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Many of you might ask what a bitcoin wallet is? or what its purpose is? or why do we need it at all? The answer is simple. As we all are well aware that bitcoins have no physical presence, they are only and only available on your devices.
Decided to Invest in Bitcoins and still aren’t sure how to get started? Well, then this article is for you. Buying a bitcoin is a more straightforward task than many anticipate it to be. However, only jump on to investing in bitcoins if you have the patience to withstand all the significant ups and downs that the bitcoin community goes through. Here’s what you need to start investing in bitcoins.
How to Buy a Bitcoin?
Get a Bitcoin Wallet:
Many of you might ask what a bitcoin wallet is, what is its purpose, or why do we need it at all? The answer is simple. As we all are well aware that bitcoins have no physical presence, they are only available on your devices. Hence, bitcoin wallets are electronic wallet that works as a virtual storage unit for your money, which means without a wallet there is no way you can buy bitcoin.
There are three main wallet options:
- A software wallet that is stored on the hard drive of an individual’s computer.
- The online web-based wallet.
- And, a vault service- this keeps your bitcoins secured offline, which is then protected by several keys.
Once you’ve decided which option suits you the best, the next step is to find a secure wallet. Here are some possibilities of wallets that are secure and easy to use:
- Coinbase: The record of coin base when it comes to the security of bitcoins hasn’t been all that great. However, they give a safer option of keeping them in a vault.
- Electrum: One of the most popular wallets that are software-based and provides investors with all the security they need.
- Cold Storage: This one is for those who aren’t sure about storing them in wallets. With Cold storage, you can put the documents and information in a USB or a paper wallet.
Select a Bitcoin Exchange:
The next step is to choose a bitcoin exchange that allows you to trade money in exchange for cryptocurrency. These exchanges or known as fiat-to-crypto, and when you buy bitcoins through them, they sell you their reserved bitcoins, which means they can demand any price or an additional fee for their service.
Here are some exchanges that can help you convert your money into bitcoins:
Sign Up and Add a Payment Method:
Once you’ve signed up and cleared all the security checks, the next step is to add the payment details. To buy cryptocurrency, you need to add a payment method to pay for those bitcoins. Now, if you are looking to invest a more significant sum of money, then it is recommended that you connect your bank account. However, if you want to make small purchases, then a credit card and the debit card works fine, but charge a higher fee.
Deposit the Fund and Start Buying Bitcoins:
Now that you have an account all set up, the last thing you need to do is transfer the money in your exchange, and once that money is cleared, it will automatically appear in the fiat wallet of your exchange. Now use that money to buy bitcoins. And that is how you can quickly become an owner/investor of bitcoins.