Buying bitcoins is not a heavy task. It may seem complicated, but you can simplify it by breaking the process into several simple steps. If you have an account at a crypto exchange or service, you can easily buy bitcoins. The major things you need to buy bitcoins are an account in a trustworthy crypto exchange, documents relating to your identification for using the KYC platform, a safe internet connection, and a good payment method. It is also good to have a personal wallet apart from the exchange account. Many crypto tokens besides bitcoins are also gaining popularity. FightOut tokens are grabbing the attention of many investors and traders. They aim at increasing physical activity in exchange for crypto tokens. Check the FightOut guide to learn more about the tokens and the ways to earn them.
What to consider before buying bitcoins?
Bitcoin investors must give prior concern for security and privacy. Anybody can authorize transactions if they get access to the private keys of the blockchain. Ensure that the private keys are kept safe. Investors can create different public addresses and distribute their bitcoins over different addresses. It is good to ensure that your important investments are stored in the public addresses and are not linked to those used for transactions. It is not possible to identify a bitcoin user. Users are identified only by their public keys, making transactions confidential.
Here are the steps to follow to buy bitcoins.
- Find a bitcoin wallet
You need to have a bitcoin wallet before buying bitcoins. It is virtual storage similar to a physical wallet that is used to store your cards and money. The wallet can be offline, online, or a software wallet. If you are to use the wallet every day, an online wallet will be the ideal choice. However, it won’t offer complete anonymity and there will be long procedures to use online wallets.
- Select a reliable crypto exchange
After getting a wallet, you have to choose a fiat-to-crypto exchange. The exchange will offer you bitcoins in exchange for the money you give. The company will sell cryptocurrencies like bitcoins from their reserves. The price of the coins and the fee charged will be decided by the exchange. They are also called broker exchanges.
- Follow the security checks
After choosing the exchange, you will have to undergo some security checks before buying bitcoins. These rules will be different for different exchanges. However, they will be aimed to satisfy anti-money laundering and the rules of KYC of the particular country where the exchange is located. Most of the exchanges will request your phone number to offer a two-factor authentication so that nobody will be able to access your account. You will also have to upload your identity proofs. Some exchanges will ask for a selfie, while others will have an employee validate the ID proofs you upload.
- Give a payment option
You have to provide your bank account, credit, or debit card to buy bitcoins from the exchanges. If you are buying huge amounts of bitcoins, it is advised to give a bank account as the transfer fees will be lower. As credit and debit cards charge high fees, use them only to buy small amounts of bitcoins.