Buy

banktobit

bitinstantFastest/Most Expensive: BitInstant

By far the quickest way to get bitcoins but it comes at a price.  They charge up to 10% to send coin right to your wallet and could charge up to an extra 1.89% to send it to an exchange that you can purchase at your own price point.  Expensive, but if the market is going up and you make a fast decision than this fee is negligible since you will likely gain your losses back within a couple of days.  It’s pretty easy to figure out yourself, but check out this quick guide if you would like to know how to buy using this system.

mtgox-bitcoinLeast Expensive: Mt.Gox

This is an extensive process, takes a month for you to be able to use, but is the least expensive process to obtain your coin and you get to see where your money is moving every step of the way.  It is also the cheapest way to cash out your bitcoin and exchange it for whatever currency you need

Part 4: Buying Bitcoin

Now you’re finally ready to buy.

If you do not know much about market data, don’t try to day trade and take guesses.  The Bitcoin market is in its infant stages and can be extremely volatile, going up and down daily.  Unless you know how to read and analyze market data, don’t be risky and just buy at market price or at a price near market that you think is fair.  If you’d like to learn how to trade better check out these links:

Once you execute an order, an email will be sent to you stating that your order is complete and you should have bitcoin displayed in your Mt.Gox account.  Congratulations, you just bought your first bitcoins!

Now that you have bitcoin, its important to get it off of the internet and into your wallet.  Unlike having a bank account where if something happens to your funds you may be able to be reimbursed by your bank, bitcoin is not regulated by a particular business.  If you leave it sitting somewhere on the internet and an intelligent hacker finds it, your money could be gone forever.  You should now read my guide on creating a digital wallet to store all of your bitcoins offline.

What a long process! But now that you have it set up, you’re good to go for all future transactions and can even move bitcoins from any address and sell them on Mt.Gox to exchange them for hard currency.  You may be asking yourself, is it really worth my time to go through this extensive process to obtain bitcoin and pay money to have just another currency?  Well, let me remind you of what your hard efforts have resulted in.

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