Buying bitcoin can be confusing for newbies, so we've condensed a lot of material into few simple steps that you absolutely must take when trying to use bitcoin. Depending on what are you live in there may be different exchanges that you could be using but we picked a few that you are least likely to have problems with.
Remember, getting setup with bitcoin is usually a one time setup. Once you figure out how you can convert money for bitcoin you should be good to repeat that process as many times as you like.
Why Use Bitcoin?
One reason is to post VIP ads in this site. Yes, you can get more views and clicks if you have a VIP ad. However, we are no longer taking credit cards so Bitcoin is the only option at the moment. The amounts used for advertising are also not that great so we want to focus on the easiest way to work with Bitcoin.
Another reason to use Bitcoin is that you could get paid in Bitcoin as well. If you want to get paid in Bitcoin, however, you are dealing with a lot more money and security and bitcoin wallet become more important. That set up can be a bit more technical so we won't be covering it in this article.
How to Buy Bitcoin?
The first thing you need to do is figure out an exchange that allows you to buy Bitcoin. There are many of them to choose from. Some are preferable for your country and some may even be blocked in your country. Here are some exchanges that you are least likely to have problems with.
- Coinbase: These are the easiest guys to work with, but you can also expect to pay quite a bit in fees. if this works for you then this is probably a winner. It is the easiest one to use today.
- Based in US
- You can fund your account with credit card
- Binance:
- Based in China
- They require verification but this is usually very quick
- A bit confusing for a beginner but it's a very popular exchange
- Kraken: Easy to use exchange and also reputable
- Based in US
- Funding via SWIFT, Sepa Transfer and Wire Transfer are possible
- LocalBitcoins: This is a Peer-To-Peer which means you buy directly from people instead of going through an exchange.
- Based in Finland
- Great for privacy since you don't provide that much personal info to an exchange.
- They require some verification for first tier. Other tiers require more private information.
- Have to be careful about scams, although they do have an escrow to protect you from this.
- Others: There are many others, like CoinMama, eToro, xCoins, ChangeNow. It's important that you do a bit of research when you're using one of these exchanges. Basically you want to make sure that if they hosting your wallet then they won't run away with your Bitcoin. This doesn't happen often with bigger exchanges but crypto is a bit crazy right now so it's better to be safe than sorry.
How to Store Bitcoin?
The exchanges will typically host a wallet for you, which is great for convenience. It makes payments a lot easier, usually via their app. Another thing that's great is that you don't have to manage the wallet yourself, which requires a bit of technical know-how.
However, exchanges have been doing shady things and can sometimes get hacked. So storing a lot money in exchange wallets is not a good thing. If you have a few hundred bucks worth then that is probably okay. You can use their wallet for payments like VIP ads in our site.
How to Pay with Bitcoin?
When paying for VIP ads in our site, for example, we generate an address string and also a QR code. If your wallet allows scanning the QR code then you can just scan the code and send the amount requested. Otherwise, you can also just copy the address we generated and with your wallet send funds to that address.
Wallets usually prevent sending to invalid addresses, but it's a good idea to double check. There is no concierge that will refund you the money if you make a mistake so please send to the correct address! If you have any problems you can always ask us for help.
Hosting Your Own Wallet
If you are at this level and want to start being in control of your wallet then you have a few options:
- Wallet Software. You can download one of these and install it in your computer. A popular one is Electrum of Exodus. These are good options to use as a wallet that you have full control over. It's ideal wallet for daily transactions, but not ideal for storing large sums of money. However, you also want to make sure that you don't get your computer hacked since this means that hacker will now have access to your private keys and therefore all your funds in that wallet. This doesn't happen randomly so if you are careful with how you use your computer then you're probably safe.
- Mobile Wallet: These are usually apps and are similar to Wallet Software. It's great to use as a wallet that you usually transact with.
- Trezor or Ledger: These are cold storage hardware devices that give you the most security. If you are at this stage then you probably know a lot more than what's covered in this article.
