Bitcoin For Dummies, 2nd Edition
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In order to properly use a bitcoin exchange, you will need to complete a "Know-Your-Customer" (KYC) verification procedure. This process sounds a lot scarier than it really is, even though you are obligated to submit some very delicate information related to you as a person.

Step 1: Confirming your phone number

The first step is verifying your mobile phone number. Most bitcoin exchanges send you a text message to that phone number with a code. That code needs to be entered on a specific page during the verification process in order to verify that you have access to that mobile number in case of an emergency, or during an account's password-recovery process.

Step 2: Providing personal ID

The next step usually requires you to verify your identity by providing a copy of personal identification. Depending on the bitcoin exchange platform you're using, these documents can range from a scan of your ID or driver's license and a recent utility bill, to a copy of your birth certificate or passport.

The types of ID documents required depend on how much you are expecting to trade through your bitcoin exchange. Larger amounts require stricter verification, and thus more sensitive personal information.

And this is one of the major struggles novice users face when verifying their identity and purchasing bitcoins for the first time. Besides the information that needs to be submitted, there's also a waiting period that must be taken into account before these documents are verified. Most major bitcoin exchanges get these documents reviewed within a few hours, but there have been reports of delays taking up to a week.

Whenever you submit any documents, always make sure everything is clearly legible, as this will make the verification process a lot smoother.

About This Article

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About the book authors:

Peter Kent is an e-commerce consultant who specializes in search engine optimization (SEO). He’s also delved into cryptocurrency, including creating the online course Crypto Clear: Bitcoin & Cryptocurrency Made Simple. A former vice president of web solutions at a national internet service provider, and vice president of marketing and SEO expert at Indigio, Kent has been involved in the online world since 1984. He's been writing about the internet since 1993. He’s the author of nearly 60 books, as well as hundreds of articles. Tyler Bain is a professional engineer who specializes in the electrical grid. He is also a Certified Bitcoin Professional who focuses on system resiliency and mining mechanics.

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