How to invest in Bitcoin

How to Get Started with Bitcoin

Investing in Bitcoin is a new and sometimes scary process. As a beginner, don’t let yourself be overwhelmed by the seemingly impossibly complicated tech or the gut-wrenching dives in the market. Instead, focus on the basics. Like everything else in life, learning how to invest cryptocurrency starts with small, beginner steps. Understanding what are the best cryptocurrencies to invest in takes times.

In this module, you will learn how to turn government-backed currency (like US dollars or Euros) into Bitcoin, setup a Bitcoin wallet, and how to backup your cryptocurrencies. We broke down the basics to help guide you through the first steps in your journey to cryptocurrency riches.

Choose the Right Exchange

Choosing the right cryptocurrency trading platform will be one of the most important steps in your crypto life. Compliance and trust are arguably the two biggest factors when deciding which exchange is best. From the moment you deposit funds onto an exchange, you lose autonomy. Generally, major cryptocurrency trading platforms are trusted, but some of the smaller ones can be less secure.

You’ll also need to ensure the exchange can legally operate in your jurisdiction. If a problem occurs and the exchange is not regulated in your jurisdiction, then there is no recourse to retrieve your funds. Other factors to consider are customer service - some have notoriously poor customer service, while others do not. There is also the issue of fees and different deposit options. Each exchange operates differently and it can be overwhelming to choose the best one when getting started.

Choose the Right Wallet

For starters, you will need to setup a Bitcoin wallet if you want to learn how to store cryptocurrency. Wallets are exactly what they sound like, a storage system for your digital assets. There are quite a few different ones with varying amount of security and ease of use. The variations are overwhelming at first but don’t worry, we’ll help you pick the right one.

Much like cryptocurrency trading platforms, there are hundreds of wallet providers to choose from. There are desktop wallets, mobile wallets, hardware wallets, and paper wallets... Some cryptocurrency wallets allow users to store multiple cryptocurrencies, while other wallets are tailored specifically for one type of cryptocurrency. Each type of wallet - whether it be desktop, mobile, hardware, or paper - have their ups and downs when it comes to security, usability, and accessibility. There are hundreds of different companies all claiming to be the best cryptocurrency wallet provider. Without proper guidance, it is easy to get lost with all the options.

There’s More...

Understanding how to invest in Bitcoin, how to trade Bitcoin, and how to store cryptocurrency requires a bit of time and dedication, but our course makes your journey easier. The cryptocurrency trading platforms and services we recommend in this module are what we believe to be the most trusted and simple to use. We will provide registration links throughout this module so that you can quickly create accounts and start investing in cryptocurrency. We encourage you to not procrastinate and take immediate action. The first step to becoming part of the crypto industry is onboarding with the major cryptocurrency trading platforms.

Keep in mind that this the free version of our premium course. While the information in these chapters is an excellent way to get started with investing in cryptocurrency, you may still have some questions. If that is the case, then we recommend registering for our premium course.

Now, let’s get started!

How to Get Bitcoins

Get Started with Cryptocurrency Exchanges

This goes along with the notion of choosing the right exchange, but with a small nuance. There are two types of service providers: brokerage services and trading exchanges.

  • Brokerage Services
    Allows individuals to exchange money for cryptocurrency. These services are necessary to buy and sell cryptocurrencies, such as BTC and ETH. With these currencies, it is much easier to trade for the minor cryptocurrencies. BTC and ETH are the gateway currencies to the thousands of other cryptocurrencies available on exchanges.

  • Trading Exchanges
    A website that allows individuals to trade various cryptocurrencies with other individuals, similar to stocks traded on the New York Stock Exchange. These platforms generally allow crypto to crypto trading only, so you will need Bitcoin to get started. 

In this chapter, we will focus on the brokerage types of services which is the first step in understanding how to invest in Bitcoin by converting your fiat money (government-backed currency) into Bitcoin. Once you own Bitcoin, it is then possible to deposit on various cryptocurrency trading platforms where you can get involved in all of the market action.  

Coinbase

Coinbase is one of the largest cryptocurrency trading platforms. It lets users buy and sell cryptocurrencies for fiat- similar to a brokerage service. It is also worth mentioning that Coinbase is legally compliant in several countries including the US, UK, Canada, and many others. Headquartered in San Francisco, this site is the easiest and most trusted for US-based investors. Coinbase provides newcomers with an intuitive interface, enabling them to safely purchase their first cryptocurrency, most commonly Bitcoin or Ethereum. Their clear focus on user experience is exactly why they are one of the largest platforms, enabling virtually anyone to get started quickly.

Coinbase allows users to connect with their bank account or credit card. If you purchase Bitcoin with your bank account, then the fees will be low, but it will take a few business days to receive your Bitcoin. Alternatively, if you choose to purchase Bitcoin with a credit card, you will receive your Bitcoin instantly but with a higher fee. You can create an account on Coinbase by clicking here, and you can earn a free $10 worth of cryptocurrency if you deposit $100 or more. Coinbase is well-known as the first step into the crypto sphere for many.

Abra

Abra is a competitor to Coinbase - and for good reason. Unlike Coinbase, which only offers users the option to buy a small number of cryptocurrencies, Abra has 28 different cryptocurrencies to choose from. Abra is a mobile application only, whereas Coinbase has a web and mobile app. Both allow users to fund their account with their bank account or credit card and both have KYC processes which require validating your identity for legal purposes.

There are many other options such as BitPanda, Cex.io, and more. Each has different teams behind them and are compliant in different jurisdictions. Understanding how to onboard with these different cryptocurrency trading platforms and then buy and sell cryptocurrency is not easy to learn on your own. Our course provides valuable insights for first-timers to help avoid the negative pitfalls of first-time investing. BitPanda, Cex.io, and Abra are all trusted services and we have provided registration links so you can explore these services to see if they are a fit for you.

Best Cryptocurrency Trading Platforms

How to Trade Bitcoin for Other Cryptocurrencies

Once you have chosen which brokerage service you would like to purchase your initial cryptocurrencies with, the next step is deciding which trading exchange to use. Exchanges offer a large variety, often hundreds, of cryptocurrencies to choose from, allowing you to find the best cryptocurrencies to invest in. It is worth noting that many cryptocurrency trading platforms do not offer fiat to cryptocurrency orders like Coinbase, but they offer hundreds of crypto to crypto markets for diverse trading. Most of the trading pairs are Bitcoin to crypto pairs, which is why our recommendation is to start with Bitcoin. Generally, these exchanges have charts and order-books that allow for real-time and fast trading. Let’s briefly name a couple of trusted cryptocurrency trading platforms.

Binance

Binance is one of the largest cryptocurrency trading platforms by volume. It’s worth mentioning that during the last bull market in late 2017, Binance shutdown registration to new users because demand was so high. We recommend opening an account now before history repeats itself.

Provided you already know how to trade Bitcoin, and now want to have access to the best cryptocurrencies to invest in, Binance is the place to go. They have hundreds of cryptocurrencies listed and attract all types of investors from veterans to beginners. Binance is also extremely security conscious, battling off hackers and keeping client’s funds safer than other cryptocurrency trading platforms. They are well known for their customer service. Their CEO is vocal on Twitter and in tune with the community. Additionally, Binance offers BNB, their own cryptocurrency that provides discounts on trading fees. For these reasons, Binance is one of the largest platforms to buy and sell cryptocurrency. We highly recommend creating an account on Binance right away by clicking here. You will be glad you did.

Kucoin

Kucoin is a cryptocurrency trading platform which has been gaining a positive name for itself. It has decent volume and reliable customer support. Similar to Binance, Kucoin has their own internal token called Kucoin shares, which gives holders bonuses based on the exchanges trading volume. This perk, in particular, has attracted many investors to use Kucoin’s platform. Click here to get started on Kucoin. The more cryptocurrency trading platforms you register on, the more options you have for finding the best cryptocurrency to invest in.

Bittrex

Bittrex is another US-based cryptocurrency exchange. Since 2014 they have not been compromised despite many attempts from hackers. Bittrex is one of the more legally compliant exchanges and offers USD to crypto trading, in addition to the usual Ethereum and Bitcoin markets. That being said, their support is slow to respond to issues and withdrawal limits are lower than Binance, which causes frustration. Bittrex is a reliable exchange, but with a few setbacks.

