What is a Bitcoin account and what is it for?
First of all, let's take a moment to define what we mean by a Bitcoin account. In reality, when we talk about a Bitcoin account, we're talking about an account opened with an online platform that allows you to buy, sell or exchange Bitcoins.
But most platforms offering Bitcoin accounts also give you access to a wide range of financial assets, including other crypto-currencies. A Bitcoin account is only used if you only hold, trade, buy and sell Bitcoins, but you can also carry out these operations on the other crypto-currencies offered by your platform.
So it's easy to see why the term Bitcoin account doesn't really exist. It is actually an account in which you can use Bitcoins, but also other financial instruments.
But when it comes to Bitcoin, which is currently the most popular crypto currency on the market, but also the oldest, here's how an account works:
A bitcoin or crypto account allows you to carry out several types of transactions, including :
- Buying bitcoins: Whether you make a deposit into your bitcoin account or pay by bank card, the account will allow you to buy bitcoin tokens.
- Sell bitcoins: In the same way, this account will allow you to sell bitcoins, which you hold, to other buyers in order to receive the cash equivalent.
- Exchanging bitcoins: It is of course also possible to exchange your bitcoins for other crypto-currencies or other financial assets. For example, you can convert your bitcoin tokens into Ethereum or Litecoin, as you prefer.
- Store your bitcoins: Of course, most crypto-currency exchange platforms also offer you online wallets in which you can store your bitcoins safely.
- Use your bitcoins to make payments: Finally, you should know that some crypto-currency exchange platforms allow you to benefit from a bank card linked to your Bitcoin account, which you can use to pay for purchases online or in shops.
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What type of account can I use for Bitcoin?
Bitcoin accounts on exchange platforms: The purpose of crypto currency exchange platforms is to put buyers and sellers of crypto currencies in contact in exchange for a commission. Depending on the platform, you will have access to a more or less wide choice of crypto-currencies. However, most of these platforms offer Bitcoin, which is currently the most popular crypto-currency on the market. In most cases, it is possible to make a deposit using your bank card or by bank transfer, but some platforms only accept connections with an existing Wallet that holds crypto-currencies.
What is the procedure for opening a bitcoin account online?
Now that you've understood what a Bitcoin account, or more commonly known as a cryptocurrency account or Wallet, is all about, let's get down to the nitty-gritty and explain technically how to open your first bitcoin account online. All you need to do is follow these simple steps:
- Go to an exchange platform or broker site offering crypto-currencies in Bitcoin.
- Create your account by filling in a form with your personal details, your email address and a password.
- Request the creation of a Bitcoin address. The platform to which you are connected will provide you with a secure address and a unique password corresponding to a private key.
- Make a deposit into your account. This deposit can be made by credit card or bank transfer.
- Choose the cryptocurrency you wish to buy, for example Bitcoin, and add the desired number of units to your wallet.
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Is it possible to hold a bitcoin account anonymously?
Many individuals who are interested in Bitcoin actually want to obtain an account holding crypto-currencies anonymously. But is this anonymity real?
In reality, the platforms on which you will have to register to open a Bitcoin account are legally obliged to ask you for proof of identity. It will therefore not be possible to open a Bitcoin account without giving your real identity to the online brokers. This precaution has been required in order to dissuade ill-intentioned people from registering on these platforms, and in particular to combat money laundering.
However, it is important to note that this information will remain confidential and that only the user will have access to this data, apart from the broker's moderators. Your identity will therefore be hidden from other customers and users of the platform.
