BUYING AND SELLING BITCOIN GUIDE
Exchange platforms are where bitcoin/cryptocurrencies can be bought and sold, so you will definitely have to sign up/create an account on an exchange platform before you can start purchasing cryptoassets. Also, you’ll need a bitcoin/crypto wallet to store the bitcoin/cryptoasset you want to purchase.
There a diffirent crypto exchange platforms and bitcoin/crypto wallets. Visit the guides below to choose from the exchange platforms and wallet options that best suites your crypto venture.
Best and most recommended crypto exchange platforms.
Best and most recommended crypto wallet providers/platforms.
How to get started with buying and selling bitcoin/cryptoassets
Choosing An Exchange Platform:
With the numerous crypto exchange platforms providing exchange services, it is important to know and note that all platforms although provide similar service are not the same when it comes to customer satisfaction. Some customers are big time investors or retail exchangers while others are regular individuals wanting to get their hands on cryptoassets, with this reason alone, what might be appealing and satisfying to an organisation, investor and even retail exchanger might not be appealing or satisfying to a regular individual wanting to acquire these cryptoassets.
Reputation: With all the numerous crypto exchange platforms online and new platforms springing up, it is important to ask yourself these few questions before choosing an exchange platform.
- Is the exchange platform legit?
- How long has the platform been online?
- What are their customers saying about their services(is it positive or negative)? you don’t want to end up a victim to fraud trying to buy bitcoin so it is important to ask your self those few questions and do a little research before choosing a platform to trade with.
Navigation/Platform Interface: The platform you choose should be easy to understand/navigate. The interface should be mobile and also user friendly.
Transaction limit: No matter how much money you have available or even if your account is fully verified, there is a limit to how much bitcoin/cryptoasset you can purchase daily or weekly and these limits are set by the platform you choose to trade with. These limits can also be influenced by your preferred method of payment for transacting. Using bank as payment method increases your purchase limits but somewhat extend the time/speed at which your purchase will be completed compared to when you transact using credit/debit cards or any other method of transacting.
Transaction speed: Transaction speed is also another factor to consider when signing up with an exchange platform. Some platforms take longer than others to complete transactions, depending on the method of payment you use when making your deposit or withdrawal. Some might take a few minutes while others might take up to an hour or more depending on your payment method.
Fees/Charges: There are three type of fees charged when exchanging/purchasing cryptoassets and they vary among different platforms. They include;
- Deposit fees; these fees are actually charged by your preferred method of transacting provider like your bank, credit/debit card or wallet provider as cost for transfer.
- Trading fees; these fees are charged by exchange platforms in percentage from the total amount of cryptoasset purchased per transaction.
- Withdrawal fees; these fees are charged by the exchange platforms for transferring your funds to your preferred method of withdrawal either preferred wallet or bank transfer. Price vary among platforms and also depends on the currency you choose to withdraw to cover sending cost.
Payment methods: This is a very important factor to consider when choosing an exchange platform. Before signing up on an exchange platform, you should already have a preferred method of payment that is more convenient for both depositing and withdrawing your funds. You should check the platform and make sure your method is available for both depositing and withdrawing because some platforms might have some options available for withdrawal and not available for deposit and also vice versa.
Security: This very important to note when choosing an exchange platform. Some platform provide second factor authenticator options for both login and transaction confirmation to make sure whoever is accessing the account at that moment is actually the account holder. Examples of this second factor authentication keys are email login verification, sms pin verification, google authenticator code verification. These security checks are used by the platforms to protect your funds/investments in situation where you haven’t withdrawn your funds to your desired holding wallet or bank as the case may be.
Account Verification: Know Your Customer(KYC) is a regulatory law binding all legal exchange platforms. This law is enforced and implemented to control the risk of fraud and record the real identity of customers/clients. Before you can start buying/selling bitcoin/cryptoassets, most platform require you to verify your account to an extent, but fully verifying your account will ultimately increase your limits to the amount of bitcoin/cryptoasset you can purchase daily or weekly, and these limits also varies across different exchange platforms.
- email verification: This one of the first step when verifying your account. It is mostly done when you sign up with an exchange platform. A confirmation email is automatically sent to your email address requiring you to proceed through that link for account confirmation that you who is the email bearer is actually the one signing up to that exchange service. If you complete this step, in some platforms, there will be limit to the total amount of bitcoin/cryptoasset you can purchase and when this limit is reached, you will be asked for further verification to continue trading with the platform, else you’ll not be granted access to more bitcoins/cryptoasset. “Please be sure to use an active and privately owned email address that is accessible to you to avoid been defrauded or hacked”.
- identity verification: This is a very important and vital step to complete if you really are serious about trading bitcoin/cryptoasset in any exchange platform. A valid Passport, drivers license or Government Issued ID card is used to complete this step. You’ll be asked to provide a photos of this ID card both back and front view. Some platforms even require you to have a live video scan with the ID on your hand and held closely to your face for this verification.
- address verification: This is mostly the last step for full account verification. For this final step, you will be asked to provide a utility bill( electricity bill, water bill, gas bill, any valid receipt) or your bank statement not less than 3months old to complete this step. After this final step, the daily/weekly limit to cryptoasset that can be accessed by you(account holder) will have a significant increase.
- phone verification: This is also one of the first two steps in verifying your account. When signing up with an exchange platform, you are required to provide a valid and active phone number belonging to you the account owner. An sms containing digital or alphanumeric pin will be sent to that number and you will be asked to input that pin in the space made available by the platform for phone number verification. Please be sure to use an active and privately owned phone number that is accessible to you to avoid been defrauded or hacked.
Available altcoins/cryptoassets: Not everyone signing up on exchange platforms are looking to buy bitcoin. Some are in search for altcoins and some platforms offer just a few cryptoassets mostly bitcoin, bitcoin cash and etheruem. Platforms with wide variety of cryptoasset options give you option to trade among bitcoin and other cryptoassets/altcoins of your choice. Although Bitcoin is the most recognized cryptocurrency, crytocurrency in general is much more than just bitcoin and bitcoin can be swapped for trending coins/hot coins to make profit in platforms that offer wide range of cryptoassets.
Crypto Wallet: You’ll need a crypto wallet to keep/store your cryptoasset you purchase because for some reason it is no good to buy bitcoin or altcoins and leave them in the platform you purchased them without make withdrawal. For more information on crypto wallet, please read our wallet guide to choose the best and most secure wallet to safe keep your investment.
Bonus/Additional features(affiliate programs/payment module.): Bonus offers are good incentive to keep customers/clients happy. Coinbase for example gives a $10 bonus to every new customer when their cryptoasset purchase reaches $100 and also give clients/customers the opportunity to earn $10 for every friend/family member they introduce to the platform that completes a $100 cryptoasset purchase. Other exchange platforms also offer lifetime percentage revenue share commission for every transaction made by active clients introduced to their platforms by other clients/affiliates. This is a very lucrative way to earn bitcoin/cryptoassets passively and can be made into a full-time bitcoin job. See QUANTUM BITCOIN INCOME guide to learn/know more about this.