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Last Updated on September 25, 2018 by Editor Futurescope
If you have gone through crypto, you must have learnt Bitcoin. Though a number of cryptos come live every day, the potential of Bitcoin is unbeatable. Traders can buy Bitcoin from exchanges or directly from sellers.
You can pay for it by cash, wire transfer, credit or debit card or other cryptos, depending on the country you live in and exchange you use for trade.
This post introduces you to secure ways of buying bitcoins.
Set up a wallet
Storing your Bitcoins safely requires a digital wallet, which you can choose as per your requirements. You can have an online wallet which can be part of an exchange platform, or you can get it from an independent provider, desktop wallet, mobile wallet, or offline wallets which include hardware wallets or paper wallets.
The wallets mentioned above involve a wide range of features, for which you need to research to pick the suitable one.
You can check out our post to differentiate among the wallets while understanding the key features of each to make the most out of them.
A common feature of most wallets is to ensure the safety of keys or passwords. Remember, losing your keys means losing access to your Bitcoins.
When it comes to the buying and selling of cryptocurrencies, Cryptocurrency exchanges do this for you. Hundreds of crypto exchanges are operating currently which have different security and liquidity features along with new ones trying to attain visibility in the world of crypto. It is all the matter of the geographical area you live in, which decides your access to the different types of wallets.
Bitfinex has the biggest bitcoin exchange network in the world concerning the US$ volume. Poloniex, Coinbase, and Bitstamp are also high volume exchanges, but for small amounts, you should consider the most well-known exchanges.
With the regulation of anti-money-laundering and know-your-client practices, a number of exchanges have started keeping a check on the credentials of a person prior to setting up of account. The verification process includes your photograph, and maybe your official address proof.
The widely accepted payments methods are through banks or credit cards while some accept Paypal transfers. If you are using the bitcoin network, you have to pay the exchange fee.
Different exchanges have a set of different procedures for both setup and transaction and must provide you with enough details regarding the purchase they will make on your behalf. Consider switching to another service provider if you don’t get all the details.
When you pay the exchange, it will buy the corresponding amount of bitcoins for you, and deposit all coins in a wallet, which is automatically generated on the exchange. The higher is the complexity of the network, the more time it will take for transacting coins to your wallet.
Use cash for buying
Take advantage of platforms, for example, Local Bitcoins, which help you locate individuals near you who will purchase Bitcoins in exchange for cash.
Buying bitcoins with cold hard cash is one of the secure ways, though the process may seem you complicated as you will have to go out of your way.
A bitcoin ATM helps you buy bitcoins, but you have to be in the right place. Coin ATM Radar has an extensive network of bitcoin ATMs with a majority of clusters of them are in Atlanta, Miami, New York, Philadelphia, Chicago, Los Angeles, etc. ATMs are of different brands and have different methods of verification, though their basic steps are the same.
- Click”Buy bitcoins.”
- The process of identification begins. This can be a two-factor authentication process.
- Scan your wallet’s QR code to provide wallet address.
- Punch in the amount of cash.
- Confirm all the details to print a receipt
ATMs will directly send bitcoins to your wallet. Their working is the same as bank ATMs – you just need to feed in the bills, keep up the QR code of your wallet up to a screen to receive bitcoins to your account. You can find a Bitcoin ATM near you through Coinatmradar.
Bisquick and Paxful are one of the sites that connect buyer and seller. The seller provides bank details to the buyer so that he can deposit cash at the bank. Make sure you keep the receipt along to provide proof to the seller prior to sending of bitcoins.
After buying bitcoins, it solely depends on you how will you use bitcoins. Maybe some prefer a long-term investment to spend right away or vice-versa. Blockchain Training can guide you through the bitcoin investment as you will get to know how to evaluate charts, reports, trends, and statistics while mapping out a strategy to make a secure investment.