Nowadays buying Bitcoin is getting easier and the legitimacy of the exchanges and wallets is growing as well. But there are several things that every aspiring Bitcoin investor needs:
- A cryptocurrency exchange account
- Personal identification documents
- A secure connection to the internet
- A method of payment
It is advised that you have your own personal wallet outside of the exchange account. Other payment methods using this path include debit cards, credit cards, and bank accounts. Besides you can also get Bitcoin at specialized ATMs and via P2P exchanges.
Steps to buy Bitcoin:
- Digital Wallet:
Participants need to run a program called a “wallet” to conduct transactions on the bitcoin network. The Bitcoin balances are maintained using public and private “keys”. These keys are long strings of numbers and letters which are linked through the mathematical encryption algorithm used to create them. These keys are required to buy, sell, and trade the bitcoin in a wallet.
- Personal Documents:
As part of Anti-Money Laundering Policy, the users have to verify their identities when registering for digital wallets. If you want to buy and sell Bitcoin, you will have to verify your identity with several personal documents which include your driver’s license and Social Security Number (SSN).
- A Secure Connection To The Internet:
It is not recommended to trade Bitcoin on an insecure or public wifi network because these insecure networks are more susceptible to get attacks from hackers.
- A Method Of Payment:
Once you have a Bitcoin wallet, you can use credit cards, debit cards, or bank transfer (ACH) to buy bitcoins on a bitcoin exchange. In this way, the Bitcoins are transferred to your wallet. Just select the currency you are buying or selling and select the payment method you want to use, and it’s done.
- Bitcoin Exchange:
You can buy Bitcoins from online marketplaces called “exchanges”. Exchanges connect you directly to the Bitcoin marketplace where you can exchange traditional currencies for Bitcoin.
If several questions are popping in your head about how to buy bitcoin, just consider the above-listed steps. You will get answers to all of your queries!