How to Buy Bitcoin Part – 1
We should talk about How to Buy Bitcoin ? In order to change actual dollars into a cryptocurrency that you can trade or hold for the long run. You need to use a brokerage. They profit by the transactional fees. Just like in the stock market the cryptocurrency brokerages that convert fed money to cryptocurrency they take a fee for doing the transactions of actually converting the dollars to cryptocurrency and also from sending it out of the platform’s website itself.
There are a few different companies you can use in the future. I’m sure in six months there’s going to be another 50. But for now there are a couple large ones. The biggest one is Coinbase. They’re based out of the United States. They’re a multibillion dollar company. These guys are gigantic. And of course they make all their money through fees. It’s not outrageous but it is expensive. There was another place called the Coinsquare which is in my opinion a better alternative than Coinbase because Coinbase once you set up your account it takes a while to verify it. Then you can only buy with a credit card. And that’s one thing that’s kind of weird but the same time it might be OK but it’s not always the best to put in investments with loans off a credit card because you’re paying you know the high interest rates and credit cards and etc.
It’s better to invest directly with cash you actually have and cash you’re not willing to lose because again investing with a credit card is just not smart. In any case Coinbase is one of the options we can explore that now.
START WITH COINBASE
Go to www.coinbase.com. This is here. So if you want you got to sign up you putting your first name last name email. Choose a password confirmer not a robot. Create an account. You can see nine point four million users right now so a lot of people use it cryptocurrencies are stored in a digital wallet online. It’s going to take a little bit for you to set up your account but it seems your account at first because you’re going to have to upload some documents like a passport and whatnot in like a banking statement.
So what I just used was a credit card statement. I uploaded my passport and there also are a couple of Web sites that when you register you’ll need to take a photo of yourself so it’s just like a selfie and you just hold up like a piece of paper and write down your account number and they’ll direct you through all this stuff. I just want to give you a heads up. This is totally normal. But in this case that’s what you got to do. So once you have your account created you won’t have a limit this high.
Most likely it will be around $125 I believe. It’ll take a little longer to get it higher. You have to wait something like 30 days and that’s just a precaution on their end.
So once you have an account created you’ll have the dashboard Buy/Sell, Accounts, Send all this stuff. You’ll see here under the buy and sell the buy tab and sell tab you have your payment method. I have mine blurred out right now because I have a credit card in there.
You can see right now that I have this set up two Canadian dollars. If you go to settings you can change it over to USD if you want. So this is currently worth. Bitcoin is currently worth five thousand five hundred thirty nine dollars. You have a ethereum. I’m in you have Litecoin. These are the three that Coinbase sells in the future I’m sure the light others in the new year they’re going to be adding Bitcoin Cash as well. So the idea here is if you do want to pay with your credit card you can put it in here and then you enter the amount you want to buy. Let’s say for me a thousand dollars max.
So I put in thousand dollars. They’ll tell me that that is worth point 0,17358471 BTC which is Bitcoin and you can see that over here you are buying point 0.1736 Bitcoin at a price of 5,539.83 $ and available instantly deposit to BTC wallet. And what that means is when you buy this you will then have it in your bitcoin wallet. You can see here that they’re charging a fee of $38 which is a lot of money. But again it’s very limited right now so once you’re in you’re in.
WRITE RIGHT ADDRESS (IMPORTANT)
So if you’re to do it say $250 and see the figures and $10. I recommend only starting with you know a small amount maybe even less than a 100$ because if you don’t properly put in the right bitcoin address to send your bitcoin to let’s say Bittrex for example. If you do not put the right address you will lose your bitcoin. It will be recorded in the block chain forever that this transaction happened over a 100$ and that it was sent to some address. If you didn’t enter the right address you will lose that. You can’t get refunds in this way unless you send to somebody else. you found out who that person was which is unlikely. they decided to give it back to you so. So that’s one thing to keep in mind if you do put in the wrong address you will lose your money. So until you get comfortable with making sure you’re putting in the right address every time. Start small get some successful changes and then go from there.
And once you hit by here it’ll come up with a confirmer transaction button. And again it’ll show you how much you’re buying and the fee structure and then you had confirmed.
What do you do that it’ll automatically get added to your account in the dashboard. And once that happens then you successfully own some bitcoin.
When it comes time to sell that can be a little challenging for certain people depending on where you are. For example in Canada Coinbase not actually allow you to sell at this time. It’s just not supported. So in this case selling it would mean converting it back to Canadian dollars or U.S. dollars if you want to send your actual Bitcoin somewhere else such as bit racks to do some crypto trading.
Then in that case you would go to the send tab so within the send tab we have a recipient.
This is where you enter the e-mail or bitcoin address for Coinbase. They allow the e-mail on some other platforms. It’s just the address. So for me I’ve never used e-mail I just use the address and you get this address from the deposit section in your other accounts such as your Bittrex account. There are no withdrawal addresses and that’s kind of how it works so you have a deposit address that you enter in on the platform you’re sending from and that deposit address is provided by the platform you’re receiving. So if you wanted you can see right now that in this account I have point 0,00013349 BTC. I’m not even sure how much that is. It’s a very small amount. Let’s see what it is. So let’s hit the max. Copy it over open a new tab. Paste it into Google.
Type in BTC which is Bitcoin to you SD and it’ll tell you what that is. So this is 58 cents. So I’m 58 cents in this account and that’s left over for whatever reasons. I mean it used to be 12 cents but over time because Bitcoin has been kept going up and up over the last few months it’s actually gone up to about 58 cents. But for the sake of what we’re doing let’s just say we had you know one bitcoin in here at this stage we would go to our other account like Bittrex and I will share that in a bit.
You get your deposit address and you put it right here and then you just hit send then the confirmation will happen over a certain period of time typically between 10 minutes in an 1 hr sometimes a little longer depending on how many transactions are trying to happen. And then once that’s done you will most likely get a confirmation in your email from Coinbase. That means it has gone through and in a short period of time you’ll have it in your other wallet. For example in your bitcoin Bittrex wallet. Coinbase also has an app. I tend to use it just to quickly see the price of bitcoin or theorem or like coin. I’m just concerned with you know Bitcoin mostly. So yeah they have a cool app and they they seem to update it quite often. So that’s essentially it for Coinbase.