Starting with crypto is surprisingly straightforward. A beginner can buy Bitcoin confidently and responsibly with just a little prep. We’ve outlined the steps to make your first (and future) crypto transactions simple, stress-free, and secure. Get started with crypto today!
But first, let’s kick off with a few must-knows.
- Cryptocurrencies are virtual currencies that exist in the form of digital files.
- The crypto’s blockchain, which is a type of distributed ledger, records and encrypts transactions, such as buying and selling cryptocurrency.
- A distributed ledger is an uneditable database spread across several computers in a network. Distributed ledger technology can take different forms. A blockchain is one type.
- Cryptocurrency is decentralized. There is no central server that alone holds a crypto’s blockchain.
- On the other end of the spectrum, fiat currency is backed by the government that issues it. The U.S. dollar is an example. Cryptocurrency is appealing to many crypto enthusiasts because it isn’t overseen by a government.
- You can use cryptocurrency to buy a wide range of goods and services, from a space heater on Overstock.com to a flight into space on Virgin Galactic. Many investors see cryptocurrency as a long-term investment.
- As of August 2021, 5,800 cryptocurrencies exist. But not all cryptos are created equal. We recommend starting with the more established currencies, like Bitcoin (BTC), which is the most well-known, widely accepted, and highest-valued crypto today. Ethereum (ETH) is currently the second-largest crypto by market capitalization.
Learn the 10 things you must know about crypto for further knowledge on Bitcoin mining, proof of work, and other underlying key concepts.
Who’s Involved In Crypto?
Silicon Valley techies and Wall Street wizards aren’t the only ones trading Bitcoin. An August 2021 CNBC and Momentive Poll found that 1 in 10 people in the U.S. has invested in cryptocurrencies. That’s why Coinsource has Bitcoin ATMs in states from coast to coast.
60% of respondents expressed interest in crypto’s long-term growth, 33% appreciate the ease of making their own trades, and 26% enjoy the excitement of investing.
Types of Crypto Exchanges
A cryptocurrency exchange is a digital marketplace where users buy and sell crypto. Many exchanges exist, and most operate using one of the following models.
- Centralized cryptocurrency exchanges (CCEs) are run by companies that facilitate transactions between crypto buyers and sellers. They offer some degree of protection for users and charge fees for their services.
- A peer-to-peer (P2P) exchange functions like a Craigslist for crypto. Buyers and sellers post transactions they want to conduct, and interested parties connect with them. There’s no third party to protect transactions.
- Decentralized exchanges (DEXs) are peer-to-peer exchanges that share some characteristics with centralized exchanges. DEXs bring together buyers and sellers but are not involved in the actual transactions.
- Cryptocurrency ATMs are physical kiosks that work like currency exchanges at the airport where you exchange your currency for a different currency for a fee. Bitcoin ATMs are intuitive to use and present one of the quickest and most secure ways to buy Bitcoin.
For more details about purchasing crypto, check out How to Buy Bitcoin.
Let’s explore the benefits of physical kiosks, using Coinsource Bitcoin ATMs as our example. Coinsource kiosks offer first-time Bitcoin buyers an ideal introductory experience. Some reasons why:
- Coinsource is the world’s largest Bitcoin ATM operator.
- Coinsource ATMs are optimized for Bitcoin.
- Two-way Coinsource ATMs both buy and sell Bitcoin, enabling you to buy Bitcoin with fiat or convert Bitcoin and withdraw fiat cash.
- Coinsource commits to 100% regulatory compliance.
- Coinsource’s nationwide Bitcoin ATM locations continue to grow.
Before you head out to that Coinsource Bitcoin ATM, follow these three steps.
Step 1: Set Up an Account
Create your Coinsource account. You’ll need to supply a photo of the front and back of your State ID or Driver’s License, plus a selfie without any filters. You’ll receive a text once your account has been processed and approved.
Step 2: Get a Bitcoin Wallet
You’ll need a Bitcoin wallet, which can come in many forms. (Read about the various types of crypto wallets here.) A mobile wallet is the most convenient option for kiosk transactions.
Step 3: Buy Yourself Some Bitcoin
Locate the nearest Bitcoin ATM and follow its prompts to purchase Bitcoin at the current market price, minus an operating fee. Coinsource covers all mining fees for you, and there are NO additional hidden fees. A confirmation receipt indicates your transaction is complete!
Now you know how to get started with crypto and make a simple, stress-free, and secure Bitcoin purchase. Welcome to the new age of finance!
Want to know more? We’ve got your back. Here are some additional Coinsource resources especially for those just starting.
- How to Use a Bitcoin ATM
- 80 Popular Crypto Terms Explained
- 10 Best Crypto Podcasts You Need to Listen To
- Back to School: A Crypto Education
Coinsource is the world leader in Bitcoin ATMs. With a focus on compliance and ease of use, Coinsource is aiming to bring Bitcoin to the masses. Follow for blogs about Bitcoin, finance, company updates and Bitcoin ATM information!