Bitcoin is an electronically held digital currency that’s not available in a physical form. Unlike fiat currency, governments and central banks do not control Bitcoin. Miners produce this cryptocurrency, and it embraces the decentralization concept. This cryptocurrency emerged in 2009, and its popularity has been growing over the years.
The main attributes of Bitcoin that have led to its increasing popularity include:
- Decentralization: Bitcoin is not regulated or controlled by a central authority. Instead, computer networks across the globe verify all Bitcoin transactions.
- Anonymity: The criminal world has given cryptocurrencies negative publicity for using them. Essentially, you need an email address only to set up your Bitcoin account. Thus, you maintain anonymity when you buy and sell Bitcoin.
- Blockchain: The use of blockchain technology is the central aspect that makes Bitcoin stand out. It provides a general ledger in many computers used to mine Bitcoin. And, nobody can edit or manipulate this ledger. This public ledger has a record of every Bitcoin transaction.
Bitcoin is the master of all cryptocurrencies. That’s why many people are investing in it rather than other cryptocurrencies.
Steps for Buying Bitcoin via an Exchange
Buying Bitcoin through an exchange is the most common method of getting this cryptocurrency. Bitcoin software has made the process of purchasing Bitcoin easier. This app helps people that want to invest in this cryptocurrency even without experience. Upon registration, a user deposits some money, and then the app uses AI technology and an innovative algorithm to trade Bitcoin on their behalf.
This app is a form of Bitcoin exchange where you can buy or sell Bitcoin. An exchange facilitates the process of buying and selling Bitcoin. Some Bitcoin exchanges are free, while others take commissions from the transactions. Nevertheless, using a crypto exchange is the most efficient and convenient way to purchase Bitcoin. Here are the steps to follow when buying Bitcoin through an exchange.
- Open Your Digital Wallet
A digital wallet is a place for storing cryptocurrencies. You can also use blockchain technology to interact with others via your wallet. Bitcoin users have many digital wallets from which to choose. However, it would help if you researched the available types of digital wallets before choosing. Also, find out more about the providers of digital wallets to make an informed choice.
- Register for an Account
Once you’ve chosen the type of digital wallet to use, register for an account. The registration process is easy. Fill out the registration form by providing your first and last name, email address, and phone number.
You may be sent an authentication code to your phone via an SMS. The platform will generate this code to confirm that you’re the owner of the phone number that you provide. Provide the code to complete the registration process.
- Buy Bitcoin
Once you’ve registered, you can now purchase Bitcoin. You only need to deposit money in fiat currency and then use it to buy Bitcoin. Most exchanges allow users to deposit money using different payment methods. You might also be required to complete an identity verification process by providing specific details or documents.
Once you have Bitcoins, you can send them to somebody else that has a digital wallet. You can also use your Bitcoin to perform daily transactions. However, the vendor, merchant, or shop where you want to use this cryptocurrency must have a Bitcoin address or wallet.
The Bottom Line
Buying Bitcoin via a crypto exchange is the most comfortable and convenient way to get this cryptocurrency. However, it would help if you did due diligence to choose the best crypto exchange and wallet for storing your Bitcoin safely.
