A brief introduction on how to buy bitcoins as a trading currency these days

Being a popular form of currency, Bitcoins are gaining worldwide popularity these days, as a result of which many people have shown their interest in buying them. Although many financial executives advise people to stay away from this form of cryptocurrency due to its fluctuating value, it is still being adopted at a rapid pace. To buy bitcoins, you can register for free with the wallet system by filling in all the details online or by downloading a mobile app and start investing in them. Once people have it, a simple bank payment method can be used to exchange them. However, since security is the main factor, it is necessary that these wallets remain secure, and that is why one can choose a bitcoin service such as coinbase wallets that have high standards and are easy to use.

Although an online wallet is a convenient method of buying bitcoins, there are several other options, such as choosing a bitcoin seller. It is also important to choose the right one because there are traitors and you have to be careful about them. While there are many established exchanges that offer wallet services to users when looking for a bitcoin wallet system, an individual should choose one that has multi-signature. Users can also use the bitcoin exchange search on their respective computers or mobile phones and by entering some general information such as entering the name of their country, a person can find out the wide variety of exchanges available around the world and also check its current version. status. Users can also use the liquid money they have as there are various options in the market such as local bitcoin services that help users exchange it for cash. Such areas allow users to visit a nearby bank branch to deposit cash and receive the bitcoins after some time.

Many believe that bitcoins represent a new era of digital currency and are often confused with them. However, since the Bitcoin chain system is completely computerized, it is quite simple and easy to buy and use them, especially since they are hellishly cheap when it comes to international transactions. Since exchanges require different payment processes such as credit or debit cards, buyers can also shop online by opening an account based on their respective geographic location. Once the exchanges receive the payments after verification, they will hold the bitcoins on behalf of the individuals and present them in the respective wallets. For this they charge certain fees. The whole process can be time consuming. Many people learning how to buy bitcoins can also use the PayPal method for financial interactions.

Bitcoin Basics

For someone unfamiliar with Bitcoin, the first question that comes to mind is: “What is Bitcoin?” And another common question that is often asked is about the price of Bitcoin. It started below 10 cents per bitcoin since its introduction in early 2009. Since then, it has grown steadily and recently hovered around $4,000 per bitcoin. So when it comes to bitcoin value or bitcoin exchange rate, this is the most remarkable appreciation of value and has created many, many millionaires over the last eight years.

The Bitcoin market is worldwide, and citizens of China and Japan are particularly active in purchasing it, along with other Asian countries. However, in recent Bitcoin news, the Chinese government has tried to crack down on its activities in that country. That action briefly reduced the value of Bitcoin, but it soon recovered and is now close to its previous value.

The Bitcoin history chart is very interesting. Its creator was an anonymous group of brilliant mathematicians (using the pseudonym Satoski Nakamoto) who designed it as “virtual gold” in 2008 and released the first Bitcoin software in early 2009 at the height of the US economic crisis. They knew that to have lasting value it, like gold, must have a limited supply. So when they created it, they limited the supply to 21 million bitcoins.

Bitcoin mining refers to the process by which new Bitcoin is created. With conventional currency, the government decides when and where to print and distribute it. With Bitcoin, “miners” use special software to solve complex mathematical problems and are issued a certain amount of Bitcoins in return.

The question then becomes, is Bitcoin mining worth it? The answer is NO for the average person. It requires very sophisticated knowledge and a powerful computer system, and this combination of factors makes it inaccessible to the masses. This is even more true for Bitcoin mining in 2017 than in previous years.

Many people wonder who accepts Bitcoin. This question is asked in different ways: what are the stores that accept bitcoin, what are the websites that accept bitcoin, what are the retailers that accept bitcoin, what are the places that accept bitcoin, and where can I spend bitcoin.

More and more companies are starting to see the value of accepting cryptocurrencies as a valid payment option. Some of the big companies are DISH Network, Microsoft, Expedia, Shopify Stores, Newegg, Payza, 2Pay4You, and others. The two main repositories at the moment are Walmart and Amazon.

Ethereum is Bitcoin’s strongest competitor in the cryptocurrency market and many are wondering about Bitcoin vs Ethereum. Ethereum was created in mid-2015 and has gained some popularity, but is still far behind Bitcoin in terms of usage, adoption and value.

A question that often comes up is often about Bitcoin fraud. This author has a friend who buys from a company that promises 1-2% daily growth. There is no contact information on the company’s website and after a few months the website just disappeared one day and my friend lost all the money he invested which was several thousand dollars.

