Investing 75$ in Bitcoin early 2011 would make you a millionaire today. The first time I heard about Bitcoin was around 2012. I sadly didn’t invest any money into it because I figured it was on the news and it was too late at that point. Little did I research and know Bitcoin was in its infancy with a tremendous potential. I believe people entering the market these days are still early adopters in a technology that will change our world as we know it.
What can you expect from this tutorial?
- Bitcoin in a nutshell: some background on Bitcoin.
- Security: with handy tips to stay safe.
- Purchase your first Bitcoin!
This tutorial is for potential investors that want to understand the basics of how to purchase their first Bitcoin. I will teach you the essentials in a simple, short and to the point fashion. Enjoy!
1. Bitcoin in a nutshell:
Bitcoin is the first of its kind and has been around since 2009 and created by an anonymous programmer calling himself Satoshi Nakamoto. Bitcoin is a digital peer to peer payment system that is decentralized and isn’t governed by any institution, government or bank. The total number of Bitcoins to ever exist are 21 million.
The simplest way to explain how Bitcoin works is imagining a document where all the transactions and holdings are recorded. This document is called the ledger. This ledger is updated by each block of transactions, every block of transactions is added to the ledger by which the name Block-chain came from. The transactions on the blockchain are processed by people who run the system called miners. New Bitcoins are created every time a new block is added to the ledger and are paid out to the miners running the system.
You can read more about how this system works by following the links bellow.
https://goo.gl/MaeQeR Tutorial: what is Bitcoin?
https://www.bitcoin.com/getting-started/ Handy tutorials and information.
2. Security
Before you purchase your first Bitcoins you need to understand the most essential thing in this space and market: security. This is not to scare you off before you even started but merely to warn and teach you about how to trade and save Bitcoins in a safe and secure fashion. Everyday people lose money on the internet because they think this will not happen to them and don’t take the proper actions/measures to secure themselves. There are a few very important rules you should ALWAYS follow no matter what platform or exchange you are using.
For more information go to: https://steemit.com/bitcoin/@elliotmeijer/tutorial-3-blockchain-simplified-how-to-stay-safe-trading-cryptocurrencies
2. How to buy your first Bitcoin:
Buying Bitcoin is actually really easy these days. There are allot of exchanges that sell Bitcoins with different payment methods. These exchanges also give you the option to keep your Bitcoins on the exchange so you don’t have to open a wallet (Bank account for Bitcoin). Personally, I use Coinbase to buy Bitcoins and then I send them to other exchanges. You could use other exchanges but in this tutorial, But for the sake of beginners I will explain how Coinbase works because:
• It’s the biggest exchange with highest user score.
• Friendly and easy to use
• They are not that expensive (1% transaction cost)
• You get 10$ deposit bonus investing more than 100$ on your first deposit
For other exchanges look here: https://www.bestbitcoinexchange.io/
Step 1: Open your account on Coinbase: (for the 10$ use this link: https://goo.gl/6U1etF)
This first step is to sign up for a Coinbase account. This will give you a secure place to store your bitcoin, and easy payment methods to convert your local currency into or out of bitcoin.
Step 2: Verify your email.
Go to your email and verify the link sent by Coinbase.
Step 3: Connect Your Bank Account
After you sign up, connect your bank account. You'll need to complete some verification steps before you can use the account. Once the verification steps are complete, you can start a purchase.
Step 4: Purchase Bitcoins!
After starting your first purchase, we'll complete your buy and deliver your bitcoin. The price of bitcoin changes over time, so we'll show you the current exchange rate before you buy.
This is my second tutorial about Blockchain to help new comers get started with their first investment in cryptocurrencies. If you are interested in understanding what Bitcoin is and how it works check out my first tutorial on:
https://steemit.com/bitcoin/@elliotmeijer/tutorial-1-blockchain-for-dummies-or-what-is-bitcoin
If you liked the tutorial please comment, upvote, resteem & share and most importantly follow for more!
Thanks for reading