Over the past few months that we have been operating, we keep getting asked how to start with Bitcoin. Whether it be online or in person, with this article we will guide everyone who is new to Bitcoin to walk the right way and also properly secure their coin!
HOW TO BUY BITCOIN?
There are many ways to buy Bitcoin, it is best to find a solution that is suitable for your country. This also means that if your country does not allow buying Bitcoin, you will have a hard time.
The most common method for people to buy is on exchanges like Coinbase. Users can download the App or visit their website to create an account. Coinbase will ask you to verify yourself and you can start buying using your bank account. As every country is not the same and Coinbase is not supported in every country, you may need to look for the most suitable exchange to buy on based on your currency and where your bank is located. The best tips I always give is too simply search “Buy Bitcoin in (your country)”. Choose the one that is most recommend and trustworthy.
Other methods can include buying with Bitcoin on websites like Changelly or CoinMama. These websites accept Debit and Credit cards directly so you do not need to worry about the multiple verifying steps exchanges may throw at you. Despite the convenience, however, the rates and fees will not be as good as exchanges.
I NOW HAVE BITCOIN!
HOW TO CREATE A WALLET
The safest way to store Bitcoin is on a wallet not on an exchange. You need to send it from the exchange to your Bitcoin wallet.
(A wallet is where private keys are generated. Private keys are needed to verify every Bitcoin transaction so wallets are like your personal bank. It gives you full control over you Bitcoins because you have the private key. In contrast, if you left your Bitcoins inside the exchange after you have bought it, those private keys will be with the exchange. As your private keys are with the exchange, if they lose it, got it stolen or decide to stop their services, your Bitcoins are forever lost.)
The first thing you need is to find a Bitcoin wallet to use. There are many to choose from both on mobile and on desktop. As ELLIPAL provides a mobile wallet for its users, we will use ELLIPAL wallet as an example.
Creating a Bitcoin wallet on ELLIPAL is simple, just download the App and create an account on the ELLIPAL App. Select Bitcoin and joint down the mnemonics (these are a simpler form of your private keys in which acts as a backup to your account) and you are set! You can select your Bitcoin account on the App and copy the address or bring up the address QR code.
DEPOSIT BITCOIN TO YOUR NEW WALLET
At this point, you can go back to the exchange and select Withdraw. It will ask where to send it to so just put your new Bitcoin address and finish the process. The Bitcoin should arrive in your ELLIPAL wallet very soon.
TAKING A STEP FURTHER
KEEPING YOUR BITCOIN SAFE IN COLD STORAGE
As mentioned, the private key is what gives access to your Bitcoin. Now it is safe inside your new wallet and also in a form of mnemonics where you wrote down. However, for a skilled hacker, it is possible to hack into your phone or desktop to steal your private keys.
So if you bought a lot of Bitcoin, it is strongly recommended by everyone in the crypto-industry to use a hardware wallet. These are similar to the wallet you have on your phone or PC but instead, it is completely offline. Due to the offline nature, even the most skilled hackers find it impossible to steal your private key.
ELLIPAL also provides one of the most secure hardware wallets around. It is like an addition to ELLIPAL’s mobile wallet, only that this time your private keys are generated and stored inside the hardware wallet which is completely offline.