Introduction:
Bitcoin is a famous cryptocurrency that has become widespread. When bitcoin was launched, the price was less than a dollar. Still, after a few years, when the awareness about bitcoin increased, people started using bitcoin as fiat currency, and the price of bitcoin rose steeply. The supply of bitcoin is limited to up to 21 million but some percentage of bitcoins burned in anonymous wallets. There are now approximately 18 to 19 million bitcoins in a blockchain. A lot of merchants globally get bitcoins, which means you can do online shopping through bitcoin payments. Bitcoin is becoming popular day by day, and the price is pumping a lot up because supply is limited, and the number of users is increasing. In this article, we will discuss the working procedure of bitcoin and the requirements to buy bitcoin.
What is bitcoin?
Bitcoin is a digital coin that you can use for multiple purposes. Anyone in the globe can use bitcoin for different purposes except the banned countries with bitcoin. Still, the white paper of this coin shows the name Satoshi Nakamoto, and it is not clear yet if it is an individual or a group of individuals. Bitcoin is an open-source system that means anyone can become a part of bitcoin, whether mining bitcoins or bitcoin users for daily transactions.
The procedure of bitcoin:
Do you know how bitcoin works? People think that bitcoin is a highly complex technology, but it is not valid. Instead, Bitcoin is a straightforward technology that works on the blockchain platform.
All the Bitcoin transactions occur on the blockchain platform, and blockchain is not a centralized system that means it is working on various computers. In simple words, many computers or miners are working behind the blockchain platform that helps validate bitcoin transactions. Miners are the experts who solve complex mathematical equations for transaction validation. When you do a transaction with bitcoin, the transaction occurs to the blockchain for verification, and miners validate or confirm the transaction. After the transaction confirmation, the amount of bitcoin will transfer to another bitcoin wallet.
Bitcoin wallets are essential in this technology because without a bitcoin wallet, you cannot send, receive or store bitcoin. There are many wallets available that can be used to store bitcoin. Using these wallets, all the transactions can be done.
Requirements to buy bitcoin:
There are the following requirements to buy a bitcoin given below:-
- A bitcoin wallet: Before buying bitcoin, you must have a wallet that will help you store, send, or receive bitcoins from one wallet to another. We use a physical wallet to store physical notes or coins. Similarly, a bitcoin wallet works, but it is not available in physical form. It would help if you had an exchange wallet to buy bitcoins; otherwise, you cannot buy bitcoins. Bitcoin exchanges are third parties that offer many services for some charges. Create an account on a bitcoin exchange and complete your KYC to grab all the exchange features. Check the exchange wallet from here to acquire the hold of bitcoin.
- Identity proofs: You need to submit identity proofs if you create your account on bitcoin exchanges because exchanges are third parties. You must complete your KYC by submitting your identity proofs to grab all the features such as license, Passport copy, bank statements, etc.
- Add payment method: After completing your KYC, the next step is to add a payment method to your exchange wallet. Different exchanges will give you various payment methods features. Some exchanges will provide you with all the payment methods such as net banking, UPI, GooglePay, PhonePe, Paytm, PayPal, NEFT, Wire transfer, Mobivik, debit card, or credit card, etc.
After adding the payment method or depositing the fiat currency to your exchange wallet, now you are ready to buy bitcoins or other cryptocurrencies. Search your preferred cryptocurrency, click on the buy button, enter the amount, and place the order. Congratulations! You purchased your first bitcoin/other coins, and now you can transfer it to another bitcoin wallet.
