A budding bitcoin investor must look out for numerous aspects before buying bitcoin. It also necessitates an account on a trading venue, a government-approved identity, an internet connection, and a payment source. In addition, cryptocurrency experts correspondingly advise users to acquire a dedicated digital currency wallet.
The original payment method that a user can link with the user account of cryptocurrency exchange includes debit cards, credit cards, and bank transfers. Nowadays, bitcoin ATMs have also made bitcoin purchases very easy. Other than bitcoin ATMs and centralized cryptocurrency exchanges, the peer-to-peer exchange is correspondingly emerging as a famous method to purchase bitcoin.
- The mass adoption characterizes the market value of this digital coin as an investment asset and a method of exchange. The inflation rate and supply chain of bitcoin correspondingly decide the spot price.
- Bitcoin itself is a robust software in terms of security and is not prone to hacks and scams; the prospects of hacks and scams lie in the different methods of transacting and storing bitcoin.
- Correspondingly, payment services like the cash app have enabled bitcoin purchase and selling features. Moreover, besides the cash app, PayPal has correspondingly started the bitcoin purchase feature.
- Another infamous way to invest in this digital currency is to buy the stocks of companies that have invested a significant amount of their balance sheet in bitcoin. One famous example of such a company is Tesla motors.
Before Purchasing Bitcoin!
Privacy alongside security has been a mere concern for a cryptocurrency investor. If a group of hackers acquires access to a cryptocurrency wallet’s private address, they can quickly authorize transactions without the permission of the wallet’s owner. In short, every investor should learn to secure private keys in a very secure manner.
People correspondingly use stealth address technology to obscure a transaction history from the blockchain and add a corresponding proxy address at the place of the actual wallet address. Undeniably this boosts the anonymity of each cryptocurrency transaction, but it was accused of promoting digital currency in criminalized activities.
As discussed above, buying bitcoin involves a few methods and steps that make this process a piece of cake for everyone. The foremost step in purchasing a BTC involves opting for a digital currency or any trading venue with a solid user base and a robust trading volume. Famous trading venues for making cryptocurrency orders are payment services and dedicated digital currency exchange.
In contrast to payment services, dedicated digital currency exchange offers users a wide variety of features. For example, some digital currency exchanges like Binance correspondingly offer leverages for binance futures.
After choosing a proper cryptocurrency exchange, the user needs to verify their identity. For the verification process commonly known as the know your customer program, cryptocurrency exchange necessitates a government-approved identity. A government-approved need for the verification process on a cryptocurrency exchange can be anything, a voter identity, driver’s license, passport, and a pan card.
The digital currency demands a clear picture of any identity, and after validating the identity, the digital currency exchange performs a facial verification of the user. The cryptocurrency exchange advises users to get good lighting in their rooms for facial verification.
Knowing your customer program does not merely verify the identity of a user but also undermines the anonymous attribute of cryptocurrency transactions. KYC sometimes takes a few hours in a few digital currency exchanges. Famous digital currency exchanges like Binance verify the user’s identity in bare minutes.
After a successful KYC, you will become a verified user of a particular cryptocurrency exchange. Then you have to link a viable payment source with the user account to make transactions. As discussed above, some good payment sources that you can connect with the user’s account are credit cards, debit cards, and bank accounts.
The above-listed portion explains everything on how to purchase bitcoin.