{"id":273,"date":"2021-03-07T06:09:58","date_gmt":"2021-03-07T11:09:58","guid":{"rendered":"https:\/\/walletorama.com\/?p=273"},"modified":"2021-03-07T06:09:59","modified_gmt":"2021-03-07T11:09:59","slug":"how-to-buy-bitcoin","status":"publish","type":"post","link":"https:\/\/walletorama.com\/how-to-buy-bitcoin\/","title":{"rendered":"How to Buy Bitcoin – All the Information You Need in One Place"},"content":{"rendered":"\n

Chances are that you are here trying to learn how to buy bitcoin because you are scared of missing out. FOMO<\/strong> \u2013 the fear of missing out \u2013 is what it is called in slang terms.<\/p>\n\n\n\n

The Bitcoin (and crypto) market has basically exploded over the last few years. With Bitcoin\u2019s price largely trending in the “right direction” recently, many people have made a lot of money. And it is still far from being too late to jump on that bandwagon right now. There is a lot of room left.<\/p>\n\n\n\n

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Source: Statista<\/figcaption><\/figure><\/div>\n\n\n\n

But if you have decided to hop on the train, you have a lot to learn about it first. Bursting into uncharted territory like this without essential education is almost certain to lead to you having your fingers (and wallet) burnt.<\/p>\n\n\n\n

So before I move on to show you how you can buy Bitcoin, let\u2019s have a quick overview first. What is Bitcoin anyway, and what purpose does it serve?<\/p>\n\n\n\n

So, what is Bitcoin?<\/h2>\n\n\n\n

Unless you are living under a rock, you have heard the name bandied about. Bitcoin used to be hush-hush. It had something of a negative reputation due to its status as the central currency of the Dark Web<\/a>.<\/p>\n\n\n\n

But over the years, that cloak has slipped. Bitcoin is more mainstream these days, and everyone and their grandma wants to get in on the action.<\/p>\n\n\n\n

Before we dive, it is important to understand what cryptocurrency<\/strong> is. Cryptocurrency, or crypto for short, is a digital currency that is encrypted and operating on a decentralized system. It works using a technology known as the Blockchain<\/a>.<\/p>\n\n\n\n

Cryptocurrencies are virtual in nature. What that means is that unlike paper or metal money, you can neither see nor touch them. You cannot hand them over physically in exchange for goods or services.<\/p>\n\n\n\n

There are a ton of different cryptocurrencies in existence right now. Every day, new ones are thrown into the mix. But Bitcoin is generally accepted as the major cryptocurrency.<\/p>\n\n\n\n

It was created in 2009 by an anonymous person or persons going by the alias Satoshi Nakamoto<\/strong>. The purpose of the creation of this cryptocurrency was decentralization, to eliminate the need for intermediaries like banks and governments.<\/p>\n\n\n\n

And that is why it has served as the currency of the Dark Web for so long. Transactions that are carried out through Bitcoin are encrypted, and the components such as addresses cannot be easily linked to actual personal identities.<\/p>\n\n\n\n

Bitcoins are stored by their users in digital wallets<\/strong>. A wallet is something like a virtual bank account. Like a regular bank account, it will allow users to send or receive Bitcoins or to use them in exchange for goods and services.<\/p>\n\n\n\n

These wallets can exist either in the cloud, or in the Bitcoin owner\u2019s computer.<\/p>\n\n\n\n

How to Buy Bitcoin<\/h2>\n\n\n\n

So now that you know what Bitcoin is, we will now look at the steps involved in actually buying it. Because it is virtual and decentralized as earlier mentioned, you cannot simply work into a bank or currency exchange and ask to buy Bitcoins.<\/p>\n\n\n\n

But don\u2019t worry, it is really not a complicated process. At least it won\u2019t be, once you have followed our well broken down guide.<\/p>\n\n\n\n

1.      Register with a Digital Currency Exchange<\/h4>\n\n\n\n

An exchange is a business that allows customers to buy and sell bitcoins. An exchange lets you convert fiat money<\/strong> like the dollar, or altcoins<\/strong>, into Bitcoin. It acts as a broker, allowing deposits and exchanges, and takes a fee for the service it provides.<\/p>\n\n\n\n

There are a lot of Bitcoin exchanges to choose from. In the United States, they include Coinbase<\/a>, Coinmama<\/a>, Gemini<\/a>, Kraken<\/a>, Binance<\/a>, eToro<\/a>, and CEX.IO<\/a>.<\/p>\n\n\n\n

Bitcoin exchanges do not all operate the same, and there may be significant differences to take note of. It is important to study reviews of various exchanges before making a decision<\/strong>, learning their strengths and weaknesses.<\/p>\n\n\n\n

When you have chosen the exchange that you think will best serve your purpose, the next step is to register on it. This process requires transparency, and your exchange will require that you submit some personal information.<\/p>\n\n\n\n

The information required varies from exchange to exchange. It may also depend on your geographical location or region. The Know Your Customer (KYC)<\/strong> process may require your full name, residential addresses, phone number, social security number, and ID like a driver\u2019s license.<\/p>\n\n\n\n

You will be asked to verify your email address and to use 2-factor authentication<\/strong> to help ensure the privacy of your account.<\/p>\n\n\n\n

2.      Create a Wallet<\/h4>\n\n\n\n

It is important to understand that an exchange is different from a bitcoin wallet. Basically, a wallet is a software program that allows you to store your Bitcoin.<\/p>\n\n\n\n

Of course, considering that Bitcoin is only virtual, it is not actually stored in the wallet. What is stored there are the private keys that are used to access your private Bitcoin address and transaction signatures.<\/p>\n\n\n\n

The Bitcoin wallet is entirely private \u2013 as long as you make sure that it remains so. It is very important that you maintain the privacy of your wallet by using strong passwords. Additionally, you must keep all sensitive information to yourself.<\/p>\n\n\n\n

When you make a Bitcoin purchase, that Bitcoin is sent to your wallet. In this wallet, you can manage your Bitcoin and send some out to someone else using the recipient\u2019s address. When you send out Bitcoin, it is sent from your wallet to the recipient\u2019s wallet.<\/p>\n\n\n\n

Types of Wallets<\/h5>\n\n\n\n