To get started, you need to know how to buy bitcoins, how to buy bitcoin or how to buy bitcoin with a credit card. Coinbase is a very popular site to do this. Their fee is 3.75% and their purchase limit is $10,000 per day. This will probably be the easiest way to buy bitcoins.

Others would like to buy bitcoin with a debit card. Coinbase also provides this service and has clear step-by-step instructions on how to handle your debit or credit card.

There are those who want to buy Bitcoin immediately. This can be done at Paxful, Inc. and can be done via W. Union or any credit/debit card.

Other common questions that come up are what is the best way to buy bitcoins, the best way to get bitcoins, or where to buy bitcoins online. The easiest way is probably to buy it through a digital asset exchange like the previously mentioned Coinbase. Opening an account with them is painless and once you link your bank account with them you can buy and sell Bitcoin quite easily. This is also probably the best place to buy bitcoins.

Need to know what a Bitcoin wallet is and how to use it. It’s just the Bitcoin equivalent of a bank account. It allows you to receive bitcoins, store them and send them to others. What it does is store a set of Bitcoin privacy keys. It is usually encrypted with a password or otherwise protected from unauthorized access.

There are several types of digital wallets to choose from. The web wallet allows you to send, receive and store Bitcoin through your web browser. Another type is a desktop wallet, and here the wallet software is stored directly on your computer. There are also mobile wallets designed for mobile device use.

A question that sometimes comes up is about Bitcoin shares, or how to buy Bitcoin shares. The most common way to proceed in this area is to buy Bitcoin directly, rather than its shares.

There is one entity called the Bitcoin Investment Trust, which is an investment fund designed to track the market flow of Bitcoin. Some analysts, however, see this as a risky way to get involved in this market.

The Bitcoin USD exchange rate has been a closely watched benchmark both daily and long-term for the past 8 years since its introduction to the global financial market. A popular company that gets the most up-to-date rate in Bitcoin valuation is XE. They show Bitcoin to USD valuation as well as complete Bitcoin price chart, Bitcoin value chart and Bitcoin to USD chart. If you ask “How much is one bitcoin?” you will always know from their constantly updated charts.

Similar questions that arise in this area are bitcoin exchange rate history, bitcoin price chart, bitcoin to dollar exchange rate, bitcoin dollar chart and bitcoin 5 year chart. The “xe” site mentioned earlier is also a good source for answers to these questions.

As for Bitcoin cash, that is. To get US dollars from selling Bitcoin, Bitwol is a company that allows you to do just that. WikiHow is another company that will walk you through this process.

Bitcoin Predicted Value is a frequently discussed topic. In January 2015, the price of one bitcoin was $215. Currently, it is about $5,000. This is a phenomenal increase and far more than most experts predicted at the time. Currently, when reviewing the predictions of experts around the world, the general answer is that the highest value will be around $10,000, and one expert even predicted that the value will reach $100,000.

Guide to Buying Bitcoin – An Easy 3-Step Guide to Buying Your First Bitcoin

Looking for a guide to buying Bitcoin? Wondering where to start? People have many misconceptions about Bitcoin, the first widely known and accepted cryptocurrency worldwide.

Many people think, for example, that only hackers and shady people use it. However, Bitcoin is actually making the rounds with everyone from TigerDirect to Expedia.com to Dell and even Subway now accepting Bitcoin payments.

Why so popular?

Well, Bitcoin has many advantages over other currencies. For example, you can send bitcoins to someone as payment without going through a bank intermediary (and incurring additional fees). It’s also much faster than sending money via bank wire or wire transfer. You can send bitcoins to someone and have them receive the coins within seconds.

With all of this, it’s no wonder that many people are now trying to buy Bitcoin for the first time. However, it’s not as easy as going to your bank and withdrawing bitcoins, or going to a store and taking out your hard-earned cash in exchange for bitcoin.

The system works a little differently than that. This guide to buying Bitcoin will cover a few things you need to know before you buy so you can buy safely and securely.

First, even though the price of one coin can exceed $2000, you don’t have to buy all the bitcoins. Most places will let you buy parts of bitcoin for $20. So you can start small and go from there as you feel more comfortable with how things work.

Second, this article is for general purposes only and should not be construed as financial advice. Bitcoin can be risky and you should consult your financial advisor before making any purchase to determine if it is right for you.

