Ever since Bitcoin became the most popular cryptocurrency, people have shown much interest in making digital transactions to send someone living in any part of the country. Founded by Satoshi Nakamoto, this digital currency was created in January 2009. In comparison to traditional online payments, Bitcoin benefits its users by offering lower transaction fees. Unlike government-issued currencies, it is operated by a decentralized authority. If you are using Bitcoin for the first time for making any digital transactions, then note that any bank or government does not back it. But have you ever thought about how you can buy Bitcoin? If not, later today, we will be telling you all about it in this blog.
If you have been alongside Bitcoin news today, you will notice that even though it is not legal tender, it still charts high in popularity and has been the sole reason for the launch of other virtual currencies, which are called altcoins. Even though it is a very popular cryptocurrency, people don’t know how to buy Bitcoin. And it is not much complicated; instead, buying Bitcoin is as simple as signing up for the mobile app. So let us delve into our main topic, which is Bitcoin buying. To understand it, you need to know the 3 key steps, which are enough to give you a valid answer for our main topic.
- If you are interested in buying Bitcoin, then signing up for a Bitcoin wallet is mandatory.
- Another point to note is that if you are buying Bitcoin in exchange for traditional payment methods such as debit cards, bank transfer, or credit cards, then it will go to your Bitcoin wallet as a depository.
- Thirdly, you need to be clear of the fact that Bitcoin pricing is uncertain and volatile, which clearly states that it is unpredictable and can be at high or low.
Need to Buy Bitcoin
Now you must have got a clear short idea to buy Bitcoin, but it may raise another question in mind as to why to buy Bitcoin? How it can be beneficial to the user and what precaution must be taken etc. Well, there are some factors which will make you understand it.
Bitcoin Being a Digital Wallet
To make transactions on the Bitcoin network, you must have a digital wallet. Like Bitcoin, that are technically not a coin, similarly, a Bitcoin wallet is also not the wallet. There are public as well as private keys which are used for maintaining the Bitcoin balances. These keys are numbers and letters that are linked to a mathematical encryption algorithm.
See Also: Things not to do when Bitcoin is Down
The public key is the user’s digital signature appearing on the blockchain ledger. It is different from the username from social media newsfeed. Contrary to it, private key, it is a secret password, which is required for Bitcoin trading in a wallet. Besides guarding, it must be used for authorizing Bitcoin transmissions.
Use of Personal Documents
For buying and selling Bitcoin, many personal documents, including your driver’s license and SSN (Social Security Number) are needed for the verification of your identity.
When you go for Bitcoin trading online, then you need to be using discretion for accessing your digital wallet. Avoid making Bitcoin trading on networks that are insecure or else it will be susceptible to hackers attack.
Easy to Use Traditional Payments
After getting a Bitcoin wallet, you can make the best use of traditional payment methods like credit cards, debit cards, or even bank transfer (ACH).
See Also: What is Cryptocurrency
Alternate Means to Buy Bitcoins
After knowing much about Bitcoin’s purchase and the reasons to buy it, you can also identify some alternative means to purchase Bitcoins. So let us explore those alternate means through which we can buy Bitcoin.
ATM: Like any other bank ATMs, there is a Bitcoin ATM too. Here the cash is inserted into the machine to buy Bitcoin, which is transferred to the digital wallet. In recent years, Bitcoin ATMs have become very prominent.
Peer To Peer Exchanges: Peer to Peer exchanges or P2P makes direct connectivity to the users. One of the examples of such exchange is local Bitcoin. When a user creates an account, then he/she can request the buying or selling of Bitcoin. You must include information about the price and payment methods.
So today, you got to know much about the ways to buy Bitcoin. Many people across the world, like Bitcoin and use it to make transactions. It has emerged as a new technology in the financial world in the form of decentralized money, setting it apart from other traditional currencies. It has made people avail of the facilities for making digital transactions without any interference from central authorities like banks, government, or intermediaries. Though many people who love to make the transactions through Bitcoin are unaware of its use. In this blog, we covered all the essential elements that are related to Bitcoin buying with precautions.