Unless broken down into simple steps, it can appear to be complicated. In order to buy bitcoin, all you need is a crypto exchange, alongside some safe storage practices. It is important to note that although no one can hack your bitcoin, the wallet or exchange you use to store it can be compromised. In the course of this article, we will be looking at a practical guide on how to buy bitcoin.
Step 1: Choose A Crypto Trading Service/ Exchange
The first practical step you need to take in order to buy Bitcoin involves using a crypto trading service. A crypto trading service is what allows you to perform cryptocurrency exchanges, brokerages, and payment services. It is with the aid of a crypto trading service that you are able to buy, sell or hold in cryptocurrency like Bitcoin. In searching for the best crypto trading service, you should ensure that the platform allows you to withdraw your cryptocurrency to your own personal wallet. Another thing you need to bear in mind is that in the process of creating a cryptocurrency Exchange account safe internet practices should be used. This involves making use of two-factor authentication and a long and unique password that has a variety of capitalized letters, numbers, special characters, and lowercase numbers.
Step 2: Connect Your Exchange With A Payment Option
This is the most important process of buying Bitcoin. After you have made your choice of cryptocurrency exchange, you need to go ahead and gather your personal documents. It is important to note that most exchanges might require pictures of a driver’s license or a social security card. Some platforms for buying bitcoin even go ahead to ask for your employer and source of funds. After your cryptocurrency exchange has verified your identity, you will be asked to connect a payment option. Here you can connect a bank account directly or use a credit or debit card. If you’re going to use your bank to connect to your exchange as a payment option, ensure that your bank allows deposits as the exchange.
Also worth noting is that Banks, debit, or credit cards charge varying fees for making payments at an exchange.
Step 3: Place Your Order To Buy Your Bitcoin
The next logical step today after choosing an exchange and connecting payment option is to place an order for a Bitcoin. A lot of exchanges have grown to the point where they have almost the same features as their stock brokerage counterparts. It is important to note that most crypto exchanges offer a variety of order types and ways to invest your Bitcoin. Most modern-day exchanges allow customers to set up recurring investments. For instance, coinbase allows its customers to set up recurring investments for every day, week, or month.
Step 4: Select A Safe Storage For Your Bitcoin
After successfully buying Bitcoin in your crypto-currency exchange of choice, the next step to take involves choosing safe storage for your crypto. Although most exchanges offer their customers a wallet for storing their purchased crypto, having a personal wallet is a better option. This is so that you can have control over the private key to your funds. It is not advisable to use the wallet your crypto exchange offered you for large or long-term bitcoin holdings.
When looking for a wallet to use to store your bitcoin, you need to research its features. Most wallets only allow bitcoin, while some allow users to store other cryptocurrencies.
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Everything You Need To Know About Buying Bitcoin With PayPal
Another way you can buy bitcoin is through a popular payment gateway known as PayPal. It is important to note that PayPal has two options that allow you to purchase Bitcoin. The first method involves buying Bitcoin using your PayPal account that is connected to a payment mechanism such as your bank account or debit card. The second option that can be used to buy bitcoin with the PayPal payment gateway involves using PayPal to buy Bitcoin from a third-party provider.
It is important to note that there are three cryptocurrencies other than bitcoin that can be purchased directly from PayPal- Litecoin, Bitcoin Cash, and Etherum. To be able to set up a crypto account with PayPal, all you need is your name, tax identification number, date of birth, and physical address. You should also be well aware that if you buy bitcoin using the PayPal platform, you cannot transfer the cryptocurrency out of the payment processors platform.
Should You Purchase Bitcoin?
If you invest in bitcoin, you are likely to get mouth-watering returns. The fact that bitcoin has been around for long means that it can survive any major market crash. In terms of investing, the bitcoin cryptocurrency is a safer-long term bet than other less established cryptocurrencies. Purchasing
Bitcoin depends on your understanding of cryptocurrency and your attitude toward risk. Now is not the time to buy bitcoin if you have other financial needs or don’t have the cash to spare.