The most common answer on how to get bitcoins, is to simply buy them. The easiest place from where you can buy a Bitcoin (decentralized cryptocurrency, appreciated by many people as an asset), is by visiting a centralized Exchange on the internet. The Exchanges are web-based platforms and just like an exchange office where you can use local currency to obtain foreign currency, bitcoin exchanges exchange your physical money for bitcoins.
A bitcoin exchange is the currency’s equivalent of the services offered by banks or other regulated institutions that allow
A bitcoin exchange is the currency’s equivalent of the services offered by banks or other regulated institutions that allow currency exchange — commonly known as FOREX transactions. You may have an account at the bitcoin exchange where you hold funds in your local currency and you use that account to trade for bitcoins. From that account, you would send the bitcoins to your preferred wallet and use the bitcoins as you see fit — similar to how you would use local fiat currency held in your checking account.
A bitcoin exchange usually takes the form of a website. When it comes to choosing an exchange, you’ve got plenty of choice of providers. Depending on your geographical location and the type of fiat currency you use, certain exchanges may be preferable to others. At this time, there is no bitcoin exchange that services all countries in the world, due to legal reasons.
The main goal of any bitcoin exchange platform is to facilitate the transfer from and to physical currency to and from digital currencies, such as bitcoin.
Anyone can create an account at a bitcoin exchange without having to buy bitcoins at that time or owning bitcoins beforehand.
In order to properly use a bitcoin exchange, you will need to complete a “Know‐Your‐Customer” (KYC) verification procedure. This process sounds a lot scarier than it really is, even though you are obligated to submit some very delicate information related to you as a person.
Step 1: Confirming your phone number The first step is verifying your mobile phone number.
Step 2: Providing personal ID The next step usually requires you to verify your identity by providing a copy of personal identification. Depending on the bitcoin exchange platform you’re using, these documents can range from a scan of your ID or driver’s license and a recent utility bill, to a copy of your birth certificate or passport.
The types of ID documents required depend on how much you are expecting to trade through your bitcoin exchange. Larger amounts require stricter verification, and thus more sensitive personal information.
Besides the information that needs to be submitted, there’s also a waiting period that must be taken into account before these documents are verified.