Are you searching for how to buy bitcoin using Fiat Currencies in simple and step-wise form? If yes, then we are here with the step-wise process for how to buy bitcoin using Fiat Currencies and exchange sites from where you can buy. With the growing popularity of bitcoin revolution, most of the investors not only had started buying and selling bitcoin but also started exchanging it to buy Fiat Currencies.
First of all, what are Fiat currencies? Fiat Currencies are the currencies issued by the government of the country like the U.S. dollar, Indian Rupees, Japanese Yen, etc. As these currencies are physical currencies that can only be transacted digitally through a bank or an app whereas bitcoin is a digital currency also known to be digital storage of value, this exchange becomes a bit complicated, so to simplify it, it is broken down into steps. Here are the steps for how to buy bitcoin using Fiat Currencies:-
Create an Account.
If you have just started with your bitcoin exchange, you will need to create a crypto account on the Crypto Currency Exchange Sites like CoinBase, Kraken, Binance, etc. and as these platforms are not decentralized like Cryptocurrency, the account will be requiring your personal information for the KYC(Know Your Customer).
Connecting the Account to a Payment Option
After creating an account, for the transaction of fiat currencies, you have to link a bank account or bank cards like credit or debit cards. Before connecting, ensure that your bank allows you for the crypto-exchange transaction. This process will require the documents like information of the employer, source of funds, etc. As there are middlemen like bank and crypto-exchange sites, there will be different types of charges on a transaction like processing fees by banks, transaction fees by the exchange sites, etc.
Placing An Order
Now after completing the above steps, you are ready for buying bitcoin on the exchange. For getting bitcoin, you have to place an order on the site but if you are not knowing what an order is, this term is taken from the stock exchange market as bitcoin is similar to stocks.
An order is a set of instructions to purchase a bitcoin or other currencies. There are various types of orders like market orders, stop-loss orders, take-profit orders, etc. Also, exchanges offer to set up recurring investments.
Storing Your bitcoin
After buying the bitcoin, you need to store it in a wallet. As the currency is digital, there are various crypto-wallets provided by the exchange sites, but to avoid wallet hacks, it is advised to have a personal wallet outside the exchange. This will provide security and gives you control over your bitcoin. There are two versions of crypto wallets:- Hot wallets and cold wallets.
The wallets that are digitally developed and stored in a web-based system are called hot wallets. These are generally made in your account of Cryptocurrency exchange websites. These are less secure as compared to the cold wallet as if the website or platform get crashed, there would be a loss of your currency.
The wallets that are hardware-based and are stored offline in a better secure way are called cold wallets. These are generally USB drives, SD cards, Hard Drives, etc. which make cold wallets safer than a hot wallet.
So, these are the steps to How to buy bitcoin using Fiat Currencies. If you feel our writings were useful to you, then like this article, share it with others, and also read our other writings.