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How to buy bitcoin-for starters

A simple guide for beginners on the idea of bitcoin.

The best way to understand Bitcoin and other cryptocurrencies is to just buy them and try them. In this guide, I've included instructions on how to buy bitcoin. I always recommend everyone to buy for $ 1 as $an interesting learning experience.

Whether to invest, what to invest in and when to invest depends on you. This guide is not investment advice. If you want to read about bitcoin before buying, check out my blog post about the main resources.

The first thing you need to know about buying bitcoin is that you will need two things:

  • The place where you can buy it is the stock exchange
  • The right place to store it is a wallet
  • So imagine you want to convert Canadian dollars to Mexican pesos. You carry your cash to the foreign exchange counter (exchange). You give them Canadian dollars, they take a share, and give the rest to you in pesos. Then you put the peso in your wallet (wallet). Buying bitcoin is similar to this, but digital transactions.

Step 1-get a wallet

  1. The wallet I recommend for beginners is called Coinbase. You can download it as an app on your phone. But start by following this link.
  2. Coinbase is the worst wallet you can choose from a security perspective, but the reason I recommend it for beginners is because it's both a wallet and an exchange in one person, so your first bitcoin buying experience is much smoother.
  3. The purpose of bitcoin is for you to own your money and no one can take it away from you. This is only true if you have something called a "private key", such as a password for your money. Unlike most wallets, Coinbase stores your private key for you. For many people, this is convenient because if you lose your private key, your money will still be gone. For example, if you have an impenetrable safe that you have lost the combination. You know where the money is, but you have no way to get to it. The risk of Coinbase storing your key is that if it is hacked, you will lose your money. If you go bankrupt or disappear, you will lose your money. If the U.S. government decides Coinbase can no longer operate, you will lose your money. All this is quite possible. In short, Coinbase is good for learning and getting started. But if you want to invest large amounts of money in cryptocurrency, this is not the place to do it.

Step 2: Register to create an account

Do you remember when you first opened a bank account? It might have seemed easy back then, but looking back, the process was pretty intense. You had to inform the actual branch of the bank. You also had to show up during the banker's business hours in the middle of the working day. You had to show the manager an identity card with a photo issued by the state, and if the manager was not there, you had to come another day. You had to fill out form after form-all on paper—and sign them so they could store them in the filing cabinet. All in order to have a place to store your money. Setup to buy cryptocurrency is not much different, it's just done online. Remember this when you are upset at any time of the process.

  • To get started, fill in the fields and confirm your email address, just like in any other application. Then click the Big Green "Start" button! (Other countries may ask much more questions as part of compliance with their regulatory requirements).
  • Coinbase is required to verify your identity-just like a bank will do. Take a photo of your ID card and they will confirm that you are a person. This verification process may take minutes, hours, days, or weeks. You will never know which one will be, so you better set up your account before rushing to buy.

Step 3: connect the source of money

In order to buy cryptocurrency, you need a way to pay for it. You'll need to add a payment method to your account the same way you add your credit card to your Uber account. Enter a debit or credit card. Please note that for risk reasons, you will be set a much lower limit for the purchase of credit cards.

Do not be surprised if your bank blocks the transaction. Scotiabank is particularly famous for preventing people from spending their legally earned money on bitcoin, a legal monetary instrument. If this is the first time you are told that you cannot buy what you want with your money, you begin to understand why bitcoin is so important.

Step 4: buy cryptocurrency!

  1. Click on "accounts" at the bottom of the app. You will see an amazing list of a whole range of different cryptocurrencies. These are all cryptocurrencies offered by Coinbase on the exchange. If you do not see the token you want to buy here, you will have to register on another exchange.
  2. Due to some changes in the technology and communities of bitcoin and Ethereum, there seem to be two versions of each of them. If you want to buy bitcoin and ether, but do not know which one to buy, then you need BTC and ETH.
  3. The most important rule for buying cryptocurrencies is to invest only what you are prepared to lose completely. Those of us who have been working here for some time are used to watching half of our investments disappear overnight. Most people are not-this is not a good feeling, and it will happen to you, because it happens to everyone. This is the downside of an unstable market. If you can't handle it or you need your money to maintain its value in case you need it in the short term, investing more than a few dollars in cryptocurrency is not for you.
  4. Another thing to consider regarding this cryptocurrency is that it is still taxed as income or capital gains. Start tracking your purchases and sales from scratch, otherwise you will find yourself in complete disarray when paying taxes.

Step 5: the most interesting

  1. Congratulations! You are now the lucky owner of cryptocurrency. I joined some of the world's brightest minds in a technology that is transforming the financial sector and disrupting some of the oldest social systems we know. Enjoy the ride while watching prices rise, fall, fall and fly to the moon.
  2. Now your task is to disseminate information. Share this post with a friend and send them some bitcoins. For most of us, this is a great way to participate in the new economy. But for many around the world, bitcoin is the lifeblood of access to rights and freedoms that we take for granted. Start learning more about the impact of cryptocurrencies and, more importantly, blockchain on society to understand why this technology is really important.
  3. Ann Connelly is passionate about using blockchain and decentralized technologies to transform people's lives in developing countries. Anne teaches at Singularity University and has been an active part of the global blockchain community since 2012. She previously worked with the Canadian organization Doctors Without Borders in Central Africa and is currently on its board of directors. Ann was honored as one of 12 young CBC leaders who are changing Canada and one of the Fifty Most Inspiring Women in technology in Canada. You can find it at www.anneconnelly.ca .
  4. Do you want to know more about blockchain and cryptocurrencies? Check out the resources on my blog: New Kids on the block: resources to learn about blockchain technology
  5. This post contains affiliate links, and I will receive compensation if I make a purchase after clicking on my links. I was lucky.