How to trade Bitcoin with Leverage

The best way to learn how to trade Bitcoin is by doing it. You can read about different trading techniques, but the best way to learn is by doing.

To sum things up, there are STILL plenty of other exchanges. One, in particular, is BitMEX. If you want to know how to trade Bitcoin using leverage and margin trading, we suggest you use BitMEX. It is one of the largest derivatives based cryptocurrency trading platforms. Create an account on BitMEX and explore trading with leverage if you dare.

Exchanges are only one component in your cryptocurrency life - arguably, choosing the right cryptocurrency wallet is more difficult and more important. Let’s explore our options.

How to Store Cryptocurrency

Setup a Bitcoin Wallet

Hardware wallets are one of the most common and trusted methods for storing cryptocurrencies. They are physical devices which store your cryptocurrencies offline. More specifically, they store your private keys offline. Your private keys are what provides you access to your coins stored on the blockchain. As long as your private keys, which are in control of your funds, are kept offline in your hardware device, then no one can compromise your funds unless they manage to get hold of your hardware wallet. For this reason, hardware wallets are one of the most trusted ways to store your cryptocurrencies, while exchanges are one of the least secure ways.

Ledger

Ledger’s premier product is the Ledger Nano S. The Ledger Nano S is a small, physical device which allows you to store Bitcoin and other cryptocurrencies. Ledger also provides their users with Ledger Live, a web app which allows you to check on your funds without needing your physical device. Ledger also makes it easy to backup your funds, which is a whole other element for storing your cryptocurrencies. The Ledger wallet is compatible with ~100 cryptocurrencies. Ultimately, Ledger Nano S’s are one of the most in-demand hardware wallets despite a price of ~$100 because it is completely worth it. You can click here to learn more about it and make your purchase. Many team members here at Cryptomaniaks use it to store their cryptocurrencies.

Trezor

Trezor is another trusted hardware cryptocurrency wallet. Much like Ledger, Trezor puts you in control of your private keys. These are only two, of many hardware wallets. While we recommend Ledger Nano S, it is always worth exploring other options and if anything, we would recommend Trezor as our number 2.

We cannot stress enough the importance of obtaining a hardware wallet. In our opinion, owning one is mandatory these days. The primary downside to hardware wallets is that they are not free, whereas online wallets are free. Ordering a hardware wallet can take a couple of weeks, so we recommend using an online cryptocurrency wallet which is both free and available for instant download until your hardware device arrives. Online wallets are also more reliable alternatives for storing your cryptocurrencies than leaving them on a cryptocurrency trading platform.

Online Cryptocurrency Wallets

What about other types of Wallets?

Unlike hardware wallets, online wallets are software. This means they are not physical devices and are more vulnerable to hackers on the web than hardware wallets. Online wallets are one step better than storing your cryptocurrencies on exchanges because they give you access to your private keys, giving you full control over your cryptocurrencies. Let’s explore some different types of online wallets.

Online Cryptocurrency Wallets for Bitcoin

Many online wallets only support one cryptocurrency. This means that if you hold 5 different cryptocurrencies, you may need 5 different wallets. The reason for this is due to technical headaches around compatibility, but no need to get into this. For now, just understand that many wallets are tailored for one cryptocurrency only. Blockchain.com, Mycelium, and Electrum are good alternatives to setting up a Bitcoin wallet until your hardware device arrives. They allow for easy backup and have trusted support to help their clients. Many cryptocurrency wallet companies can be scams or fakes, so be sure you are downloading the correct wallet, by the real company. Ethereum is another popular cryptocurrency, so let’s explore some popular Ethereum compatible cryptocurrency wallets.

Online Wallets for Ethereum

Metamask, Mist, MyEtherWallet (MEW), and MyCrypto all offer trusted Ethereum cryptocurrency wallets. Metamask, in particular, is an interesting one because it acts as a browser extension. This means if you want to spend Ethereum online, you can use Metamask to quickly send your Ethereum. Many companies that accept Ether will allow you to easily send them Ether from MetaMask. There are hundreds of other cryptocurrency wallets to choose from, but these are the most trustworthy in our opinion.

