Cryptocurrency refers to the digital money that is used to make payments and carry out financial transactions. In 2008, an individual named Satoshi Nakamoto released a white paper stating about the first cryptocurrency, bitcoin. Later in the following year, 2009, the bitcoin network was launched, and it’s been more than a decade that bitcoin came into existence. Even though there are thousands of cryptocurrencies released after bitcoin, it remains the most popular cryptocurrency that has entered into the mainstream.
Those people who are unaware of cryptocurrencies need to learn many things while entering the market. It is crucial to learn how to store, transfer, buy and sell bitcoins. Learning the basics of the bitcoin market will help individuals to be careful and move forward carefully. Basics will help you gain knowledge about trading bitcoin, and one of the platforms to trade bitcoin by official site
In this article, we will learn the ways to buy bitcoin.
What is required to purchase bitcoins?
At first, users need to store bitcoins, and because bitcoin is a digital currency, these are stored in digital wallets. Digital wallets are more like traditional bank accounts that allow users to easily store, send and receive bitcoins. These wallets can be used to make payments, withdrawals, and deposits at times. There are three main parts of a digital wallet, which include a bitcoin address, a public key, and a private key. The bitcoin address is more like an account number and through which transactions can be made. Also, another important thing is the private key of the bitcoin wallet, which acts like a PIN. The private key is unique and is generated new every time.
There are several types of wallets that store cryptocurrencies like bitcoin, which are as follows:
Paper wallets are offline wallets that require a page and printer to get printed. A paper wallet usually has two QR codes, and users can easily send bitcoins by scanning QR codes. It is said that paper wallets are a secure option to store your digital tokens. It is always better to backup your wallet if you accidentally lose it; you can easily recover your bitcoins.
Mobile wallets or web wallets
Mobile wallets or web wallets can only be used with an internet connection. Both mobile and web wallets are less secure because mobile wallets store private keys in mobile, whereas web wallets provide access to third parties to handle private key. This increases the risk of theft or attack on private keys.
Desktop wallets are a much better option than other wallets because it is an offline wallet that stores the private key on the computer and offers top-notch security features.
Buy Bitcoin with a credit card or cash.
Cryptocurrency exchanges are online marketplaces that allow users to buy and sell bitcoins without the requirement of a digital wallet. To buy bitcoin from the exchange, users need to open their account with a cryptocurrency exchange and provide them your personal information and complete the KYC process. Also, users need to either link their checking account or credit card to pay funds for purchases. Once you purchase bitcoin with your account, the exchange will deposit bitcoins into a newly created digital wallet. All you need to do is tell the exchange about the amount of bitcoin you want to purchase or sell.
Buy Bitcoin with cryptocurrency ATM.
Like traditional ATMs, now cryptocurrency ATMs are being developed across the world. Through cryptocurrency ATMs, users can easily buy bitcoin through cash, debit/credit cards. The process of buying bitcoin through a crypto ATM is quite simple as a user needs to provide a private key of a digital wallet to the ATM. Select the amount of bitcoin that you want to purchase and click the buy option. Users who don’t have digital wallets can also create paper wallets from ATMs as ATMs has the ability to create a wallet on the spot.
There is no need to provide personal information to cryptocurrency ATMs. The only demerit of using crypto ATMs is that these machines often charge high transaction fees and also have different exchange rates for different cryptocurrencies.