This guide may apply to almost all cryptocurrencies. But I used bitcoin as a reference for this guide. When you are learning about bitcoin, first thing you might ask is, what do I need? How am I gonna start using or investing or acquiring bitcoin (read more about bitcoin here)? I’m gonna tell you the step as clearly and simple as possible.
- Wallet – first you need to have a virtual wallet(read more about wallets). You can easily find and use a web based wallet depending on your location. Other wallets service serves internationally. Other wallets will give you a notice that they don’t serve on your country. Like when I was in Philippines, I tried to register in coinbase.com and when I am about to buy a bitcoin, the app said they don’t serve in Philippines. Then I tried coins.ph which is the most popular wallet service in Philippines with more additional services that fits the locals needs. Online wallet services may take few hours or even days to verify your identity. After verifying your identity, that’s the time that you can buy bitcoins. Check on how to create a web based wallet here.
- Cashing in(optional) – Some online wallet services permits the use of credit cards which is easier. Using credit or debit card will convert your payment to bitcoin directly. But some online wallet requires cash-in first, that is why I put this as optional. After requesting for cash-in, online wallet company will require you to pay through a bank or other payment portal.
- Buy bitcoins – There are plenty of ways to do this. Most online wallet services sells bitcoin. But they put additional price on top of the standard exchange rate. Cruel right? But there’s nothing you can do with it, it’s business. You can also buy from your friends. If you are a merchant and owns an online business or even a physical store, you can accept bitcoin as a payment.
Yes that’s it. That’s all you need to get started on using bitcoin. But if you want to know the more technical part and you are a type of a long-term investor, you can learn more about wallet here. If you want to know the manual and more technical implementation of Bitcoin, check this post.
1 bitcoin == $800
Anna signed up at coinbase.com, inputted her personal information, debit card, and verified her information. Anna has a digital wallet now. She bought $10 worth of bitcoin from coinbase.com. All she did was she ticked buy link then there’s a form where she inputted the amount she wanted to buy which is $10 then clicked buy. Instantly she received 0.0125 millibit ($10/$800) and this bitcoin was credited to her coinbase.com wallet.
Anna noticed that bitcoin is all time high that the exchange rate of Bitcoin to USD reaches $1800. Since the value of bitcoin went up higher everyday, she wants to secure her bitcoin. She read my blog about cold storage then installed a local wallet in her computer at home. Once installed, she generates an address in her local wallet then she transferred half of her bitcoin asset (which is now $900 worth) to her local wallet. She went to https://bitcoinpaperwallet.com to print her bitcoin into a paper money then put her PC offline and kept her paper money in a sage vault. (read more about cold storage)