Bitcoin had been the first cryptocurrency to have made its appearance in 2009 and has been around every since. While more and more people are keen to trade and invest in cryptocurrencies like the Bitcoin, the regulations concerning these have been shrouded in confusion. So, keen investors in the US want to know how they can buy and sell the Bitcoins.
How is Bitcoin generated?
Cryptocurrencies like the Bitcoin are not governed by any third party like banks or government financial institutions; they are decentralized and users involved in such transactions remain anonymous. The Bitcoin is produced through what is called “mining”, where large computers need to solve complex mathematical puzzles in order to earn “rewards” that are given to them in the form of Bitcoins. The decentralized ledger for the Bitcoin is the blockchain that will contain records of every single transaction. Such transactions are verified by miners and they are then provided with rewards.
Where can you buy Bitcoins?
The miners are still keen to earn Bitcoins through the mining process, but today you can buy Bitcoins through Bitcoin ATMs, Bitcoin exchanges, or even via face-to-face transactions. In the US, you will find a number of ways to buy the Bitcoin, but the most popular one is through an exchange, followed by one through cryptocurrency brokers. Most of the popular exchanges have apps for smartphone users and they can use to buy or sell the Bitcoins easily.
The most trusted name among these exchanges is Bitcoin evolution because it charges a low trading fee and lets users buy the Bitcoin with bank transfers, credit cards, cash, SEPA transfers, etc.
- To do this, you need to create an account at this exchange, and provide a valid address in a jurisdiction that allows Bitcoin trading. You must offer your payment details like a linked account in a bank for wire transfer, or a debit card.
- You must then verify your contact details, like your phone number, without which trading cannot start. You must perform KYC or know your customer checks and AML or anti-money laundering checks. Identity verification is a must for most exchanges to start trading; so, you will need to upload your photo ID, address proof etc.
- When you use a digital wallet you should ideally research on the different types of wallets available first before choosing one. On reaching the Bitcoin evolution site you have to open an account in order to avail of their services. You will be provided with a dual-factor authentication code through SMS.
- After this, you are free to buy the Bitcoin or any other crypto coin. To finish the purchase, the broker is going to ask for identity verification through proper documentation.
Besides the Bitcoin evolution, there are many other exchanges like the Coinbase, CoinMama, BitStamp, and GDAX for Bitcoin purchase. On logging into these like Coinbase, you will be able to view a dashboard and on choosing Bitcoin as your option, you get to view a trading chart with the existing Bitcoin price in your currency. You need to enter the amount you want to purchase in fiat currency and then choose a payment method; finally, you click on “buy”. Then the exchange asks you to confirm the payment method as well as purchase amount. The transaction is typically verified and approved by the bank. On approval, the Bitcoins should be seen in your wallet.