Bitcoin is one, if not the most popular cryptocurrency around, and investors may want to consider it when they want to diversify their portfolio.
Buying bitcoin is not as straightforward as going on the internet and clicking the ‘buy’ button, like Amazon. You will need to secure a bitcoin wallet, a payment method and have your personal documents ready.
Step 1. Set Up Your Digital Wallet
Bitcoins are stored in a digital wallet, with balances maintained using ‘keys’, or numbered and lettered sequences that represent the encrypted algorithm.
You will need to set a strong password for your digital wallet, or otherwise it will be easy to steal your assets. Keep in mind that cold storage options, or offline bitcoin storage is available and should be used if you plan on buying or investing in bitcoin.
Step 2. Submit Your Personal Documents
Exchange commissions and securities may require bitcoin holders to verify themselves when creating a digital wallet for the first time. You may need to submit your SSN, or social security number and driver’s license, among others.
Step 3. Prepare Your Payment Method
One way to purchase bitcoin is to use Rapid Transfer, an online platform that works with many payment methods. You can read on how to buy bitcoin with rapid transfer before proceeding to the next step.
A bitcoin exchange will require a payment method that’s already set up, so it’s best to complete this first.
Step 4. Buy Bitcoin at an Exchange
Bitcoin marketplaces are called ‘exchanges’, which works similarly to trading platforms.
Here, you can buy bitcoin for a fiat currency, e.g., USD and the like. Create an account, set your digital wallet and make a transaction. After a while, the bitcoin will be sent to your digital wallet.
These exchange platforms work the same way, too. You can exchange bitcoin for USD, for instance when you need the money.