So here are 3 easy steps to buy bitcoins:

#1 Get a Bitcoin Wallet

The first thing to do before buying your coins is to get a virtual wallet to store your coins. This wallet is a string of text that people can use to send you bitcoins.

There are a number of different types of wallets, including ones you download to your phone or computer, online wallets, and even offline, cold storage wallets.

Most people prefer to receive a wallet by phone or computer. Popular wallets include Blockchain, Armory, Bitgo MyCelium, and Xapo.

It’s usually as simple as downloading the wallet as an app to your phone or downloading the software to your computer from the wallet’s main website.

#2 Decide where to buy

There are several types to buy, and each one is a little different. There are online sellers that will sell you bitcoins directly for cash (or bank wire or credit card).

There are exchanges where you can buy and sell bitcoins from others, similar to the stock market. There are also local exchanges that connect you with sellers in your area who want to sell.

There are also ATMs where you go to make cash purchases and have your coins delivered to your wallet within minutes.

Each bitcoin vendor has its own advantages and disadvantages. For example, ATMs are great for privacy, but they will charge you up to 20% of the going rate, which is ridiculous. (At a BTC price of $2000 that $400. So you pay $2400 instead of $2000).

No matter where you decide to buy, remember to do your research and go with a trusted seller with a good reputation and strong customer service. First-time buyers in particular will have questions and may need additional support to help them with their first transaction.

Take your time and research different places to buy before making a decision. Factors considered include coin prices, additional fees, payment method, and customer service.

#3 Buy Bitcoin and transfer it to your wallet

Once you’ve found a place to buy, have your funds ready (ie, you can wire money or use your Visa to fund your account). Then wait for a good price. (Bitcoin prices always fluctuate 24 hours a day, 7 days a week). Then order when you’re ready.

Once your order is complete and you have your coins, you will want to send them to your wallet. Just enter your bitcoin address and ask the seller to send you your bitcoins. You should see them appear in your wallet within minutes to an hour (depending on how fast the seller sends them).

Voila, you now own a bitcoin. Now you can send coins to pay for other goods and services, or hang onto them for a rainy day.

One last thing to remember is that Bitcoin is still in its infancy. There are huge price swings and the currency can be risky. Never buy more bitcoins than you can afford to lose.

Should You Buy Bitcoin?

As the current world leader in the Cryptocurrency market, Bitcoin has made some serious headlines and some major fluctuations over the past 6 months. Almost everyone has heard of them, and almost everyone has an opinion. Some people cannot fathom the idea that a currency of any value can be created out of nothing, while others like the idea that something without government control can be traded as an entity of value.

Where do you sit on the Should I Buy Bitcoin? The fence probably comes down to one question in the end. Can I make money from Bitcoin?

Can you make money from bitcoin?

In just the last 6 months, we have seen the price go from $20 a coin in February, to $260 a coin in April, to $60 a coin in March, and to $130 a coin in May. The price has now reached around $100 per bitcoin, but what happens next is anyone’s guess.

Bitcoin’s future ultimately rests on two key variables: its acceptance as a currency by a wide audience and the lack of prohibitive government intervention.

The Bitcoin community is growing rapidly, interest in the Crypto currency has exploded online, and new services are increasingly accepting Bitcoin payments. Blogging giant WordPress accepts Bitcoin payments, and African mobile app provider Kipochi has developed a Bitcoin wallet to allow Bitcoin payments on mobile phones in developing countries.

We have already seen people make millions with the currency. We’re seeing a growing number of people experimenting with living on Bitcoin alone for months at a time while documenting the experience for documentary viewing.

You can buy food in Boston, coffee in London, and even a few cars on Craigslist using Bitcoin. Bitcoin searches increased in 2013 with the April spike and the subsequent fall in the price of Bitcoin. Last week, the first major purchase of a bitcoin company was for online gambling site SatoshiDice for 126,315 BTC (about $11.47 million), from an undisclosed buyer.

This rapid increase in awareness and adoption looks set to continue if confidence in the currency remains strong. Which leads to the second addiction. Government regulation.

Although specifically designed to operate independently of government oversight, Bitcoin will inevitably be affected by governments in some way. It should be for two reasons.

First, to achieve a high level of adoption, Bitcoin must be accessible to a large number of people, and that means expanding beyond hidden transactions to the normal day-to-day transactions of individuals and businesses. Second, these Bitcoin transactions can become a traceable part of people’s taxable wealth, to be declared and regulated along with any other type of wealth.

