Cryptocurrency is an exciting new form of digital money, and Bitcoin is the most popular and valuable. If you’re like many regular people or investors around the world, you are interested in getting your hands on some Bitcoin but you aren’t 100% on the easiest way to do it.
As a relatively new technology, naturally, there is a learning curve to using cryptocurrencies. Properties like being ‘decentralized’ mean that Bitcoin doesn’t act quite like real money. To store, buy or sell Bitcoins safely, you need a whole new set of tools and skills. Bitcoin technology is still in its infancy, but with the right knowledge and by taking the appropriate steps, the whole process of buying Bitcoin can be easy, safe, and potentially profitable too.
1. Buy From a Trusted Exchange
There are many ways to get Bitcoin. You can mine Bitcoin with your computer, earn it by playing games or exchange pretty much anything for Bitcoin with people in your community at special-purpose marketplaces.
However, the easiest way by far is to buy it straight from a trusted Bitcoin exchange like CEX.IO. This exchange processes millions of dollars of trades and transactions every day in Bitcoin and all sorts of other cryptocurrencies. With CEX.IO, you will be able to get off the ground and trade Bitcoin for fiat currency quite quickly. You’ll also get some level of protection (unlike with a local trader) and can even pay quickly with your credit/debit card issued by VISA or MasterCard.
Still, to make sure that buying Bitcoin stays easy, check whether the exchange:
- Accepts your native currency (you don’t want to get hit with multiple conversion charges);
- Supports your preferred payment method (e.g. card payment, bank transfer, cryptocurrency payment);
- Is legal in your country and is likely to stay in the future;
- Is compliant with all laws that might be relevant to your state.
2. Verify Your Account
Most cryptocurrency exchanges require you to verify your identity on your account. This is to make sure that they stay within the bounds of important regulations. These include Know Your Customer (KYC) and Anti Money Laundering (AML). To verify, you’ll need to send photos of your face, along with photos of your identification documents (like a passport or driver’s license) and your payment cards. Don’t worry, this is a standard procedure in the industry, and as long as you choose a reputable exchange, your information should be safe. Do, however, always be on the lookout for phishing scams and other types of scams pretending to be someone else to extract your information.
Once you have verified your account on, let’s say CEX.IO, you’ll be able to buy Bitcoin pretty much instantly. Sometimes without even entering your card information again. You can also upgrade your verification level with more documents to increase your daily and monthly buying limits and thus reduce your barriers to buying Bitcoin even further.
3. Choose An Exchange With Good Customer Support
Whether you’re just starting with Bitcoin or an experienced trader, customer support could be highly valuable down the road. Choose an exchange with a reputation for providing fast and helpful support to its users, especially in times of difficulty. The last thing you want is to be stuck waiting for a reply to your support ticket while your funds are frozen in your account. Do some googling and check out some independent review sites for real customer reviews before setting up an account with any exchange.
4. Secure Your Bitcoin
Buying from an exchange does still carry risks. One of the most dangerous is attackers accessing your account. It’s essential that you set up Two Factor Authentication on your account for whatever exchange you use. If an exchange doesn’t offer Two Factor Authentication, don’t use it!
Storing large amounts of Bitcoin in your exchange wallet is also dangerous. This has been proven multiple times in the past with big scandals like the Mt. Gox bankruptcy, where millions of Bitcoins were stolen from the Mt. Gox exchange servers. Most of the Bitcoins were owned by the users of the exchange, and they ended up losing all the money they had stored there.
There are a few steps to take to make storing your bought Bitcoin easy and to avoid losing your money. Only keep small amounts of Bitcoin on your exchange wallet. Once you’ve built up some savings, move them to your own Bitcoin wallet. If you have a lot of Bitcoin, you might want to consider a hardware wallet for the highest level of security. You also need to keep a safe backup of your private keys.
5. Check You Can Withdraw Your Funds
Don’t overlook how you’ll withdraw your funds in the future. Buying Bitcoin is just one part of the equation. It’s likely you’ll one day want to sell it or withdraw it back to your original currency. It’s essential to look into this before you buy. Some exchanges allow you to buy Bitcoin in many countries but only withdraw in one or a few of those. You don’t want to be in a position where you can easily buy Bitcoin but can’t get rid of. It doesn’t matter how much your Bitcoin grow in value if you can’t cash out.
6. Stay Well-Informed
The cryptocurrency industry is quickly growing and evolving. Make sure you stay informed with updates and changes to the Bitcoin technology, your Bitcoin exchange’s rules and terms, and all laws and regulations that might affect you.
7. Only Buy What You Can Afford
Most importantly, make buying Bitcoin easy for yourself by being smart with how much you invest. Many people have made fortunes with cryptocurrency, but many have also lost everything in seconds. Keep the process easy and manageable by starting off slowly and building your portfolio as you get more comfortable with how Bitcoin and cryptocurrency technology works.
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
Image courtesy of Pexels
The post Getting Started: How to Buy Bitcoin Easily appeared first on Global Coin Report.
Read more at https://globalcoinreport.com/getting-started-how-to-buy-bitcoin-easily/
Globalcoinreport.com/ is author of this content, TheBitcoinNews.com is is not responsible for the content of external sites.
Our Social Networks: Facebook Instagram Pinterest Reddit Telegram Twitter Youtube
