Bitcoin is a digital currency, also known as a cryptocurrency. Unlike fiat currencies, bitcoins are not physical objects. Instead, they exist in the virtual world as snippets of code. This hasn’t stopped people from imagining what a bitcoin might look like in reality, and the crypto space is filled with artistic renderings of gold coins emblazoned with a B
Bitcoin has no central point of control, as with most currencies, and is sustained by individuals in the widespread cryptocurrency community. Simply put, Bitcoin operates for the people by the people. Instead of banks, Bitcoin users visit exchanges like Binance to buy or sell their coins. When their coins are not being used, people keep bitcoins in virtual wallets for safety.
Without blockchain technology, it would be impossible to use bitcoin. The Blockchain is a secure and anonymous way to move ideas and money anywhere in the world, by recording all transactions made within the cryptocurrency network, blockchain technology removes the need for a middle-person like a bank or payment app. Moreover, the Blockchain prevents any transactions from being removed, modified, or tampered without permission. This creates a chain of transactions, known as blocks.
If you’re new to bitcoin, we think the best way to get started is to purchase a small amount to see how it works for yourself, and to research the technology and risks before trading.
There are a few steps you need to follow before buying bitcoin:
Set up a wallet
A cryptocurrency wallet is a device, physical medium, program, or service which stores the public and/or private keys for cryptocurrency transactions. In addition to this basic function of storing the keys, a cryptocurrency wallet more often also offers the functionality of encrypting and/or signing information. Wallets can be on your mobile device, on your desktop, a physical hardware device that you can carry with you or even a piece of paper. Like all crypto wallets, a bitcoin wallet has both a private key and a public bitcoin address. The private key is what you use to access your public key or bitcoin address and interface with the bitcoin network. This can simply be thought of as your pin and is most commonly presented to the user as a 12-word passphrase. These words, or pin, will mean you can access your cryptocurrency wallet from anywhere. If you lose your wallet, you can use your passphrase to recover it. The public key or address can be used to send and receive bitcoin or BTC between parties.
There are different types of wallets from mobile wallets to desktop wallets and many more there are pro and cons of each one a figure out the best wallet for you.
Paper wallets are different from the other types of wallets and are often described as the most secure way to store your cryptocurrency. Unlike online wallets, this form of bitcoin storage is completely offline and physical, giving you full control. A paper wallet is exactly how it sounds, a piece of paper that contains your private key and public address, usually printed in the form of a QR code. Being a physical form of storage, it means you must take extra care to protect the paper. People with paper wallets often laminate the paper, or place it in a tamper-proof envelope and then within a safe to keep it completely safe and secure.
Secure against Malware, viruses, trojans, and keyloggers. (As long as keys are generated with secure equipment) Secure against online theft initiated by hackers or unscrupulous employees and owners of online wallets. Once set up, easy to maintain and re-import. Fairly secure against State and legal theft. Practically Free to setup
Paper wallets are fragile and must be stored with thought and care. Initially difficult to securely generate with an audited and clean computer Online Utilities are not as secure as offline generators against physical theft.
Desktop wallets are software packs created by wallet companies that you download directly to your desktop. They’re convenient because you can access them from your computer through the wallet program instead of through a browser. Because you can transact offline, they’re safe from malware and virus threats. Also, your private keys aren’t stored on a third-party server with desktop wallets. Instead, you control the encrypted key. As long as you don’t lose it, your cryptocurrency is safe from hackers.
Pros: Convenient if you trade on your computer; safer than online or mobile wallets
Cons: Less convenient for on-the-go trading and usage; you need to back up your computer regularly.
Physical Hardware Wallets
The main disadvantage of hardware wallets is the cost. While you can get a mobile wallet or online wallet for relatively cheap But, when you consider that your risk of losing cryptocurrency is drastically lower when you use a hardware wallet, you might find that it’s worth the upfront cost. Further, hardware wallets aren’t as convenient as online or mobile wallets for making transactions on the spot. They’re better for storing cryptocurrency than for spending it.
Pros: Very secure; cold storage; good for storing large amounts of cryptocurrency
Cons: Most expensive type of cryptocurrency wallet; less convenient for on-the-go transactions
UK makes it easy to buy digital currencies by providing a number of different payment methods which are convenient to you. Each payment method may have different limits, fees, and availability. Bitcoin is not as complicated as it seems. It’s easy provided you know when and where to invest your funds to make the right Bitcoin Purchase.
The famous and reliable exchange’s across UK are:
Since its launch in 2017, Binance has come a long way and is now considered the biggest Cryptocurrency trading platform and maintains the highest 24-hour trading volume. Binance allows its users in the UK to directly deposit funds in their accounts with debit and credit cards. Binance charges a 0.1% spot trading fee and 0.5% instant buy/sell trading fee along with some withdrawal fees based on Bitcoin network fees. The trading fee on Binance is an affordable price to pay for a platform that offers one of the highest numbers of Crypto trading pairs to trade. Binance is also known for the simple and elegant API that facilitates effective trading with utmost transparency.
Coinbase is considered one of the safest and easiest ways of buying Bitcoin in the UK, with GBP deposits via fast payments. Coinbase is one of the first platforms to hold an FCA-approved e-money license making them safe and approved. They only charge a transaction fixed fee of 0.5 % which is the lowest in the market and it’s very easy to use.
One of the most recent popular hits in the trading space to buy Bitcoin is Coinmama. The company is known for the spectacular support that it offers with every trade and the prices mentioned seem to be as same as the ones quoted in the market. But with every privilege comes a downside and this is a bit on the heavy side. Coinmama charges its customer 5.5% transaction fee for trading. One of the most commonly mistaken facts about Coinmama is that Coinmama is not a crypto wallet and this means that you will have to have a wallet added to your coinmama account before making a purchase.
Wirex was considered the cheapest among the other competitors where you can buy bitcoin. Wirex charges 1% fee to buy bitcoin using a debit or credit card and bank deposits are completely free of charge but can take up to 2-3 days to show up in your account and are also only available to users with a fiat account. Wirex also charges fixed account maintenance fees but if you are ok with some extra charges, Wirex might just be what you are looking for when it comes to making your Bitcoin purchase.
Keep your bitcoin secure
It is important to keep the bitcoin that you’ve purchased safe and secure just as you would with a bank account.
Create backups of your private keys. To protect against robbery, fire, or hard drive failure, we recommend you to keep a backup of your private keys kept off-site.
Never give your private keys to anyone. Giving another person your private keys is the same as giving them access to your bank account.
Mobile and Desktop Wallets: Keep your offline and online wallets up to date with the latest software. This will ensure they are as secure as possible.