It can seem complicated to buy Bitcoin, but if it is broken into some steps then it can be an easier task. With the popularity of this platform, it is becoming easier to buy it and the legitimacy of the wallets and exchanges is also increasing with time. For those who want to buy bitcoin four steps need to be followed. The first step is to choose an exchange, then connect it to any payment option. Later you should place the order and ensure that your bitcoin is stored safely.
It is important to understand that the value of BTC is derived from its adoption as a payment system and as a store of value, and also by its supply and reduction in inflation. It is almost impossible for BTC to be hacked, but the exchange or wallet might be compromised. So it is important to take proper safety measures while storage. While trading or investing in this cryptocurrency, you need an account on an exchange and further storage practices are in your hand.
Before starting:
There are few things that you would need before becoming a Bitcoin investor via https://bitcoinscircuit.com/. This includes an exchange account for cryptocurrency, documents that will be needed for personal identification in case of a KYC platform, a payment method, and a secure internet connection. It is recommended to have a personal wallet apart from the exchange account. Valid payment methods include debit cards, bank accounts, and credit cards. It is possible to get BTC at P2P exchanges and specialized ATMs. But for these ATMs, one would need government-issued ID cards.
Security and privacy are important things for Bitcoin investors. Even when there are no physical coins involved it is not a good idea to have large holdings. With the help of a private key for the public address, anyone can authorize blockchain transactions. So these keys need to be secret, else criminals might attempt to steal keys in case of large holdings. Keep the significant investments stored at public addresses and do not connect them to the addresses that are used for transactions.
Step1: Choosing an exchange: by signing up for an exchange you will get access to sell, buy, and holding any cryptocurrency like Bitcoin. The best practice for choosing an exchange is to choose the one that allows users to withdraw the cryptocurrency to their wallet for keeping it safe. There are many brokerage platforms and exchanges that do not allow this. Some exchanges do not require the personal details of the users. These are decentralized exchanges. The most common exchanges are not decentralized and they include Kraken, Coinbase, Gemini, and Binance US. They are best suited for beginners and offer features for serious trading. While making an account using two-factor authentication, unique and strong password that includes letters, numbers, and special characters.
Step2: Connect the exchange with a payment option: you should now add your documents according to the requirements of the exchange that you have chosen and the region where you live. Then you must link a bank account with the wallet to do bitcoin transactions and deposit money in your account directly. You can add a bank account directly or connect using a credit card or debit card. Check with your bank if they allow deposit on the particular exchange or not. It is better to check the fees for deposits and withdrawals too. Doing this research will help you find the best payment option for you.
Step3: Place a BTC order: There is a growth in the exchanges with regards to the breadth of features and liquidity. These transactions are a lot more legitimate and trustworthy now. Now, these exchanges are comparable with a stock brokerage. There are a lot of ways and order types for those who want to invest. It is possible to choose from limit and market orders and there is a choice of stop-loss orders too. Kraken also allows for take-profit limits and stop-limit orders. It is possible to set up recurring investments too.
Step4: Safe Storage: These wallets are designed to be a place to store cryptocurrencies securely. Keeping the private key in a personal wallet outside of the exchange gives you more control of your funds. This reduces the risks of losing your funds if the exchange is hacked.
These things should be considered while buying Bitcoin, especially for beginners.