Now that Bitcoin has crossed the $11,000 mark like clockwork the phone buzzes constantly and our inboxes are flooded with friends, family members, and their associates asking, “how and where to purchase their first Bitcoin?”.
The communication and traffic spike for the most obscure coins in our crypto listing (that haven’t seen a Google search hits in FOREVER) suddenly starting to get hits is a sure sign of a Bullrun. It’s a pattern…
The conversations go:
Yes, I saw that STAKE coin is up 80%.
No, I don’t know what it is.
NO! I don’t think you should buy it now that it is up 80%.
Yes, I know where you can buy it since you don’t listen. Bitmax has it Goodbye!
This post is not for everyone and specifically for those, whose eyes glaze over when we talk about dollar-cost averaging, setting stop-losses, buying the dip, reading whitepapers, knowing the teams, and diversification of assets.
We already know YOU are going to buy high, panic, and sell low no matter what we say or do and we still care.
So. instead of turning you away and watching you fall into the clutches of some shady guru promising to make you rich we are going to for FREE help you make this mistake you will come to regret. That way we can just email you this article in response.
“Stay AWAY from shady Crypto guru’s. That $1000 in fiat you gave to that Guru could have gotten you some $BTC, $ETH, or a big bag of $XRP”.
“F*#K Shady Crypto Guru’s”
“Tell your favorite Crypto Guru to kiss my Beep”
“100% leverage on BitMEX is not investing, It’s Gambling! Unless you are me, intoxicated, it’s Friday night, and making it onto BitMEX leader board is on your bucket list.”
Back to the point.
How to buy your first Bitcoin.
We recommend first time buyers, who live in the US who know nothing about crypto to use Coinbase (Shut up Guru we know about every exchange on the planet). Coinbase has been around since 2012, is in the US, and is LICENSED to operate in 45 US states. And Coinbase has plenty of digital currency pairs to get you started.
No Coinbase does not have that PPC token that just did 241% overnight but Coinbase customer cash balances are held in custodial accounts at U.S. FDIC insured banks or invested in liquid U.S. Treasuries and insure investor cash up to $250,000 per-depositor (Read more).
Not only is Coinbase very safe for your cash (so long as you keep it under $250,000) but your crypto is also very safe. Coinbase stores 98% of crypto assets in its offline cold storage system (See Crypto Glossary). The 2% of assets that Coinbase keeps online is insured.
Pay zero attention to the Guru’s overcomplicating Crypto purchases.
This is not 2010 and Coinbase has made the process as simple as using Amazon.
First, you visit Coinbase and click get started to create your account.
After filling in all of your information, uploading your driver’s license for verification, and connecting your payment methods you will come to this screen.
Step 1: Enter the number of Bitcoins you want to purchase. You do not have to purchase a full Bitcoin (I HIGHLY recommend you don’t while learning). You can purchase a partial Bitcoin or Satoshis.
I don’t want to complicate this. Think of a Satoshi or Sat as what a penny is to a full dollar (See Crypto Glossary). 1 Bitcoin has 100,000,000 Satoshi Just like one dollar has 100 pennies.
Step 2: Select the Crypto asset you want to purchase (In this case Bitcoin).
Step 3: Select the payment method you set up in the previous step.
Step 4: Hit the Preview button which will take you to this screen.
Step5: Confirm your order and click buy now.
You are done and have taken your first baby step into the world of Cryptocurrency. Brag to your friends!!!
*Note. Coinbase has fees in this case the fee was $2.99. Not terrible, but not great as far as crypto purchase goes. With the simplicity of Coinbase comes higher fees. Coinbase Pro is cheaper and has a percentage based fee structure.
Market Taker Fee is 0.25% and the Market Maker Fee is 0.15% (See Crypto Glossary). And learn a little about trading before heading over to Coinbase Pro.
After you are all set up and ready to go, guess what?
Coinbase has 100% FREE intro to crypto and specific cryptocurrency courses. Not only is the information FREE but you can earn up to $115 bucks in Crypto by taking their FREE courses once approved. TAKE THAT GURU. Coinbase FREE Learning
Unlike traditional banking, securing your crypto os YOUR responsibility. Coinbase provides several options for generating 2-factor authentication (2FA) codes which is very important for securing your account (Read More).
There are also personal cold storage options available (Hardware Wallet) for your crypto. I recently picked up the Trezor Model T (Review coming soon) but I have used the Ledger Nano S wallet for years which has been just fine and is much cheaper.
Here is a pretty good video explaining the steps I just explained.
Here is a good video on how to use Coinbase Pro. However, make sure to read up a bit on trading and learn how to set a STOP LOSS prior to venturing off into Coinbase Pro.
To learn about Bitcoin stay away from the Gurus. I highly recommend the books:
Mastering Bitcoin: Programming the Open Blockchain
by Andreas M. Antonopoulos
The Bitcoin Standard: The Decentralized Alternative to Central Banking
by Saifedean Ammous, James Fouhey, et al.
For Trading, I highly recommend these books:
Diary of a Professional Commodity Trader: Lessons from 21 Weeks of Real Trading
by Peter L. Brandt
Cryptoassets: The Innovative Investor’s Guide to Bitcoin and Beyond
by McGraw-Hill Education
For fun reads about the Darkside of crypto check out:
If you find that you enjoy trading, head over to TradingView, and set up a FREE account.
The paid account offers many more features and indicators but the FREE account will get you started with charting.
Playing with the charts and indicators on TradingView will also come in handy for following along and testing strategies if you decide to read any of the trading books.
Brief Trading View Tutorial
Have fun, set your STOP LOSS, and do not trade more than you are willing to lose unless you are me.