Mega Moolah's quick Bitcoin 101: How to buy and sell bitcoin
You have heard all about the possibilities of gambling online using bitcoins instead of your country's default fiat currency. Perhaps you have even heard that is possible to play Mega Moolah with cryptocurrency?
Did you know that if you have Bitcoin, Bitcoin Cash or Litecoin you can play Mega Moolah? But you have to get your hands on some coins before you can actually play. So how do you do that? That's what you'll learn in this post. If you are a bitcoin beginner, this post will explain how to buy and sell the world's number one alt coin. Also note that while the post focuses on bitcoin, it applies to just about every cryptocurrency out there. You can also check out our bitcoin page for more information.
How bitcoin is bought and sold
The first thing to understand is that the decentralised nature of cryptocurrencies keeps banks out of the equation for the most part. While there may be a small number of banks around the world willing to deal with crypto, most do not. Buying and selling bitcoins requires working outside of the traditional banking system.
Cryptocurrencies are bought and sold on exchanges. The system works in much the same way as purchasing securities and commodities. The main difference lies in where cryptocurrency exchanges are located. Rather than being in a physical location, like Wall Street for example, cryptocurrency exchanges exist only online.
An exchange is essentially an online platform that brings buyers and sellers together. Exchange owners make their money by charging transaction fees. These fees can either be flat fees or a percentage of the transaction itself. Also note that fees vary from one exchange to another. It is a good idea to shop around in order to find the exchange that best suit your needs.
Steps for buying bitcoin
With all the preliminaries of the way, let us talk about how you actually go about buying bitcoin. We have laid out the process here, step-by-step.
1. Establish a Wallet
Bitcoin is a digital currency. As such, there are no physical coins for you to hold onto. There are no bills to put into a bank account. So how do you store your coins? In a digital wallet. This dictates that the first step to buying coins is to establish a wallet. There are lots of ways to do this:
- Online - You can set up a digital wallet online by obtaining one from an exchange or the particular cryptocurrency platform you decide to use.
- Mobile - Whether you use iPhone or Android, there are tons of apps that put digital wallets on your mobile device.
- Desktop/Laptop - Likewise, you can install a digital wallet on your desktop or laptop PC. The Opera web browser now offers a built-in wallet if you are interested.
- Offline - Finally, you can use some sort of offline device as your wallet. Think USB flash drive or even a piece of paper with information printed on it.
You do not need anything fancy to establish a wallet. All you need is a way of storing the digital information that pertains to each of your transactions. The one thing to note is this: your wallet will contain encrypted information along with passwords and addresses. Losing that information also means losing access to your coins. The information is your only means of accessing the contents of your wallet.
2. Choose an exchange, or buy from P2P bitcoin trading sites, or use a Bitcoin ATM
The second step to buying bitcoin is to choose an exchange. There are literally hundreds of them scattered across the cyber world. We recommend doing some research before you choose an exchange, given that they vary in terms of their reliability, liquidity, and fee structures.
Depending on where you live and the exchange you choose, you may have to submit a form of verifiable identification in order to set up an account. More often than not, an acceptable form of identification would be any official photo ID with your name and legal address printed on it. You would simply take a photo of that ID and submit it with your application.
We recommend using the exchange offered by your Bitcoin Wallet service.
You can also use websites such as LocalBitcoins.com, which is a hugely popular person-to-person bitcoin trading site. If you like you can use a Bitcoin ATM, which are available throughout the world. Check out CoinATMradar.com to find your nearest BATM.
3. Buy your coins
With a wallet in place and an account on an exchange, you are ready to buy. You will have to choose how you are going to pay for your coin, and there are multiple options. You can purchase with a bank transfer, a credit/debit card, and even online payment systems such as Skrill and Neteller, or buy with cash.
Steps to selling bitcoin
The steps for selling bitcoin are considerably fewer because all the preliminaries have been addressed by buying coins. For all intents and purposes, there only two steps necessary to sell: decide the method through which you want to sell and then choose a platform for doing so.
You have three options for selling:
1. Exchanging coin for fiat at an BATM
There are cryptocurrency companies that act as currency exchanges that facilitate buying and selling without having to go through a more traditional exchange. The advantage of selling through such a company is that you might be able to convert your bitcoin into fiat currency using a Bitcoin ATM (BATM).
This method is no different than withdrawing cash from an ATM tied to a local bank. You visit the BATM, input the appropriate information, and take the cash. It is pretty straightforward. There are also online BATMs that give you access to your sales proceeds by way of bank transfer.
2. Sell on an exchange
The second option is to sell your bitcoin the same way you purchased it: on an exchange. You can use the same exchange through which you bought or choose a different exchange that might offer a better deal. It is entirely up to you.
The one thing to note here is the speed of the sales transaction. Some exchange transactions can take several days to complete if there are not enough buyers looking to buy what you're selling. If you are looking for instant liquidity, the first or third options might be better.
3. Sell peer-to-peer
The third option is to sell your bitcoin through a peer-to-peer arrangement. Such arrangements are facilitated through local platforms that connect buyers and sellers within a specific geographic region. These kinds of platforms are not exchanges. They are simply connection points that allow buyers and sellers to transact between themselves directly.
This option may be the riskiest of all due to a lack of internal controls. In order to sell this way, you and the buyer have to agree on some sort of payment. The buyer will want a form of payment that can be reversed in the event you do not come through with a coin. Likewise, you don't want to transfer the coins until payment has arrived.
Easy and safe transactions
Hopefully you now see just how easy it is to buy and sell bitcoins and other digital currencies. It is really not difficult at all. It takes only minutes to set up a digital wallet in most cases, and a few more minutes to make the first coin purchase. In the same amount of time it took you to read this post, you probably could have researched at least one or two wallet options.
It is important to close this post by emphasising the need for you to do your own research. Remember that cryptocurrency's greatest strength is also its most inherent danger: decentralisation.
Decentralisation is very good in that it keeps governments and central banks out of cryptocurrency. On the other hand, it is also risky. It is risky in the sense that a lack of regulation allows buyers and sellers to do whatever they want to do. This is why research is so important so you find the wallet and purchase and sales method that you can trust.
You might be ready to start playing Mega Moolah with bitcoin right now. If you are new to cryptocurrency, do yourself a favour and go slowly. Rather than jump at the first wallet and exchange you find, take the time to look around and dig in. Don't worry, your favourite Mega Moolah casino is still going to be there a month from now.
Research will end up being your best friend for buying and selling cryptocurrency as well as online gambling. The more research you are willing to put into it, the better off you will be once you start buying and selling.
Byline: This article was published by Mega Moolah expert Henry. Media and other enquiries.
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