How to buy Bitcoin legally at A.S. - Support 4 Investment
Despite receiving significant attention in the world of financial and investment, many people today do not know how to buy cryptocurrency like Bitcoin - but do it can be as simple as registering for a mobile application.
With Cryptocurrency back in the news, now is a good time like before to study weeds and learn more about how to invest.
Here are all the details you need to know to start buying Bitcoin.
Steps to Buy Bitcoin
1. Digital wallet.
To make transactions on the Bitcoin network, participants need to run a program called "wallet." Bitcoin is not technically a "coin" in the traditional sense, so it seems right that Bitcoin wallet will not really be a wallet. Your Bitcoin wallet that you will be assigned by an application or service provider is basically an alpha-numeric string of random letters and numbers - but you can think of this Bitcoin "address" as a "bank account number."
Bitcoin balances are maintained using public and private "keys" which are names for string the length of the numbers and letters that are linked through the mathematical encryption algorithm used to make it.
The public key represents your "bank account number", and is the location where the transaction is deposited to and withdrawn from. It is also the key that appears in the Blockchain Language book as a digital user signature, is no different from the username on social media. Personal key is a password needed to buy, sell, and trade Bitcoin in a wallet. private key must be a secret that is maintained and only used to authorize Bitcoin transmission. Some users protect their private key by encrypting a wallet with a powerful password and, in some cases, by selecting a cold storage option; that is, save the wallet offline.
Note that there are several different ways to maintain Bitcoin wallets and private keys associated with it. The host wallet service, such as coinbase or blockchain.info, will give you web access or application and act as your personal key guard. If you lose information or passwords enter your account, you can use the service to reset your password and return. However, with a wallet like that you don't really control your personal keys, and maybe even able to access it in some cases. If you download your Mandiri wallet on your PC or mobile device, you will fully control your personal keys, but if you forget your password or lose your personal key, your bitcoin is lost forever. Thus, there is a trade-off between privacy & security and can restore your coin if you are forgetful.
2. Personal documents
Commission U8 Securities and Exchange requires users to verify their identity when registering for digital wallets as part of the anti-money laundering policy.
To buy and sell Bitcoin, you must verify your identity using several personal documents including your SIM and Social Security Number (SSN).
3. Secure Internet Connection
If you choose to trade Bitcoin online, use wisdom when and where you access your digital wallet. Bitcoin trading on unsafe or public wifi networks is not recommended and can make you more susceptible to attacks from hackers.
4. Bank account, debit card, or credit card
After you have a Bitcoin wallet, you can use traditional payment methods such as credit cards, bank transfers (ACH), or debit cards to buy Bitcoin on Exchange Bitcoin.
Bitcoin is then transferred to your wallet. The availability of payment methods above is subject to the chosen jurisdiction and exchange area. Below is the screenshot of the Bitcoin interface on coinbase which shows how to buy and sell bitcoin and also Bitcoin Cash, Ethereum, and Litecoin, which is another popular virtual currency. Users click on the "Buy" tab to buy the digital currency and the "Sell" tab to sell the digital currency. You choose which currency you buy or sell and the payment method (bank account or your credit card) you want to use.
Depending on the exchange, there may be benefits and losses to pay with cash, credit or debit cards, or bank account transfers. For example, while credit cards and debit are one of the most user-friendly payment methods, they tend to require identification and can also charge higher costs than other methods. Bank transfers, on the other hand, usually have low costs, but they may take longer than other payment methods.
5. Bitcoin Exchange.
After you set your wallet with the payment method, you will need a place to actually buy Bitcoin. Users can buy other Bitcoin and Cryptocurrency from the online market called "exchange," similar to the platform used by traders to buy shares. Exchange connects you directly to the Bitcoin Marketplace, where you can exchange traditional currencies for Bitcoin.
Remember that the Bitcoin and Bitcoin wallet exchanges are not the same. Bitcoin exchanges are similar to the foreign exchange market. Exchange is a digital platform where Bitcoin is exchanged for Fiat currency - for example, Bitcoin (BTC) for the US dollar (USD). While exchanges offer wallet capabilities to users, it's not their main business. Because the wallet must be safe, the exchange does not encourage storing Bitcoin in large quantities or for a long time. Therefore, it is recommended to transfer your Bitcoin to a safe wallet. Because security must be your top priority when choosing a Bitcoin wallet, select one with multi-signature facilities.
There are many established exchanges that provide a one-stop solution with high security and reporting standards, but the thorough test must be done when choosing Bitcoin or wallet exchanges. Besides coinbase, other popular exchanges include coinmama, cex.io and gemini.
Alternative ways to buy Bitcoin
While exchanges such as coinbase remain one of the most popular ways to buy Bitcoin, it's not the only method. Below are some additional processes utilized by Bitcoin owners.
Bitcoin ATM
Bitcoin ATM acts like a direct exchange of Bitcoin. Individuals can put cash into the machine and use it to buy Bitcoin which is then transferred to a safe digital wallet. Bitcoin ATMs have become increasingly popular in recent years; Coin ATM radar can help track the closest machine.
P2P Exchanges.
Unlike decentralization exchanges, which are in accordance with buyers and sellers anonymously and facilitate all aspects of the transaction, there are several peer-to-peer exchange services (P2P) which provide more direct connections between users.10 Local bitcoin is an example. A exchange. After creating an account, the user can post a request to buy or sell Bitcoin, including information about payment methods and prices. The user then traces the buying list of buying and selling, choose the trading partner they want to transact.
Local bitcoin facilitates several aspects of trading. While the exchange of P2P does not offer the same anonymity as decentralized exchanges, they allow users the opportunity to shop for the best deal. Many of these exchanges also provide ranking systems so users have a way to evaluate the potential of trading partners before transacting.
Source : investopedia.com
