How to Buy Bitcoin (BTC)?
In this short article, you will learn how to buy BitCoin (BTC) on Binance.
Before You Buy Bitcoin
There are several things that aspiring Bitcoin investors need: a cryptocurrency exchange account, personal identification documents if you are using a Know Your Customer (KYC) platform, a secure connection to the internet, and a method of payment. It is also recommended that you have your own personal wallet outside of the exchange account. Valid methods of payment using this path include bank accounts, debit cards, and credit cards. It is also possible to get Bitcoin at specialized ATMs and via P2P exchanges. Be aware, however, that Bitcoin ATMs have increasingly required government-issued IDs as of early 2020.
Privacy and security are important issues for Bitcoin investors. Anyone who gains the private key to a public address on the Bitcoin blockchain can authorize transactions. Private keys should be kept secret — criminals may attempt to steal them if they learn of large holdings. Be aware that anyone can see the balance of a public address that you use. The flip side to this public information is that an individual can create multiple public addresses for themselves. Thus, they can distribute their stash of Bitcoin over many addresses. A good strategy is to keep significant investments at public addresses that are not directly connected to ones that are used for transactions.
Anyone can view a history of transactions made on the blockchain — even you. Although transactions are publicly recorded on the blockchain, identifying user information is not. On the Bitcoin blockchain, only a user’s public key appears next to a transaction — making transactions confidential but not anonymous. In that sense, Bitcoin transactions are more transparent and traceable than cash because all of them are available for public view, unlike private cash transactions. But Bitcoin transactions also have an element of anonymity built into their design. It is very difficult to trace the transacting parties — i.e., the sender and recipient of bitcoin — on the cryptocurrency’s blockchain.
International researchers and the FBI have claimed that they can track transactions made on the Bitcoin blockchain to users’ other online accounts, including their digital wallets.1 For example, if someone creates an account on Coinbase, they must provide their identification. Now, when that person purchases Bitcoin, it is tied to their name. If they send it to another wallet, it can still be traced back to the Coinbase purchase that is connected to the account holder’s identity. This should not concern most investors because Bitcoin is legal in the U.S. and most other developed countries.
Buying Bitcoin
We have broken down the steps to buy bitcoin below. Remember that you still need to perform your research and select the best option for yourself based on your circumstances.
Step One: Choose a Crypto Trading Service or Venue
The first step in buying bitcoin consists of choosing a crypto trading service or venue. Popular trading services and venues for purchasing cryptocurrencies are cryptocurrency exchanges, payment services, and brokerages. Out of these, cryptocurrency exchanges are the most convenient option since they offer a breadth of features and more cryptocurrencies for trading as compared to other places.
Signing up for a cryptocurrency exchange will enable you to buy, sell, and hold cryptocurrency. It is generally best practice to use an exchange that allows its users to withdraw crypto to their own personal online wallet for safekeeping. For those looking to trade Bitcoin or other cryptocurrencies, this feature may not matter.
There are many types of cryptocurrency exchanges. Because the Bitcoin ethos is about decentralization and individual sovereignty, some exchanges allow users to remain anonymous and do not require users to enter personal information. Such exchanges operate autonomously and are typically decentralized, which means they do not have a central point of control.
Although such systems can be used for nefarious activities, they are also used to provide services to the world’s unbanked population. For certain categories of people — refugees or those living in countries with little to no infrastructure for government credit or banking — anonymous exchanges can help bring them into the mainstream economy.
Right now, however, most popular exchanges are not decentralized and follow laws that require users to submit identifying documentation. In the United States, these exchanges include Coinbase, FTX and Binance. To name a few. These exchanges have grown significantly in the number of features they offer.
