The Three most Important Things to Think about when Buying Bitcoin
The three most Important Things to think about
Payment method: Credit card, bank transfer, payment app (PayPal, Apple Pay, Google Pay, Samsung Pay, etc.), cash on hand, and even barter are all forms of payment. Each payment method has advantages and disadvantages in terms of convenience, privacy, and fees.
Platforms/venues for purchasing bitcoin include digital wallet providers, centralized spot exchanges, OTC desks (private “Over-The-Counter” exchange services used primarily by high-net-worth individuals), peer-to-peer marketplaces, and even payment apps like PayPal. One good platform to jiggle your bitcoin purchases is click here.
Naturally, buying bitcoin in person is also an option. You could, for instance, give your friend money in exchange for a predetermined amount of bitcoin.
After you buy bitcoin, you can put it in one of several places. Into a Bitcoin wallet that is under your control (a “self-custodial” wallet) and Into a Bitcoin wallet that is under the control of another person (e.g. a payment app like PayPal or centralized cryptocurrency exchange).
Certainly not your Bitcoin and your Keys
You never have to ask for permission to use bitcoin if you keep it in a wallet you control, also known as a self-custody wallet or “non-custodial” wallet. This means a third party will approve you before the transaction is approved by a third party, like a central exchange. Additionally, it means that bitcoin can be sent anytime and from any location. With the best self-custodial Bitcoin wallets, you can customize the “network fee” every time you send money. If you’re not in a hurry, you can save money on transaction fees or pay more to send faster.
Why Must i Prove my Identity to Purchase Bitcoin?
When you use an exchange service to buy bitcoin using a currency issued by the government, you are dealing with a regulated business. The transfer of funds in these kinds of businesses is governed by Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations. These regulations require collection and storage of customer information, such as identification documents and, in some instances, proof of address.
How much does it Cost to Buy Bitcoin?
The payment method and platform/venue used to determine the bitcoin price. Consider only the “network fee” when sending bitcoin from your friend’s digital wallet to yours, for instance, if you buy bitcoin directly from a friend and settle in cash.
You must account for the fees that come with using a credit card or a bank transfer to pay. Aside from that, trade facilitation fees are charged by exchange services. These fees cover the exchanges’ operating expenses and a small margin. Avoiding many small purchases often makes sense because larger purchases e y result in lower overall fees.
Using a peer-to-peer trading platform to buy bitcoin Several platforms make it easier to trade bitcoin and other digital assets by offering two services: an escrow and dispute resolution service for buyers and sellers, respectively.