Bitcoin is a digital currency and the most popular cryptocurrency used to buy anything from your lunch to your next home using a cryptographic security system based on blockchains. The biggest reason why bitcoins are successful is their lack of geographical restrictions, secure transactions and record keeping.
Cryptocurrency Wallet :
It is important to have a cryptocurrency wallet if you want to purchase Bitcoin. Cryptocurrency wallets are software linked to the blockchain that monitor, execute and record crypto transactions. They are just like a personalized bank account for crypto.
Hardware wallets are the safest and suggest options by experts. A cold storage wallet for cryptocurrency stores the keys of the purchased cryptocurrency offline, making it the safest way to store and access.
The two most popular hardware wallets are produced by Ledger and Trezor.
Crypto investing platforms:
There are several easy-to-use and accessible platforms. The most common Cryptocurrency investing platforms include
Research work :
Before investing in any crypto in that order, there are several metrics and criteria to be factored in.
The main criteria
Fundamental / valuation metrics
Qualitative Indicators
Technical analysis helps you choose a cryptocurrency that is best suited to your portfolio based on its characteristics.
Step-by-step procedure to buy a Bitcoin
To explain the process, in brief, let’s get into the Coinbase platform and create an account using it.
1. Creating a Coinbase account:
To create an account, an encrypted mail id is required for safety guidelines. Protonmail is an End-to-End encrypted Email service for message transmission. On successful application of information coin base enables a two-step verification process.
2. Connecting a Funding account to coin base:
To enable transactions a funding account has to be added either a bank account, debit card, or wire transfer. As far as convenience is concerned a bank account plays a crucial role as it enables buying and selling a large amount of cryptocurrency.
3. Configuring security settings of Coinbase account:
This step requests the two-step verification code to be sent to the registered mobile number that is merged with the google authenticator app for a high range of security. To opt for an even more secure option, use a security key device that requires one to buy a physical hardware device protecting the Coinbase account.
4. Verifying your account:
Upon submitting the suggested proof online the Coinbase verifies its user on level 3 security which enables them to buy and sell Cryptocurrency.
5. Buying bitcoin and other cryptocurrencies:
Choose the cryptocurrency that you wish to buy and add the desired investment from the registered bank account. The purchased cryptocurrency will be deposited into the corresponding cryptocurrency wallet on Coinbase.
