For newcomers to the cryptocurrency market, buying and storing bitcoin might sound difficult but actually, they are very easy. With technological advancement, everything has become convenient. The same is these in the case of cryptocurrency. With modern facilities of bitcoin trading platforms and bitcoin wallets, bitcoin buying, storing, and selling has become way too easy. For more information check: bitcode prime
Different places you can buy bitcoin: There are so many places or platforms through which you can buy bitcoins. They are:
- Centralized cryptocurrency exchange
- Decentralized or P2P cryptocurrency exchange
- Hybrid cryptocurrency exchange
- Bitcoin ATMs
Process of Buying Bitcoin:
You can buy bitcoins through any of the above-mentioned platforms. Bitcoin ATMs are convenient but, they are not yet many now. However, if you choose online platforms they are multiple in numbers. You just have to choose a secure one that can be reliable. To Buy or sell bitcoin the best way is to register with its Official websitethat is the genuine one.
However, the process of buying bitcoin through exchanges is:
- The first and foremost step is registration. Here you might have to provide some IDs and go through a small verification process.
- After that, an account will be opened that is the bitcoin trading account.
- Now, you have to link that account with any of your bank accounts and transfer some initial cash to this trading account.
- Once you have a balance in your trading account you can buy bitcoins. Next, choose the amount you want to buy and then, at last, click on the buy buttong.
- For direct trading platforms, you can directly make a deal with the seller and with both of your agreements you have to share your bitcoin address with the seller, and the seller with providing you with the bank account details. After you send money to the seller’s account you will receive bitcoins.
Why do you need a digital wallet?
As physical money needs some storage to keep them safe, the same is needed for digital currency. When we own some bitcoins or any other cryptocurrency that are present online, we need online storage or them. These digital currencies can’t be extracted from the online medium because, having some bitcoins doesn’t mean that you have them in your pocket but, they remain in the Blockchain node as some alphanumeric data and you just own those bitcoins.
However, to access them you have your private and public keys and those keys are stored in your digital wallet. You can also not use a wallet but in that case, you will not have much security on your bitcoin holdings. A wallet means you have an extra level of security storage for your access keys thus your bitcoins are also safe.
How digital wallets store your bitcoins?
As we have already said, bitcoins are stored in Blockchain nodes and you only have their access by your public and private key, they are stored indirectly with the help of a digital wallet. The digital wallet keeps your keys safe. You can use the wallet by connecting with your computer or mobile when you want. To add an extra level of security, you should pay attention to sticking to adding a strong and secure password.
To send or receive bitcoins, you need those keys. When you are sending some of your bitcoins to others you need the private key to access your bitcoin holdings. On the other hand, when you choose toreceive bitcoins from any 3rd party,, you will need a public key to share with the sender. Thus bitcoins are stored as well as trading through a digital wallet.
Now, you can have different types of digital wallets that are categorized into the hot and cold wallets. If you want a safe wallet option you can go for a cold wallet. If your utmost priority is convenience over security, a hot wallet can be a better option. However, these wallets are connected to the internet and thus they are very much vulnerable to online fraud.
Conclusion
The above information emphasizes the need for digital wallets and how they store bitcoins with the various kinds of trading platforms and bitcoin trading methods. We hope the information helps you understand the whole concept and ease up your bitcoin trading journey.
