Investing in Bitcoin is easy with convenient step-by-step instructions
Bitcoin has gained massive popularity today. The demand for bitcoin has increased as more and more people have started understanding the significance of cryptocurrency in terms of its advantages and benefits. This guide will assist you in getting started with Bitcoin.
What is Bitcoin? Why should people use Bitcoin? How can one get started with Bitcoin? From where can one buy Bitcoin?All these questions have been answered below with detailed explanations of everything that you need to know.
To get started quickly, it’s best that you go through this brief review. We have compiled basic step by step instructions at the end of the guide which will help you in buying Bitcoin immediately.
Some people say that they do not use Bitcoin because they don’t understand how it works along with the Bitcoin technology. This is a common response of people who do not use Bitcoin.
Buying and using Bitcoin is easy and one does not have to understand the technology to start using it (understanding is good though). Things were the same at the beginning of the internet. However, billions of people use the internet today even though a lot of people do not understand how technology works.
Bitcoin will stay here and it has a proven track record of a safe technology. The only question remains is for how long will people wait to invest in cryptocurrency. Have you thought of buying Bitcoin but did not proceed with your plan just because cryptocurrency is expensive? Well, you are not the only one thinking this way. However, the price was also considered expensive when Bitcoin cost $10, $100 and $1000.
Historic performance cannot be used as a guarantee of future results but the maximum number of Bitcoins will be 21 million.Just by purchasing one Bitcoin, one can own more than 99.85% of the world’s population. You may even buy less than one Bitcoin.
What? How? Why? Just by answering these questions, you are equipped with more knowledge about Bitcoin than 99% of the population. Hence, it’s about time that you stop procrastinating and get started with Bitcoin.
What is Bitcoin?
Bitcoin is the first cryptocurrency and it was the first decentralized digital currency on earth. It operates in a similar manner like gold and cash which can be transferred easily online across the world. Money can be transferred easily like an email.
This indicates that money can be transferred easily from one person to another without any agent or middleman or any involvement from a third party like a bank. In short, a person may easily avoid excessive transactions fees involved and long waiting times which one has to otherwise tolerate while transferring money through a bank.
Bitcoin can be briefly described as follows: Bitcoin is a global, independent and public ledger which can be used to transfer and store value.
- Bitcoin is independent because it cannot be controlled by any state, bank or institution nor can they manipulate Bitcoin
- It is a global currency and is the fastest and cheapest method of transferring money in different parts of the world on a 24/7 basis
- All public transactions are stored in a common ledger. However, at the same time, details of the identity of user is concealed and kept as anonymous by Bitcoin for privacy protection
Bitcoin is based on cryptography and mathematical equations; hence, it is secure. Every user of Bitcoin participates in deciding the rules and network of Bitcoin. Central bank cannot even print more Bitcoin to reduce its value; hence, it’s beyond the control of money institutions like banks.
Cryptocurrency helps in protecting one’s money against inflation as it reflects market value. Continue reading about the benefits of why everyone should use Bitcoin in the upcoming section. This was only a brief section. For more details, continue reading our detailed guide. In those sections, we have spoken about what money is and how Bitcoin is relevant along with the importance and value of cryptocurrency.
Why use Bitcoin?
Why should one use Bitcoin instead of debit/credit card or cash? There are numerous answers to this question because Bitcoin has different users. The major benefits of Bitcoin have been summarized below:
- Rapid payments worldwide – Money can be transferred around the world within seconds with Bitcoin as it is the first global currency.
- Extremely low transaction fees – It costs almost nothing to transfer Bitcoin and other fees are voluntary in this network.
- Secure system – Bitcoin cannot be counterfeit as it is secured with the help of mathematics and cryptocurrency. The existing financial system is secured by laws which has numerous loopholes.
- Don’t trust any third party – In Bitcoin, there isn’t any intermediary party which may deny any transaction or demand expensive fees. Every payment is made from person to person and none of them have to rely on any middle agent along with having full control over the transaction.
- Anonymity and transparency – Bitcoin is anonymous because one person does not have to identify themselves within the Bitcoin network. Other than this, it is transparent as ledgers of all transactions are public.
- Decentralized network – The digital currency works like the internet and is similarly decentralized. Bitcoin is fair because it cannot be manipulated or controlled by a single group.
- Protecting money against inflation – The largest benefit of investing in Bitcoin is that one’s money is protected against inflation. Bitcoin has a limited supply; hence, it will appreciate during inflation to preserve the value of your money. If you want to learn about other benefits of using Bitcoin then continue reading the next chapter of this guide. The next guide talks about how one can get started with Bitcoin.
