitcoin transactions between users, and the platform only provides transaction matching and guarantee services. For example, Bitcoin China’s P2P platform or LocalBitcoins. The advantage of this method is that you can choose a variety of payment methods, such as Alipay, WeChat payment, etc., but you need to pay attention to the security of the transaction and the other party’s credit.
3. * * Bitcoin ATM Machine * *: In some big cities, you can find Bitcoin ATM machines. Through these machines, users can purchase Bitcoin with cash and transfer it directly to their wallets. This method is convenient and fast, but the handling fee is usually higher.
Bitcoin transactions are conducted through wallets, so before purchasing Bitcoin, it is necessary to first open a Bitcoin wallet. The function of a wallet is to store and manage Bitcoin, which can be divided into the following types:
1. * * Hot wallet * *: Hot wallet refers to the Bitcoin wallet connected through the Internet. Its advantage is convenience and speed, suitable for users who frequently trade. Common hot wallets include mobile wallets (such as Trust Wallet, MetaMask) and web wallets (such as Blockchain Wallet, Coinbase). However, hot wallets have low security and are susceptible to hacker attacks.
2. * * Cold wallet * *: Cold wallet refers to a Bitcoin wallet that is not connected to the Internet and is usually stored by hardware devices, such as Ledger or Trezor. This type of wallet has extremely high security and is suitable for investors who hold Bitcoin for a long time. Due to not being connected to the network, cold wallets can effectively prevent hacker intrusions.
3. * * Paper wallet * *: Paper wallet is an offline storage method that prints private and public keys on paper. Although this method has high security, if you accidentally lose your paper wallet, you may permanently lose Bitcoin.
When choosing a suitable wallet, users should decide based on their own needs. If it is only an occasional transaction, they can choose a hot wallet; If holding and protecting assets for the long term, a cold wallet is a better choice.
Taking Binance Exchange as an example, the following is a basic process for purchasing Bitcoin:
1. * * Register Account * *: First, create an account on the exchange’s official website. According to the platform’s requirements, provide necessary personal information and conduct identity verification (KYC). Identity verification usually requires uploading identification documents to ensure security.
2. * * Deposit funds * *: deposit RMB or other legal currencies into the platform account through bank transfer, Alipay, WeChat payment, etc. The recharge methods supported by different platforms are different. When recharging, pay attention to the platform’s fund arrival time and transaction fees.
3. * * Select trading pair * *: Select “fiat currency” on the platform
4. * * Order Purchase * *: Select the amount of Bitcoin you want to purchase, and then choose the appropriate order method. The common ways to place orders are market orders and limit orders. A market order is to buy at the current market price, while a limit order is to set a price. When the Bitcoin price reaches the price you set, the order is automatically executed.
5. * * Withdrawal to personal wallet * *: Once the transaction is completed, withdraw Bitcoin from the exchange to your personal wallet, which can improve security and prevent asset loss in case of security issues on the platform.
Although Bitcoin has great investment potential, it also comes with high risks. Here are some important risk warnings and investment strategies:
1. * * High price volatility * *: The price of Bitcoin is affected by various factors such as market sentiment and policy changes, and the price fluctuates violently. Investors need to be mentally prepared. In the short term, prices may fluctuate significantly, and investors should develop investment strategies based on their risk tolerance.
2. * * Security risk * *: Once a Bitcoin transaction is confirmed, it cannot be revoked. Therefore, ensuring transaction security is very important. Try to use a cold wallet to store Bitcoin and regularly backup private keys. Avoid using insecure trading platforms or websites and regularly update passwords.
3. * * Long term holding vs. short-term speculation * *: For most people, holding Bitcoin for the long term as a means of asset preservation is a good choice. But if you decide to make short-term investments (such as intraday trading), you need to have a deep understanding of market trends and technical analysis.
4. * * Diversified Investment * *: To reduce risk, it is advisable to consider diversifying investments into different cryptocurrency assets or traditional financial products, rather than investing all funds in a single asset.
Overall, as an emerging digital asset, Bitcoin’s investment value is increasingly recognized by the market. But like any investment, rationality and caution are the key to success. I hope that through the above purchase guide, you can better understand Bitcoin and make wise investment decisions.