The European Union has already stated that Bitcoin is not classified as fiat currency or as money, and as such will not be regulated on its own. In the United States, the 50-state system and the number of bureaucracies involved have inevitably made decisions more complex, with no consensus yet being reached. Bitcoin is not considered money as such, but it is treated like money.

The thriving Bitcoin market in the US has a more uncertain future for now, and any eventual legislation in the US could have either a very positive or a very negative impact on the future of Bitcoin.

So Should You Buy Bitcoin?

The answer largely depends on how risk averse you are. Bitcoin will certainly not be a smooth investment, but the potential of this currency is huge.

How to Buy Bitcoin – Step One

The best way to learn about bitcoin, is to jump in and get a few in your “pocket” to get a feel for how they work.

Despite the hype about how difficult and dangerous it can be, getting bitcoins is a lot easier and safer than you might think. In a lot of ways, it is probably easier than opening an account at a traditional bank. And, given what has been happening in the banking system, it is probably safer too.

There are a few things to learn: getting and using a software wallet, learning how to send and receive money, learning how to buy bitcoin from a person or an exchange.


Before getting started, you will need to get yourself a wallet. You can do this easily enough by registering with one of the exchanges which will host wallet for you. And, although I think you are going to want to have one or more exchange wallets eventually, you should start with one on your own computer both to get a better feel for bitcoin and because the exchanges are still experimental themselves. When we get to that stage of the discussion, I will be advising that you get in the habit of moving your money and coins off the exchanges or diversifying across exchanges to keep your money safe.

What is a wallet?

It is a way to store your bitcoins. Specifically, it is software that has been designed to store bitcoin. It can be run on your desktop computer, laptop, mobile device (except, as yet, Apple) and can also be made to store bitcoins on things like thumb drives. If you are concerned about being hacked, then that is a good option. Even the Winklevoss* twins, who have millions invested in bitcoin, put their investment on hard drives which they then put into a safety deposit box.

*The Winklevoss twins are the ones who originally had the idea for a social networking site that became Facebook. They hired Mark Zuckerberg who took their idea as his own and became immensely rich.

What do you need to know about having a bitcoin wallet on your computer?

Below you can download the original bitcoin wallet, or client, in Windows or Mac format. These are not just wallets, but are in fact part of the bitcoin network. They will receive, store, and send your bitcoins. You can create one or more addresses with a click (an address is a number that looks like this: 1LyFcQatbg4BvT9gGTz6VdqqHKpPn5QBuk). You will see a field where you can copy and paste a number like this from a person you want to send money to and off it will go directly into that person’s wallet. You can even create a QR code which will let someone take a picture with an app on their phone and send you some bitcoin. It is perfectly safe to give these out – the address and QR code are both for my donations page. Feel free to donate!

NOTE: This type of wallet acts both as a wallet for you and as part of the bitcoin system. The reason bitcoin works is that every transaction is broadcast and recorded as a number across the entire system (meaning that every transaction is confirmed and made irreversible by the network itself). Any computer with the right software can be part of that system, checking and supporting the network. This wallet serves as your personal wallet and also as a support for that system. Therefore, be aware that it will take up 8-9 gigabytes of your computer’s memory. After you install the wallet, it will take as much as a day for the wallet to sync with the network. This is normal, does not harm your computer, and makes the system as a whole more secure, so it’s a good idea.

Bitcoin Qt

  • The original wallet.
  • This is a full-featured wallet: create multiple addresses to receive bitcoins, send bitcoins easily, track transactions, and back up your wallet.
  • Outside of the time it takes to sync, this is a very easy to use option.
  • Search for Bitcoin Qt wallet download to find their site.


  • Runs on top of Bitcoi Qt, so it has all of the same syncing requirements.
  • Armory allows you to back up, encrypt, and the ability to store your bitcoins off line.
  • Search for Bitcoin Armory Wallet to find their site.

If you don’t want to have that much memory used or don’t want to wait for your wallet to sync, there are good wallets that do not make you sync the entire history of bitcocin:


  • A lightweight wallet that syncs quickly. This is very good for new users.
  • Search for Bitcoin Multibit Wallet to find their site.


  • In addition to being quick and light, this wallet allows you to recover lost data using a passcode.
  • Search for Bitcoin Electum Wallet to find their site.

