Bitcoin is the latest keyword in the financial technology department and is also the most misunderstood. Now as the cryptocurrency is hitting the headlines again, we believe that you must need to acquaint yourself with its basics and how to invest in it. But, first you need to fulfill some requirements in order to purchase bitcoins. Quebex lists some of them:
- Digital Wallet
To make transactions on the bitcoin network, you need a digital wallet. Bitcoins aren’t tangible coins and you of course, don’t need a tangible wallet for the same. The digital wallet is made of two exceptional and distinct cryptographic keys: private key and public key. The latter is the location where the transactions are deposited and withdrawn. It also occurs on the Blockchain ledger as the user’s digital signature, which is totally unlike from your social media handle. The private key is the password needed to purchase, sell and trade the bitcoin in a digital wallet.
- Personal Documentation
The government authorities call for the users to verify their identities when it comes to registration of the digital wallets as a part of Anti Money Laundering Policy. When it comes to purchasing or selling bitcoin, you need to verify your identity with the help of a few personal documentation procedures like submitting your driver’s license and social security number.
- Secure Internet Connection
When it comes to choosing for trading the bitcoin on an online platform, always practice discretion about when and where you can access your digital wallet. When trading bitcoin on an unprotected or public Wi-Fi, you pose yourself in danger. Hence it is not recommended at all.
- Bank Account, Debit Card, or Credit Card:
When you are exchanging your national currency, you will need some funds in order to carry out the transactions. Bitcoin wallets can easily and directly be connected to your bank account, credit and debit card.
- Bitcoin Exchange
After you are finished setting up your wallet with your preferred payment method, you will need a place to purchase bitcoins. You can purchase bitcoin and other cryptocurrencies from online marketplaces referred to as exchanges, which are way similar to the platforms from where you can buy shares and stock. Exchanges directly connect you to the bitcoin marketplace where you can easily exchange your local currencies for bitcoins. One such exchange is Quebex.