What is BitCoin?
Wiki explains it like this;
"Bitcoin is a cryptocurrency. It is a decentralized digital currency without a central bank or single administrator that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries."
Firstly it's important you see BitCoin for what it is and what it is not. It is not an investment. The price of BitCoin is volatile, BitCoin prices can rise and drop at moments notice with very little reason or explanation, having thousands sat in BitCoin isn't a great idea. What it is good for is paying for services or products anonymously just because you might want to do that or because it might be the only payment option some services offer.
How to buy BitCoin
First of all you need a BitCoin Wallet or as I call it a "digital bank account" and to do this you will have to verify who you are.
We use BitPanda for this. They've been around BitCoin for a very long time and have a great trading platform where you can not only buy crypto but you can also invest in metals.
Once you have set up an account with BitPanda you will be asked to verify yourself with one of these two options.
We only need to do a light verification. Everything is done online and is more or less instant.
We used a mobile device and allowed the platform to capture a snapshot of my passport.
Once everything is verified you're ready to deposit some money to BitPanda.
Deposit funds in to BitPanda
Similar to PayPal you have to have some funds in your account to start buying BitCoin.
BitPanda call this fiat currency. You let them know how much you will be sending them and they will give you a reference number and their bank details so that you can complete bank transfer to them for the amount you state.
Make sure you get the reference number right. If you did the money you transfer will be available in your BitPanda account in around 3 working days.
Buying BitCoin in exchange for money
Now you're ready to buy BitCoin!
When you login to BitPanda you should take the "BitPanda Platform" rather than the Global exchange for the purposes of this post.
In top of the screen in the BitPanda Platform you see some options;
- Select Trade
- From the popup choose Buy
- Select from your Fiat Wallet to buy BitCoin
- Enter the amount you wish to exchange
- Verify your choices
That's it. You now own some BitCoin and they're sat in your digital bank account or "BitCoin Wallet".
Buy something with BitCoin
When you purchase online with BitCoin for the first time things are a bit new at first but once you are used to the practice it all become the norm.
You will be give 2 bits of important information;
- The place you are sending the bitcoins too (Someone else's BitCoin Wallet)
- The amount of BitCoin to send.
You must remember here that BitPanda has a minimum amount that you can send so what you are buying should be more than $15.00 or you will be losing in the transaction.
In the BitPanda platform;
- Select Send from the top menu bar
- Choose your BitCoin Wallet from the next option.
- Enter the BlockChain address, this is the place you are sending the BitCoin to
- Enter the amount of BitCoin to send.
You will then have to verify the transaction by a link sent to your email address. Once that's done you have successfully paid for something using BitCoin.
That's all there is to it.