After you get the wallet set up, take a few minutes clicking around. Things to look for:

o There will be a page that shows you how many bitcoins are currently in your wallet. Keep in mind that bitcoins can be broken up into smaller pieces, so you may see a decimal with a lot of zeros after it. (Interesting note, 0.00000001 is one Satoshi, named after the pseudonymous creator of bitcoin).

o There will be an area showing what your recent transactions are.

o There will be an area where you can create an address and a QR code (like the one I have above). You don’t need the QR code if you don’t want it, but if you run a business and you want to accept bitcoin, then all you’ll need to do to accept payment is to show someone the QR code, let them take a picture of it, and they will be able to send you some money. You will also be able to create as many addresses as you like, so if you want to track where the money is coming from, you could have a separately labeled address from each one of your payees.

o There will be an area with a box for you to paste a code when you want to send money to someone or to yourself on an exchange or different wallet.

There will be other options and features, but to start out with, these are the items that you should know about.

Getting Your First Bitcoins

Now that you have a wallet, you will, of course, want to test them out.

The very first place to go is http://faucet.bitcoin.st/.

This is a website that gives out small amounts of bitcoin for the purpose of getting people used to using them. The original version of this was run by the lead developer of bitcoin, Gavin Andreson. That site has since closed and this site operates by sending out one or two advertisements a month. You agree to receive those messages by requesting the bitcoins. Copy and paste your new bitcoin address and enter a phone number to which you can receive an SMS. They send out an SMS to be sure that people are not continuously coming back for more since it costs nothing to create a bitcoin address. They will also send out once or twice a month advertisement to support their operation. The amount they send it trivial: 0.0015 BTC (or 1.5 mBTC). However, they process almost immediately and you can check to see that your address and wallet are working. It is also quite a feeling to get that portion of a bitcoin. (Non-disclaimer: I have no connection with this site and receive nothing if you use them. I simply think they are a good way to get your feet wet).

Congratulations! You have just entered the bitcoin economy.

To get your feet a little wetter, you can go panning for gold. There are a number of services and websites out there that will pay you in bitcoin to do things like go to certain websites, fill out online surveys, or watch sponsored videos. These are harmless, and you can earn a few extra bitcoins this way, but it is important to remember that these are businesses that get paid when people click on the links on their sites. They are essentially kicking back a portion of what they get paid to you. There is nothing illegal, or even immoral about this (you might like what you see and make a purchase!), but they are frequently flashy and may not be completely straightforward. All the ones that I have tried (particularly bitvisitor.com) have paid out as advertised. It is interesting to experiment with these, but even with the likely rise in the value of bitcoin, you won’t become a millionaire doing this. So, unless you are an advertisement junkie, I would recommend you move on. If you would like to try, simply Google “free bitcoins” or something along those lines and you will find numerous sites.

Buying Bitcoin Hand-to-Hand

Finally, this is going to be the real test of bitcoin. Can people easily trade them back and forth? If this can’t happen, then there can’t really be a bitcoin economy because retailers won’t be able to use it. If retailers can’t use it, what earthly good is it? Fortunately, this is not really a problem. iPhone is a bit of a hold out, but many smartphones have apps (mobile wallets) that will read QR codes and allow you to send bitcoin to whomever you want. You can also display a QR code of your address, or even carry a card in your wallet with your QR code to let people send bitcoin to you. Depending on what kind of wallet you have, you can then check to see if the bitcoins have been received.

A couple of things to note:

  • When you set up your wallet, if you click around a bit, you will see an option to pay a fee to speed transactions. This money becomes available to a bitcoin miner as he/she/they process bitcoin information. The miners doing the work of creating blocks of information keeps the system up to date and secure. The fee is an incentive to the miner to be sure to include your information in the next information block and therefore “verify” it. In the short term, miners are making most of their money by mining new coins (check the section on What Are Bitcoins for more information about this). In the long term, as it gets harder to find new coins, and as the economy increases, the fees will be an incentive for miners to keep creating more blocks and keep the economy going. Your wallet should be set to pay 0 fees as a default, but if you want, you can add a fee to prioritize your transactions. You are under no obligation to pay a fee, and many organizations that process many small transactions (like the ones that pan for gold described above) produce enough fees to keep the miners happy.
  • In clicking around your wallet, on the transactions page or linked to specific transactions, you will see a note about confirmations. When you make a transaction, that information is sent out into the network and the network will send back a confirmation that there is no double entry for that bitcoin. It is smart to wait until you get several confirmations before walking away from someone who has paid you. It is actually not very easy to scam someone hand-to-hand like this, and it is not very cost-effective for the criminal, but it can be done.

