Bitcoin

Buying Bitcoin: From Wallet to Exchange

Before buying any digital coin, you should sign up for a wallet it will be stored in, this wallet is as much virtual as the currency itself. The first thing you must remember once and for all is that the more complicated and sophisticated the sign in process is, the better. The second one is that you can’t reset your PIN. In case you forget it or lose it, you will no longer be able to access your cryptocurrency wallet.

You can find a lot of services on the web that can be used to create a cryptocurrency wallet. In order to do so, you will, as a rule, be required to verify your identity first: you’ll get a message asking you to send some copies of identification docs, and once you get verified you will be able to sign up for a wallet. The e-wallet interface loos pretty much similar to any online banking option, everything is simple and intuitive, so you will hardly have any questions while using it.

You can also create a real or physical wallet, print out all access data and store them in a safe place. Besides, you can buy a separate device that will emulate a virtual wallet. In fact, it could just be a hard case with your wallet public code inside. Actually, you can easily do without it.

Now that you have created your wallet and know its address, you can start buying cryptocurrencies. However, before you do so, you’ll have to sign up for an account in an exchange, too. Once you’re registered, you’ll be able to access current Bitcoin and other cryptocurrencies bid and ask prices. Some exchange will allow you to buy cryptocurrencies while staying anonymous, while others will require you to send docs. Basically, the process is simple: if you are happy with the price offered, you contact the seller and run your transaction. Finding a seller is not that difficult either, as long as you spend a little time and do a research on seller ratings and reviews. This is, however, the easiest digital coin buying option called ‘over the counter’. The risks are quite high, as there’s no guarantee you will receive your cryptocurrency. The bright side is that you can avoid all fees and commissions.

There are also some other options to buy Bitcoin. One of them is registering a WebMoney e-wallet and buying digital coins there. This could be done both through WebMoney service and through special Exchange Service. In both cases, you will have to pay fees. Another way to buy Bitcoin is finding an exchange desk, which is of course located online. Such services work pretty much the same as local exchange shops do, as they just convert your funds into Bitcoin, and vice versa. These options are good for those who are not ready to use specialized exchanges.

This is, however, the most engaging option, as an exchange platform will give you many more opportunities than an exchange shop or an e-wallet. With all the tools you’ve got there, you can fully participate in the trading process by placing buy and sell orders at a particular price. To make a transaction, you need to place your order in your Member Area. The fees are among the lowest in the market, although deposit options are somewhat limited.

If you go with a large exchange, you may encounter limits when both depositing and withdrawing your funds. Besides, you should know that cryptocurrency exchanges are often hacked because of its great liquidity flow, so you’d better not keep large amounts on your account there.

Trading cryptocurrencies with a broker is something that is more interesting than using an exchange shop, but also easier than trading on an advanced digital currency exchange. This balanced approach allows you to use leverage and an intuitive trading platform, while paying quite competitive fees.

As you see, the range of cryptocurrency buying options is just as wide as it is for any other financial instrument. Finally, we would like to remind again that any financial transaction carries risks, both direct and implied risks, so before you invest your funds you should carefully study the theory behind it and then prudently assess all its advantages and disadvantages.

RoboForex is a group of companies that offers brokerage services to clients in various countries over the world. The group provides traders from the Forex and stock markets with access to its proprietary trading platforms. 

Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.