Buying Bitcoin can seem risky at first. There’s a lot of technical terms (hashes, public and private keys, Proof-of-Work, etc.), making it harder for a beginner to start. Actually, you don’t need to know the specifics of Bitcoin tech to make your first crypto purchase. In this article, we’ll tell you how to buy Bitcoins with cash in five simple steps.
Most crypto exchanges, as financial operations, are subject to a Know Your Customer conditions- KYC is a policy that requires companies to collect personal information and proof of identity. Knowing customers protects crypto exchanges from malicious actions and increases users’ accountability.
To get Bitcoin with cash, you need to have a bank account, debit card, or a credit card. You also need to install a digital wallet that will store purchased currency.
To safely trade cryptocurrency for cash, you need to protect your private and public keys. If someone gains access to both, that person can conduct your transactions. Before you start purchasing crypto, set up the security settings on your mobile wallet and crypto exchange. Typically, this involves two-factor authentication - an authorization process that consists of two independent verification steps.
👤To get Bitcoin with cash, you need to have a bank account, debit card, or a credit card. You also need to install a digital wallet that will store purchased currency.
To get Bitcoin with cash, you need to have a bank account, debit card, or a credit card. You will also need a history of blockchain transactions which are publicly available and immutable. However, only your hash (an encrypted string) and the transaction amount will be published in the database. Your personal information (name, bank account, etc) remain private. Bitcoin transactions are easier to track than cash. If someone knows your public key, they can track your full transaction history.
Singing up to a crypto platform will allow you to purchase Bitcoin for cash, exchange it for other cryptocurrencies or fiat, or make a withdrawal. The best practice is to use the exchange service that can be connected to your wallet for higher safety. You should own your coins - it’s not a given on all exchange platforms. Some services sign a contract that allows betting in favor or against the price, so you don’t own the coin itself.
Several factors can classify cryptocurrency exchanges. Is the service anonymous or does it operate under KYC regulations? How many trading pairs does it enable? These and other factors come to play in your investment decisions.
To safely trade cryptocurrency for cash, you need to protect your private and public keys. If someone gains access to both, that person can conduct your transactions. Before you start purchasing crypto, set up the security settings on your mobile wallet and crypto exchange. Typically, this involves two-factor authentication – an authorization process that consists of two independent verification steps.
Decentralized exchanges don’t require personal documents for identity confirmation. Most of them are fully anonymous. On the one hand, it’s safe - you don’t depend on the centralized team, smart contracts govern all transactions. On the other hand, if something goes wrong, no one can reverse the process. This is why we recommend using decentralized exchanges only if you have a lot of experiences in crypto investments.
Most crypto exchanges are centralized. They are managed by an official team and use KYC to verify customers. The team also can’t influence the transactions, but the company has more power over solving technical issues.
To buy Bitcoin with cash, you firstly need to make a deposit. So, you need to link a bank account to your wallet and deposit the money in your chosen currency. The exchange will gather the personal information and financial data from the bank and determine your trustworthiness.
After you’ve connected your bank account and made a deposit, you can make your Bitcoin purchase. Most cryptocurrency exchanges now are as complex as other stock trading platforms. They offer analytical features, transparent statistics, insights into the market. You don’t need to conduct independent research - the platform will usually supply you with all the necessary information.
If you are satisfied with the dynamics of Bitcoin value growth, you can make a purchase directly. Specify an amount that you’d like to invest. Ensure that you specified a correct public address - otherwise, the funds will be sent to the wrong receiver.
Types of Bitcoin investments As crypto exchanges became increasingly more powerful, they enabled multiple ways of Bitcoin and altcoins’ investments. Here’s a brief review of settings that will help you secure your trades.
To place a Bitcoin order on NAGA, simply go to the Exchange tab, pick a trading pair and click on Buy BTC. Set up loss and win limits, track live price, and view the trade history.
Once you bought BTC, we recommend moving the cryptocurrency away from the trading exchange - to your wallet. Many platforms allow connecting wallet APIs so that you can transfer your Bitcoin to a safe wallet automatically.
Types of Bitcoin wallets
Online wallets are internet-connected services used on PCs, mobile devices, tablets. You can easily synchronize them with an exchange platform. You can access them anytime and anywhere and make fast transactions. However, their security is vulnerable: if your log in data is compromised, a hacker could end up gaining access to your private and public keys.
Best practices for using an online wallet ❗️Don’t mention online how much Bitcoin you hold and don’t share screenshots of your wallet
Online wallets can be used for small amounts of crypto. If you are constantly exchanging crypto, you can have a “working” amount stored online. In that case, you can use a custodial wallet developed by the exchange company. However, make sure that the service keeps your keys safely. Ideally, the crypto exchange should have no history of security problems.
Cold wallets, or hardware wallets, are not connected to the Internet and are less likely to be hacked. These devices store the private key inside the hardware system and can’t be accessed from the outside. Users can view and manage their funds from a software client.
The safest way to store your crypto is in paper wallets. You can generate it on paper wallet provider sites. Your public and private keys will be printed out on paper. You can transact Bitcoin only if you have access to this paper. To protect the information, paper wallet owners laminate the sheet and store it in bank deposits. Obviously, using this method for regular exchanges would be a lot of work - so paper wallets are preferred for long-term storage.
➡️Recommended practices Get all three types of wallets: online wallets for small amounts and regular trading, hardware wallets for medium amounts, and paper wallets for long-term storage. Make sure that you don’t mention the amount of Bitcoin held in your wallet. Keep your crypto activities as discreet as possible. Don’t use unverified third-party providers. Trust licensed companies with positive user reviews. Adopt best security practices in your computer usage and online network management.
To buy Bitcoin with cash, you need to use a secure exchange and wallet. Additionally, equip your computer with a powerful antivirus and a network monitoring device. Security measures will help you detect unusual activity and eliminate the threat early on.
When choosing a crypto exchange tool and a wallet, prioritize safety, interface, and customer support over fees. If the platform is attacked, you’ll be at risk of much more significant losses - so be careful early on. And, of course, control compliance with local laws and compatibility with your banking provider.
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