Purchasing bitcoin can be a complex task, particularly in comparison with some more conventional asset investing. However, with some basic knowledge, anybody with the tools can become a Bitcoiner. And once you have your bitcoins, you can always enter into the world of bitcoin trading. Trading is very simple, especially with tools such as BitQT, which is computer program able to perform what a professional trader does without any human intervention and at a higher win rate.
While buying bitcoin, many first-time users select to do so via a huge online bitcoin exchange. To purchase bitcoin in the easiest manner (that is via a major exchange), you will need some personal identification information, a bitcoin wallet, access to fiat with which to purchase the bitcoin and, lastly, access to an exchange that lists it. Let us have an in-depth look.
Being a strictly digital cryptocurrency, Bitcoin does not exist in any physical form and cannot actually be stored in a safety deposit box, bank, or buried out in the backyard. The methods and devices that allow people to safely store private keys are known as bitcoin wallets. These wallets are present in different forms such as hardware, paper, and software, among others. Some form of a bitcoin wallet is needed if you are going to buy bitcoins. A central viewpoint behind Bitcoin is the significance of maintaining custody over your own money and management over your own private keys. Although a number of people select to purchase bitcoin via huge exchanges, setting up a bitcoin wallet for which you manage the private keys is an essential next step to make sure that you control your bitcoin.
Most of the primary bitcoin exchanges need personal ID on behalf of their users so as to comply with KYC (know your customer) and AML (anti-money laundering) laws in their jurisdictions. Although the idea behind Bitcoin creation is based on freedom from 3rd parties such as government regulators, the reality is that employing the simplest form of bitcoin investment is going to mean handing your personal identifying data.
To get through the first steps of buying a bitcoin, you will need access to personal ID documents such as social security card or a driver’s license.
Access To Fiat (Banks, Credit Card, Debit Card)
If you are going to purchase bitcoin with USD or another currency, you will obviously require access to that fiat currency. Most exchanges for bitcoin will ask their users to link their exchange accounts to their debit cards, bank accounts, or credit cards to make transactions.
It is worth noting that exchanging fiat for bitcoin within the traditional fiat economy with the help of these middlemen will likely incur transaction wait times and fees. Use of debit or credit cards is likely cheaper and faster as compared to using a bank account, but there will also likely be restrictions on the amount of currency you can invest.
Bitcoin Exchange Access
As stated earlier, exchanges are by far the most commonly employed method to purchase bitcoin. Exchanges are hubs that allow people to buy cryptocurrencies for fiat currency. Exchanges do this with help of a ledger (an order book) that has instructions to sell to buy. These instructions are known as “asks” and “bids,” respectively.
Due to the market dynamic of price discovery and Bitcoin’s decentralized nature, the price to buy bitcoin on different exchanges might differ at any time. Whenever referring to the cost of bitcoin as it relates to fiat currency, the cost being related is almost surely an aggregate average of the cost all over order books of different exchanges.
With that said, now you have a basic idea of how to buy bitcoins. So, get up and get some bitcoins of your own.