There are a few things to consider before you buy Bitcoins online.
If you are new to Bitcoin and cryptocurrency just follow this simple process.
Create a Bitcoin Wallet Address.
Currently I recommend Luno to all international users and especially South Africans because you will have the option of buying and selling your Bitcoins. There are also other great benefits like the affiliate program where you can share the program with family, friends or on social media and receive a commission for all their transactions.
Commission Amount – For every R500 ($36.40) purchased or sold by your referrals you will receive R10 ($0.73) worth of Bitcoin.
Can I buy Bitcoins from Luno? – Yes
Alternatively you can signup with Coinbase which is mostly recommended for US and European users. They also have a affiliate program and offer $10 worth of Bitcoin for every $100 deposited into their system by your referrals. You could make a living doing this if you good at promoting things on social media and in Facebook groups.
Always do research before purchasing Bitcoins and any other cryptocurrency.
It never hurts to learn so if you have never bought Bitcoin before then do as much research as possible or until you feel comfortable enough to make a decision.
Remember you don’t have to buy an entire Bitcoin, you can buy partitions.
1 Bitcoin = 100 000 000 Satoshi
You can purchase as little as 1000 Satoshi ($0.06) if you like.
Just consider there will be a small transaction fee so it’s no good to buy 1000 Satoshi when the transaction fee might be 10 000 Satoshi.
There are a lot of scams surrounding Bitcoin that even bloggers and scam warning websites cannot keep up with them all collectively. Don’t get caught by “deals” or offers that sound to good to be true and always investigate first and read forums to get some insight from users who already have trading experience.
Some traders sell slightly higher than the current Bitcoin trading price because there are transaction fees involved. If you sell Bitcoin on eBay they charge $10 just to list an advert in the Bitcoin category, this is to discourage scammers. Additionally they take 10% sale fees. Keep this in mind when you see prices are higher than expected. This is another reason why it is better to purchase privately to avoid all these extra costs.
You can send a very large amount of Bitcoin for a very small transaction fee. Example – To send 10 Bitcoin ($56680.00) would probably costs you no more than 100 000 Satoshi which is about $5.70. If you had to send that amount with PayPal you would be charged about 5% for transaction fees.
- From family, friends, trusted individuals or crypto companies.
- From eBay (review sellers ratings and selling history).
- From Bitcoin forums like Bitcointalk or BMF. Just be careful who you trust.
- Through your Bitcoin Wallet provider if the service is available.
Personally I would rather buy from a family member, friend or a person that can be trusted. If not my next option would be Luno.
What is Casascius?
These are physical Bitcoins. Each Casascius Bitcoin has an embedded piece of paper with digital Bitcoin value covered by a tamper resistant hologram element.
Some people feel more comfortable to invest into Casascius because it is considered to be a more secure method, only you have the code and your Bitcoin is not stored online therefore it’s not accessible to hackers.
Please remember if you don’t understand something, if you would like some help, have feedback or suggestions please add it to the comment section below.
I will assist you to the best of my ability.