Bitcoin currency has been in existence for over a decade, and as of now, you must have probably heard about it. You must know that these are the digital currencies that are stored in digital wallets. If you have invested in bitcoin or any other popular cryptocurrencies, you need first to download a bitcoin wallet to start sending and receiving bitcoins.
Most people know how to download a bitcoin wallet as it is an application that is required to be downloaded and installed on a computer or mobile device. But do you know how bitcoins are added to bitcoin wallets?
At first, you need to open an account with cryptocurrency exchanges to buy bitcoins. The buying process of bitcoin is quite exciting and straightforward, but you need to learn about each and every detail about crypto exchanges and bitcoin wallets.
Here is a short guide that will make you understand about adding bitcoins to a bitcoin wallet. You can also trade bitcoin through bitcoin future website and can directly get your bitcoins transferred into your wallet.
If we talk technically, your bitcoin wallet is like a window on the Bitcoin network, and bitcoin owners can only control this by using digital private keys. No matter whether you choose a secure wallet or not, it would be best if you protected your private keys to protect your digital coins.
Some people that are new to the crypto space have the misconception that they need to buy a whole bitcoin. That would be pretty expensive, and by considering this fact, the creator of Bitcoin, Satoshi Nakamoto, made it a protocol that bitcoin can be divided into many fractions.
How to choose the right cryptocurrency exchange?
Bitcoin wallets don’t allow the option of buying and selling bitcoins using fiat currencies, and therefore buyers have to make use of the crypto exchange. A crypto exchange must be trustworthy and must not change high trading fees from its users. Some factors will help you choose the right crypto exchange that includes speed, reputation, and trading fees.
Speed
The speed of crypto exchanges matters a lot, and as a buyer, you must see how quickly and easily you can buy and receive your bitcoins. By knowing the speed of buying and receiving bitcoins, you can estimate the problems that can arise and the reasons for slowness. It is imperative to consider the waiting time of receiving funds and the limits of withdrawal of exchange. Before you choose a crypto exchange, you must check its speed and withdrawal limits to estimate the time it takes when you want to buy bitcoins in a rush.
Reputation
Bitcoin Exchanges have been cursed a lot by investors and traders because there have been many scams and hacks in the early days of bitcoin. Hackers have hacked the most popular crypto exchange named Mt. Gox, which was later shut down, and investors have lost all their money at that time. When you look for the suitable crypto exchange, you must learn about its reputation and name in the market. If the exchange has been developed over the years and has a positive reputation, you can consider buying bitcoins from it.
Trading fees
Another significant factor that is important to consider is the trading or brokerage fees that crypto exchanges charge from buyers and traders. A reputable exchange will have limited fees for buying and converting fiat currencies to digital currencies.
As compared to financial institutions, crypto exchanges don’t charge any extra fees, but still, some exchanges charge high trading fees. If you choose a crypto exchange that charges a high trading fee, you won’t be left by any profits you earned from crypto trading.
Once you have purchased bitcoin, you can now transfer it to your bitcoin wallet by entering your bitcoin wallet address into the crypto exchange. You can either scan the QR code or input your bitcoin wallet address to crypto exchange and make sure to check the transfer is done.
The whole process of withdrawing bitcoin will take around 10-15 minutes. The time it takes to complete the process is the time it gets confirmation on the blockchain ledger. Once the transaction is completed, you can use bitcoins to carry out transactions from your digital wallet without involving any intermediary.