For the crypto-curious . . .

I created this guide in 2017 because so many friends have asked how to get started with Bitcoin, and updated it in January 2021 as adoption of Bitcoin grew.  Please note the below is not investment advice, financial advice or legal advice.  Please do your own research and only invest what you can afford to lose.

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Purchase Bitcoin (and other coins) on Coinbase

  • Register for an account on Coinbase.com
    (if you use THIS LINK, we both get $10 of free Bitcoin if you purchase $100 or more in cryptocurrency)

  • You can purchase fractions of a coin. You do not have to purchase an entire coin.

    • The satoshi is currently the smallest unit of the Bitcoin currency recorded on the block chain.

    • It is a one hundred millionth of a single Bitcoin (0.00000001 BTC).

  • It may take several days to open the account. Once you make a purchase, it may take several days for the coins to become available in your account.

If you need detailed instructions, this is a good video by “Jenny From the Blockchain”: LINK 

There are less expensive ways to purchase Bitcoin, but Coinbase is the easiest to navigate when you're just getting started. Also, take a look at how Coinbase in insured: LINK.

Do not purchase Bitcoin from Robinhood or PayPal because you will not actually own your coins. Read why #notyourkeysnotyourcoins: LINK.

Get “Free” Bitcoin

Create a Wallet

Remember that with cryptocurrencies, you are your own bank.  Most people recommend moving your crypto to what’s known as a wallet so you have more control over your money.  

Here’s a good explanation from CoinCentral.com:

“There are three types of Bitcoin wallets: hardware, software, and paper. Hardware wallets are physical wallets with your private keys encrypted in them, software wallets are programs that live either on your computer or on the Internet, and paper wallets are physical documents with private keys.

For hard wallets, you’ll need a digital signature. Your digital signature is your ID. It’s how you prove that you own a specific private key without flashing your key around in public. Digital signatures verify ownership, keeping your private key safe and away from prying hands.

The advantage of hardware wallets is that your private keys are isolated from your computer, keeping your risk of theft near zero. Software wallets, on the other hand, are still connected to the Internet and expose you to some risk.

The only potential downside of a hardware wallet is that it costs money. Most software wallets are free. While both wallets protect your bitcoins more securely, some users would rather pass on the extra cost.”

Notes on wallets:

  • Here's an article to help you figure out which wallet is right for you: LINK

  • Remember: Keep your “seed phrase” safe! Do not store it on an electronic device or email it to yourself (or put the password under a pillow). Here’s a cautionary tale that went viral: LINK

  • If you want to purchase a hard wallet, only purchase directly from the manufacturer.

Additional Security

Please take a close look at this terrific infographic by Jennifer Leigh (@jennicide):

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To download, LINK.

Altcoins (i.e., anything other than Bitcoin)

Before you consider altcoins, please read about Bitcoin Maximalism: LINK

The easiest way to get started in altcoins is to deposit Bitcoin from your Coinbase account or wallet to an exchange.  Each exchange includes different altcoins, so you may need to create accounts as several exchanges.

Good places to start your research:

Links to exchanges (bookmark to avoid phishing scams):

Initial Coin Offerings (ICOs)

It is very important to do your own research. It’s been reported that 80% of ICOs conducted in 2017 were scams. Including these references here for completeness’ sake:

Miscellany

  • Mining, master nodes and staking are other ways to make money with crypto, but are not recommended for newbies.

  • Beware of MLMs like USI-Tech or any other schemes that "guarantee" returns. Article on red flags: LINK

  • Cryptocurrency lingo: LINK

  • NFTs guide from OpenSea: LINK

News, Rumors and Gossip

Note on this webpage: The information provided is not investment advice, financial advice or legal advice. Please do your own research and only invest what you can afford to lose.