Want to get into Bitcoin and other crypto-currencies? This is a step-by-step guide.
Step 1: Buy Bitcoin – the universal currency
- Open a Coinbase account. Why Coinbase? Because they’re based out of the US and have a good reputation. Transaction fees are about 1.49%.
- Connect it to your bank. Only have one bank account and you’re scared to connect anything to it? Fine, create a Capital One or Aspiration account. They are FDIC-insured banks. Transfer a small amount from your primary back there then go ahead and transfer it over to Coinbase and buy Bitcoin – BTC.
- Deposit a fair amount. Don’t want to risk too much? Just deposit $20 and start with that. According to today (July 4, 2017) that would amount to 0.007 BTC. It doesn’t take much to get started.
- Once you have your money deposited, just sit back and wait on how Bitcoin performs.
Step 2: Invest in other crypto-currencies further down the rabbit hole
Now that you understand how this works, consider instead of purchasing bitcoin, you can go ahead and purchase less-expensive coins. The BTC value today (July 4, 2017) is way over $2,500 so it would require quite the investment if you wanted to purchase 1 (if even more) Bitcoin. There are smaller valued coins that could go up in value as well. We’ve seen this before with crypto-currency like LiteCoin and Ethereum. Interested in purchasing a different kind of crypto-currency?
- Open a Poloniex account. Why Poloniex? Again, they’re based out of the US and have a good reputation.
- Go to Balances – Deposits & Withdrawals
- Find BTC / Bitcoin on the list.
- Click Deposit on that line. It will provide you with an address to send the Bitcoin to.
- Copy that address.
- Go back to Coinbase.com and click on Send/Request and click Send
- Paste the address that Poloniex provided in the box that reads “Recipient – Email or Bitcoin address”
- Choose an amount. For example, just click “Max” and move over all the BTC that you just added to your Coinbase account or a fraction of it. Say for the example provided above of $20 that would be moving over 0.01 BTC.
- Click Send Funds.
- Go back to Poloniex and click on Balances > History and wait a few minutes for the money to get transferred. WAY FASTER THAN ANY BANK TO BANK TRANSFER, HUH?!
Once you see that the transaction has come through and is “Confirmed” you are ready to trade.
- On Poloniex, click Exchange
- Click on the chart on the right, the tab labeled “BTC” to see all the currencies you can purchase using the Bitcoin you just deposited.
- Click on any crypto-currency you’d like and scroll to the bottom of the screen where it says “BUY XXX” – XXX obviously is the acronym of whichever currency you chose. For example, if you choose, Ethereum, then it will read “BUY ETH”.
- Type in the amount of the currency you want to buy and it will tell you how much BTC it will cost you. If it’s too complicated, just copy the amount where it states: “You have x.xxxxxxx BTC” into the Total field. It will automatically convert that to the amount you can afford.
- Click Buy.
That’s it. Once you do that, you are now a proud owner of crypto-currency. Now it’s up to you if you want to keep your money there or pull it out and put it in a wallet for safekeeping. Either way, hold on to it and let’s see where this goes.
Which currencies should you buy?
That’s up to you, but if you want to learn more, check these out:
Watch this video to have a basic understanding of 5 hot crypto-currencies out right now: https://www.youtube.com/watch?v=pgiNyyzIWuo
Here is a list of currencies to check out: