how can i buy bitcoin?
How can I buy bitcoin?
Well before we even get into that you need to know that Bitcoin is a volatile market. Below are some examples of corrections that ave happened in the past. This is obviously a Bullish chart as well showing the larger the crash the higher the return that follows. Also just to note also at the beginning of 2014, Mt Gox, a bitcoin exchange based in Japan, was the largest bitcoin exchange in the world at the time handling over 70% of all bitcoin transactions worldwide was hacked and 740,000 Bitcoin was stolen. It crashed the market instantly and it took a long time for the market to recover. Also, note the history of bitcoin doesn't necessarily determine the future of the price.
This is important to know because some people might buy at the top and you need to know many times bitcoin dropped over 80%-90%. If you are the kind of person that dumps their life savings into bitcoin it might not end well. This is a speculative market and most of the companies working with bitcoin or on Blockchain don't even have a working product. This whole thing can come crashing down and it could just be all a big fun game nerds got to play for years and nothing more comes of it.
Is that enough doom and gloom?
I just don't want to mislead anybody or make anybody think bitcoin is something you can get rich off of overnight and it's super easy. I have seen 3 crashes myself and experienced one personally and it's easy to feel like you can become a millionaire overnight by dumping your lifesaving into it. A lot of people think bitcoin is a joke and it's just make-believe fantasy money that only fools invest in. That being said, I am one of those fools! I LOVE bitcoin! I love Blockchain technology! I will always be into bitcoin even if it drops from $20,000 to $20.00. I believe in the story, I believe in what it can do for real financial freedom and I want bitcoin and Blockchain to succeed! I want to say that I am not a financial advisor, I spend most of my free time in this space but that's all I am, somebody who loves this space. Most people who are talking about cryptocurrency are also not financial advisors. I only know of a few in this space that are also very active on social media and interact with their followers often. If somebody is telling you to buy a cryptocurrency it's most likely because they are invested in that coin. (Doesn't make it wrong but financial motivation can make people do crazy things so be careful) I can provide a list of people I follow who believe are honest and have not led me astray in the advice and knowledge they passed on to me and their followers.
Okay, enough with that I felt I needed to cover that because I do care about you and I want everybody in this program to make money!
So, let's get on with it!
How do I buy Bitcoin?!
So there are not many places you can convert a Credit card or debit card or routing number or Pay Pal account into Bitcoin. There are hundreds of sites out there that let you trade bitcoin into other cryptocurrencies but not many that let you trade in and out into Fiat (your countries currency). On top of that once you buy your bitcoin you need to be able to move it off the exchange into what it called a wallet. Remember Mt. Gox.? The exchange that lost hundreds of thousands of Bitcoins in the early days? That was done on an exchange. You could lose everything you have and you only have the "promise" of the exchange to get your money back. Might as well just keep trusting the banks if you're going to do that. So, let's figure out how to buy Bitcoin and in the next lesson I will show you how to keep your Bitcoin safe and talk about passcodes and public and private keys and scary terms like that you may not know yet. Don't worry though, we will get through everything. Also just know all of these sites I am mentioning you can put Fiat currency into cryptocurrency and you can also move cryptocurrency back out into Fiat.
So let's find an exchange that lets you buy and eventually sell Bitcoin with Fiat through your bank accounts. I am going to mention 5 places. The first place is NOT my favorite, it is however the easiest.
**I also want to say if you use any of my reference likes I will make money or get a benefit of some kind. Each exchange has different benefits for me and sometimes you. You don't have to you my links if you don't want to but if you want to help support me and possibly get something out of it for yourself when you use them.**
Coinbase is the biggest and most respected Bitcoin platform in the United States. It offers both an exchange and wallet in one, making it one of the easiest places to start with Bitcoin. Coinbase also supports Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin, 0x, and Basic Attention Token with many more.
Once you sign up and connect your bank account, you can easily transfer funds in and out of your account and convert them to Bitcoin and back to dollars at will. Coinbase charges a variable percentage fee of one percent for U.S. transactions ($1 min, $50 max) from a bank account or Coinbase USD wallet. Purchases with a credit or debit card add on a 2.49 percent fixed fee.
The Coinbase wallet is very secure, accessed through the Web app or mobile app, utilizes two-factor authentication and keeps redundant digital and paper backups of data “in safe deposit boxes and vaults around the world.” Plus, cash balances are insured up to $250,000 against theft or a breach in online storage. Further, Coinbase holds 98 percent of customer currencies offline to keep them safe from malicious hackers. This is further evidence to why Coinbase is a leader in digital currencies in the United States.
