Bitcoin is considered cryptocurrency and in some countries, it’s illegal to buy and sell bitcoin. Other countries consider bitcoin as a commodity and allow you to buy and sell bitcoin within their borders. Whether or not bitcoin is considered legal tender is dependant on the country’s laws and regulations. There are steps that each country has taken to ensure that bitcoin won’t be used for money laundering purposes but once you’ve gotten through the initial process, it is pretty simple to buy and sell bitcoin. Before you begin your bitcoin endeavor there are five things you need to know.
1. What’s the most difficult step in the bitcoin purchase process?
The most difficult step in the bitcoin purchase process is getting through the Know Your Customer (KYC) process. This is a process in which your identity is verified by a bitcoin exchange. In most cases, you’ll have to provide a copy of your government-issued ID as well as a copy of your passport information. If you’re uncomfortable providing a copy of this information over the internet there are some exchanges that will allow you to video chat to ensure your private information is kept confidential.
2. Are there country restrictions for buying bitcoin?
There are definitely country restrictions when it comes to buying bitcoin. Check with the bitcoin exchange of your choice to see if they allow purchases from your country. For instance, if you’re wondering how to buy bitcoin in Canada, you should look into bitcoin exchanges that accept Canadian purchases like Coinbase or Linkcoin. Bitcoin exchanges allow you to buy bitcoin by using your Canadian debit card. Many of the banks in Canada do not allow you to use their credit cards to make bitcoin purchases but allow debit purchases. The Bank of Montreal (BMO) doesn’t allow you to purchase bitcoins with their debit or credit cards. Check with your bank before making bitcoin purchases to ensure that they will allow the transaction to proceed.
3. Where can I buy bitcoin?
You can purchase bitcoin from a bitcoin exchange. You’ll need to find a wallet before purchasing bitcoin from an exchange. Choose a suitable wallet that fits your financial portfolio and has your best interests at heart. Wallets have different pricing schemes and some may charge more fees than others. It is important to shop around in order to get the best price possible.
4. How many bitcoins are available for sale?
Bitcoin was founded in January 2009 and there are only 21 million bitcoins available. There will never be more than 21 million bitcoins available but the number of coins differs from the spendable supply. One bitcoin is worth over six thousand USD and as more bitcoin is being purchased that number only increases.
5. Where can I use and cash my bitcoin?
There are a lot of online merchants and other merchants that recognize cryptocurrency as a valid form of payment that accepts bitcoin as payment such as Microsoft, Expedia, and Cheapair. If you want cash for your bitcoin there are ATMs available in certain countries. There are two Bitcoin ATMs available in Canada.
Bitcoin is easy to obtain once you’ve gone through the KYC process. Owning bitcoin as an investment can prove profitable but with every investment, there are some risks. Ensure that you do your research on which wallets are suitable for your financial needs based on what your intentions are with your bitcoin. Check with your bank before making any bitcoin purchases just in case they don’t authorize bitcoin exchange purchases from your country, region, or even just from your financial institution.