Learning to invest in bitcoins reminds me to learn how to use the Internet in the 90s. Few investments are as confusing. Shares have been trading for more than 400 years. But the cryptocurrency is barely ten years old. Questions and confusion are inevitable.
If you are ready to make an extra effort today, you will beat the masses tomorrow. I am convinced that bitcoins will only grow in size and opportunity. The crypto revolution is just beginning.
Being outdoors means you will not be able to enjoy it in the future.
How to invest in Bitcoin Step 1: Before you start
When you learn to invest in Bitcoin, I recommend buying a very small amount to start. Do not invest more than 1 or 2% of your investable assets. Do not forget that you also do not have to buy a complete bitcoin. You can buy as little as 0.00000001 bitcoin.
Familiarize yourself with the process of buying, moving and storing bitcoin. It's not like the traditional online bank. Passwords are long and complicated. The terminology is new. Some portfolios are not intuitive.
If you make a mistake, do it with a few dollars … not hundreds of dollars.
Step 2: Start
To buy your first bitcoin, you will need:
Do not forget that you are responsible for your account when you buy bitcoin. If you forget your password or private key, you can lose everything.
If you send bitcoins to the wrong place, you can not call your bank or cancel your transaction. That's all. There is no refund.
Make backups and hard copies of everything. Purchase a notebook or physical folder and use it to store user names and passwords.
You can look at this list and think, "It sounds like hard work." But remember, the crypto-bank revolution is the first. Then, crypto will become essential in almost all the industries of the planet.
Step 3: on the ramps
To start buying bitcoins, you need a "ramp".
An access ramp is a website on which you can convert a traditional currency into bitcoins. People call them "exchanges".
Gemini are the ones I used. Creating an account on an exchange is very similar to creating an online bank account. You will first create a username and password. Then you will provide the documentation you have gathered in Step 2.
After a verification period of 1 to 2 days, you can associate a bank account to your exchange account. Deposit fiat money. When your deposit is cleared, you can use it to buy bitcoins.
Beyond Gemini, there are several options:
These exchanges allow you to buy bitcoins, but I do not store my bitcoins. They can (and do) get hacked.
Which brings us to step 4 …
Step 4: Portfolios
After buying Bitcoin on an exchange, transfer it to a wallet. Your bitcoin "wallet" is a unique place to store, send and receive bitcoins – a site that does not belong to the stock market.
There are several types of portfolios:
Some portfolios are designed only for Bitcoin. This means that they only interact with the Bitcoin blockchain.
Other cryptographic assets have their own portfolio. There are even portfolios that support dozens of different cryptographic assets.
A popular hardware portfolio is called Trezor. It allows you to store bitcoins offline.
Portfolios like Electrum allow you to store bitcoins on a computer. If you want to store your bitcoin in a web wallet, check out the Blockchain.com wallet.
When you are ready to transfer bitcoins from an exchange to your wallet, go back to the exchange. Try to exchange bitcoins for another crypto currency like Ethereum. Not only will you know how to invest in bitcoin before the masses, you will be even more ahead of the pack.
At the time of writing these lines, Eric Wade was a long bitcoin.