How to buy crypto – where to buy crypto – when to buy crypto?

How to buy crypto – where to buy crypto – when to buy crypto?

Copyright © 2019. Digital Solutions Advisor

Copyright © 2019. Digital Solutions Advisor

Digital Asset News

Digital Asset News

October 31, 2019 by Jake Josephs

October 31, 2019 by Jake Josephs

Back in 2017 I had heard about bitcoin when listening to a nationally syndicated radio show and an interview with a crypto guru.  The next day I set out to buy some, but I had no clue as to where or how to accomplish that.  Because I lacked the knowledge, I missed out on a huge uptick, as bitcoin ran from around $930 to almost $20,000.

Please understand, I’m not an investment advisor, so like any speculative investments, if you buy bitcoin, you don’t want to bet the farm.  I spread my bets in small dollar amounts across many cryptos.

 

If you read on, this article will answer the how, where, and when to get bitcoin and other crypto assets. 

Back in 2017 I had heard about bitcoin when listening to a nationally syndicated radio show and an interview with a crypto guru.  The next day I set out to buy some, but I had no clue as to where or how to accomplish that.  Because I lacked the knowledge, I missed out on a huge uptick, as bitcoin ran from around $930 to almost $20,000.

Please understand, I’m not an investment advisor, so like any speculative investments, if you buy bitcoin, you don’t want to bet the farm.  I spread my bets in small dollar amounts across many cryptos.

 

If you read on, this article will answer the how, where, and when to get bitcoin and other crypto assets. 

Crypto vs gold – bitcoin vs crypto – the dollar vs bitcoin.

Crypto vs gold – bitcoin vs crypto – the dollar vs bitcoin.

So, if you are just starting out, you’re probably asking yourself, why should I buy bitcoin or other cryptocurrencies?  Let me start out by saying that bitcoin is a relatively new class of asset called a digital asset.  If you have your favorite song or book in mp3 format on your computer, that’s a digital asset as well.

 

The big difference between a digital asset on your computer and bitcoin, is that bitcoin is stored on the blockchain.  The blockchain gets very technical, so let me try to explain in a very over-simplified way.  Let’s say you created a spreadsheet and saved it to the cloud and gave 100 other collaborators permission to edit that sheet.  In order for a change to appear on that sheet permanently, at least 51 of those collaborators would have to validate the last entry as valid.

 

The advantage of blockchain technology is that it’s decentralized and secure in nature.  Each transaction in the block has to be verified by 51% of the nodes, who are miners solving complicated mathematic problems.

 

Bitcoin is the Big Dog of cryptos.  There are many other cryptocurrencies, many times referred to as baby bitcoins or alt-coins.  Don’t be surprised if you see a flood of other coins such as Facebook’s Libra.  The important thing to keep in mind, is that even though these coins may be marketed as cryptos, not all of them will have the same decentralized features that bitcoin has.

 

The other big advantage that bitcoin has over gold and fiat currencies, like the US dollar, is its deflationary nature.  This is huge, as it goes back to simple supply and demand economics.  The code only allows for 21 million bitcoin to be mined.  That’s it.  No one can come in and flood the market with a new supply.  (Even the price of gold can potentially be manipulated as new reserves are found in the ground.)  Currently, over 17 million bitcoins have been mined, and the halving that occurs every 4 years ends in in approximately 2140. 

 

The halving of bitcoin that occurs every 4 years is about to happen again in May of 2020.  This means that the number of bitcoin that can be mined will be cut in half until the next halving, which will occur 4 more years down the road.  Again, supply and demand is at play here.

So, if you are just starting out, you’re probably asking yourself, why should I buy bitcoin or other cryptocurrencies?  Let me start out by saying that bitcoin is a relatively new class of asset called a digital asset.  If you have your favorite song or book in mp3 format on your computer, that’s a digital asset as well.

 

The big difference between a digital asset on your computer and bitcoin, is that bitcoin is stored on the blockchain.  The blockchain gets very technical, so let me try to explain in a very over-simplified way.  Let’s say you created a spreadsheet and saved it to the cloud and gave 100 other collaborators permission to edit that sheet.  In order for a change to appear on that sheet permanently, at least 51 of those collaborators would have to validate the last entry as valid.

 

The advantage of blockchain technology is that it’s decentralized and secure in nature.  Each transaction in the block has to be verified by 51% of the nodes, who are miners solving complicated mathematic problems.