Pros: Safe, fast transactions, easy to use
Cons: Extremely high fees
Create an account here: https://www.coinbase.com/join/58c0bf475386f4009721cb75
2. GDAX aka Coinbase Pro
I call it GDAX even though they have completely re-branded because I have used it as GDAX for so long. A trading platform for serious traders with screens that look familiar to those who use Bloomberg terminals or active stock, commodity and option trading platforms. It charges fees ranging from 0.10 percent to 0.30 percent based on your trading volume. Most people trade less than $10 million per month and will fall into the 0.30 percent tier. If you want to try Coinbase but with much higher volume, this platform is the way to go. However getting money into or out of Coinbasepro can be free. Below is a list of their fees as of today. They dont change that often.
Also, because GDAX is now part of Coinbase, funds are safe and insured. Just like Coinbase, cash is insured up to $250,000 and the majority of coins are stored in physical form offline to prevent theft.
Create an account here: https://www.coinbase.com/join/58c0bf475386f4009721cb75
My favorite thing about this app is that you can use it on your phone or tablet and make trades on the go easy with the major cryptos as well as Stocks on the New York Stock Exchange. this is the only recommendation crypto product I have that have stocks integrated with crypto on the same app.
Robinhood started as a fee-free stock brokerage and recently expanded into the world of digital currencies. The best part: No fees! Depending on the state you live in you may be able to buy and sell Bitcoin and other digital currencies completely fee-free on this platform. Since February 2018, Robinhood supports Bitcoin and Ethereum trades and market data for another 15 currencies. Robinhood Crypto is technically a separate account from a Robinhood stock account. Crypto accounts support market and limit orders.
Your coins are stored in the same Robinhood account you use for your stocks and share a login. Robinhood is mobile first and just recently added a Web version, so it is best for people comfortable managing money from their phone or tablet.
Create an account here: http://join.robinhood.com/mikealb2
Binance.us is a cryptocurrency exchange launched by Binance, The largest exchange of active users in the world.
Binance US brings the same technology as binance.com but brings it to US customers. (under full US regulatory compliance.)
Fast – Binance US uses the same technology as Binance, which processes 1.4 million orders per second.
Low fees – Binance US charges 0.1% transaction fees, less if you pay in BNB.
Liquidity – Since trading started on the platform, Binance US has offered a high liquidity to its customers.
Great reputation. Binance is well-known to pay attention to user security and to be continually innovating.
Binance.us is not offered in all states currently.
Limited coins compared to Binance.com
Limited features offered compared to binance.com
Create an account here: Binance USA: https://www.binance.us/?ref=35006516
Binance announced Its ICO on June 2017, and phase I started on June 27 and within about 6 months became the largest exchange by volume in the world. The platform used to be available worldwide, but they decided to restrict access from Chinese IPs after their government banned ICOs and restricted access to customers in the United stated in 2019. (Although they gave US customer access to binance.us which is very similar to binance.com)
Anonymous accounts with a generous limit (2 BTC).
More than 80 altcoins accepted and tradeable.
Stable mobile apps.
No support for fiat.
Slow customer support.
Create an account here: Binance.com: https://www.binance.com/?ref=12930982
This is my favorite exchange currently when making the first step of getting USD converted into Crypto. Operating out of San Francisco, USA since 2011 by the Winkelvoss twins (The original creators of Facebook.com) – this site is optimized for serious buyers wanting to actively trade BTC.
KBank transfer (wire SEPA) deposits are the only deposit method available. Deposit currencies include euros, US dollars, and KRW (Korean Won). It is super cheap to deposit, withdraw, and trade on Kraken. Daily volumes are always high, and an excellent fee transparency guarantees low commissions and that you get the cheapest coins. Rumor has it that Kraken could add leveraged trading (yes – short selling) sometime soon.
Are there any other Exchanges or are these all of them?
There are many more options than these but these are the easiest and safest to use when starting out. There are also other exchanges where you can trade Bitcoin into other Crypto assets but we will talk about that in another lesson. I just wanted to show you first how to get Fiat (currency, cash, money, chedder, bones, dolla dolla bills yall!) converted into Bitcoin. The next lesson I am going to show you how to Get your Bitcoin secured in whats called a Wallet so you can do everything you can to protect your Bitcoin.
Here is a great read to fill some of your curiosity
Mastering Bitcoin: Programming the Open Blockchain by: by Andreas M. Antonopoulos