Bitcoin, commonly referred to as BTC, has become one of the most popular cryptocurrencies around the world. As more people are getting interested in investing and trading BTC, it’s essential to understand how to purchase and trade BTC in a legitimate and secure way.

In this article, we will guide you through the process of how to purchase and trade BTC legally, step by step.

Step 1: Identify a trustworthy BTC exchange platform

The first step to purchasing and trading BTC is to find a trusted exchange platform. Do your research, explore the market, and look for a platform that offers competitive fees, user-friendly interface, and optimum security measures.

Step 2: Create an account and verify your information

After selecting a platform, register an account, and provide your personal details, such as name, email address, and phone number. Then, you need to verify your identity by providing a government-issued ID, and proof of residency.

Step 3: Add funds to your account

Once your account is verified, you can add funds to your account via bank transfer, credit or debit cards, or digital wallets, depending on the platform’s deposit methods.

Step 4: Purchase BTC

Now that you have funds in your account, you can buy BTC. The exchange platform will display a BTC price chart, and you can place your order by specifying how much BTC you want to purchase. You can also set limit orders, schedule recurring purchases, and choose between market, limit, or stop-limit orders.

Step 5: Choose your wallet and secure your BTC

After purchasing BTC, you need to transfer it to a secure wallet. It’s essential to choose a wallet with strong security features such as a hardware wallet, which stores your cryptocurrencies offline, away from online threats.

Step 6: Trade BTC

When you own BTC, you can participate in trading activities by selling or buying crypto. Before trading, do your research, and check the current market trends. Some exchanges offer BTC trading pairs with other cryptocurrencies, and you can also trade BTC with fiat currencies such as USD, EUR, or GBP.

Step 7: File your taxes

As with any investment, trading BTC is subject to taxes. Make sure you keep track of all your purchases and trades, and file your taxes accordingly.

In conclusion, purchasing and trading BTC can be a profitable venture if done correctly. It’s crucial to be mindful of the security measures in place, choose a reliable exchange platform, and keep track of taxes. With these steps in mind, you’re on your way to becoming a legitimate BTC holder and trader.