January 24, 2019
How to Get Started with Bitcoin
Bitcoin is the first decentralized and distributed cryptocurrency that managed to captivate the minds of millions and take markets by storm, but beyond the aura, how can you get started with Bitcoin? This is a question that most people that are in the fiat world looking in always ask themselves and the information they get on the topic might look a bit dubious to them. That is why our staff put this guide together, to help you get started with Bitcoin based on the right information.
Let’s Skip The Nuts & Bolts Part and Tell Me, How Do I Get Started With Bitcoin?
For most people the journey into Bitcoin starts with an explanation of how the cryptocurrency works and varying degrees of details about the economics of it, mining and other technical details. We decided to skip that and give you a functional answer. After all, most people don’t understand how money works in general, but they still use it, so why does Bitcoin have to be any different? So, here are the basic areas you must cover to get started with Bitcoin:
- The first step is probably the most important: setting a wallet up. There are a variety of wallets. We recommend hardware wallets if you are going to buy amounts greater than $200 USD. Trezor and Ledger are both good hardware options, but if you just want to try it, we recommend a Mycelium wallet.
- When you set your wallet up, you must write a series of random words on a piece of paper in the order they were given to you. Make sure to keep that piece of paper hidden and safe. These words allow you to restore your coins if you lose your wallet or have to uninstall the app from your computer or phone. Those words must never be written on any kind of digital medium unless you are recovering your wallet from the app.
- Once your wallet is set up, you can go to the receive option and you will get a long random combination of letters – upper and lower case – and numbers. That is the address you need to deposit coins in your wallet. Just copy paste it on a word doc, note pad doc or any alternative that will allow you to access it quickly.
- Open a Bitcoin exchange account or keep it anonymous by going down to your local Bitcoin ATM. These are the
where you can buy your coins and really get started with Bitcoin. If you go for an exchange, we recommend Gemini and
Coinbase. Once your account there is verified, you can buy
coins by transferring fiat funds to your account. If you go
to the ATM, you will remain anonymous and you will be able to use cash to buy coins, but the fees can be steep.
Note: Trezor wallets also have recommended Bitcoin exchanges that you can interface with through your wallet.
- When you buy your coins at an exchange, be as quick as you can to transfer them into the wallet you set up. On the ATM, the transfer will be done within the same operation once you deposit your cash. Either way, to get your coins, you will need the address you copied on step 3. We recommend testing the address with a small amount of money – $5 USD worth of Bitcoin for example – before you transfer all the funds. It is important to understand that Bitcoin is about holding your own funds at all times. When someone else holds your funds or private keys – like an exchange – you are at their mercy.
- You are done! Your funds should now be in your wallet and you can spend them by going into the send option and pasting the address of the person or business you want to transfer funds to. Again, we recommend you test the address with a small amount of money if possible, before you transfer the whole amount.
Now That you Know How to Get Started With Bitcoin…
Congratulations! If you followed the steps above, you basically got started with Bitcoin already. Now it all depends on you: do you want to go all the way down the rabbit hole that the great Satoshi Nakamoto created? Do you want to understand the technical intricacies of the Bitcoin network? We certainly recommend you do, but if you don’t want to, you can just keep your coins, buy more, transfer to your friends, buy cool stuff online with them or just come here to BetChain, spin some Bitcoin slots and win a huge jackpot that you will be able to enjoy for years to come!