The process of buying bitcoin is as easy as registering for the applications used in mobile phones. The process is easy and straight forward.
Bitcoin wallet registration
The first step prior to buying bitcoin is signing up for a bitcoin wallet. The bitcoin wallet can be accessed using websites such as Blockchain.info. The wallet can also be accessed by the use of applications such as Bitcoin wallet for Android on devices that use the android operating system or for devices using the IOS operating system the Blockchain Bitcoin wallet for IOs application. When the website or application is accessed the individual needs to complete a form online with fundamental information. The process of registering will take about 2 minutes as it is uncomplicated and unproblematic. The webpage where one registers for a bitcoin wallet is similar to how the software employed in online banking appears.
The second step after registering for the bitcoin wallet is using the normal currency to purchase bitcoin in the bitcoin exchange websites such as coinbase. The various diverse methods used for transacting with normal currency such as debit cards, credit cards or ACH (bank transfers) can be used in making the purchase. The assortment of payment modes allowed is dependent on the type of trade and the region the individuals making the trade are in. After you make the purchase the bitcoins are automatically put in your wallet. Other than bitcoins there are other types of exchange coins such as the Litecoin and the Ethereum which are rampantly used virtual legal tenders.
The procedure of purchasing or selling bitcoins is very precise and stress free. If an individual wishes to buy bitcoins they will click on the tab marked “buy” whereas if one wants to sell bitcoins they will click on the tab labeled “sell”. After clicking the appropriate tab the desired virtual currency in addition to the method being used for payments should be selected. The Bitcoin wallet and the bitcoin exchange do not necessarily have to be identical. The bitcoin exchanges are spaces that allow an individual to trade bitcoin in official sanctions for US dollars or any other currency similar to how forex exchanges operate.
In as much as the exchanges give the users the wallet capacity this is not their key role. The wallets require security and safety hence exchanges discourage the accumulation of large amounts or retaining the amount for a long duration. Wallets that are secured are the best to store your bitcoins during the exchanges. The most crucial aspects about the wallets is the security and therefore is should be made a priority by using a bitcoin wallet that has the multi-signature feature.
Purpose of a bitcoin wallet
The purpose of a bitcoin wallet is not meant for stowing the bitcoins but rather for secret identification. There is no place where bitcoins are stored as many individuals tend to believe, on the contrary the bitcoin totals are stored by the use of “keys” which can be either private or public. The “keys” are lengthy threads of figures and characters connected by the arithmetical formula used to generate them.
The “keys” used in bitcoin
The “Keys” that are public are statements broadcasted to everyone else and bitcoins can be sent here by other individuals. The public “key” is similar to an individual’s account number in the bank. The private “Key” on the other hand is what an individual uses to authorize transactions involving bitcoins and hence should be secret that is well protected. The private “key” is similar to the ATM pin.
The bitcoin wallet therefore comprises of a private “key” to ensure its safety and security. There are several ways that can be used to keep the bitcoin wallet safe such as by the use of offline storage (cold storage) and secure password encryption. If an individual is using a coinbase it provides a protected “multisig vault” for storing your keys. In order to use this feature an individual will need to register for it. An individual is at liberty to make transactions with the bitcoins in the “private key” such as sale or purchase of a product or service on behalf of family and friends. The “public key” of the receiver is used to send the bitcoins. When bitcoins are sold in the exchange the seller earns the amount in the native coinage of the buyer and can be withdrawn.
Bitcoin transactions are universal but India and South Korea have a large percentage of users which has resulted in huge deviations in the value. The use of bitcoins is becoming rampant as a result of more people embracing the idea. The universal acknowledgement of bitcoin is assisting in recognizing it as a standard way of making payments. The method has already been recognized in Japan.