How to Invest in Bitcoin & Crypto Currencies FAST Part II
Step 2: Buying Bitcoin
Once you’ve got a wallet, how do you get Bitcoin? You can use the same site that I recommended earlier, Coinbase, like I said if you sign up through the link we both get $10as soon as you purchase a hundred dollars or more worth of Bitcoin.
They may ask you to upload documents under a procedure called KYC or know your customer is a fairly standard procedure for any type of financial institution, they will typically require at least a copy of your passport or some type of I.D. It’s just to make sure that they are dealing with who you say you are and to make sure that there’s no money laundering or any other type of illegal activity involved.
Once that’s done, the account is free so you’ve got your free account. Now you’ve got your free account with Coinbase. Next is, how do you go about purchasing the Bitcoins. You can purchase your Bitcoins through a debit or credit card, if you choose to do that then the site will charge you an additional fee which is the fee that the site itself have to pay the credit card company for processing the payment, it’s typically between 3% and 4% or you can do it through a direct bank transfer in which case, either no fees or very little fees. So, you choose a dollar amount or Euro or Pound amount you want to buy, and then immediately you will have purchased the desired amount of Bitcoins.
A Bitcoin price will vary depending on when you’re reading this who knows what the price will be, how high it would have gone. It’s currently very roughly between $6000 and $7000 so that’s 1 Bitcoin.
If you want to but Bitcoin, you don’t have to buy a whole Bitcoin. Bitcoin is a highly fractionable currency so that means you can buy very small fraction of a Bitcoin for just a few bucks.
Bitcoin is a highly fractionable currency.
Don’t let the big Bitcoin price scare you, it’s not like for example, if you’re buying Amazon or Google shares, that take or give thousand dollar stocks or you need to have at least a thousand dollars to buy at least 1 share of the company. With Bitcoin you can buy very small fractions.
One more important thing is to check, double check, triple check the address. Coinbase will give you a public address a series of letter and numbers they may not make a lot of sense initially. Whenever you use this, make sure to copy paste it and make sure that you check that it’s the right address. If you’re sending money to the wrong address, that’s it there’s no way of getting that money back, you’ve lost money. There’s no way of getting that money back.
A quick hack that I use is obviously these are very long numbers and it’s very difficult to check everything, but at least check the first couple of letters or numbers and the last couple of letters. If you want to invest in Bitcoin, that’s as far as it goes. You’ve purchased a certain amount of Bitcoins, and then whenever you think is a good time to sell maybe because the price has gone up, then you just follow the same process.
You go on Coinbase, you sell Bitcoin and then Coinbase will convert those Bitcoins into dollars, euros or pounds or whatever you tell them to, and then you can withdraw that money to your bank account or sometimes also to your credit card.