Back in 2010, recently arrived, and methods of obtaining it were extraordinarily innovative, just like the currency itself. Early Bitcoin users had some pretty special challenges and opportunities that really shaped the current state of crypto trading.
1. Over the Counter (OTC) Transactions
3. Peer-to-Peer (P2P) Networks
1. Over the Counter (OTC) Transactions
Buying Bitcoin back in 2010 mostly happened through these OTC deals. It was just individuals or small groups concluding agreements with one another, no intermediary platforms involved.
Like, one way was for someone to exchange their goods or labor in exchange for Bitcoin. This method was convenient and provided individuals with some privacy, which was a big draw for the early crowd. I had a buddy, John, who did barter for graphic design services in exchange for Bitcoin back in that year. It was so cool to be part of the cryptocurrency world back then!
2. Bitcoin Exchanges
With the increasing popularity of Bitcoin, several websites emerged where you could purchase and trade it. These sites let you trade Bitcoin for actual currency, such as in U. S. Dollars.
Initially, Mount Gox and Bitcoinica were major players. They really contributed to establishing a more structured and formal platform for exchanging Bitcoin. According to CoinMarketCap Mt. Gox was handling over 70% of all Bitcoin transactions back in that year. It felt like being at the heart of a gold rush!
3. Peer-to-Peer (P2P) Networks
Decentralized systems was a big deal early on in Bitcoin’s life. Other platforms like localBitcoins platform let people exchange Bitcoin directly with others, without needing a sophisticated trading platform.
That entire decentralized concept was a fundamental aspect of Bitcoin and helped a lot with its early success. I recall using the LocalBitcoins platform platform to get my first Bitcoin. It felt like I was involved in something completely new and exciting.
4. Bitcoin ATMs
Bitcoin ATMs were just beginning to emerge in 2010. These ATMs allowed individuals to purchase Bitcoin using cash, which made it simpler and more obtainable.
Although they were quite uncommon, they gave us a glimpse into the future of crypto. I had the opportunity to use one of the initial Bitcoin ATMs in San Francisco, and it was extremely captivating.
5. Bitcoin Faucets
Another means through which people obtained Bitcoin back in 2010 was via these Bitcoin faucets. These websites would provide you with a small amount of Bitcoin in exchange for performing some straightforward tasks, including solving captchas or subscribing to email lists.
They weren’t good for obtaining significant Bitcoin, but they were a delightful method to get novices interested in crypto. I remember spending tons of considerable time in Bitcoin faucets site, attempting to acquire a little additional Bitcoin for my stash.