 

Bitcoin is the Big Dog of cryptos.  There are many other cryptocurrencies, many times referred to as baby bitcoins or alt-coins.  Don’t be surprised if you see a flood of other coins such as Facebook’s Libra.  The important thing to keep in mind, is that even though these coins may be marketed as cryptos, not all of them will have the same decentralized features that bitcoin has.

 

The other big advantage that bitcoin has over gold and fiat currencies, like the US dollar, is its deflationary nature.  This is huge, as it goes back to simple supply and demand economics.  The code only allows for 21 million bitcoin to be mined.  That’s it.  No one can come in and flood the market with a new supply.  (Even the price of gold can potentially be manipulated as new reserves are found in the ground.)  Currently, over 17 million bitcoins have been mined, and the halving that occurs every 4 years ends in in approximately 2140. 

 

The halving of bitcoin that occurs every 4 years is about to happen again in May of 2020.  This means that the number of bitcoin that can be mined will be cut in half until the next halving, which will occur 4 more years down the road.  Again, supply and demand is at play here.

Why is it so hard to buy bitcoin?

Why is it so hard to buy bitcoin?

The toughest thing about buying bitcoin is that you have to provide documentation that you are who you say you are.  You will also have to link to a bank account for funding.  Once you have completed with a company called Coinbase, it's easy from there.  

Their platform is streamlined and very easy to use.  I have been using them for some time as my go-to source for buying bitcoin, ethereum, and some other cryptos as well.

The toughest thing about buying bitcoin is that you have to provide documentation that you are who you say you are.  You will also have to link to a bank account for funding.  Once you have completed with a company called Coinbase, it's easy from there.  

Their platform is streamlined and very easy to use.  I have been using them for some time as my go-to source for buying bitcoin, ethereum, and some other cryptos as well.

Digital currency insurance – and other reasons to use Coinbase.

Digital currency insurance – and other reasons to use Coinbase.

  • Their website is entirely encrypted SSL.
  • 98% of their customer funds are stored offline.  Data is then split with redundancy, AES-256 encrypted, and copied to FIPS-140 USB drives and paper backups.  Drives and paper backups are distributed geographically in safe deposit boxes and vaults around the world.
  • Digital currency that Coinbase holds online is insured. If Coinbase were to suffer a breach of its online storage, the insurance policy would pay out to cover any customer funds lost as a result.
  • Coinbase employees must pass a criminal background check as part of the hiring process.  Employees are required to encrypt their hard drives, utilize strong passwords, and enable screen locking.
  • Coinbase uses SQL injection filters to verify the authenticity of POST, PUT, and DELETE requests to prevent CSRF attacks.
  • They hash passwords stored in the database (using bcrypt with a cost factor of 12).  Application credentials are kept separate from the database and code base.
  • Coinbase uses a 2-step verification on all accounts.
  • They have a great support.  Included is a host of great articles that answer many FAQ’s.  You can also reach their support team by email or phone.
  • Their website is entirely encrypted SSL.
  • 98% of their customer funds are stored offline.  Data is then split with redundancy, AES-256 encrypted, and copied to FIPS-140 USB drives and paper backups.  Drives and paper backups are distributed geographically in safe deposit boxes and vaults around the world.
  • Digital currency that Coinbase holds online is insured. If Coinbase were to suffer a breach of its online storage, the insurance policy would pay out to cover any customer funds lost as a result.
  • Coinbase employees must pass a criminal background check as part of the hiring process.  Employees are required to encrypt their hard drives, utilize strong passwords, and enable screen locking.
  • Coinbase uses SQL injection filters to verify the authenticity of POST, PUT, and DELETE requests to prevent CSRF attacks.
  • They hash passwords stored in the database (using bcrypt with a cost factor of 12).  Application credentials are kept separate from the database and code base.
  • Coinbase uses a 2-step verification on all accounts.
  • They have a great support.  Included is a host of great articles that answer many FAQ’s.  You can also reach their support team by email or phone.

Earn free crypto.

Earn free crypto.

One of the most exciting features that Coinbase has is an earn while you learn program.  The participants complete simple online task about the cryptocurrency and get paid in crypto once the task is successfully completed.

One of the most exciting features that Coinbase has is an earn while you learn program.  The participants complete simple online task about the cryptocurrency and get paid in crypto once the task is successfully completed.

Wouldn't it be nice to know there is a secure way to buy bitcoin and other cryptos?

Wouldn't it be nice to know there is a secure way to buy bitcoin and other cryptos?

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