Bitcoin is a decentralized digital currency that comes with a lot of benefits. It incorporates scarcity, decentralisation and digitalisation. These properties have made it a popular investment choice to many. With bitcoin, international payments are easy and considerably inexpensive because third parties are not involved. You can buy bitcoin at CoinSpot as it offers two-factor authentication, customer identification when using fiat currency, and SSL encryption. In this article, we will discuss four steps through which you can buy bitcoin.
1.Choose Bitcoin Exchange and Register
Register with a ‘fiat-to-crypto exchange. ‘Fiat-to-crypto exchange ‘is also known as broker exchange because the company sells you cryptocurrency from their reserves and sets prices and fees for their service. For this, you need to find a reliable exchange. Once you find it, register and complete security checks. Generally, you should visit the homepage of the exchange and click on ‘Register’ to proceed. Once you have registered, a link will be sent to your email, open it, it will take you to your cryptocurrency exchange account.
2.Complete Security Checks and Add a Payment Method
Once you have registered, you need to complete a few more steps to start buying bitcoin. The steps vary in different exchanges but mostly it involves ‘know-your-customer rules, according to the location of the exchange. Usually, exchanges offer 2FA( two-factor authentication) in which the user is required to enter a password and a security code is sent to the phone when he tries to log in. The next thing you need to do is link your bank account to make your first bitcoin purchase. However, you can also link debit or credit cards but they are recommended for smaller payments only.
- Deposit Funds To Exchange Account To Buy Bitcoin
Choose the amount of money you want to transfer to an exchange account and transfer. Once you are done, you will have money in the ‘fiat’ wallet of your exchange account. Now you can use the cash to buy bitcoin. Click the buy/sell button and choose the bitcoins you want to purchase. Once you have gone through the transaction cost and fee, select ‘buy’ and wait for the transaction to be completed.
- Store Bitcoin in a Bitcoin Wallet
While many choose to leave their Bitcoin on their exchange account, if you are a long-term holder it is advisable to store BTC in a wallet you control. Your wallet is like a virtual storage center that holds your Bitcoin. There are options when it comes to choosing your wallet. Firstly, you can set up a wallet online offered by companies like Coinbase or Metamask. Secondly, you can have a wallet made from software to be stored on your computer’s hard drive such as Exodus. Thirdly, there’s an offline option in which you can make use of special keys that you’ve access to, which adds extra protection. This is called cold storage. Fourthly, you can use a hardware wallet, which is a different type of cold storage. Regardless of the type of wallet you choose, it’s always advisable to have a wallet where only you know the private keys. As people in the crypto community say, “not your keys, not your coins.”