How I Bought Bitcoin in 2015

In 2015, buying Bitcoin was an intriguing venture, filled with both excitement and uncertainty. The cryptocurrency landscape was less mature than it is today, and the process of purchasing Bitcoin involved several key steps and considerations. Here’s a detailed look into how one might have approached buying Bitcoin back then.

Understanding Bitcoin and the Market

In 2015, Bitcoin was still relatively new, having been created in 2009. The concept of a decentralized digital currency was revolutionary but not widely understood. Bitcoin’s value was highly volatile, and the market was characterized by a lot of speculation. Many potential investors were drawn to Bitcoin's potential as a revolutionary technology and an investment opportunity.

Choosing a Platform

To buy Bitcoin in 2015, the first step was choosing a platform to facilitate the purchase. Several options were available, including:

1. Bitcoin Exchanges: Websites like Coinbase, Bitstamp, and Kraken were popular. These exchanges allowed users to buy Bitcoin using traditional payment methods such as bank transfers or credit cards. However, each exchange had its own set of fees, security measures, and user interfaces.

2. Peer-to-Peer Platforms: Platforms like LocalBitcoins enabled users to buy Bitcoin directly from other individuals. This method offered more flexibility and privacy but required a careful vetting process to avoid scams.

3. Bitcoin ATMs: Bitcoin ATMs were beginning to appear in some cities in 2015. These machines allowed users to purchase Bitcoin using cash or credit cards. The process was straightforward, but the fees associated with Bitcoin ATMs could be relatively high.

Setting Up an Account

Once a platform was chosen, setting up an account was the next step. This typically involved:

1. Verification: Most exchanges required identity verification to comply with anti-money laundering (AML) and know-your-customer (KYC) regulations. This process included submitting identification documents and proof of address.

2. Funding the Account: After verification, users needed to deposit funds into their account. This could be done via bank transfer, credit card, or other payment methods depending on the platform.

Making the Purchase

With funds in the account, buying Bitcoin was relatively straightforward:

1. Placing an Order: Users could place a buy order through the exchange. There were typically two types of orders:

   • Market Order: This order buys Bitcoin at the current market price. It is executed quickly but may not get the exact price expected due to market fluctuations.
   • Limit Order: This order buys Bitcoin at a specified price. It is executed only when the market price reaches the specified level, which might take time.

2. Confirming the Transaction: After placing the order, users had to confirm the transaction. This involved reviewing the details and confirming the purchase.

Storing Bitcoin

Once purchased, storing Bitcoin securely was crucial:

1. Exchange Wallets: Initially, many users kept their Bitcoin in the exchange’s wallet. However, this method was not always the safest due to the risk of exchange hacks.

2. Private Wallets: For better security, users were encouraged to transfer their Bitcoin to a private wallet. There were several types of private wallets:

   • Software Wallets: These are applications installed on a computer or smartphone. They offer a balance of convenience and security.
   • Hardware Wallets: Physical devices that store Bitcoin offline. They are considered one of the safest options for storing Bitcoin.
   • Paper Wallets: Physical printouts of Bitcoin addresses and private keys. They provide a high level of security but require careful handling to avoid loss or damage.

Risks and Considerations

Buying Bitcoin in 2015 came with several risks:

1. Volatility: Bitcoin’s price was extremely volatile, and users needed to be prepared for significant price fluctuations.

2. Security: With numerous exchanges and wallets, security was a major concern. Users had to be cautious about phishing scams, hacking, and other threats.

3. Regulatory Uncertainty: The regulatory environment for Bitcoin was evolving, and users had to stay informed about potential changes that could affect their investments.

Conclusion

Buying Bitcoin in 2015 was an adventure filled with both opportunities and challenges. The process involved selecting the right platform, setting up an account, purchasing Bitcoin, and securely storing it. While the market was less developed than it is today, those who ventured into Bitcoin in its early days often look back on it as a pioneering experience in the world of digital finance.