Frequently Asked Questions Regarding Buying Your First Bitcoin

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Purchasing BTC seems a challenging action, however subsequent performing the real action into different smaller steps, you will realize how easy it is to purchase a bitcoin on website. Whenever you decide to invest money in the cryptocurrency market, you have to start looking for digital currency exchange services.


Few digital currency exchanges offer services in every country like Coinbase and Binance. Cryptocurrency exchange services demand numerous things and documents. Centralized exchange comprises an entirely structured know your customer program.

For the platforms having a KYC program, a government-approved identity for identity verification is mandatory. Cryptocurrency experts have not advised a single digital currency investor to secure the freshly bought digital currencies in the user wallet given by an exchange. Here listed are a few frequently asked questions regarding your first buying order on a cryptocurrency exchange?

What is the difference between a wallet and an exchange?

Nowadays, dedicated cryptocurrency wallets also comprise an inbuilt digital currency exchange where you can execute buying and selling orders. Even the hardware wallets manufactured by Trezor and ledger come up with an inbuilt cryptocurrency exchange. It is tough to spot differences between wallet and exchange as both are trying to eat market of one another.

However, digital currency exchange is much more appropriate for trading purposes. Cryptocurrency exchange comprises numerous trading features that can make your trading journey profitable. For example, the price charts on cryptocurrency exchanges are more advanced. Moreover, on digital currency exchange, you get more trading pairs than a dedicated e-wallet.

The payment options present on an exchange are higher than a dedicated e-wallet. Moreover, digital currency exchange trading volume is much more than e-wallet, and the spot price of a cryptocurrency gets updated very quickly. The wallet comes into play when you buy a cryptocurrency. But for buying purposes, an e-wallet cannot compete with a cryptocurrency exchange.

What is the difference between decentralized and centralized cryptocurrency exchanges?

Decentralized and centralized are two broad categories of cryptocurrency exchange. In addition, the exchange is usually categorized into two parts based upon a central authority’s presence. Every type of exchange has its fundamental mechanism but is structured to serve a similar purpose.

People prefer decentralized exchange because they confer similar standards as of cryptocurrencies. On the contrary centralized exchange seems to be undermining the independent nature of currencies. Decentralized exchange enables you to communicate with sellers directly. A feature of changing exchange fees is also available on a decentralized exchange.

The centralized exchange currently dominates the decentralized exchange market, as in terms of fraud or scams, you don’t have many options to reach out in a decentralized exchange. All the more, due to lesser trading volume, decentralized exchanges are a victim of arbitrage trading. As a result, the decentralized exchange always comprises a delay in updating the spot price.

Can you buy a bitcoin from other places?

Some people prefer to buy bitcoins from other places as well. In short, cryptocurrency exchanges are not the only place that enables you to buy digital currency. The first place people prefer while purchasing a BTC is a dedicated physical bitcoin ATM. Almost every country has a definite number of bitcoin ATMs, even if they don’t have a solid crypto regulatory framework. Fintech companies like PayPal and the Cash app are the second options people choose to buy bitcoin.

The stock exchange, like Robin Hood, had acquired traction from cryptocurrency investors when it added the feature of buying or selling virtual coins.

Is it easy to sell a Bitcoin?

Selling bitcoin is even easier than buying it, as now you are already a verified user of a cryptocurrency exchange, and you don’t have to repeat the entire KYC process. You can correspondingly sell off bitcoin at another cryptocurrency exchange. Placing a selling order is almost similar to placing a purchasing order.

While selling bitcoins, you get lesser payment options. Nowadays, people don’t usually sell-off bitcoin as they convert them into Stablecoin, a highly stable form of digital currency. Exchange offers you direct bank transfer options when you decide to withdraw the funds present in your user account.

The portion mentioned above describes some frequently asked questions regarding buying the first bitcoin.


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