Ever since its inception in 2009 by Satoshi Nakamoto, Bitcoin has completely transformed how we perceived payment networks and our inherent notions and perspectives about currencies in general. Existing as an open-source, peer-to-peer, and decentralised digital currency, Bitcoin allows you the luxury of transferring funds from one person to another without having to involve any central authorities like banks and other financial bodies in the process.
Subsequently, this idea of maintaining absolute transparency in their transactions was so tempting to people that Bitcoins’ demand in the market ricocheted rather exponentially. Even though the Bitcoin buy price varies from platform to platform, many people are expressing a rising willingness to purchase it.
However, purchasing Bitcoin is not a straightforward process as it entails a few technicalities of its own. The following section throws light on this particular mechanism.
The basic requirements:
Before you proceed with investing in Bitcoin, there are a few fundamental things that you must have to kickstart your journey. These include personal identification paperwork and documents, a payment method, a cryptocurrency exchange account, a KYC (Know Your Customer) Platform, and last but not least, a secure and stable Internet connection. Additionally, you are also advised to maintain a personal wallet that exists outside the scope of your exchange account.
If you are a budding Bitcoin investor, then there are two important parameters for you- security and privacy. Hence, even though there is no such concept of physical Bitcoins, investors are generally discouraged from disclosing and discussing their holdings. You must bear in mind that anyone present on the Bitcoin blockchain can view the balance of your public address. In addition to this, you need to be aware of the Bitcoin buy price in your country.
To initiate a transaction, all one needs is access to the private key associated with the relevant public address. Even though this private key is maintained in absolute secrecy, knowledge of large holdings may cause criminals and other unwarranted parties to stage a heist, which is why all information regarding holdings must be kept under wraps at all times.
Choosing an Exchange:
The first step in buying a bitcoin involves choosing a cryptocurrency exchange platform of your choice. A cryptocurrency exchange serves the function of letting you purchase, sell, as well as holding your cryptocurrency. Usually, users are advised to opt for an exchange that gives them the choice of withdrawing their cryptocurrency holdings to their wallet. Subsequently, this allows them to maintain an additional degree of security in the process.
However, users engaged in the consistent trading of Bitcoin and other cryptocurrencies need not bother themselves with this particular feature. While establishing a cryptocurrency exchange account, users must ensure the adoption of safe internet practices such as making use of a long and unique password and utilising two-factor authentication.
Connecting Exchange to Mode of Payment:
Post finalising on your choice of a cryptocurrency exchange platform, you need to connect your platform to a suitable payment option. To achieve that, you need to have a particular set of personal documents at your disposal.
Depending on the kind of platform you are linked with, these documents might include your social security number, employer’s information, a picture of your driver’s license, or whatever qualifies as suitable proof of your identity. This information is subjective to your area of residence and the set of prevailing laws in that particular region. Once the exchange has validated your legitimacy and identity, it proceeds with linking it to a payment mode of your choosing.
Place your Order:
Once you have set up your exchange platform and linked it with a payment mode, you can buy Bitcoin, and other cryptocurrencies at the Bitcoin buy price. Over the past few years, as the discourse about cryptocurrency and its various aspects have gained considerable momentum, the discussion around the platforms and the subsequent trading on it have become mainstream.
Consequently, these exchanges have witnessed considerable growth in their liquidity and the spectrum of features they are presenting to their users. We have now reached a point where cryptocurrency exchanges can offer their users with the same range of features as any other stock brokerage platform out there.
Getting started with cryptocurrency at first can seem to be a challenging and overwhelming affair. However, with the right set of resources and tools at your disposal, you will be able to efficiently pick up the tools of the trade and scale your horizons and establish yourself within the domain in no time whatsoever.