Bitcoin is the new leading currency of the 21st century. Every investor looking to invest in a highly returning and fulfilling investment goes for Bitcoins. But buying Bitcoins can be a lengthy and confusing process in the beginning. Don’t worry; you are at the right place. This page will guide you on how to buy Bitcoins step by step through the whole procedure.
Before buying Bitcoin, it’s essential to understand them. Bitcoin is the most famous and worthy form of cryptocurrency available in international markets. You can buy Bitcoins and sell them for higher equivalent cash. It is one of the leading investment options available for beginners and experienced.
Now, you need to ensure that you are all set to get some Bitcoins for your pockets. The cryptocurrency exchange is not as simple as your average transaction. Therefore, you might need some particulars that will come in handy while buying and selling Bitcoins.
List of Things You Need to Buy Bitcoins
Before initiating buying and selling Bitcoins, you need to sign in to cryptocurrency exchange. Following are things you must keep by your side while starting to trade Bitcoins :
- A personal wallet or account apart from your currency exchange account
- A report on the cryptocurrency platform of your choice
- Valid documents as your age and identification proof
- A unique and safe network to access and utilize internet connection
- A suitable and accessible mode of payment for making all kinds of payments
There are various modes available, using which you can make payments while buying and selling Bitcoins. You can use debit cards, credit cards, personal bank accounts, etc., to make and receive payments on cryptocurrency exchange platforms. If you do well and need to exchange money on a regular basis, you can also get a specialized ATM for your Bitcoins business via P2P. However, you must keep a good eye for the authenticity and legality of these Bitcoin ATMs.
You must ensure that all the exchange processes are secure from all angles. If you have any Bitcoins in your account, it is necessary to keep them securely hidden with a private key that you must not share with anyone. As it’s something you can’t check physically, it is essential to guard it by using the best possible protection you can afford. Always remember, once you have a public account, anybody can track and trace your transactions using your ID only.
The Comprehensive Process to Buy Bitcoins
The process of buying Bitcoins can be divided and understood in simple steps that you should follow to purchase Bitcoin hassle-free. The steps to buying Bitcoins with ease include:
Select an Appropriate Exchange Platform
There are several cryptocurrency exchange platforms available for investors and traders. However, not every platform is best for everyone. You need to observe and study the benefits offered by an exchange platform before using it for cryptocurrency exchange or buy bitcoins. An exchange platform allows users to buy, hold, and sell all kinds of cryptocurrency using a single account. You can hold any amount of cryptocurrency on your statement as per your wish and requirement. Before selecting a particular exchange platform, you must make sure that it offers the benefit of shifting or moving your cryptocurrency to your wallet to ensure security.
If you are looking to hold your cryptocurrency, this feature is a must-have. However, some platforms also allow you to trade Bitcoins without revealing any of your personal information. You can anonymously operate your exchange account for selling and buying Bitcoins. Make sure the understanding you are making and maintaining is well secure with your data. Enable step verification and unique passwords to maximize the security of your precious cryptocurrency. Another major thing you must keep in mind about an exchange platform is whether it requires KYC or not.
Connect the Chosen Exchange with a Secure Payment Platform
Once you select a fair exchange for your cryptocurrency trading, you must submit your documents to them before you proceed to buy bitcoins. There are different documents required at other exchange platforms. Most of the exchange demands identification proof in the form of your driver’s license, working ID, etc. Also, you need to submit documents related to your actual job and the source from which you are receiving funds for trading. Once your authenticity and identification process is completed and verified by the exchange team, you can select a suitable payment option.
Many exchange platforms allow you to link your exchange account to your actual bank account directly. The users can also use their credit cards, debit cards, or ATM cards to connect with their exchange accounts. The buyers need to check with their respective accounts before linking them with their cryptocurrency exchange accounts. Many banks constantly question and disapprove of any cryptocurrency exchange using their bank accounts. So, link a bank account with your cryptocurrency exchange account only after checking it with your bank first.
