Bitcoin is the new hot thing in the media and everyone is talking about it. Bitcoin went from $1000 a share earlier this year to almost $19,000. I’m going to give a quick summary on what it is, how to buy it and how to store it.
WHAT IS BITCOIN?
Bitcoin is the first decentralized currency. That means it has no government or entity behind it like the US Dollar or the Euro. It is all digital and it the best way to send money from one person to another. There is no banks in the middle so the fees are extremely low. Many people believe, including myself that crypto-currency is going to be the way of payment in the future. There are a lot of companies right now that use crypto-currency as a way of payment such as WordPress, Expedia, Cheapair and the list keeps on going. Bitcoin does have a lot of advantages, however the top 3 in my opinion are, you can send money easier with lower fees, transfer things faster, you’re account cannot get frozen, and lastly there are no arbitrary limits or prerequisites when it comes to buying Bitcoin. All you have to do is verify your account, prove your identity and buy Bitcoin.
HOW TO BUY BITCOIN?
When talking about buying, there are many ways to buy crytpo-currency. There is an exchange where you can buy Bitcoin, Lite-Coin, Ethereum and many other. When it comes to websites, there are many to choose from but my favorite is GDAX and Coinbase. They are the most user-friendly and give you the best customer service and they are both owned by the same company. Coinbase is a easier site to use, however GDAX has lower fees. In GDAX, their fees are from 0-.25% and Coinbase is about 1.25%. Now, in my opinion GDAX is a bit harder to use, but I do believe it’s worth the time to get familiar with and be able to use it. That way you don’t pay the fees that Coinbase charges. If you are a beginner, these are probably the ones you want to check out and invest in.
HOW TO PROTECT BITCOIN?
All these website that I talked about are just exchanges. You can always store your coins in these websites for a short period of time becuase you’re probably going to be trading them. However, if you are planning to be storing them for a long period of time, you need to get a physical-digital wallet. A reliable place to store them is the Ledger Nano S. Storing your coins in the exchange can be a little risky because it can get hacked and you can lose everything. There are a lot of apps out there that have this function, for example, Coinbase is not only an exchange, they also have a wallet integrated. I don’t like using apps, because I’m here for the long-run. I’d rather use the hardware.
In my opinion, the Ledger Nano S is what you need to use. This will run you about $67. I feel that this is the best way to go. You can still have access to your money right away, however you need a computer to view it. I feel phones can be hacked very easily so having something separate with all your money in is safer. In addition, it stores your private key in that device, so that means no one can hack it. It also is secured by a pin code that can be unlocked with the buttons on the device. Making this the most secure way to store and move around your money.