Can I buy Bitcoins in installments?

Investing in Bitcoin can seem complicated, but it is much easier when you break it down into steps. Buying Bitcoin is getting easier by the day and the legitimacy of the exchanges and wallets is growing as well.

Before You Begin

There are several things that every aspiring bitcoin to visa

 investor needs. A cryptocurrency exchange account, personal identification documents if you are using a Know Your Customer (KYC) platform, a secure connection to the Internet, and a method of payment. It is also recommended that you have your own personal wallet outside of the exchange account. Valid methods of payment using this path include bank accounts, debit cards, and credit cards. It is also possible to get Bitcoin at specialized ATMs and via P2P exchanges. However, be aware that Bitcoin ATMs were increasingly requiring government-issued IDs as of early 2020.

Privacy and security are important issues for Bitcoin investors. Even though there are no physical Bitcoins, it is usually a bad idea to brag about large holdings. Anyone who gains the private key to a public address on the Bitcoin blockchain can authorize transactions. While it is obvious that the private key should be kept secret, criminals may attempt to steal private keys if they learn of large holdings. Be aware that anyone can see the balance of a public address that you use. That makes it a good idea to keep significant investments at public addresses that are not directly connected to ones that are used for transactions.

Anyone can view a history of transactions made on the blockchain, even you. But while transactions are publicly recorded on the blockchain, identifying user information is not. On the Bitcoin blockchain, only a user's public key appears next to a transaction—making transactions confidential but not anonymous. In a sense, Bitcoin transactions are more transparent and traceable than cash, but Bitcoin can be used anonymously.

That is an important distinction. International researchers and the FBI have claimed that they can track transactions made on the Bitcoin blockchain to users' other online accounts, including their digital wallets. For example, if someone creates an account on Coinbase they must provide their identification. Now, when that person purchases Bitcoin it is tied to their name. If they send it to another wallet it can still be traced back to the Coinbase purchase which was connected to the account holder's identity. This should not concern most investors because Bitcoin is legal in the U.S. and most other developed countries.