In this era of cryptocurrency buying and storing bitcoin has become so easy with the innovation of different exchange platforms and digital wallets. As the number of bitcoin users all around the world has increased at is excessive pace from 2009 to 2022, Impact of bitcoin opportunities are being evolved too. From third-party trading platforms to bitcoin ATMs, you have so many options now. In parallel to this, Different types of digital wallets have been created to store this valuable crypto. There are two different wallets called the hot and the cold wallet that you get for trading in crypto. Finding the right combination of wallet that works the best for you, is essential.
How to buy bitcoin?
Bitcoin can be bought in bitcoin ATMs too as we already said but, keeping the factors of convenience and charges in mind, buying bitcoin from cryptocurrency exchanges is preferable. Cryptocurrency exchanges act the same as traditional stock exchanges to some extent. It is like an online marketplace where you can transfer bitcoin either by buying or selling them.
- The first thing would be to find a crypto exchange. Here, finding a reliable exchange is very important. You can go for the exchange platform. You can register yourself here, and start trading in the cryptocurrency of your choice. Besides, you will also get information and update on the trading market.
- After that, you have to register yourself with them by going through a verification process if needed. Finding the right keys and the outline for verification is important.
- Once the verification is done, an account will be opened and that will be your bitcoin trading account.
- Now, you need to connect this account to any of your bank accounts from where you can transfer some initial funding for your first bitcoin purchase. You should also check the reputation of the crypto exchange that you are choosing.
- After the transfer, you are ready to proceed with your first bitcoin purchase. Check the latest market rate, decide the amount of money you are ready to pay, place a buy order, and you will receive your bitcoins.
Purpose to have a digital wallet:
We own fiat currencies and keep them in our wallets. Bitcoin is a digital currency. So naturally, it also needs a place to be kept. Digital wallets are that space or data storages that we can have in digital forms and store our bitcoin holdings. To be exact, digital wallets store the private key and the public key by which, you can access your bitcoin holdings. You can check paper wallets, physical storage options and Bitcoin legacy of wallets and also a secondary cold wallet like an offline computer can be one of the best options that you can use as a secondary cold wallet.
Storing and trading bitcoins through wallet:
Bitcoins are not directly stored in digital wallets as they are virtual currency. But, they always remain on the bitcoin Blockchain and you just have the ownership of your bitcoin holdings including your purchased bitcoins and received bitcoins from other users. To access those bitcoins or to make any transactions of bitcoin, you have a public key and a private key that you get from the digital wallet. Those keys are stored in digital wallets with safety and security. You can add a password to your wallet too to have better protection. Thus bitcoins are indirectly stored by digital wallets.
Now to trade bitcoin through digital wallets you have to use those two keys. If you are going to receive some bitcoins from another user, you need to share your public key with the user. Then the user will send the bitcoin to you with the help of the public key or the bitcoin address.And then, you can send the bitcoins you want to the public key or an address other than the other person. Within a few seconds, the person will receive the bitcoins.
Every unknown thing or process becomes easy if we know the right process and practice. Thus, buying bitcoin and transacting them through digital wallets are also very easy. It just needs some research on bitcoins and the trading process. You should go through checking the device keys, the private passwords that you have and the right transaction that you do. This will enable you to carry on your trading in a faster manner.