Bitcoin is the first cryptocurrency that has been amplifying continuously as the time is going by. With its increasing popularity, more people are purchasing bitcoins. Many hackers and intrusion-makers keep on intending to attack servers and prefer the payment in Bitcoin as such transactions are traceable. So one should choose a safe medium to buy bitcoins.
Bitcoin has proved itself to be a beneficial investment option because its price has significantly risen with time. The usage of bitcoins for shopping and online trading is also growing.
Bitcoin buying process is straightforward for anyone to perform:
1. Make an account of a Bitcoin Wallet Platform
Before you purchase Bitcoin, you have to download a Bitcoin wallet by going to a website that you prefer to use, or you can also go with a mobile app to do the same. Some of the mobile apps may differ while using an Android device or iOS one. To start getting involved in the sign-up process, you need to fill an online form with necessary details. This will be done in less than 5 minutes.
2. Use Fiat Currency to Purchase Bitcoin
Once you own a Bitcoin wallet, you can use a conventional payment method like a credit card, bank transfer, or debit card to purchase Bitcoins through a Bitcoin exchange platform. The Bitcoins are then moved to your associated wallet. The availability of the above-described payment methods is subjected to the area of jurisdiction/exchange opted. If you intend to purchase, click on “Buy” tab, and click on “Sell” tab if you wish to sell. Then you have to select the currency you want to buy/sell and preferred payment method that you’re comfortable to use.
Always remember that “Bitcoin exchange” as well as “Bitcoin wallet” do not need to be the same. Bitcoin exchanges function similar to forex exchanges as you have to trade Bitcoin for any fiat currency. However, exchanges propose with wallet facilities to users. As wallets are required to keep secure, exchanges do not promote storing Bitcoins for more significant amounts or considerable periods of time. That’s why it is good to transfer your Bitcoins to a safer wallet. Security should be your priority while choosing a Bitcoin wallet. Try to select the one that offers the multi-signature facility.
Many well-established exchanges act as an all-in-one service provider by availing standards as well as reporting. Due diligence must be considered while opting for a Bitcoin exchange or wallet.
3. The primary function of a Bitcoin Wallet is to provide you with a Private Key
The general assumption is that Bitcoins are stored in a digital wallet, which is incorrect technically. Bitcoins are not being stored anywhere. Bitcoin balances are saved using the public as well as private “keys” that are long series of numbers and letters linked with the mathematical encryption algorithm which was used to generate them. The public key contributes to the address that can be seen by anyone in the world, and to the same address, anyone may send you Bitcoins.
The private key is meant to be a kept as a secret and is only used to verify Bitcoin transactions. It’s clear that “private key” is something that is kept in a Bitcoin wallet. Some safety attributes for a Bitcoin wallet involves encrypting the wallet using a strong password as well as opting for the cold storage option (storing it offline).
As a user, it’s up to you whether you want to use the bitcoins (using the private key) to purchase a commodity, or transfer money, or to make a payment. The Bitcoins are being sent using the recipient’s “address”. Once you sell the bitcoins, you will be earning the selling amount in the form of the domestic currency, that is easy for you to be withdrawn.
The evolving regulatory stance, growing adoption as well as acceptance, investments in Bitcoin businesses, start-ups and products being initiated, have altogether amplified the confidence in Bitcoin. Though it’s still at a beginning stage and that’s why, one must be aware of the price volatility factors, taxation and legality issues before purchasing Bitcoins.