Before you buy Bitcoin:
There are a few things every prospective Bitcoin investor wants. Cryptocurrency trading profile, personal identity records if you use the Know Your Customer (KYC) network, reliable Internet access, and transaction system It is also advised that you do have your private wallet other than your trading account. Legal payment options using this route include checking deposits, card payments and bank cards. Bitcoin can also be obtained via advanced ATMs and P2P platforms.
Confidentiality and stability are big concerns for Bitcoin investors. And if there are no actual bitcoins, it’s typically a poor habit to gloat about major holdings. Anyone who possesses a private key to a public address on the Bitcoin database can approve transfers. Although the private key must be treated with confidentiality, hackers will try to extract private keys if they hear about big holdings. Be mindful that everyone will see the balance of the public account you are using. This makes it a smart idea to keep large investments in public accounts which are not primarily linked to those used for payments.
Anyone, including you, can see the record of payments recorded on the blockchain. But although transfers are openly registered on the blockchain, the identification of customer data is not the case. In the Bitcoin blockchain, only the public key of the customer resides next to the transfer, rendering transfers private but not confidential. In a way, bitcoin transactions are more straightforward and discoverable than currency, but bitcoin can be used securely.
So here are some straightforward steps to clarify how you can easily buy your first bitcoin.
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1. Select a trading platform
Having to sign up for a cryptocurrency platform like PrimeXBT will enable you to acquire, sell, and store cryptocurrency. It is usually best practice to use an exchange that requires its customers to even withdraw their cryptocurrencies into their private wallet to make it more stable. There are several markets and trading sites that do not encourage this to happen. For anyone trying to consistently exchange Bitcoin or other virtual currencies, this function does not make a difference.
Several different forms of trading platforms operate. With Bitcoin’s concept of decentralisation and user freedom, some platforms encourage users to stay hidden and do not ask customers to submit private info. Exchanges that permit this to function independently and are usually decentralised, which ensures that there is no centralised Power Point. In other words, there is no Chief executive and no individual or organisation or any enforcement agency to investigate should they have questions about the criminal activities taking place.
2. Link your trading platform to a payment method
Once you have selected a trading platform, you have to compile your records. Based on the trade, this could include images of your driver’s license, state welfare card, as well as details about your boss and the origin of your money. The details you will need may vary depending on the location in which you reside and the regulations within it. The method is the same as setting up a standard trading account.
Once the platform has verified your identification and credentials, you will now be able to attach a payment method. You can link your checking account straight to the platforms, or you can link a debit or credit card. Although you can use a card to obtain virtual currency, it is usually something which should be avoided because of the uncertainty that digital currency can encounter.
3. Buy Bitcoin
When you have selected a platform and linked a payment method, you can purchase Bitcoin and other virtual currencies. Over the past few years, blockchain and its markets have steadily become more prominent. Nowadays, Crypto platforms deliver a range of forms of orders and options to invest. Almost all trading platforms offer both market and limited orders, and some also offer stop-loss requests. In addition to several order forms, exchanges often provide ways to set up periodic investments that allow clients to make dollar-cost average transactions of their preference.
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4. Choose your storage space
Bitcoin and blockchain wallets are a platform where digital money can be held more safely. Keeping your cryptocurrency outside the marketplace and in your private wallet means that only you have access over the encryption key to your money. It also allows you the freedom to hold resources away from an exchange and eliminate the possibility that the exchange will be stolen and your money destroyed.
Few wallets have a lot more options than most. Others are bitcoin only, and some provide the capacity to store various forms of altcoins. Few wallets also provide the option to exchange one token for another token. You get a variety of choices when it comes to selecting a Bitcoin wallet. The first factor you have to choose for bitcoin wallet is either you need hot wallets (online wallets) or cold wallets (paper or hardware wallets). See more about Bitcoin wallets.
Conclusion
So, these were all the things you needed to know and to experience an exciting first bitcoin purchase. We hope you find this article useful in your venture into the cryptocurrency world.
Disclaimer
All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
If you are new to the Cryptocurrency world and would like to open an account we recommend Cex.io.
Main photo by André François McKenzie on Unsplash
