Buying Cryptocurrency for Beginners
This is post for beginners on how to buy cryptocurrency – no trading – no investing advice – no legal advice – no tax advice – no bitcoin 101 – just simply – you’ve heard of this crazy new money/technology and you want to invest.
The world of cryptocurrency is VOLATILE
If you do not have money to loose don’t invest
To get started you will need two things – an exchange and a cryptocurrency wallet. An exchange is like the stock market – a place where you will buy and sell your cryptocurrency. A wallet is where you will store your purchase/sell/trade info. There are three types of cryptocurrency wallets – software, hardware and paper. A software wallet is a computer program that runs on desktop, mobile or online. A hardware wallet is a dedicated device used to store your info offline and a paper wallet stores your info on paper. Paper wallets are also stored offline, are a cheaper option to hardware but can be confusing to use.
We chose the exchange at www.Coinbase.com for the demonstrations due to it’s simplicity, ease of use for beginners and it is the largest bitcoin exchange in the world. Coinbase also comes with it’s own wallet. However, if you plan to do a lot of trading, once you get more educated in buy and selling, we suggest getting a hardware wallet.
The general steps to start buying cryptocurrency (bitcoin, ethereum and litecoin) with Coinbase, are as follows:
– Set up account with email verification
– Enter your phone number for phone verification
– Click on ‘Buy’ and you will be asked for payment method verification. If you use a credit card two transactions will be put through your account. Those two amounts will be needed to verify your credit card.
– I.D. verification is easy. If you download the phone app you can take a photo of your drivers license right in the app.
– You are ready to buy!