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How Can I Buy Bitcoin?

BitForex Editor
Sep 14, 2020

Bitcoin over the years has come to rise to prominence and is even currently regarded as one of the most popular forms of cryptocurrency. Bitcoin is now widely accepted around the world as its steady number of users keeps increasing. However, irrespective of the amount of attention bitcoin has been able to get in the investment and financial world, many people are still not knowledgeable about how to purchase the Bitcoin cryptocurrency. Nevertheless, buying bitcoin is not difficult; it is as easy as signing up for a mobile app. Now that cryptocurrency is making waves again, what is the better opportunity than to take advantage of this period to learn how to start buying bitcoin? Buying bitcoin involves some simple and straight forward process which include;

Process Involved In Buying Bitcoin

Digital Wallet

It is essential for users or participants to run a program known as a “wallet” in other to efficiently carry out transactions on the bitcoin network. The concept of Bitcoin does not technically or mean coins, so also does a bitcoin wallet not refer to an actual wallet. The use of public and private “keys,” which are lengthy letters and string of numbers that are linked through the mathematical encryption algorithm, which are used to create them help to maintain bitcoin balances. Transactions are withdrawn and deposited from a location known as the “public key.” It is the key that is also present on the blockchain ledger as the digital signature of a user.

The “private key” is likened to a password that is needed in other for participants to sell, buy, and also trade the bitcoin available in the wallet. It is crucial for the private key to be safeguarded and kept secret. It should only be used for authorizing and carrying out bitcoin transactions. Various users encrypt their wallets with a strong password in other to protect their private keys while others choose to select the cold storage option, which stores the wallet offline.

Personal Documents

All users are required to verify their identities with the U.S Securities and Exchange Commission when registering for digital wallets. This is necessary as it is a part and factor attributed to the Anti- Money Laundering Policy. To verify your identity, you will need to make use of various personal documents from your Social Security number (SSN) to your driver’s license, among others, which will enable you to sell and buy bitcoin.

Secure Internet Connection

When choosing to trade bitcoin online, it is to take caution when accessing your digital wallet. It is not recommended nor advisable to trade bitcoin on a public or insecure WIFI network, as it could make it easily prone to attack from hackers.

Bank Account, Credit Card Or Debit Card

The moment you have a bitcoin wallet, you can use the traditional method of payment, which involves using a debit card, credit card, or even bank transfer to purchase bitcoins on a bitcoin exchange, after which the bitcoins will then be transferred to your wallet. The use of the above method as a means of payment is based on the exchange chosen and area of jurisdiction. Based on the exchange, there are most likely going to be advantages or disadvantages to paying with a credit card, debit card, bank account transfer, or cash.

Although paying with debit or credit cards are part of the most generally acceptable means of payment, they, however, tend to impose higher fees, unlike other methods of payment, plus they also require identification. While bank transfers on one end tend to usually take longer than other payment methods even though they have lower fees.

Bitcoin Exchange

Once your wallet has been set up with a payment method, then the next step now involves finding a place to buy bitcoin. Participants or users can easily purchase various other cryptocurrencies as well as bitcoins from online marketplaces known as “exchanges.” With exchanges, you can easily get direct access to the bitcoin marketplace, which will allow you to exchange traditional currencies or cash for bitcoin. It is essential to know that a bitcoin wallet and bitcoin exchange are two different things. Bitcoin exchange shares similarities with foreign exchange markets. Exchanges are digital platforms that allow you to exchange bitcoin for fiat currency.

Although exchanges provide users with wallet capabilities, it is, however, not their major business. Exchanges do not encourage or support the storing of a large amount of bitcoin for long periods as wallets must always be secure. It is, however, vital to transfer bitcoins to a more secure wallet. It is necessary to consider and make security your top priority when opting for a bitcoin wallet; it is advisable to choose a bitcoin wallet that has a multi-signature facility. They are various top-notch exchanges that provide users with high-security standards, and some of them are Coinbase, Gemini, and Coinmama, among others.

Other Ways Of Buying Bitcoin

Even though Coinbase, which is an example of an exchange, is one of the most prominent ways of buying bitcoin, it is, however, not the only method as there is still another means available, which is the Bitcoin ATMs.

Bitcoin ATMs

The use of bitcoin ATMs is almost like in-person bitcoin exchanges where users can easily purchase bitcoin by inserting cash into the machine. The purchased bitcoin is immediately transferred to a secure digital wallet. The concept of Bitcoin ATMs has gained prominence over the years.

As earlier stated, the final step to purchasing bitcoin and other cryptocurrencies involves finding the right place to buy, and one place to easily buy from is at BitForex.

About BitForex:

BitForex is an exchange service platform that can be classified as one of the Top 10 cryptocurrency exchange services. It is focused on providing millions of users with a digital currency trading and investment tool that is not only safe but also professional and convenient. BitForex has a high customer-oriented culture and state-of-the-art financial technology.

BitForex is programmed in a way that it can quickly adapt to the changes of the Crypto market while introducing new features like margin trading, enhanced trading charts,  derivatives, and a host of others. The headquarter of BitForex is located in Hong Kong, while there are branch offices in countries like the United States, South Korea, and Singapore.

More details:

BitForex / Social Trading / CAPP Town

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