How To Buy Bitcoin Safely
Don’t Listen To Me, But Please, Hear Me Out: # 30
Shaheeda Abdul Kader, Feb 11 2021
Cover Meme: Courtesy, Elon Musk’s Tweet
Feras has put together a rather comprehensive guide on “How To Buy Bitcoin” and is generously sharing it with us here. He takes special care to show you how to protect yourself from scams, hacks etc.
But before I get into it, let me add my two cents on Bitcoin and if you should purchase them. Bitcoin is valuable so long as two or more people agree that it has value. Its value increases if there is network effect and more and more people believe it has value. There are no underlying assets other than everyone’s “Belief” that it is valuable. In this blog, I won’t get into a philosophical debate discussing if Fiat currencies (what we use today, Dollars, Dirhams, Rupee, Pound etc issued by governments), have real value. Perhaps another time.
However, I believe that certain crypto assets like Bitcoin (BTC) and Etherium (ETH) are here to stay. Personally, I would not “invest” more than 2% of my portfolio in crypto assets. I would only invest in BTC and ETH. I am not buying Doge no matter how much Elon Musk tweets about it.
How To Buy Crypto Assets Or Bitcoins?
By Feras Yehia
Rule #1: Avoid scams and become your own bank
Step A. You need to sign up with a reputable exchange (e.g.: BINANCE, CRYPTO.COM, etc. ) see links below.
Regional based exchanges (e.g.: BitOasis.net and RAIN.BH) could be more convenient, however they charge hefty fees.
Step B. (OPTIONAL, as it’s generally safe to keep SOME crypto on reputable exchanges):
Buy a physical cold wallet shown below. (This is an OPTIONAL step, as the saying goes “Not your keys, not your crypto!”).
Step C. After setting up your cold wallet, follow the quick survival guide below. And you’re all set!
A. Where To Buy?
Binance is the world’s largest online cryptocurrency exchange by trading volume. The exchange is also one of the fastest platforms in the crypto market today.
As the world’s largest crypto exchange by trading volume, Binance Coin delivers investors and traders with a full suite of offerings.
The exchange provides investors with one of the widest range of cryptos available in the market place today. Cryptos on offer range from the market’s largest by market cap to some smaller and less known coins and tokens.
- 2 billion Average Daily Volume
- 1,400,000+ Transactions Per Second
- 24/7 Support
- Strong emphasis on security, with an array of security measures to protect investor assets.
- Launchpad gives Binance users access to newly launched coins and tokens.
Investors and traders can purchase cryptos by:
- Crypto deposit: For users who already own cryptocurrencies supported by Binance, you may transfer these to the Binance compatible wallets.
- Bank Deposit: Binance supports bank deposits for fiat currencies.
- Credit/Debit Card: Visa and Mastercard.
- P2P Trading: By bank transfer and 60+ alternative options.
- 3rd Party Payment: Via Banxa and Simplex.
Use this referral link for a free rebate: https://www.binance.com/en/register?ref=WUALS98H Key in code: WUALS98H
(Remember to turn on the option of paying your transaction fees in BNB token (saves you 25%). You will have to purchase some BNB for this of course).
Since 2016, Crypto.com has helped accelerate the transition to cryptocurrencies worldwide. Crypto.com claims to offer consumers more options than any other single crypto brand.
Today, it boasts one of the most powerful platforms, and millions of users worldwide trust and rely on it. As you’ll see in our Crypto.com review, it also offers a wide variety of crypto-related services, permitting consumers to replace the role of fiat currency in many areas of life.
Recently, Crypto.com has added the Exchange, which lets consumers trade on a stable exchange platform. The advent of the Exchange further adds to Crypto.com’s robust proposition as a full range site for crypto-related finances.
Use this referral link for sign up bonus: platinum.crypto.com/r/58qy9f8bbx Key in code: 58qy9f8bbx
If you are intending to HODL (Hold your crypto for a long time), then why not collect interest on it?
BlockFi is a privately-held NYC-based lending platform founded in 2017. The BlockFi Interest account is one of the only cryptocurrency storage option that pays offers rates that are competitive with most non-cryptocurrency account interest rates.
- BlockFi allows users to earn competitive compound interest rates on their cryptocurrencies, such as BTC, ETH, LTC, USDC, USDT, GUSD, and PAXG.
- Keeps cryptocurrency deposits secure. BlockFi’s cryptocurrency deposits are held by the Gemini Trust Company, regulated by the New York Department of Financial Services.
- It is available worldwide, outside of sanctioned or watch listed countries.
- Allows for anytime withdrawals. Users get one free withdrawal per month.
- It offers simple and easy registration.
Sign up using this link and get a bonus! https://blockfi.com/?ref=bb3547e4
In essence, Nexo is an overdraft based blockchain system that allows crypto lending and makes it very easy for users to access crypto-backed loans instantly.
The company was launched in 2018, but it has started to gain most of its popularity in recent years.
