Investment in bitcoins or selling them might be a confusing decision for you. Here we have jotted down steps for you to buy or sell bitcoins.
There are several options for buying them through various platforms like Coin share, BuyUCoin, Unocoin, and others for the bitcoin buyer. Bitcoin has been a majorly discussed topic by many people who deal with selling or buying it. Through these online exchanges, you can easily buy, sell or hold bitcoins. If you look at the bigger picture bitcoins can look very pleasant for people at first. Still, it is highly recommended to do detailed research on the market before investing.
Are a beginner looking to try bitcoin locally?
The experienced investor can have a good hold of this, but if you are just a beginner, and no prior research is done, you might risk yourself. You also need to be aware of legalities and the tax connotations involved in investing in bitcoin. Bitcoins unstable price can make it riskier than other kinds of investments or stocks. Still, at the same time, this can make it profitable.
There are services like LocalBitcoins where you can buy it from person to person. But using an exchange is the best way to do this that will also benefit the users to extract their bitcoins and keep them in their wallets. Simultaneously, make sure that your exchange provides you with this because some businesses don’t offer this benefit. Some exchanges have a precondition of KYC, i.e., Know Your Customer.
For the process of KYC, some identity verifications need to be done. It involves verifying your government-issued documents like pan card, address proof, and your bank details. For investing in bitcoin, you need to check certain things you need to have:
A cryptocurrency exchange account.
- Documents for identification if using a KYC platform.
- A secured internet connection.
The payment methods you could use are debit card, credit card, or your bank account. There is one other way too that you could purchase a Bitcoin on some specific ATM’s with the help of P2P exchanges.
If you invest in bitcoins, then two things might worry you again: privacy and security. So, taking care of privacy is equally important.
Let us discuss in steps how to buy bitcoins:
1. Choose an exchange
Your initial step is to choose an exchange. If you sign up for cryptocurrency, you will have the opportunity to buy, sell, and hold the cryptocurrency. We can suggest that the best would be to use an exchange that gives you the freedom to withdraw your bitcoins for safekeeping in your wallet. Several exchanges and brokerage platforms do not provide you with this function. People who are looking forward to trading in bitcoins can exclude this function.
Many types of exchanges exist. Some of them also allow users to remain with an anonymous identity. Exchanges that like have no general point of control or operating point. They do not have a regular body to run it and have no prominent positions like CEOs.
So, suppose you have any problem once you are trading through these exchanges. In that case, there is nobody to answer for any illegal happenings that will take place. There can be several mishappening that can happen these sorts of exchanges. But look at the picture of the current scenario. These kinds of decentralized exchanges are not in use. Instead, the changes that work with proper KYC are more in the functioning area.
Just use a safer internet practice while dealing with this to avoid any illegal happenings. Also, take care of the two-factor authentication and create a strong password, including uppercase, lower cases, specialized characters, and numbers. There are very few chances of hacking.
2. Choose a payment option and connect your exchange
Now, as you have chosen your exchange, you can collect all the documents that are required. The documentation can depend on the exchange they will need your government id proof, the source of your funds, and other things like this. Once the exchange has verified the identity, you can now move on to the payment option.
You can either choose to pay from the debit/credit card or connect your bank account directly. To have a safer side, you should always cross-check with your bank whether they allow the deposits for your exchange or not.
3. Now place the order
As you have chosen your exchange and have also selected the payment option, you can now place an order and buy the bitcoins. With time the exchanges have gained more trust and liability of the people investing in them. Once there was a time when investment in them was a big question regarding security and privacy.
People at that time used to think of it as a hoax not to get caught up. But with moving years they have gained more trust from the people. You can have several types of orders and different ways to invest.
4. Keeping the storage safe
The exchanges might provide you with the advantage of having the wallets but keeping your bitcoins secure might not be their first thing. There are different kinds of wallets. Some have unique features than others. There are some wallets where you can store the bitcoins, and others offer you the ability to store altcoins. You can also barter one token for the other in some wallets. For bitcoins wallet, you have numerous options.
The best way to set up your wallet is to have these three things a hot wallet that can hold small and medium amounts for you to trade and sell. A cold wallet can store your large holding for a more extended period an exchange account to buy and sell.
As I mentioned above that there are some alternate ways to buy bitcoins which are:
Bitcoins ATMs: These ATMs are considered in-person exchanges. One can put in the cash and then get a bitcoin that will safely move to their digital wallets. With the moving time these Bitcoin ATMs have become more in use and popular.
P2P Exchange: On the one hand, decentralized exchange authorities keep the transactions between the two people who can also be anonymous and risky. Peer to peer exchange service is a more direct connection between the users. One of the relevant examples of P2P is Local Bitcoins exchange. Once you have created your account, you can post the information about the buying and selling and the information on the payment methods and the quoted price. Further, users can scroll through various options and choose their trade partners.
While bitcoins trading is a significant investment, many exchanges also provide the offer rate to the traders. Now, suppose you are either thinking of buying or selling with a particular trader. In that case, you can check their rating and then move on to making an investment or selling. The rating also reduces the risk of safety and leaves no space for confusion for trusting a trader or not.
Anyone who can get a private key to the public address on the bitcoin blockchain can manage all the transactions happening with that public address. Therefore it is extremely advisable to retain your private key safe and secret with you. Frauds might attempt to hack them if they have more extensive holdings. All the transactions related to bitcoins are easily stored in the bitcoin network where they can be traced and public.
For selling the bitcoins, you can quickly go through this procedure:
- Finalise the currency you wish to make transactions and the form of money you will accept for your bitcoin selling.
- Make your account on selling platforms, for example, Coinbase. It is effortless to make an account in the exchanges from where you can continue to trade. If you wish to sell in cash and person, then you can browse the platform for that too.
- Once you choose your exchange, then you can open up your account, which might be different in all the exchanges. So, you can check for yours, the one that you have finalised. But create a strong password and make sure of tow factor authentication. You are then doing the KYC (Know Your Customer) to verify your identity. Also, keep in mind that if you have already had your account for buying bitcoins, it would be already verified for selling.
- Now you can transfer all your coins to this platform which you can do by clicking on send/request button. Then you will have an address and a QR Code. The positive point of the exchanges is that the fess is lower than the brokerages. And you can fix your price in the exchange; if the price is too high, do not expect more takers then.
These are the simple ways of selling bitcoins, which are almost the same on all the exchange platforms there can be a slight difference in how they operate. Still, steps for selling bitcoins will remain the same for all.