In recent years, Bitcoin has garnered a tremendous amount of attention in the investment and financial world, however, people are still apprehensive. They lack the knowledge on how to buy the cryptocurrency Bitcoin. Buying Bitcoin is as easy as it gets, and it’s not a tedious process. Bitcoin has again emerged in the investment landscape, and it is more than prudent to delve into this avenue and learn about investing. Here’s how you can legally buy bitcoin in the U.S.
Various Methods To Purchase Bitcoins in the USA
1. Digital Wallet
To manage transactions on the bitcoin network, aspirants must run a program called a ‘wallet’. It is essential to recognize that Bitcoin is not technically ‘coins’ so it is ideal that a bitcoin wallet is not an actual wallet.
Bitcoin balances are managed using private and public ‘keys’, which are long and intricate strings of letters and numbers linked by the mathematical encryption algorithm employed to create them.
This public key is the place where all transactions are deposited to and withdrawn from. Another thing to note is that this key also appears on the Blockchain ledger as a participant’s digital signature, similar to a username on a social media page.
The private key is password essential to sell, buy and trade the bitcoin in a wallet. The private key must be protected and guarded with the only authorized use in bitcoin transmissions.
It has been seen that some users protect their private keys by providing a strong password to encrypt the wallet. Cold storage that is the storing the wallet offline is another option.
Having said all of that, there are no crypto-wallets that are more secure and ideal than Bitmart.
Requirements for a Digital Wallet in the USA
The U.S. Securities and Exchange Commissions mandates users to verify their credentials during the process of digital wallet registration; this is part of their Anti-Money Laundering policy.
To facilitate bitcoin’s purchase and sale, it is essential to verify one’s identity using a plethora of personal documents, including your Social Security number (SSN) and driver’s license.
Ensure a Secure Internet Connection
If you’re trying to trade Bitcoin online, it’s essential to maintain discretion about when and where you access your digital wallet. Trading Bitcoin on a public or insecure network could prove detrimental and render you vulnerable to hackers’ attacks.
2. Debit Card, Credit Card, or Bank Account
After having a Bitcoin wallet, you can opt for a typical payment technique such as bank transfer (ACH), debit card, or credit cards to purchase bitcoins on a bitcoin exchange. Those Bitcoins are transferred to your wallets. However, it is essential to note that these payment methods are subjected to the chosen exchange and jurisdiction area.
Depending upon the exchange’s nature, there could be benefits and drawbacks to paying with credit or debit card, bank account transfer or cash.
For example, despite the widespread use of debit and credit cards, there are still nuances, including the need to verify identification and also the chance of imposing more fees than other methods. Compared to that, bank transfers usually have low costs; however, they may take longer than other payment techniques.
3. Bitcoin Exchange
After setting up the wallet with a payment method, you will need a platform to purchase a bitcoin. Users can buy bitcoin in the USA, and other pertinent cryptocurrencies from online marketplace labelled ‘crypto exchanges’.
This is quite similar to the platforms used by traders to buy stock. Exchanges connect you to the bitcoin marketplace, which id the platform for exchanging traditional currencies for Bitcoin.
It is crucial to remember that the bitcoin exchange and the bitcoin wallet are different from one another. Bitcoin exchanges are, in a way similar to foreign exchange markets.
These exchanges are digital platforms where Bitcoin is exchanged for fiat currency, and an example would be Bitcoin (BTC) for U.S. dollars (USD). Despite exchanges offering wallet abilities to users, it is not their natural business.
To secure wallets, exchanges do not encourage storing a considerable wealth of bitcoin for prolonged periods. It is therefore advised to transfer your Bitcoins to a safe wallet. To further ensure the security of your Bitcoin wallet, it is imperative to choose a multi-signature facility.
Many revered and trusted exchanges provide prudent solutions with excellent security standards and reporting, but doing one’s due diligence is crucial when assessing a Bitcoin exchange or wallet.
Some popular coin exchanges are Coinbase, Gemini, and Coinmama.
However, many can compete with Bitmart, as it is one of the best exchange platforms for purchasing and selling Bitcoins.
Other Methods of Buying Bitcoin in US
Apart from methods like change in which Coinbase has a significant foothold, it is not the only way to buy Bitcoins. Here are some other ways utilized by many to but bitcoin.
Unlike decentralized exchanges, where buyers and sellers are matched up anonymously to facilitate the transaction’s nuances, a few peer-to-peer (P2P) exchange services provide a direct connection between users.
Must Read: How to Buy Bitcoins Anonymously
An example of such an exchange would be local Bitcoins. Once an account is created, users can address their concerns by posting requests to sell or buy Bitcoin in the USA
Apart from this, they can also seek information about price and payment methods. Users then peruse through listings of sell and buy offers, selecting their ideal partners for engaging in transactions.
Local Bitcoins are ideal for a few facets of the trade. While P2P exchanges lack the choice of anonymity offered by decentralized exchanges, they imbue their users with the chance to pick their ideal preferences for exchange.
A plethora of these exchanges also provides rating systems which is essential as it offers users a way to evaluate potential trade partners before engaging in transactions.
Bitcoin ATMs are essentially in-person bitcoin exchanges. Users can deposit cash into the machine and use it buy bitcoins. These bitcoins are then transferred to a secure and safe digital wallet. In recent years, this method has gained a lot of popularity. Coupled with that, Coin ATM Radar can help a lot in tracking down the nearest machines.