Getting Started with Bitcoin (in 4 easy steps)
Welcome! Now that you have caught up with what Bitcoin is and how it can be used, let’s learn about how to get started with cryptocurrency. All you have to do is follow our guide step by step along with its instructions, it will only take a few minutes.
First of all, we will show you how a Bitcoin wallet is created or bought. Next, we will help you with your first Bitcoin. Eventually, we will explain how to protect and store Bitcoin.
The last step is to send and receive Bitcoin so that you may learn how to use Bitcoin. We will help you along the way so that you may avoid common mistakes committed by beginners.
Following instructions is easier than you think but as it is your money, it’s best that you feel secure with the guideline below. So here are the basic four steps of using Bitcoin today:
Step 1 – Create the Bitcoin Wallet
Step 2 – Get your first Bitcoin
Step 3 – Secure your Bitcoin
Step 4 – Receive and send Bitcoin
As you have seen, it is just that easy to get started with Bitcoin! In the upcoming sections, we will take you through all these steps in detail. We conclude by stressing on safety including some tips and suggestions for your benefit.
NOTE: It is important that you read security information!
- Getting a Bitcoin Wallet
A Bitcoin wallet is vital for receiving and sending Bitcoin and it can be created easily. However, there are several types of wallets with different security.
Bitcoin comes with a private and public key which you may place in your wallet. In simple terms, the public key acts like an email address and the private key is your password.
This also means that your private key is only your and you should not show it to anyone. This is why you should secure your Bitcoin wallet at all costs.
If you want to buy or send a small amount of Bitcoin even then you will have to use a Bitcoin wallet which is automatically created when you use Bitcoin exchange. We help our readers in selecting a secure Bitcoin exchange.
However, we strongly suggest buying a hardware Bitcoin wallet in case you want to buy Bitcoin because in this way, you will be able to use it on a regular basis for small and large sums. This is the best type of wallet as it is easy to use and is also very secure.
If your own wallet or a software wallet is created then you should back it with a private key and keep it offline. You don’t think about the safekeeping of your key for a hardware wallet as it does the job for you. So you should compare the benefits of wallets before choosing the best Bitcoin wallet for you.
- Getting your first Bitcoin
Bitcoin can be bought in three different ways. The easiest, typical and usual method of buying Bitcoin is to just buy it from the market. But you may also sell any service or product in exchange for Bitcoin.
The third method of earning Bitcoin is through Bitcoin mining. In this you install software on your computer to verify transactions so that you may get rewarded with Bitcoin. However, it is hard to generate any money without mining it and this step requires a lot of knowledge and resources.
We suggest our readers that you should buy your first Bitcoin from a reliable and trustworthy exchange. While there are many places from which you may buy Bitcoin, not every place is safe or reliable.
We will even assist you in selecting the best exchange for you. Is it the first time that you will buy Bitcoin? How soon do you want to buy Bitcoin? Would you like to pay with your debit or credit card instantly? You will get all the help you need for this in our beginner’s guide which is all about Bitcoin exchanges. For your convenience, we have reviewed and compared all the best exchanges operating globally. So there are simple steps through which you may buy Bitcoin instantly and for this there are step by step instructions.
eToro is considered the best Bitcoin and cryptocurrency exchange. You may buy Bitcoin and cryptocurrency easily, instantly and securely. This exchange platform has the highest rating online so you may open your account with them right now and start trading immediately.
Risk disclaimer: Cryptoassets are highly volatile and are unregulated investment instruments. It is not protected by European Union so your investment is at risk.
- Securing your Bitcoin
So have you bought a Bitcoin by now? If not then scroll up and follow the instructions! If you have bought a Bitcoin then congratulations! Welcome aboard to the world of finance of the future where you are your own bank.
So the next step is securing your Bitcoin by taking ultimate control of your private keys. Now you may need to secure your Bitcoin wallet which we had helped you to get in the initial steps.
When Bitcoin is purchased through an exchange, the money and its private key is a part of your account at the exchange. This can be risky as that company will not only store but also control your Bitcoin.
The entire purpose of Bitcoin is that you should be able to control and manage your own money. If you continue to keep your Bitcoin on exchange then your account will be blocked or restricted. In a worst case scenario, you may even lose all your Bitcoins if the company goes bankrupt.
In order to secure your Bitcoin, you will have to transfer them from the exchange to the safe Bitcoin wallet that you bought according to our recommendations above. Hence, we strongly urge all our readers that as soon as you have bought Bitcoin, immediately transfer it to your wallet. Our guide of Bitcoin wallets has all the details about the types of wallets and how Bitcoin should be stored safely.
