Below are a few of the various processes available for obtaining some Bitcoin of your own. Among the most common ways to get bitcoins is through an exchange. Websites like Bitstamp, BTCE, or Cavirtex here in Canada, let you buy Bitcoin. This seems like an excellent choice, and in some ways it’s, but it’s its disadvantages too.
Among the important ones is the exchanges need you to add your private information to them via Understand Your Customer laws that is present in many states with regard to money-related companies.
I might be a bit paranoid, but who knows what might occur as time goes by. Who understands what is next?
As you are able to tell, I am not a huge fan of the exchanges. The notion that I need certainly to give up my private information to an entity which might need certainly to release that info appears to go against the heart of Bitcoin. Luckily, you can find alternatives.
Needless to say, there is just one spot Bitcoins actually come from; mining. If you get in possession of a mining rig, proceed and mine away! Or if you’ve got a computer fast enough to allow it to be rewarding, that is cool also.
But be cautious!
Honestly, mining with your computer is not truly worth it. Not anymore. As the mining problem increases, it becomes a growing number of difficult to get any profit from it. And unless you’ve got a committed mining rig, your odds of getting any kind of return from mining is quite low.
Some claim that mining is on its way out, as well as purchasing a committed mining rig is not actually a legal option anymore. I differ, but that is a subject for another day.
Purchase them from an exclusive brokerage
If you are able to discover a private agent, it is possible to hook up with them and exchange. This has some clear advantages, but in addition, it has drawbacks.
To begin with, it is totally anonymous. Even if you meet in person, there is no reason you have to use your actual name, or any facts about yourself other than your wallet amount to allow them to transfer the funds to you personally. And if you pay cash, the banks can not follow it either. So if this’s a concern for you, you are running a business. But of course with anonymity comes some danger at the same time.
You may pay a cost premium for that anonymity at the same time. From my experience, it can be just as much as 15-20% higher than typical exchange costs. But again, if anonymity is significant for you, that is a little price to pay.
They could be legit and fair, but they could just as readily be dishonest and willing to rip you away. Having said that, buying from a personal brokerage is my preferred way of purchasing Bitcoin. But it is vital that you have security measures set up, otherwise you are leaving yourself open to getting irritated.
Amidst all the investors becoming involved with Bitcoin and the thrills around the movement, it is easy to forget that Bitcoin is not only a popular commodity or high value stock. It is designed as a kind of money. And if you run a company, you’ll be able to take Bitcoin as payment as an alternative to cash.