Use Your Exchange Account for Trading Bitcoins and All Kinds of Cryptocurrency
After completing the connection procedure of your exchange account with your bank account and setting a mode of payment, it’s game time. You can now easily access your account to buy Bitcoins and other available kinds of cryptocurrency. Now, you will need knowledge and information of all types of cryptocurrencies available in the market, along with detailed information about their performance in the market.
While placing an order for a different crypto currency, you can use the type of order that is entirely suitable and beneficial to you. You can put a limit order, market order, or a stop limit order for trading cryptocurrency. The selection of the type of order ultimately depends on your choice and requirements from the Bitcoins in possession. You need to thoroughly check and analyze the market to make the most beneficial order on your cryptocurrency.
An additional benefit of specific exchange platforms is placing a reoccurring order within a fixed period, such as a week or a year. You can select the kind of investment you need to make in a particular type of cryptocurrency. However, Bitcoins are still at the top in preferences by most professionals in the cryptocurrency market. It gives the investors and traders a significant share of profit, increasing its demand and improving investment options for other investors in the financial market. So, before putting an order or investing in any cryptocurrency, the investors need to examine the previous performance of a cryptocurrency type.
Keep your Bitcoins Safely
After buying Bitcoins of your choice, it’s essential to manage and keep them safely in your accounts. Not only your cryptocurrency exchange accounts but also your bank wallets. Although keeping your cryptocurrency in each means different. The investors and traders who hold their cryptocurrency and Bitcoins in their cryptocurrency exchange accounts can access them wherever.
Whereas, in case you transfer your cryptocurrency into your account, it is kept safer. You and only you can use a unique security key to access and utilize different cryptocurrencies and Bitcoins. However, other cryptocurrency exchange wallets provide additional benefits to the users. Many wallets allow the users to add unlimited altcoins. You can add as much as you can accumulate in these cryptocurrency exchange wallets.
Types of Wallets
There are different kinds of wallets available for traders and investors based on their needs and requirements. The two main types of cryptocurrency wallets are paper or hardware-based software, cold wallets, or the wallets available online also called the hot wallets. To make an appropriate choice, you need to understand both kinds of wallets’ meaning, uses, and features.
Cold or Offline Wallets
Wallets or accounts you manage to keep your cryptocurrency while using offline means are called cold wallets. It is the safest way to store and keep your cryptocurrency out of the reach of people online. You can create an offline wallet from any website you like. It allows you to use and access various platforms to sell or buy Bitcoins without sharing or disclosing your security key. You are the only one who can use this security key to use Bitcoins you keep in your offline wallet. It can simply be a USB drive or an offline folder on your device, which can keep your precious cryptocurrency out of the boundaries of the internet.
Hot wallets are online wallets offered by different cryptocurrency exchange platforms to their users. It is easy for the user to access and buy Bitcoins with the help of hot wallets as it generates a security key on your device instantly using the current internet connection available with you. Although, it can be a risky task to use an open internet connection. Therefore, whenever you use hot wallets, make sure you use a secure and well-known internet connection.
That’s all you need to know before investing your time and money into buying and selling Bitcoins. Make sure to note down these points right in your mind before buying Bitcoins. So, we hope now you know how to buy bitcoins.
Frequently Asked Questions
On which platforms can I buy Bitcoins in India?
To buy Bitcoins in India you can use different platforms like ZebPay, CoinBase and Coin Desk. But, always remember that you need to undergo KYC to make any type of investment on any of the portals.
How can a Beginner trade Bitcoins?
if you are a beginner, you need to follow four steps to trade bitcoins. The very first step is to create a wallet for bitcoin. You can choose whichever you like. The second step in the process is to buy the first bitcoin. We recommend you start investing with a low amount. Third, you will have to secure the bitcoin and in the last step, when the bitcoin has reached the amount that you wished for, sell it.
Is investing in Bitcoins a good idea?
Well, to be honest, it is surely risky to invest in Bitcoin or any other cryptocurrency. But, surely, the returns are also high. So, if you want higher returns, you will have to take higher risks.
Will Bitcoin crash again?
We can not say! all these cryptocurrencies are volatile in nature and can crash anytime. That is the reason we say they are highly risky. So, if you are ready to take a risk, you can surely buy bitcoins.