The idea of digital currencies and blockchain technology was first proposed and introduced by Satoshi Nakamoto in 2008. If you want to start bitcoin trading in only three steps, bitcoin billionaire, you will get the best liquidity, and the platform is immune to volatility risk. Being the first pioneer in this new era, Bitcoin has become a decentralized and open-source currency recognized worldwide.
Most exchanges can be accessed through mobile apps or intuitively designed websites to interface with users easily. It does not require any technical background knowledge as it keeps transactions transparent, giving all parties involved in each transaction the ability to see and understand the details at all times.
As a first-time user, you may be intimidated by Bitcoin and its workings. You may feel that there’s too much information to process, but don’t worry! The below-mentioned guide will help you in your endeavours of buying and using your first Bitcoin. The guide also provides tips on buying more Bitcoins through an exchange or trading platform.
What is a cryptocurrency exchange?
The difference between an exchange and a trading platform is that exchanges are centralized platforms where users can buy and sell cryptocurrencies directly from the exchange. The first step in purchasing Bitcoins is to open an account at online service such as a coin base and then receive your Bitcoin address. It is possible by navigating to the respective site, clicking “Get Started” on the top menu, and then following the instructions on how to sign up.
How to choose a perfect cryptocurrency exchange?
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Check for security protocols:
An exchange should be secure enough to avoid hacking attacks. Hackers may gain unauthorized access to a user’s account and steal users’ cryptocurrency. Make sure the exchange you choose has a backup system for all transactions and has implemented advanced security protocols. It would be best if the cryptocurrency exchange offers insurance for the stolen or lost funds
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Check for reputation:
You can check their reputation by visiting trading platforms and forums and reading reviews on the service written by different users.
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Non-custodial wallet:
Usually, most cryptocurrency exchanges prefer offering a custodial wallet and do not provide any access to private keys to the users due to security concerns. But it would be best if the cryptocurrency exchange offered you a non-custodial wallet so you can access your private keys anytime you want to move your funds from one wallet to another without hassle.
How to buy bitcoin from an exchange?
Step 1:
Visit the exchange website and open an account. Upon opening the account, you will be prompted with a set of mandatory fields so that you can provide the details of your identity.
Step 2:
If you don’t have a passport or Pan Card, then the company will accept an Identity card or driving license. Once you have submitted these documents, the exchange will need some time to process the verification of the user’s identity; the time required for KYC completion usually relies upon the verification team of the exchange.
Step 3:
After completing the KYC process, you will be able to deposit or withdraw funds into the exchange wallet; here, you can transfer Bitcoin from other exchanges or wallets. You can deposit your funds by choosing a payment method, i.e. bank transfer or COD (cash on delivery).
You should use an address that has never been used before while making a transaction because it will keep your identity safe and untraceable. It is why it is crucial to create a new address at every transaction in the cryptocurrency world.
How to use bitcoin?
With the mass adoption of bitcoin, it is now possible to use it for daily life transactions such as buying goods, groceries and other services from businesses that accept it.
Step 1:
Scanning the QR code:
Scanning the QR code of the merchant with the help of your mobile wallet app will help you to make payments directly to the merchant.
Step 2:
Using an address-to-address transaction:
In this mode, users directly transfer bitcoins from their bitcoin wallet to the other person’s bitcoin wallet address. It is possible when you send bitcoins through an internet connection instead of using QR codes. In addition, this mode lets users send bitcoins through a regular email from the bitcoin wallet link.
Using a wallet address for shopping:
It is the most straightforward and convenient mode to make payments in bitcoin because you can now use your wallet address at any online store that accepts bitcoin as a payment source. For example, websites like amazon, Walmart, and Overstock.com accept payments made through your bitcoin wallet address. All you need is to enter your email address or social security number to verify your identity before making a payment of over $1000 to Amazon or Walmart.