- Sending and receiving Bitcoin
The simplest method of learning about Bitcoin is to start using Bitcoin as you will learn from experience. Therefore, you will be able to make at least one Bitcoin transaction. We recommend our readers that try sending Bitcoin from one of your wallet to another wallet to learn about how to send and receive Bitcoin.
Alternatively, you may also learn how to receive Bitcoin by purchasing Bitcoin from an exchange and then adding it to your private wallet. In order to receive Bitcoin, you will only have to share your public Bitcoin address which consists of 27-34 letters and numbers. The Bitcoin address will look like the following:
Your private key will look similar to the address above but it will be shorter but NEVER share your private key with anyone because that is the key to your digital wallet.Most wallets come powered with OR codes of the keys which makes it easier to send and receive Bitcoin.
The Bitcoin can be divided in the one-hundredth of a million (0.00000001) and it is also called satoshi. When Bitcoin is transferred, the wallet suggests a transaction fee and we recommend paying it. This is because the higher the fee you’ll pay, the faster your transaction is completed and it will be dependent on the market.
Acceptance of Bitcoin has grown over years and more stores and services today accept Bitcoin as a mode of payment. Paying or sending Bitcoin is equally simple and requires a few additional steps which are as follows:
- Open your wallet and look for the ‘Send’ page
- Fill the public Bitcoin address of your recipient or just scan the OR code
- Enter the amount you wish to send (most wallets will automatically convert the price of Bitcoin to normal prices of the currency that it is being exchanged into)
- Ensure that the Bitcoin address and amount you have entered is correct
- Press ‘Send’!
Transactions are done directly but they usually take a few minutes. Moreover, if you are transferring a large sum of money then you will have to go through 6 processes of confirmation for your security. This helps in ensuring that the transaction is not cancelled. Here you will learn more about the dynamics of Bitcoin operations.
Now that you have learned the basics of Bitcoin, do not forget to read security information.
Crucial Security Information
If you continue to follow our guidelines then you will get started with Bitcoin without any hiccups. To ensure that you have not missed any step, we will recap all the steps discussed earlier for your convenience.
There are numerous Bitcoin exchanges around the world and numerous platforms provide Bitcoin services as well. You should be careful in selecting your product and service before using it. Beginners who do not know about how Bitcoin works are at a vulnerable position as they may lose their money.
However, as highlighted earlier, it is important for you to know that Bitcoin is secure as it is based on mathematical equations of cryptocurrency. No one can trick math. Similarly, no one can trick Bitcoin. You only risk losing your Bitcoin if you use unreliable exchanges or services or if you do not protect the key of your Bitcoin wallet.
We have compiled a list of important information that you should be aware of to protect your Bitcoin. If you know all this then there is nothing else to worry about.
Firstly, Bitcoin transactions are not refunded. Hence, it operates like digital cash. Bitcoin has offered freedom but it comes with the responsibility of safeguarding it.
Secondly, Bitcoin transactions can be confirmed from the network and only then it is valid. In order to complete a large transaction, we recommend that you accept the usual process of going through 6 steps verification for safe keeping. The number of confirmations are displayed on your wallet or the exchange (from wherever you chose to trade).
Bitcoin is also termed as pseudo-anonymous. In simple words, this means that you can easily send or receive money without identifying yourself. However, if your wallet is connected with your identity then all transactions can be traced back to it. Moreover, every transaction is stored in a shared ledger and users have the option of being anonymous or public.
There is a variety of Bitcoin wallets to choose from. However, if you are genuinely concerned about getting the safest option to protect your money then we recommend a hardware wallet as they are an ideal option to store Bitcoin.
There are hundreds of cryptocurrencies around the world and there are even more exchanges. Firstly, there are numerous unreliable cryptocurrency exchanges. Secondly, Bitcoin should never be stored at an exchange but they should be transferred to a personal wallet immediately for security purposes. Lastly, we have compiled a list of popular exchanges from where you can easily buy Bitcoin.
How to set up a Coinbase Account?
Another method of buying Bitcoin, Ethereum, Bitcoin Cash (Bcash) and Litecoin is through Coinbase. Once you have created an account of the Coinbase website then the users may purchase all these cryptocurrencies with their debit or credit card just like purchasing anything from Amazon.
For using Coinbase, you do not need extensive knowledge of cryptocurrency. Therefore, a lot of people choose Coinbase to buy their first Coinbase or any other cryptocurrency. This is how you can get started:
- In your web browser, go to Coinbase.com and click on the icon of ‘Sign up’ in the top right corner.