The slogan of the company is “Banking on Crypto.” They try to replace traditional bank services, but with crypto as the asset.
Earn daily interest on your crypto and EUR, GBP and USD:
- Up to 12% annual interest
- Unique daily payout
- $375 million insurance on all custodial assets
- Add or withdraw funds at any time
- No hidden fees
Sign up using this link and get a bonus! https://nexo.io/?u=5fc9dcef5788f85cfc15663b
5. CELSIUS NETWORK
Celsius was founded in 2017 with the mission to harness blockchain technology to provide unprecedented financial freedom, economic opportunity, and income equality for the 99%. For too long, big banks and financial institutions have gotten away with greedy, unethical, and risky behavior. It’s time to replace our current financial systems with a new model that only ever acts in the best interest of the community.
The Celsius platform provides members with curated services unavailable through traditional institutions. Our goal is to act as a catalyst for financial disruption on a global scale by offering services that will bring the next 100 million people into cryptocurrency.
- Celsius recently got 10m in funding from Tether and 1040 retail investors via Bnk to the Future.
- Celsius partnered with Line to launch 11.25% interest income on USDC to over 600m Line customers.
- Bitfinex just launched 6.2% interest income on BTC to all its customers via partnership with Celsius.
- Celsius is offering all crypto users to borrow against their crypto as little as $500 or as much as $20m and pay only 1% APR interest.
- Celsius CEL token is one of the best performing tokens out there, up 2,445% in dollar terms in the past 12 months and is up 1,354% vs BTC in the past year. If you chose to earn in CEL via Celsius you did better than any DeFi.
Join Celsius Network using referral code 1620791e6b when signing up and earn $20 in BTC with your first transfer of $200 or more! https://celsiusnetwork.app.link/1620791e6b
B. Cold Wallets
OPTIONAL, as its generally safe to keep SOME cryptos on reputable exchanges. It really depends on how many bitcoins or how much your crypto assets are worth. If you are holding over $100,000 in crypto assets, you may wish to have a cold wallet for extra security.
You can use any or all three brands below to hedge your assets’ safety.
- Recommend this for ease of use but it doesn’t support all cryptos.
- This is for best value and most popular with hard core geeks.
- This is the most popular cold wallet.
All the cold wallets are highly hack resistant even if you are corrupted with malwares. But please don’t take any chances, always follow internet and computer safety precautions.
Cold Wallet Warning ‼️
1) Never take a photo of your backup seed words
2) Write them down and never give them to anyone
3) If you lose your seed words you lose all your cryptos! (this is no joke)
* After receiving your Physical cold wallet and completing the basic set up instructions follow below *
C. Last But Not The Least, Here’s a Quick Survival Guide
1. You will become your own bank
2. Secure all your logins with two factor authentication. Emails , social media , crypto exchange logins etc. Get antivirus for your mobile and computer. Ideal to have VPN too.
(Steps 3 to 9 are Optional: In case you opted for a cold wallet):
3. Buy a test amount, ~USD 50 worth of Bitcoin.
4. Send it to your cold wallet & wait (up to an hour for BTC). Confirm you received it.
5. CONFIRM YOU HAVE YOUR SEED WORDS safely written down & VERIFIED during set up.
6. Delete the account on your cold wallet.
7. Re establish your cold wallet using the backup seed words.
8. Confirm your crypto is in your cold wallet by verifying that you can send a small amount back to your exchange account. (Maybe $0.50¢)
9. When you see your crypto in your exchange account , you have graduated in safely keeping and manipulating your cryptos.
Congratulations and welcome to the future of money.
Ok so that was a lot of information and Feras did a thorough job of laying it all out for you with some bonus links as well.
Please be warned that BTC or all crypto assets are highly volatile. If you lose your wallet, or forget your keys, you will probably never be able to get them back. If you meant to send $100 but sent $1000 of BTC by mistake, there is no way to reverse a crypto transaction. The advantage and pitfall of crypto transactions are that they are anonymous. Therefore, you have to rely on the kindness of the person you sent the crypto to, to do the right thing.
When the world’s richest man and other billionaires get into an asset, please know that they can bear shocks in the market because they are billionaires. You and I have to be a lot more careful.
So if you have FOMO and you want to YOLO crypto, then may I suggest sticking with BTC or ETH to get your feet wet first? Let pups and dogs be our loving companions for now.
I usually blog about investing in the stock market. If you would like help on how to budget, save or invest more, please feel free to reach me, on Twitter @saq3 or LinkedIn @Shaheeda Abdul Kader, or leave a message at firstname.lastname@example.org. I’d be happy to offer you my services. Please do check my other blogs here.
I am NOT a certified broker or financial advisor. Please DO NOT make investment decisions based solely on my blogs. My intention is to show you how to research stocks or funds for yourself so you can feel empowered and knowledgeable to do your own investigations and invest with confidence. It is best to consult with your broker or advisor if you have questions. You can also reach me, and I’ll do my best to help you with your queries.