In the initial stage of launching bitcoin, only a limited bitcoin gets mined by the founder of this crypto coin Satoshi Nakamoto. He didn’t buy the bitcoin but mined and transferred it to his bitcoin wallet. After that, he circulated the bitcoin by sending it to other bitcoin wallets so other people could also take advantage. After circulation, people started sending the coins to other bitcoin users, and there were no options for buying through the bitcoin wallets. But with the rapid technological movement, note it is effortless to purchase and sell these virtual crypto coins on the Bitcoin Code.
Can you buy bitcoin with Fiat?
As we read, there were no options of purchasing or selling bitcoin in virtual domestic currency instead of transferring. Still, now you can buy and sell these crypto coins anytime, anywhere, no matter in which area you are.
What is Fiat currency?
Fiat currency came into existence when it became difficult to determine the value of goods and services. Before the fiat currency, people exchanged goods for goods and services for assistance. In some cases, people overvalue the goods and services, which became difficult to calculate the exact value. So the fiat concept came to solve the issue we use in our daily lives. We pay in a currency for our daily transactions online, and offline is fiat currency, and it is a new word for some people. So in simple terms, the physical paper or coins and numbers in the digital form is a fiat currency regulated by the government and controlled by the central and other banks.
The role of the bitcoin exchange
Since there were only open-source bitcoin wallets (decentralized), no one could buy the new crypto coins through the wallet. So instead, they have to find the bitcoin users who already have bitcoin in their wallet, and then they pay the bitcoin holder in fiat currency to get the coins.
It was the primary issue in the initial stage, and you know that if there is a problem, then solutions also come in the form of business. So, for example, the craze of bitcoin was rising due to many features of bitcoin, and people wanted to buy the bitcoin, but there was no option of buying bitcoin. So the bitcoin exchanges came into existence to solve the issue of purchasing crypto coins that decentralized wallets could not solve.
People want more privacy, a straightforward user interface, fast transactions, easy buying methods, etc., that exchanges were solving, and over thousands of bitcoin exchanges on the web in today’s digitalized technology.
How to buy bitcoin using bank balance
It was not possible to use your bank balance to buy bitcoin crypto coins, but not it becomes effortless through the bitcoin exchange, and the process is below:-
- Before purchasing this popular virtual currency, the first thing is to choose the right centralized application wallet because it is hard to choose the right one among the thousands of exchanges. Many exchanges got hacked in the past years, and people lost tons of their money, so it is vital to conduct proper research before creating an account on an exchange.
- After choosing the suitable exchange, the next step is to fill in the credentials for using the features. You must validate yourself by completing the Know Your Customer (KYC) because these exchanges get registered under government rules. When required, they need to collect users’ data to show to the government.
- Make sure you have a bank account, and in most cases, everyone has a bank because it will allow you to buy the bitcoins. You have to connect your bank account to a platform (bitcoin exchange) with which you recently created an account.
- In a bitcoin exchange, there will be an option of withdrawal and deposit (that may be Add or withdraw) and clicking on a promise to use your bank balance for buying bitcoin. After the payment process, the amount you deposited will start appearing in the fund’s section.
- Go to the application’s home page and search for the BTC (bitcoin). Then click on it and click on the purchase button to proceed. After entering the number of bitcoins, you want to purchase, click on the place of your order. Then, immediately, bitcoins will start appearing in the bitcoin’s exchange wallet that you can use for any purpose in the future.