buying bitcoinIn order to get started using bitcoin, you will need to have some bitcoins or at least a fraction of a bitcoin in your possession. To get the bitcoin you will either need to trade for it, buy it, or be given it. Purchasing bitcoins is a great place to start learning about bitcoin.

There are different ways of purchasing and selling Bitcoins. Look at the variety of exchanges you can opt for when buying or selling Bitcoins.

There are two main methods of selling and procuring Bitcoins: selling/ buying in person or buying/ selling online. Each of the two options has its own share of pros and cons.

Online Method

Selling and purchasing Bitcoins online is a commonly practiced method of trading Bitcoins. There are three different ways you can make use of when making a Bitcoin trade online.

Direct Trade

Websites that provide you platforms for online trading include Bittylicious and BitBargain in the U.K and LocalBitcoins and Coinbase in the U.S. You need to get registered as a Bitcoin seller for trading on these sites. You would need to verify your identity for registering yourself. Most of the markets practicing Bitcoin trading don’t demand an extensive verification from the buyers, but aren’t that lenient with the sellers. They consider your joining date on the website, require you to give scans of any two (utility) bills that display your complete address and name along with your photo ID (your driving license or passport.) if you aren’t comfortable giving your personal documents, then you would experience a lot of difficulty in selling Bitcoins online.

After your registration is complete, you can begin posting offers online that would signal that you plan to sell Bitcoins. The site will send you notifications alerting you when any buyer is interested in trading with you. After that, you and the buyer will be solely responsible for the transaction, but you will be using the site as a platform for completing the trade.

Bitcoins users in the U.S. who have their individual bank accounts should consider trading on Circle or Coinbase as these websites are user-friendly and help you trade easily.

Exchange Trades

Another way you can sell Bitcoins is by registering with an exchange online. You would need to confirm your identity. However, you won’t be required to work a lot for organizing a sale. These exchanges work as intermediaries that hold the funds of people trading on them. You need to put up ‘sell order’, state the amount and the currency type you want to sell as well as the per unit price of that currency you are planning on selling. That currency will be credited soon to the account in your name.

The downside to this method is that you would have to withdraw funds to the account in your bank if you want to sell Bitcoins for fiat money. If that exchange is experiencing problems with the banks it deals with or any liquidity issues, it might take an extravagant amount of time to get your funds. BTC-e and Mt. Gox are two exchanges that are notorious for such issues.

Therefore, it is imperative that you extensively research on different exchanges before using one to commit your funds. You could also make use of cryptocurrency exchange for changing Bitcoins for any other cryptocurrency. Though, it is not a commonly practiced tactic, but some Bitcoin traders exercise it.

While using any exchange, you would be required to pay some fee for using that exchange’s services. BTC-e has a flat fee of 0.2 percent. In addition to that, there is a limit on the volume of money that you can store on a certain exchange. This is why experts advise that you don’t store all your money (Bitcoins) on an exchange. It is best to store additional funds on any of your personal devices instead of keeping it on any exchange that has a risk of getting hacked.