Bitcoin is an intangible form of money which subsists in electronic form. It does not have any physical form like a coin or a paper money. It is the most popular for digital money which is used currently. Bitcoin doesnot have any particular individual owner or controller neither it is controlled by any banks. It does not have any kind of legal authorities neither it needs any middlemen and is transacted from customer to customer using the block chain network. It is the most popular form of Cryptocurrency Exchange i.e. virtual currency.
Steps to buy Bitcoin:
1. The first and foremost step to Buy bitcoins is having “Bitcoin Wallet” software which let us do the transactions of buying and sellingthe bitcoins. It is basically a digital wallet.
2. For registering in the Wallet one needs to submit some of their personal documents like the Pan Card, Voter ID, Driving License etc. as a part of verification of the people.
3. One needs to secure the accessibility of their wallets by opting for safe internet connections for transacting in bitcoins rather than the public networks or unsafe networks.
4. The next step is to select the method of purchasing and selling the bitcoin. To buy bitcoin by depositing money in the online exchange medium that facilitates the purchase of bitcoin and sell the same, one can use some of the old mediums of transactions like a Debit Card, Credit Card, and Net Banking methods.
5. Once the medium of payment is selected, the transaction needs to actually take place in the interface provided for that. The fees charged are lesser than any other forms of bank transfer.
The disadvantages:
Despite having some positive points, bitcoin also contains some kind of disadvantages.
1. The transactions in bitcoin donot provide any kind of security to the person dealing in the exchange. If he/she purchases any products using bitcoin and the wrong product has been supplied and delivered, the purchaser has nobody to complaint about. They could not hold anyone accountable for inappropriate activities by the sellers like these.
2. The whole process of buying and selling is through the online medium and the bitcoin does not come in any physical form. The personal documents, passwords and even the wallets may fall in the hands of frauds and online hackers.
3. Bitcoin is not widely accepted by traders over the internet. The scope of trading through bitcoin is limited and the Government of some countries may also impose some kind of restrictions in the usage of bitcoin for the native people.
4. The transaction costs are variable.
Although bitcoin is said to be fully decentralized, in recent times some middlemen or entities are used for undertaking the transactions for the buyers.
