In recent years, we have witnessed the transition to various forms of payments – that do not include money in its standard form. After the arrival of plastic cards and their release into circulation – we thought that nothing new and innovative in the economic market could happen. And then the new news about the appearance of cryptocurrencies and the famous Bitcoin – hit us with lightning speed. In a very short time, Bitcoin has become mega-popular – and today it is traded by both professionals and ordinary people.
However, apart from trading, the question is: Can we use Bitcoin for any other purpose – and can we connect it to our checking account in the bank? Here is the answer.
What Exactly Is Bitcoin And How Does The Crypto-Market Work?
Before we explain to you how a bitcoin account can function via a bank checking account – we will first explain what Bitcoin is. It is a cryptocurrency, that is, a digital currency – that is encrypted for the purpose of better financial privacy and security of transactions. Precisely for this reason, such currencies are very difficult, almost impossible to counterfeit and misuse. Certainly, the principle of decentralization is the one on which the functioning of cryptocurrencies is based – and since they are not issued by state financial institutions, they are protected from the influence of the government and possible abuses. The first and at the same time the most famous cryptocurrency is Bitcoin – which later gained competition in the form of the emergence of other cryptocurrencies such as Ethereum, Litecoin, etc.
Buying Bitcoin Using A Checking Account
Since the Covid-19 pandemic, we have all witnessed that Bitcoin has significantly increased its value. Therefore, it is not surprising that people are increasingly interested in buying and selling BTC. However, we have already indicated that this type of transaction is far safer and with a lower commission if you do it through a bank account. How to do it? Fortunately, there are several ways to do this today, but most often it is done through Bitcoin exchanges. However, before buying BTC, you need a place to store it. In the world of cryptocurrencies, that place is called a wallet, and they come in different forms. Various types of wallets will provide you with different types of security. Also, there is more than one way you can buy BTC – so opt for the one that works best for you.
Every new potential bitcoin buyer will come across several different competitive exchanges. Opting for the right one can depend on various factors. Therefore, to place an order and start buying or selling, it is necessary to follow a certain procedure. For example, most of these platforms will require you to link your bank account even before you start with buying or selling BTC. However, such platforms provide you with a large selection of options. They can usually be accessed easily – via desktop or mobile devices, providing users to buy or sell BTC from anywhere. According to smartbitcoininvestments.com, exchange offices differ in the payment options they accept, safety levels, purchase limits, etc. Therefore, you should choose among those that appear to be most reliable. On many sites, you can look at comparative reviews and reviews – and choose the one that suits you best.
When trading bitcoins, it is essential that your private key is treated as a trade secret, and you only use it to approve BTC transactions. The private key is kept in your wallet – so wallet protection would be a thing to be advised. The wallet needs to be encrypted with a strong password or choose a storage option – which basically means keeping it offline.
The Responsibility Is Still On You
Buying BTC on crypto exchange platforms is a great start and a way to join a global movement that provides new opportunities for financial success. Whether you want to buy bitcoins or would like to trade cryptocurrencies – you need to know how to use a particular cryptocurrency exchange. Of course, other exchanges are used similarly. However, some of the most famous ones like Etoro or Coinbase with the support they provide – are great for your start. Generally speaking, to secure your currencies, you need to adopt simple steps so as not to endanger your money. What cryptocurrencies and the blockchain technology behind them have brought us is complete responsibility for our currencies. In other words, if we want to fully dispose of our money – then it is necessary to be responsible for it.
Certainly, for those who want to feel more secure during transactions, there are ATMs as well. Although this is a relatively recent option – BTC ATMs are increasingly popular. Today, you can find them in many places in the world, and it looks like they are expanding. However, you must keep in mind that ATMs will charge you a commission of up to 8% of the price. Nevertheless, they give users an effective experience they can perform in privacy. All you need to do is insert the money into the ATM – and scan your QR code for your BTC wallet. These ATMs have the potential to become one of the most common ways to buy cryptocurrencies in the future.
Why Use A Checking Account For Buying Bitcoin?
Today, some banks accept Bitcoin and other cryptocurrencies – but many are still not in this system. Several U.S. banks have even announced that they restrict the purchase of cryptocurrencies using credit cards. Why is this so? The reason lies in the fact that financial institutions face increased risk when purchases of cryptocurrencies are made with credit cards. Namely, if the purchase of cryptocurrency is made via credit card – the currency may not have enough value to cover repayment. Therefore, buying a cryptocurrency through a bank account is far more popular than using a credit card. Bank accounts allow investors to buy large amounts of cryptocurrencies in a single transaction – and financial risk is also reduced.