Currently, there is a lot of shift in the economic system. Thus, finance and world investment now push to digital currency. Many musty have heard of Bitcoin (Cryptocurrency) but still don’t have an idea of how to buy them. Now is a better time to invest and learn how to invest. Check out our guide to start buying Bitcoin.
First and famous, you need to get a Bitcoins wallet to start buying and storing your bitcoin because this is where you have to store for future spending. Most of U.S sanctioned Bitcoins platforms demand ID photo and some other info in order to maintain money laundering laws or even try to cheat on taxes.
Now follow down the rest of the steps…. Before then, traditional payment methods like bank transfer, credit card, debit cards will allow you to buy Bitcoins on exchanges in order to store your wallet.
Note: Bitcoins is a new asset class that permutes greatly in price volatility. It is legal, and as well tax committed.
How to Buy Bitcoins
Great steps to buy Bitcoins
Create a Digital wallet
Like I mentioned earlier, one must comply by participating in running a wallet program in order to conduct transactions on the Bitcoins network. This is not just a hard coin, so it requires that a Bitcoins wallet is created. Thus, Bitcoins can be protected using public and private keys which may be a long string of numbers and letters linked via a mathematical encryption algorithm used in creating them.
Public key: Public key is the location where transactions are kept or deposited and as well withdrawn from. When it comes to Blockchain, it is referred to as a user’s digital signature.
Private Key: the private key is the password that is needed in order to confirm sales, buying, and trading with your Bitcoins wallet. You could protect your private keys by encrypting a wallet with a strong password.
Verification of personal Documents
The U.S Securities and Exchange Commission demands to verify your identities as part of the registration process of digital wallets in order to promote the money laundering policy. Also for the purpose of buying and selling Bitcoins, you will need to verify your identity via several personal documents such as social security number and driver’s license.
Ensure that the internet connection is secured
If you must trade, we recommend you avoid using insecure or public Wi-Fi networks to trade because you may increase your level of susceptible attacks from hackers. Also, choose wisely where you can access your digital wallet.
Buy with Traditional payment methods
With your Bitcoins wallet, you can use traditional payment methods such as your bank account, Debit card, or Credit card to buy Bitcoins on a Bitcoin exchange. The Bitcoins will now be transferred to your Bitcoins wallet. The availability of using this traditional payment method varies by your jurisdiction.
To every of this exchange method, they are benefits and as well downside of using your credit card, debit card, or even your bank account transfer. Most times it may require your identity and can even charge higher fees than other methods. But bank transfer charges less with longer payment processing.
After setting up a payment method, you will need a place to buy Bitcoin. Exchange is a popular marketplace where users come to buy Bitcoins and some other cryptocurrencies. Over there, you can get connected to the Bitcoins marketplace where you can exchange traditional currencies for Bitcoin.
Note: Bitcoin exchange and Bitcoins wallet are not in any means the same.
Exchange is a digital platform where Bitcoins is exchanged for fiat currency like BTC for U.S dollars. In as much as exchanges offer wallet capabilities, it does not make it their primary function.
However, you must have a secure wallet as exchanges encourage in order to store large amounts of Bitcoins or even store for a long period of time. Before you choose a Bitcoins wallet, you must lookout for the prior feature which is security.
Thus we advise you to go for a multi-signature wallet. Many exchange platforms provide one-stop solutions with a good standard of security and good report. Some of the exchange platforms include Coinbase, Coinmama, CEX.IO, and Gemini.
Buy Bitcoin By Credit Card – Alternative Ways to buy Bitcoin
Bitcoin ATMs: nothing much different from the in-person Bitcoins exchange and Bitcoins ATM. You can slot cash into the machine and then use it to purchase Bitcoins and then transferred to a secure digital wallet.
P2P Exchanges: this platform match up sellers and buyers who want to engage in the transaction. They provide a peer-to-peer exchange service, thereby making a direct connection between users. It allows users to post requests to buy or sell Bitcoin extensively with information about payment method and price.