Generalized Cryptocurrency Wallets

While most wallets are only compatible with one cryptocurrency, there are wallets that are compatible with many. Some accept nearly 100 different cryptocurrencies and allow users to buy and sell cryptocurrency inside the wallet. While some of these generalized wallets are trusted, there is arguably added risk to these types of cryptocurrency wallets. As different cryptocurrencies update their codebase, these wallet providers need to update their system accordingly, leaving more room for error. If you decide to go this route, be very careful about which cryptocurrency wallet provider you choose. We hesitate to make any recommendations because we don’t believe they are a secure option.

As you can see, there are many options for online wallets - hundreds, if not thousands. This is another reason we recommend using a hardware wallet, and particularly the Ledger Nano S. It is easier to weed through the less reliable options.

Ultimately, once you decide which cryptocurrency wallet is best for you, the next step is to understand how to backup your cryptocurrencies in case you lose your wallet or your computer malfunctions.  

Backup your Crypto

An Important Aspect of Cryptocurrency Investing

One of the most vital steps when asking “how to store cryptocurrency,” is understanding the need for backing up your crypto. Otherwise, you may lose your funds forever. Backing up your crypto is one of the most overlooked steps to cryptocurrency management. Many cryptocurrency wallets and platforms will provide passphrases and instructions for backing up your data - commonly known as a seed. If your computer crashes, you simply need to reinstall the software and import your seeds (passphrases). In other words, this seed is the backup that will allow you to recover your funds in the event of a disaster.

Here are some rules of thumb to follow.

Keep your Private Keys, Passphrases, and Seeds a Secret!

Your private keys are for your eyes and your eyes only. They are what allow you to withdraw your funds and send them to another wallet, cryptocurrency trading platform, or individual. If someone gains access to your private keys, then they have control of your cryptocurrencies. This differs from your public key. Your public key is analogous to your bank account number, which you can give to anyone and all that they can do is send you money. A common way to backup your private keys is to do it digitally. You can encode and save them on a USB or local text document, but they are still prone to hackers across the web.

Backup your Crypto Physically

Backing up private keys is only necessary if you are using online wallets. This is because:  

  • Online exchanges do not give you access to the private keys.
     
  • Hardware cryptocurrency wallets keep your private keys secure, requiring only one passphrase to access everything.

When you are backing up your sensitive information, do it physically, on a piece of paper. To start, simply write down your passphrases and private keys on a piece of paper. Place that paper somewhere safe so no one else can find it. Going a step further, there are ways to encode your data so even if someone grabs that piece of paper, they cannot understand what it says. In our premium course, we have developed secret techniques to backup cryptocurrencies. Our exclusive methodology makes it easy to remember how to encode all of your sensitive details. It’s very easy once you get the hang of it.

​Additionally, the lazy way to backup your crypto is to print the public and private keys along with scannable  QR codes of your wallet. Then keep it somewhere safe. But your private keys won’t be encoded.

Become an Expert

Your Journey Just Got Started ...

Mastering how to invest in Bitcoin is a long road. You’ll be required to understand different nuances. Finding the best cryptocurrency to invest in, avoiding fraudulent sites, finding trusted sources, and then learning how to use these different interfaces on your own will require efforts and patience. For this reason, we have created a cost-effective and informative course to provide you with a shortcut.

Why People Choose Us

Our course offers a 100% money back guarantee because we are confident you will benefit from the wisdom we share. Our founders handpicked top cryptocurrency experts, with a combined 25+ years experience in the industry, to create a step by step course teaching you how to invest in Bitcoin, how to store your cryptocurrencies, and interact with the cryptocurrency space like a pro within just a few hours. Rather than focusing on technical jargon for engineers, we focus on practical instructions for investors to start. Our goal is to make you a pro in no time.

Our course saves students hundreds of hours of a headache by teaching what we learned from our own experiences. Additionally, we will share more general investment strategies with tips on how to trade Bitcoin, how much you should invest, how to diversify your portfolio, and our top picks for a reliable starting portfolio.

An Exclusive Gift For You

Congrats for making it to the end of this module! This is only the first step in getting started in the exciting crypto markets. For making it this far and to reward your dedication, we want to thank you with a unique, limited time promo code for our course. Enter “SeriousCrypto” when purchasing the course for a $20 discount on the regular price. Check it out by clicking HERE, and don’t wait too long as the discount code will expire soon!

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