2024-09-17 10:00:18
What is needed to invest in Bitcoin
Compare Bitcoinunlike other types of investment operations, it has specific requirements. We can find this in cryptocurrencies in general, but we emphasize this one because, in addition, it is the most used one.
It should be noted that in recent years, investment in Bitcoins has become widespread. And this is good because it has opened doors to legalization and, in some cases, regulation. There is also more supply to operate, and that is positive.
These are, therefore, the general requirements for this cryptocurrency that works with the blockchain system:
Compliance with regulations and standards
The first thing, although it seems obvious, is that you must comply with the current rules and regulations. We say this because buying and selling coins is legal in Spain, but not yet regulated (although taxes are paid); However, there are countries where it is outright illegal. When considering investing in Bitcoin, you need to know all the specific circumstances.
Complying with regulations also means not using false data. That is, when asked to register, you must use your own checking account or some element of identification. This way, it will be much easier to complete the process.
Available balance or other cryptocurrencies
To receive cryptocurrencies and, more specifically, Bitcoin, an advance balance in fiat currency is required. It should be noted that not all Exchanges accept all national currencies. In general, there is no problem trading with euros or dollars, but there may be a problem with other national currencies.
The second option, but for those who already invest in cryptocurrencies, can buy with other cryptocurrencies. What happens? That, here, it is usually necessary to work with Exchange to make the instant conversion.
Use a centralized Exchange or contact directly
In a decentralized way with P2P, Bitcoins can be bought and sold. But this is not the most commonly used process because, sometimes, it requires bilateral negotiation in advance. There are also ATMs, but they are rare.
The most common, regardless of size, is to use a centralized Exchange. First, because the acquisition is usually faster. On the other hand, because it offers several payment methods to recharge your balance (Pay Pal, card, bank account). And, also, for reasons of convenience, because many of them have their own wallets. Although it is true that they charge commissions per transaction, it makes up for it in the vast majority of cases.
The location of the Exchange where you are going to work, if any, is critical. For security reasons, it is highly recommended to do so from one hosted in the European Union. In this way, there will be an opportunity to make complaints if there are problems with the service.
There are many Exchanges on the market that meet the traceability conditions. Kraken is a good choice because, in addition to operating in the European Union, it has high security standards.
Invest in Bitcoin: have a wallet
Finally, when you are going to invest in Bitcoin or another cryptocurrency, a wallet is needed, where the crypto assets will be stored. There are two types, a cold wallet (no connection) and a hot wallet, which have it; The former are safer and the latter are more economical. In general, a cold wallet compensates those who have a large amount of Bitcoins or a fraction of it.
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