Before we even discuss how can you get into Bitcoin, it’s essential for you to have an understanding of what Bitcoin is.
What is Bitcoin?
Bitcoin is a form of decentralized electronic cash that has been in the market for quite a while. It was created in the year 2009 by a person using the alias Satoshi Nakamoto. Being a decentralized cryptocurrency means that there is no central body governing the network.
Instead, every transaction and event occur on a public system where nodes are used to verify them using cryptography. The confirmed transactions are stored in public ledger networks known as blockchains.
Steps to follow when getting into Bitcoin trading
Getting into bitcoin is not a hard task as it may sound at times. With the help of the steps discussed below, you are going to learn everything that you will require to be a bitcoin trader or owner.
Step 1: Get a Bitcoin Wallet
A bitcoin wallet is a program or an application that will allow you to receive and send Bitcoins. The wallets also help to keep records of your transactions, including showing you your bitcoin balance.
It is important to note that there are very many different types of wallets in the market with varying features. It is therefore essential to be wary of the wallet you choose for the security of your coins.
You should ensure that your wallet keys are kept private at all times. It is also a good practice to back up the wallet keys and any other details relating to your wallet in offline storage. This will protect you from losing the coins in a case where you lose the device holding the bitcoins.
Step 2: Add Bitcoin Cash to Your Wallet
After you have obtained a bitcoin wallet, it’s now time to load the wallet with some funds. Buying bitcoin can be done from one of the several exchanges that have listed bitcoin. Some exchanges allow investors to buy bitcoins using funds directly from their bank accounts like Coinbase. You can also visit the buy bitcoin page where the use of credit cards is permitted.
Below are some of the exchanges that you can use to buy bitcoins:
• Bitbuy.ca- This cryptocurrency exchange is based in Canada and only serves Canadian citizens. It was initially known as InstaBT. It is known for providing excellent customer service and quick processing of CAD withdrawals and deposits.
• Coinbase- This is one of the best cryptocurrency exchanges present in the market. It is well known for providing maximum security, relatively affordable fees, and providing insurance for the stored cryptocurrency.
• Coinsquare- This bitcoin exchange also offers excellent security, reasonable costs, and has a good reputation in the market. The Coinsquare system has not lost any coins to hackers, and it is 100% proprietary.
• Kraken- This crypto exchange was founded in 2011 and has since been the largest Bitcoin exchange. Investors can use fiat currency on this exchange site as well as other digital currencies.
• Cex.io- Cex supports the use of fiat currency in the purchase of bitcoins. The CEX platform also offers a user-friendly brokerage system for amateur traders to buy bitcoins.
Apart from buying Bitcoins from exchanges, you can also obtain them through:
i. Buying bitcoins in person
If you find it more convenient to purchase the coins in person, then you can visit websites such as LocalBitcoins to find individuals that are willing to sell bitcoins for cash in person. You can also buy from ATMs, bitcoin retail stores and from banks that offer bitcoins in exchange for cash.
ii. Play games and earn bitcoins
This method is the most exciting and fun way to earn bitcoins. The negative side of playing games on websites and getting rewarded in bitcoins is that you will have to view several adverts in return. If you wish to avoid the adverts, you can try out bitcoin casinos where you stake your cash in various games where you receive the payout in the form of Bitcoins.
iii. Get paid in bitcoins for completing tasks
You can take part in tasks such as online surveys, testing websites, retweeting tweeter posts, etc. there are also companies that are now paying their employees using bitcoins.
Bitcoin mining is an activity in where investors provide computation power and solve blocks and receive bitcoins as a reward. Your efficiency and speed in mining determine the amount of bitcoin you earn.
To start mining, you should begin by getting the best mining hardware available in the market. Then download the mining software to use in running the hashes. CGminer and BFGminer are good examples of mining software that you can use in your mining activities.
It is also advisable to mine in pools for maximum benefits. Mining pools are usually a team of miners that pool their resources together to solve blocks and then share rewards among themselves. It is quite difficult to earn any bitcoins if you decide to do so on your own.
Step 3: Sending and receiving bitcoins using your wallet
Now that you have everything set up, you can now send and receive bitcoins using your wallet.
This stage is very crucial, and you should pay much attention when sending the coins since the process is not reversible in case you make any mistake. Ensure that the address you intend to send coins to is the correct one and then do the following:
i. Copy the receiver’s address
ii. Go to your wallet and click on the ‘’send’’ feature, and then paste the copied address here.
iii. Key in the amount you wish to send
iv. Confirm that the details you have used are correct and then click on ‘send.’
You may also be interested in;
- Ethereum coin: A non-technical brief on uses, acquiring, and storage
- Bitcoin, remittance transfers and different ways of buying BTC.