Three Major Steps to Buy Your First Bitcoin

Bitcoin is a digital cryptocurrency that enables instant payments to anyone, anywhere globally. Bitcoin uses peer-to-peer technology to operate with no central authority; managing transactions and issuing money are carried out collectively by the network. Bitcoin is a digital cryptocurrency that enables instant payments to anyone, anywhere globally. Managing transactions and issuing money are carried out collectively by the network. Therefore, no one actor is in charge of Bitcoin. 

Although many people use the two terms interchangeably, Bitcoin can also be described as a “cryptocurrency”. Unlike traditional currencies such as dollars, bitcoins are issued and managed without any central authority. There is no government, company, or bank in charge of Bitcoin. Instead, the Bitcoin network similarly processes all transactions to how electronic cash operates: the network confirms transactions to the rest of the network. It then broadcasts those transactions to other users for record-keeping.

There are many questions about polygon crypto and its practicality. Is it safe? What do you need to get started? How much does it cost to buy bitcoin? A three-step guide on how to purchase your first fraction of a bitcoin in the safest way possible will help you better understand the significant ways. 

Step 1: Finding a Good Exchange

When you’re buying bitcoin for the first time, it’s imperative that you do so on a trusted exchange or you risk running into problems. A good exchange should be transparent and enable users to deposit funds into its platform quickly. There are several popular ones, but exchanges with high levels of liquidity and solid customer service should be your priority when choosing where to buy your bitcoins. 

Some common exchanges are, Coinbase – Buy bitcoins instantly with a credit card via their app or website. Gemini – A US exchange for buying and selling bitcoin. You can deposit by bank transfer or Interac Online. Circle – It allows you to buy, send and receive bitcoins with a credit card or debit card. Bitstamp – allows you to buy, sell and trade bitcoins in exchange for national currencies or other digital currencies. 

Consider Bittrex, Bitfinex, Coinbase and LocalBitcoins as the best options currently available. More extensive exchanges like Bitstamp, OKCoin and Kraken are still new, so they don’t have enough liquidity to provide reliable service.

Step 2: Over-the-Counter Trading

The quickest way to buy bitcoins is through an over-the-counter (OTC) trade. Over-the-counter trades are made through a trusted third party who can facilitate the transaction without the need for a bank account. In an OTC trade, the bitcoins are sold physically (think of them as a commodity), and you pay with cash. 

To find a trusted third-party, check the #bitcoin-otc or the Bitcoin Trader Loops in IRC or BitcoinTalk. The best time to do an OTC trade is during off-hours for both parties when market activity is low. To make an over-the-counter trade happen, you’ll need to find a seller willing to accept your cash payment. 

Selling bitcoins via an OTC trade is not difficult; however, it can be cumbersome when trying to acquire large quantities of the currency. It is why it is recommended that you use an exchange when buying the first few hundred dollars worth of bitcoins. If you plan to purchase more than $5,000 worth of bitcoins, a bank account is necessary to avoid identity theft issues. Read the guide on buying bitcoins securely with a credit card or debit card.

Step 3: Getting a Bank Account

The last step to buying bitcoin is getting a bank account. When you do, you’ll be able to deposit funds into it by wire transfer or credit card, which will make the entire process much more manageable. If getting a bank account is challenging because of your country’s capital controls, consider a debit card instead. 

Debit cards are like prepaid cards, and they allow you to convert your bank account balance into bitcoin whenever you need to. The downside of debit cards is that they are a bit more complicated to set up, but if you’re looking for an easy way out, a debit card might be the way to go. First, you have your bank account set up; you’ll have the ability to deposit funds into it via wire transfer and credit card. 

Many reputable companies offer debit cards tied to your bank account and allow you to spend your bitcoins safely. Revolut, Xapo, Coinbase and Wirex are some of the best debit card providers currently available. Coinbase is recommended because you can buy bitcoins right on the app, making it more convenient than Revolut.

Once you consider the above points, you will get to know about the significant aspects of bitcoin, which will help you know how to invest in bitcoin without any query. So try to consider all the significant steps to better understand with no risks involved.