- A form will appear – fill it with details like your first and last name, email address and password. Just ensure that you use your real name which is on your passport or driver’s license as this can be used as evidence of your identity later. Select you password and ensure that you use a combination of upper and lowercase letters along with the use of numbers
- Then press the ‘Create Account’ button
- You will get a confirmation email sent to your given email address. Check your email and click the confirmation link in it. Once you click it, you will be routed to the browser window which will now activate your Coinbase account
- You will now have to follow certain steps for confirming your identity. You may skip this for now and do it later but it is best if you give them required information immediately as you may forget later.Moreover, the faster you fill in all your required information, the more cryptocurrency you will be allowed to buy each week while making your account secure as you proceed.
Confirming Identity on Coinbase
You will have several options to choose from to verify your identity to Coinbase during the process of account creation and even afterwards by going through Settings > Security options in the dashboard of Coinbase account. You may access these options anytime.
By confirming your identity on a Coinbase account, you enhance your buy limit and this also improves the security of your account. The possible information that you may be asked for the verification of your account via the email sent to you after creating Coinbase account or in your Dashboard security settings are as follows:
Phone Number – Confirming your phone number is simple. You will have to select which country your phone number is registered in and then the number itself. Once you have submitted this information then Coinbase will load another webpage which will ask for a code which is sent to you via SMS to your phone. After entering this verification code, click the bluc icon of ‘Verify Phone Number’.
Address – Your residential address will also be asked once you have confirmed your phone number in the initial account setup or in the settings > My Profile section within your Dashboard. You should be truthful about all such personal information. The country field, is important as it helps in determining the financial services which you can buy or sell in that country legally.
Document Verification – Once your address has been verified then you will be asked to confirm your identity and for this you will have to share a government approved ID like passport, driver’s licence, proof of age card. The documents requested will depend on which country you are based in. If you skip this step initially, then you will be reminded later to fill this information each time you access your Coinbase Dashboard by logging in. You may even submit your documents through Settings > Limits.
- In the account setup, you will see a blue icon of ‘Start Verification’. Once you press it, then the process will begin.
- As the verification process has been initiated, you have the option of two or three document types. Click on whichever document type that you would like to use for verification of your identity
- The next screen will enable the camera feature of your device and you will have to hold your ID in front of the webcam and then press the ‘Take snapshot’ icon so that it’s photo can be taken.
- A preview will be displayed for you on the page. If this photo is cleared then it will show your face and all the relevant information, press ‘ Finish & Start’ verification icon. If you feel like redoing the image then just click on ‘Take another snapshot’ to try again. You may try as many times as you would like.
- Coinbase may take several days to over a week to verify all the documents you have submitted
Coinbase Payment Options users in US have an added benefit of using PayPal to redeem their cryptocurrency for cash, wiring transfers, withdrawing and depositing funds along with using debit and credit cards for buying cryptocoins. The best option is to connect a bank account with your Coinbase account as this payment method can be utilized for purchasing and selling crypto along with depositing and withdrawing funds.
You will be asked to add a payment option once your identity has been verified after the initial setup. You may choose to skip this option and add a payment option from your account by clicking on the Buy/Sell link at the top menu and selecting ‘Add a new account’ under the .Payment Method’.
For immediate purchase, it is best that you add information about your debit or credit card information. Adding PayPal details also helps in instantly buying Bitcoin, Litecoin, Coinbase and Bitcoincash. However, if you add your bank account details then there is another two days waiting period for its verification before you start buying or selling.
Increasing the Buy Limit of Coinbase
Coinbase has a usual limit for new accounts of $300 buy limit. This is done to prevent any illegal activity and money laundering. These limits can be increased by doing the following steps:
- Complete your profile – Fill in all required information for activating your Coinbase account to increase your buy limit. This includes adding and then verifying your phone number along with submitting at least one government issued identification document.
- Make regular buys – Coinbase accounts which are active tend to get a higher limit so we recommend purchasing once each week for a month or two.
- Wait patiently – As the account gets older, it will build an appearance of legitimacy in Coinbase’s eyes. New accounts are usually limited and older accounts have their limits removed eventually with time.
How to Get US100 Free Bitcoin with Coinbase
Anyone can sign up for Coinbase for free but if you are already aware of someone who is a member then it is best that you ask them to invite you. If you sign up for Coinbase through someone’s invitation then not only will that person’s account be deposited with US10 worth of Bitcoin so will yours whenever you spend over US100. Moreover, after creating an account you may refer your friends in order to earn US10 Bitcoin for each referral. You may invite anyone by the following steps:
- Log in your account and click your name on thee top-right corner of the screen
- In the drop down menu – click on the ‘Invite Friends’ option
- You will be taken to another page where you will be given the option to invite friends through Facebook, Twitter, email, Whatsapp and so on. This page will also generate a link for you to display on your social networks like Instagram or LinkedIn or blog post.