WANT to buy bitcoins, but not sure where to start? It isn't for the faint-hearted – owners must look after their coins and be prepared to ride out volatile prices. Even the developers warn that the virtual currency is experimental and has an uncertain future. Still keen? Then read on.
First you need to set up a file or wallet that stores bitcoins. Either download the Bitcoin software, being careful to secure your PC, or use an online service such as blockchain.info. The wallet comes with a code that is your address for receiving bitcoins. Here's how to get your hands on them:
Online: you cannot buy bitcoins with a credit card or PayPal because these transactions can be cancelled by your bank. Since Bitcoin transfers are irreversible the seller would be at risk. Exchanges like MtGox accept payment via irreversible bank transfer, while other sites bring together buyers and sellers. But beware: you will have little comeback if a seller withholds your coins.
In person: sites like LocalBitcoins match up buyers with sellers in their area. You meet in person, hand over the cash, and they transfer bitcoins to your address. Bitcoin listings are also common on Craigslist and other trading sites.
Trade: rather than buying bitcoins directly, you could accept them in exchange for a service. Many Bitcoin job sites let you post adverts. Just tell your customers to send payment to your address.
You can also earn bitcoins by becoming a miner and running the Bitcoin software, but the days of easy money are long gone. Mining is increasingly difficult so you need specialised hardware to be in with a chance of earning any coins.
Read more: " Bitcoin and beyond: What you need to know"
This article appeared in print under the headline "The beginner's guide to filling your digital wallet"
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