Bitcoin is an entirely digital currency – no physical bitcoins exist. It isn’t issued or controlled by a centralised authority such as a bank or government. All transactions are completed online through exchanges, and there are no go-betweens like brokers involved. This makes payments faster and reduces transaction fees.
Where to buy Bitcoin?
The first step in anyones cryptocurrency journey is usually by buying and owning Bitcoin. Buying Bitcoin online is a simple process, though if you're new, some of the concepts can be challenging when trying to take the first steps. We've put together this guide to help people understand how they can safely and securely buy, store and spend Bitcoin and other cryptocurrencies.
One of the first and most popular options for people is Coinbase.
Sign up to Coinbase and Receive $100 Free Cryptocurrency
Coinbase is currently available to over 100 countries worldwide.This makes it a great place to buy and safely store Bitcoin and other cryptocurrencies.
Coinbase operates as an exchange but also an online wallet. Step 1 : Download Coinbase HERE Step 2 : Open an account Step 3 : Add funding method Step 4 : Buy the cryptocurrency Step 5 : The fun part; spending!
Coinbase works at both an exchange and a wallet in that you can transfer and spend the cryptocurrency directly from the wallet by simply scanning a QR code or entering the cryptocurrency address.
The worlds largest cryptocurrency exchange by volume, operating since July 2017. Binance has a large selection of cryptocurrencies available to buy and trade.
There are two main ways to buy Bitcoin on Binance using cash: you can link your debit/credit card or bank account, or buy crypto directly from other users on Binance P2P. Buy Bitcoin with a Debit Card, Credit Card, or via Bank Transfer Linking your debit card, credit card, or bank account is one of the easiest ways to buy Bitcoin. Through this method, you can buy Bitcoin for a minimum of about $15.
Another method to buy Bitcoin is through P2P Trading, this can be done in person or over an online platform. We personally like LocalBitcoins
Is Bitcoin safe?
Unfortunately, there are a lot of scams involving Bitcoin. Fake exchanges exist that lure people in with the promise of cheap Bitcoins, and criminals use malware to change bitcoin addresses so they can redirect transactions to themselves.
Bitcoin claims that transactions are “secured by military-grade cryptography” so no one can take your money or make payments on your behalf. However, a number of exchanges have been subject to hacks to steal stored Bitcoins. For this reason, some Bitcoin users store them offline, such as in “cold storage” on their PC desktop, or in a hardware wallet like a USB flash drive, and even write the security details down on paper.
Do I have to pay tax on Bitcoin?
Bitcoin is legal in the UK and most other developed countries, but it’s not legal tender. If you are an individual holding cryptoassets like Bitcoin as a personal investment, you may have to pay capital gains tax when you sell them because they are not eligible to be held in an ISA (a tax-free savings and investing account). They are also subject to income tax and National Insurance if you receive them from your employer as payment, or if you mine them (create new ones). If HMRC thinks you’re making money from cryptocurrencies as a business, you’ll be taxed in the usual way that applies to companies. Bitcoin is highly volatile, so shouldn’t be considered as a central part of your investment portfolio. But if you’ve got spare cash you’re not afraid to lose, you could be laughing all the way to the bank if you believe, like one prominent investor, that Bitcoin’s market cap could hit $5tn over the next decade. WARNING: We cannot tell you if any form of investing is right for you. Depending on your choice of investment your capital can be at risk and you may get back less than originally paid in.