Are You Planning To Buy Bitcoin?
Bitcoin is finally gaining momentum in the market and experts have also predicted a bullish trend in the coming year. It’s the perfect time to invest in Bitcoins for aspiring investors. Are you too looking forward to by Bitcoins this time? Don’t worry, it’s no rocket science- it’s just that there are some simple steps and procedures to follow. The post below offers a brief on how to purchase Bitcoin for investment and trading.
Invest in a wallet
The common perception is to sign up for an exchange since this is where you can buy or trade Bitcoins. But, the practical thing would be to invest in a third-party wallet first. This is the wallet where you will store your Bitcoin balance after allotting the needed amount for trading. Yes, your exchange too will have its native wallet. But, then, exchange breaches are nothing uncommon today. In an unfortunate circumstance, if your exchange is hacked, you will still have your Bitcoin safe if you keep it in a 3rd party wallet.
According to experts, you should give einen Versuch to an offline wallet which is also known as cold wallet. As these wallets are not operated online, they are safe from hacking attacks. It’s to note here Bitcoin wallets feature two unique cryptographic keys- private and public keys. The public one hosts the place where your transactions would be deposited to as well as withdrawn from. It also represents your digital signature on blockchain ledger. On the other hand, private key stands for your unique password which you will need to purchase, trade or sell BTC in your wallet.
Sign up with an exchange
Now, that you have got your 3rd party wallet, you can finally proceed to sign up with a crypto exchange. As Bitcoin is the biggest cryptocurrency, every exchange in the wold supports Bitcoin trading. So, you won’t have a problem finding a compatible exchange. But, then, not all crypto exchange around would be equally credible. There are various points to keep in mind while signing up with a crypto exchange.
First, you should not settle with the first crypto exchange you come across online. As per the experts, you should make a shortlist of a least 5-6 exchanges beforehand. Then, you will run a comparative study beforehand to find out the most competitive exchange for you. Here are the points you should check while choosing your crypto exchange.
Go for an exchange that follows a decentralized infrastructure and not a centralized one. Decentralized platforms ensure a transparent operation and offer authentic information to members. The point is, a decentralized platform can’t hide anything from members which is possible with a centralized platform.
A licensed exchange always assures a regulated, legit and compliant operation. The best ones will always ask for identity proof from members and follow proper KYC and AML procedures.
Your chosen exchange should always follow advanced security measures multi-factor authentication and high-end encryption. It should keep maximum funds in cold wallet.
Steps to purchase Bitcoin
After you choose a reliable wallet, the next step is to proceed to buy Bitcoins.
- Sign up with the exchange and create your account
- Confirm your account and set your new password
- Go to “My Account” and click on “Deposit”. Go to payment section and type your deposit amount
- After your account has been funded, go “Exchange” section and click on your chosen currency. Mention how much you wish to convert for BTC
- Click on “Withdraw” and mention the amount you wish to withdraw in the form of BTC
- Mention your wallet address and send the withdrawn BTC into it