Bitcoin (BTC) is a SHA 256 POW (Proof-Of-Work) cryptocurrency using peer-to-peer technology to work without the need of intermediaries. This article shows you how to buy and store Bitcoin.
In order to receive, store and send Bitcoin, you need to have a Bitcoin wallet. As of February 2020, cryptocurrency wallets can be divided into five different types: online, mobile, desktop, hardware and paper wallets.
On the one hand, sensitive coin information, including private keys, is stored and shared with a third party, which makes the wallet more vulnerable to theft and hacking attacks. On the other hand, these wallets are easy to use and the creation is usually free of charge.
Private keys are stored locally on your phone and are not accessible for third-parties. Crypto payments can be made everywhere with an Internet connection. If your mobile phone is infected with a virus, you can lose your coins.
These wallets can only be accessed from the computing device where the software is installed. They are more secure than other wallets, especially if the device is not connected to the Internet.
You can buy Bitcoin in exchange to fiat currencies (fiat-to-crypto) or in exchange to other crytpocurrencies (crypto-to-crypto) on various cryptocurrency exchange platforms and brokers all over the internet. After you have made your payment, you will be able to send those coins to your wallet.
Decentralized cryptocurrency exchanges, aka. peer-to-peer exchanges, provide a platform where two individuals can exchange their funds directly and without the need of intermediaries (e.g. LocalBitcoins.com, Waves.Exchange , Bisq.network)
Pros: low fees, no government oversight, high level of security
Cons: lack of customer support, bad UI