Important Facts On Buying And Selling Bitcoin Online
If you are planning to purchase bitcoin for trading, you need to be aware of some facts on buying and selling bitcoin online safely.
Bitcoin is a digital currency or cryptocurrency that renders open-source censorship-resistant peer-to-peer online transactions. It is the very first and widely used ledger currency having the highest market capitalization. Bitcoin is used in most of the retail and financial sectors that include BestBuy, Microsoft, Starbucks, eGifter, Gyft, Zynga and many more.
In order to spend Bitcoin, you need to buy it in the very first place. There are several modus operandi with which you can Buy and Sell bitcoin online. Before you proceed to trade bitcoin, you would require a Bitcoin wallet or BTC wallet. The cryptocurrency exchanges are mostly sought which also helps you have your bitcoin wallet.
Can I Play Bitcoin Market Without Purchasing Bitcoin?
Yes, you would absolutely be able to play the bitcoin market even though you do not purchase it. The social trading platform named “eToro” does not sell bitcoin but lets you follow the wager and traders and copy their profit or loss or their performance from the price swings. After this, the major institutional investors would figure out a way through which they would offer you bitcoin via the ETFs and the index funds.
Is it Possible to Buy Bitcoin Anonymously ?
Bitcoin cryptocurrency has flourished a lot and became the most popular one because it promises to maintain anonymity. Honestly, Bitcoin is not anonymous. All the transaction is visible as soon as it is inscribed and as well as published in the blockchain. That being said, the transactions are associated with a bitcoin address, but not a name or an account number. Thus, there are many routes in which you can trade bitcoin by keeping your identity masked. This is the reason why the now-defunct Silk Road was the very first marketplace to adopt Bitcoin as their crypto mode of payment.
Do I Need Identity Verification To Buy Bitcoin?
Identification verification highly varies from one platform to the other that is from one crypto exchange to another. Most of the bitcoin exchanges or crypto exchanges would require you to verify your identity before you proceed such as LocalBitcoins, CEX.io and Paxful. If you value your privacy the most, then you can purchase bitcoin online by using cash or fiat currency. Verification is usually carried on in order to protect the company from money laundering and any sort of fraud. There are obvious risks, however, if you provide your personal and financial details online to any platform.
How Much Bitcoin Can I Buy At Once?
The obvious fact of bitcoin investment is that there is a limit beyond which you would not be able to purchase it. There are certain factors that combine to provide you with a limit (daily or weekly cap) such as which payment method you use, age of your account or how it has been active and also your purchase history. Even though your account is verified, you would still be limited from buying over $750 bitcoin each week with the use of credit cards while if you use a bank account, you would be limited to buy BTC worth only $10,000 to $ 15,000. You would be able to conduct bitcoin purchase worth as little as $1.99 but it would charge an on-the-top fee of 99 cents, in case of Coinbase.
How Can I Keep My Bitcoin Safe?
You would require to store the bitcoin that you bought or acquired in the bitcoin wallet. If your trading amount is lower, you can consider your exchange wallet or any other software wallet or hot wallet. If you are trading big, you would like to go for any hardware wallet or cold wallet.
If you are thinking of trading your bitcoin, it is ideal to check its current price or take a look at its price index since bitcoin tends to go up and down each hour in regard to its price.
If this is the inaugural time you are dealing with Bitcoin, there are a couple of things that you must know. Bitcoin permits you to exchange money and transact in a different way than usual. Thus, you must take time to be knowledgeable before any transaction and keep update yourself on latest market trend of Bitcoin before investing. Bitcoin needs to be treated in a similar way you treat your physical wallet, and some time with even more care.