Cryptocurrency quick start guide

A QUICK-START START GUIDE TO BUYING CRYPTOCURRENCY, SUCH AS BITCOIN

Quick start guide to buying crypto currency

Here is how to start in the world of cryptocurrencies, in six simple steps:

1. Decide which cryptocurrency you wish to own. Bitcoin (BTC), Litecoin (LTC) and Ethereum (ETH) are probably the easiest to buy directly. Below are the current prices of some or the more popular coins.

2. Choose a suitable wallet that can hold the keys to your chosen cryptocurrency. If you are only looking to buy a small amount, Jaxx Liberty supports lots of cryptocurrencies. If you are looking to invest large amounts of money, I would recommend using a hardware wallet, such as Ledger Nano S.

Ledger Nano S
Jaxx Liberty

3. Register at an exchange that lists the currency you want to buy, and that accepts fiat deposits 1. I use Bitpanda, which is based in Europe. If you are less fussy about where your personal information ends up, then you could use ones based outside Europe.

4. Transfer your fiat funds to the exchange. There are several ways to do this, one example is shown in my post titled Transfer money into Bitpanda using Visa or Mastercard

5. Buy the cryptocurrency you want. An exchange can offer many cyptocurrencies for purchase. However, not all are transferable to your own wallet, so choose carefully. Bitcoin (BTC), Litecoin (LTC) and Ethereum (ETH) are most probably fully featured on any exchange. I have written a short post on how to do this for BTC with Bitpanda.

6. Transfer the control of your cryptocurrency from the exchange’s wallet to your own. This is very important to do, so that you have control over your crypto. Here is a post showing an example with Jaxx, but it would be the same procedure for any wallet.

You now own some cryptocurrency!

As you can see, I have tried to keep this explanation as simple as possible. The whole process is still a bit clumsy at present. Longer term, it needs improving to enable mass adoption. However, it can be fun being classed as an ‘early adopter’.

Notes:

  1. Inconvertible paper money made legal tender by a government decree <https://en.oxforddictionaries.com/definition/fiat_money>.

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