Where can you buy bitcoin like this?

  • You may have a bitcoin Meetup in your area.
  • You can check out localbitcoins.com to find people near you who are interested in buying or selling.
  • Some are trying to start up local street exchanges across the world. These are called Buttonwoods after the first street exchange established on Wall Street in 1792 under a buttonwood tree. See if there is one, or start one, in your area.
  • See if you have any friends who would like to try bitcoins out. Actually, the more people who start using bitcoin, the larger and more successful it will be come. So please tell two friends!

Some people ask if it is possible to buy physical bitcoins. The answer to this is both a yes and a no. Bitcoin, by its very nature, is a digital currency and has no physical form. However, there are a couple of ways that you can practically hold a bitcoin in your hands:

  • Cascascius Coins: These are the brainchild of Mike Caldwell. He mints physical coins and then embeds the private keys for the bitcoins inside them. You can get the private key by peeling a hologram from the coin which will then clearly show that the coin has been tampered with. Mike has gone out of his way to ensure that he can be trusted. These are a good investment strategy as in the years to come it may be that these coins are huge collector’s items.
  • Paper Wallets: A paper wallet just means that rather than keeping the information for your bitcoin stored in a digital wallet, you print the key information off along with a private key and keep it safe in a safe, in a drawer, or in your mattress (if you like). This is highly recommended and cost effective system for keeping your bitcoin safe. Keep in mind, though, that someone could steal them or if your house burns, they will go with the house and there will be no way to get them back. Really, no different than cash. Also, as with Casascius Coins, they will not really be good for spending until you put them back into the computer.

* There is software to make printing your paper wallets easier. bitcoinpaperwallet.com is one of the best and includes a good tutorial about how to use them.

* The bitcoins are not actually in the wallet, they are still on the web. In fact, the outside of the wallet will have a QR code that will allow you ship coins to the wallet any time you like.

* The sealed part of the wallet will have the private key without which you cannot access the coins. Therefore, only put as many coins on the wallet as you want to be inaccessible. You will not be able to whip this thing out and take out a few coins to buy a cup of coffee. Rather, think of it as a piggy bank. To get the money, you have to smash it. It is possible to take out smaller amounts, but at this point the security of the wallet is compromised and it would be easier for someone to steal the coins. Better to have them all in or out.

* People who use paper wallets are usually security conscious, and there are a number of ways for the nefarious in the world to hack your computer. Bitcoinpaperwallet.com gives a lot of good advice about how to print your wallets securely.

Some people have also asked about buying bitcoins on eBay. Yes, it is possible, but they will be far overpriced. So, selling on eBay might seem to be a better option given the extreme markup over market value you might see. But, as with anything that is too good to be true, this is too good to be true. As I will explain in the next section, selling bitcoin this way is just way too risky.

How Not to Buy Bitcoin

In the next section, I am going to explain a couple of key points about buying from Bitcoin Exchanges. Before I do, let me give you a warning.

A short history lesson: When people first started setting up actual business based on bitcoin, they used all of the tools available to any merchant. They sold by credit card and PayPal. The problem with this business model was quickly spotted: bitcoin transactions are not reversible by anyone except the recipient of the money. Credit cards and PayPal have strong buyer protection policies that make it relatively easy for people to request a chargeback. So, nefarious individuals realized this and began making purchases of bitcoin and then sooner or later requesting a chargeback. And, since bitcoin is a non-physical product, sent by new and poorly understood technological means, the sellers were not able to contest this. Because of this, sellers stopped accepting credit cards and PayPal.

This was a big problem for the currency: How to move money between buyers and seller? Some business emerged that would credit you with bitcoin if you wired them money. Very often these businesses would give addresses in Albania, Poland, or Russia. The fact is that many of these did work and there are a lot of stories on the forums of people who bought bitcoins this way. But it took a lot of time and in the meantime the buyer just had to bite his or her fingernails wondering if they would get their bitcoins or kiss their investment goodbye.

I expect that as bitcoin becomes more acceptable and valuable, we are going to see a version of the Nigerian Prince scam. So the warning is this: we now have exchanges and other businesses that allow for moving money easily onto and off of exchanges. Never wire money for bitcoin. It was a short-lived, and well-forgotten, moment in the history of bitcoin.

Next, I will be talking about how to buy from a bitcoin exchange and give a review of the some of the best known exchanges.