Home » Personal Blog » Investing » 7 Steps You Need to Know before Buying Bitcoin

7 Steps You Need to Know before Buying Bitcoin

Listen to Audio
Voiced by Amazon Polly

Bitcoin mania does not seem to be waning. People are taking loans and mortgaging their houses to invest into the cryptocurrency that started 2017 being worth $1,000. By November 20, 2017, Bitcoin had set a new record by passing the 8,000 mark.

As the year ended (the last day of 2017), the value of Bitcoin was $14,129 per coin. This attracted a lot of people who were willing and hoping to invest in Bitcoin. However, limited knowledge and experience about cryptocurrency are one of the hindrances to potential investors.

However, for you to successfully buy Bitcoins, you need to have the following:

  • Bitcoin address – this is a string of numbers which help you receive Bitcoins. They are unique and they act like a bank account number
  • Bitcoin exchange – this is a website which will help you convert your cash into Bitcoin
  • Bitcoin wallet – A wallet acts like a bank account. After buying Bitcoin, you store them in a wallet
  • Payment method – You will have to use specific payment methods to buy Bitcoin. For instance, you can use a debit or a credit card
  • A form of identity – To buy Bitcoin, you will have to prove your identity by using your driver’s license or your passport.

If you would like to start investing in Bitcoin, you can start by learning how to buy bitcoin here. This guide will help you understand how you can buy Bitcoins especially if it is your first time.

ad banner 619 3 - 7 Steps You Need to Know before Buying Bitcoin

These are the steps you need to follow:

Create a Coinbase account

Although there are other websites you can sign up for when buying Bitcoin, Coinbase is reliable, easy to use and efficient. You just need to sign up for an account by filling the details required on the site. Upon completing the sign-up process (which will take less than 15 minutes), you will obtain an address, Bitcoin wallet and Bitcoin exchange convert your money into Bitcoin itself.

Verify your email

cloudemail 300x201 - 7 Steps You Need to Know before Buying BitcoinYou will have to verify the e-mail address you’ve used to sign-up for a Coinbase account. To verify your email, log in with your email address and click on the verification link which will be sent to your inbox. If you cannot see the link in your inbox, remember to check your junk folder.

Connect your phone

You need to complete a 2-factor authentication to secure your account. You will link your mobile phone to the account you’ve created. To verify, just enter your phone number to get a prompt SMS code which you will then enter to secure your account. For someone to access your account, he/she should be holding your phone and know your password. This step is to guarantee the safety of your account.

Verify your identity

ticked checkbox 12450571 300x276 - 7 Steps You Need to Know before Buying BitcoinYou cannot buy Bitcoin without first verifying your identification. The verification process takes a few minutes, depending on how you want to do it. You will have to select the ID type you will use and then upload a photo. You can take a photo using your PC’s webcam or use your mobile phone depending on what is convenient for you.

Add a payment method

You will have to add a payment method which you will use to pay for the Bitcoin you are buying. There are several payment methods you can choose with debit/credit cards and bank transfer options being commonly used. Credit/debit cards are preferred because their fees are lower, they are easy to set up and they allow you to buy Bitcoin instantly. On the other hand, bank line fees are higher and it will take a few days to set up the payment method. When setting up a card, you just need to run the card through the authentication process and you will be ready to start buying Bitcoin.

Buy Bitcoin

Buy Altcoins like DasCoin1 300x170 - 7 Steps You Need to Know before Buying BitcoinTo buy Bitcoin, you need to click on the ‘Buy/Sell’ option in the top menu of your Coinbase account. Ensure that ‘Bitcoin’ is selected and your payment method has cash. With everything set, you just need to enter in the amount of money you wish to buy depending on your budget. You will be able to see the entire transaction, including the fees incurred when your transaction is successful.

Check your Bitcoin wallet

To ensure that the transaction was successful, you need to check your Bitcoin wallet to see whether your Bitcoin amount has reflected and the transaction details.

It is quite easy to buy Bitcoins by following these steps. However, you need to be very cautious when investing in cryptocurrency because there are scammers who are looking to con unknowing investors. You need to sign up to legitimate sites and avoid by all means sharing your accounts information with third parties!

ad banner 619 2 - 7 Steps You Need to Know before Buying Bitcoin

Check Also

bitcoin 310x165 - Bitcoin Mining Profitability

Bitcoin Mining Profitability

Listen to Audio Originally posted 2015-08-07 23:31:17. Republished by Blog Post Promoter While it might …

One comment

  1. Bit coin strategies

    you nailed it! I do appreciate your ideas you impart in here. Hopefully, this will help people to understand the process of bitcoin when they wanted to invest in it.

Do NOT follow this link or you will be banned from the site!