Bitcoin is all the rage right now with its value rising every day and many are seeing this as a bull run that may take Bitcoin to another record high value. If you have come across such news and want to invest in bitcoin but have no idea about what bitcoin is and how to invest in it then you have come to the right place.
Buying bitcoin stock is as easy as online shopping but first, you will need to understand the process. It is a surprising thing that bitcoins have been around for over a decade now but people still do not know the right way to purchase bitcoins, when it is literally as easy as buying anything online.
Bitcoins are a cryptocurrency, you do not need to understand the whole concept of blockchain and cryptocurrency in order to purchase or trade bitcoins, after all, how many people understand how the internet works? Yet still, everyone uses it.
So bitcoins are a cryptocurrency, they exist in the digital sphere so at no point will you be in possession of something physical neither will bitcoins be deposited in your bank account because bitcoins exist on the blockchain which in simple words is an alternative to the conventional banking system.
Before you can purchase bitcoins you will need to fulfill some prerequisites. Once you have fulfilled these prerequisites, you can purchase bitcoins simply with the click of a button. So let us look at the prerequisites first.
Pre-Requisites For Purchasing Bitcoins
As mentioned above, bitcoins are a cryptocurrency and they exist in the digital sphere, you cannot keep them in your bank account, so where do you exactly keep your bitcoins? Well, the first thing that you will need to have before you purchase bitcoins is a bitcoin wallet.
A bitcoin or crypto wallet is a digital wallet that allows you to store your cryptocurrencies. Crypto wallets can be considered as your crypto bank account. These wallets come with a public and a private key, the public key is used to locate your account and others can use your public key to send or receive crypto whereas your private key is your authentication key, it is akin to your pin code or your signature for your bank account. Needless to say that the private key needs to be kept secret at all times.
Bitcoin wallets come in different forms. If you are a beginner then you will be better suited to have an online wallet. Online wallets are mostly free and many sites offer them. You will simply need to sign up with a site to make an online wallet, you will be issued with your public and private key which you can then use to sell and purchase bitcoins.
More experienced users can make use of desktop wallets or even hard wallets but beginners do not really need them.
Bank Account and Credit Cards
Unless you want to purchase bitcoins through cash, you will also need to have a bank account with sufficient funds. You can also use your credit or debit card to purchase bitcoins.
Secure Internet Connection
A secure private internet connection will be required to access the sites through which you can purchase your bitcoins. Make sure that you are on a secure private connection, public connections are risky as hackers can easily steal your private data, so whenever you make a transaction make sure that you are on a private secured connection.
These are the prerequisites that you will need to purchase bitcoins. Once you have completed these prerequisites, the process of buying bitcoins is going to be very simple. You will need to choose where you want to purchase bitcoins.
The fastest and safest way to acquire BTC is to buy bitcoin through a bitcoin exchange. There are many bitcoin or crypto exchanges in the market right now that offer different rates and terms so you will need to carry out your own due diligence. Some of the biggest and most reputable exchanges are Coinbase and Binance.
You will need to make sure that you have got an active account on the exchange of your choice before buying bitcoins. Some exchanges like Coinbase take a few days to approve your account, whereas exchanges like Binance are faster and you can have your account ready in a few minutes.
You will also need to make sure that you live in a country where bitcoins are legal, if you are in a place where bitcoins are illegal for trade or purchase then you may get in trouble for holding bitcoins against the law of land.
Once you have signed up on the bitcoin exchange of your choice, you will need to connect your bank account or your card. For this, you will simply need to go to payment options and fill in the relevant details. Once your account is connected you can simply go to the purchase bitcoins area and purchase the desired amount of bitcoins. Usually, the bitcoins will be transferred into your crypto wallet within a few minutes to a few hours. Once you go through the process, going through it the second time will be easier and more convenient.
Peer to peer sites actually account for the highest volume of bitcoin trade, more people prefer them due to privacy and security reasons. Exchanges are regulated whereas some P2P exchanges allow you to pass below the radar.
On a P2P exchange, you have got bitcoin sellers and buyers coming together on a platform. The sellers post their rates and volume and buyers can choose the sellers that they feel are offering the best rates. Most P2P sites have a ranking system to rank the credibility of the seller.
Buyers can purchase bitcoins through bank transfer or cards on P2P platforms as well, though the rates may vary significantly as compared to a bitcoin exchange.
It may take a while to get through your first purchase but once you are done, your next transactions are going to be so quick and convenient that you will wonder why you did not do this before.