How to buy bitcoin

 

How to buy bitcoin

As the value of bitcoin continues to surge, there is almost no turning back…

There is a lot of speculation out there as to how and when bitcoin will finally take off beyond the realm of a buzzword.

As the value of bitcoin continues to surge, there is almost no turning back...

With the recent closing of bitcoin trading hands, there is almost no turning back.

In fact, CNN is reporting that the crypto currency is over 24 times more valuable than the Australian dollar.

“It isn’t unusual to see bitcoin go up and down 20 times a day. The fluctuation of bitcoin is unimaginable to most people.â€

Despite the sheer amount of media presence and hype surrounding bitcoin, there are several things that you need to know if you’re thinking of getting involved.

You don’t need a bank to buy bitcoin

While it’s true that bitcoin transactions are transparent to everyone, there are a few things you might need to be aware of.

In the UK, bitcoin transactions need to be effected using a debit or credit card to convert your bitcoin to sterling or dollars for settlements.

While you’re about to apply for a “bitcoin debit card†from American Express for a little over AU$50, you’ll actually be paying anything between AU$59 and AU$195 for transactions.

If you’re not too keen on applying for a bitcoin debit card though, you can also purchase bitcoin using a traditional bank account.

Bitcoin has no fixed rate of exchange

While the high volatility of bitcoin makes it a volatile currency when compared to the Australian dollar, the rate of exchange is actually pretty .

Other currencies (such as the British pound and Canadian dollar) have even pegged their bitcoin rates to the Australian dollar in order to keep their exchange in line.

However, there has been much speculation about a potential economic correction due to rampant inflation leading to further currency volatility.

Bitcoin can’t be used at home

According to Bank of Australia chief Philip Lowe, bitcoin’s value is increasing due to “speculationâ€.

“Bitcoin is not a currency. 

However, any bitcoin that you invest in shouldn’t be used domestically.

You can’t buy bitcoin using the correct currency

“Your bitcoin will be worth more when you sell it – that’s the nature of money.â€

By this, he means that bitcoin is now worth a lot more than the values of everyday currencies. This means that you can’t get the money you’ve invested in bitcoin using any other currency.

You will have to take bitcoin exchange brokers to buy bitcoin.

Bitcoin is prone to scams

Despite the popularity of bitcoin and the popularity of using it for transactions, there’s also been reported scams happening.

In April of 2017, news agency Bloomberg reported that many digital currency start-ups weren’t being regulated by the regulator who licenses them.

Because of the incredible increase in bitcoin’s value in the last few years, scammers are targeting new traders and savvy entrepreneurs alike.

The financial services industry in the UK is legalised and regulated, which is something that Australia isn’t.

While some may say that this situation is temporary, it could set a negative precedent for future businesses in the banking and financial sector.

Nevertheless, it’s safe to say that scam attempts and hacks aren’t the only reason that people will choose to invest in bitcoin.