Do you consider purchasing bitcoin as a long-term investment for the future? Well, this peer to peer digital currency indeed started growing to build wealth. Today, bitcoin is the most used cryptocurrency globally, holding the highest value compared to the rest. However, the procedure is slightly different from other long-term financial investments like mutual funds or life insurance. Bitcoin is a currency that does not have any physical form. Hence, to secure this digital currency from the dark web, it has a separate wallet that is encrypted and password-protected for your security and privacy. Unlike a regular fiat currency, you cannot store bitcoin in your savings/current account, Paytm Wallet, or PayPal account. It would be best to have a separate bitcoin wallet available in the form of a digital wallet, mobile app or hardware wallets.

How Does Buying Bitcoin Work?

Before you buy bitcoin, you need to ensure you have a wallet to store it. This is because, in any platform where the bitcoin exchange occurs, they will ask you for a bitcoin address, which you obtain from your wallet.

Following are the Steps to Buy Bitcoin:

Step 1: Obtain a wallet in the form of desktop software or a mobile app. You can even buy hardware wallets for this purpose.  Additionally, all exchanges offer online wallets where your cryptocurrencies can be stored and easily accessed.

Step 2: Set up your account and secure your wallet. You need to give in your e-mail ID, a password and set-up a 2-step verification for better security. Keep a back-up for it because if you forget your password, it is impossible to recover!

When you set-up your account or wallet, you obtain a public key and generate a private key. While a public key is a combination of 34 characters (upper case letters, lower case letters, and numbers), private keys generated against it are a combination of 64 characters, each being unique.

Step 3: Fill up your wallet with your cryptocurrency in exchange for your local fiat currency. One of the best ways to do this is through Koinal. You can buy bitcoin through credit or debit cards. 

Koinal does not store your card details without your permission; neither does it have access to your passwords. When you provide your bitcoin address to it, it can pay you in the cryptocurrency against the public key it gets. Since only you have the private key, only you can accept bitcoin being sent to you.

In peer to peer transfer as well, the same concept of public and private keys will apply.

Step 4: Now that your initial purchase has been made, you are now ready to buy and sell bitcoin on online platforms as well as for peer to peer exchange with anyone who owns a bitcoin wallet.

Bitcoin makes international transactions extremely easy due to minimal conversion charges. Since the cryptocurrency fluctuates in value, buying Bitcoin from Koinal is convenient as it locks the value for up to 20 minutes once you begin the transaction process.

So, how do you consider building up your digital wealth?