BITCOIN: A CRASH COURSE
Bitcoin has been raging through the news over the past few months as its seen its highest rise in value since its inception. I’ve even been championing the virtual currency on my social media outlets and i’ve gotten a lot of questions from people interested in learning more about it.
I feel like Bitcoin and cryptocurrencies as a whole are the next iteration of currency, and me being an early adopter of these types of things, decided to check it out. I found a video that does a pretty good job of explaining what it is:
Cool video, what does it mean for you though?
In the grand scheme of things it means that you can be your own bank. No more worrying about overdraft fees, exorbitant transaction fees for money transfers, and at the time of this writing, taxes.
Why is Bitcoin important?
Bitcoin is important because it offers an alternative to traditional banking. It’s decentralized, meaning there is no central authority of control, which virtually eliminates the barriers of where it can be used and sent. Imagine traveling to Africa and instead of worrying about converting your USD into the native currency, you can just use Bitcoin (or another cryptocurrency) to pay for everything you need while you’re on your trip.
For developing nations, where mobile use is high and traditional bank accounts are far and few in between, it provides a way for individuals to control their own money, creating access to capital where it wouldn’t normally be accessible.
How to get started
The easiest way to get started is to open a free account on Coinbase.com, Coinbase is a U.S. Based cryptocurrency exchange that allows you to buy and sell Bitcoin, Etherium, and Litecoin (more on those other two at a later time).
Use my referral link and get $10 worth of free bitcoin when you purchase $100 worth: https://www.coinbase.com/join/5969343cfb82d90193b68bdb
But wait! The cost for one Bitcoin is currently $4,650, I can’t afford that!
No problem! The beauty of crypto vs say a traditional stock, is that you can buy fractional amounts. Only have $20? no problem! you can buy $20 worth of Bitcoin.
What’s another way I can get Bitcoin?
Someone can send some to you, or you can mine it. Check out this video on mining:
Mining equipment is expensive though, but there’s a way to mine without owning tens of thousands of dollars worth of equipment. It’s called “Cloud Mining”, you purchase hashpower on a cloud mining service and they do the heavy lifting for you, and you get kickbacks based on the amount you contributed. Look at it like crowdfunding a mining operation.
I use a cloud mining service called Genesis Mining, its free to sign up, and a great way to generate passive income.
Use my referral code to get a 3% discount on hashpower purchase: FpDrJa
Where do I put these coins once I have them?
Once you’ve acquired some bitcoin, you’re going to want to store it in a secure place. This is where your Wallets come into play. A cryptocurrency wallet is a secure digital wallet used to store, send, and receive digital currency like Bitcoin. Most coins have an official wallet or a few officially recommended third party wallets.
Here are a few wallet options for you to choose from:
Jaxx – Mobile and desktop versions available, you can store various types of coins in this wallet.
Xapo – Mobile and desktop versions available
Bitpay – Like paypal for bitcoin, there is also a debit card option that you can link to you wallet
You can buy and hold your bitcoin and let it grow as an investment, or you can trade it and ride the waves of the market (this is for more experienced individuals) let’s focus on accumulation for now.
There will only be 21 million Bitcoin created EVER, right now were at about 16 million. As we get closer to that max amount, the coin becomes more scarce and the value will only get higher, so at this point, investing is bitcoin is a great supplement to the traditional savings account.
Please keep in mind that Bitcoin, and Cryptocurrencies are very volatile, and you should never invest more than you can afford to lose. With that said, where there is high risk, there is a high potential for reward.