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How to Buy Bitcoin

Bitcoin users embraced the nerdy and near whimsical characterization given to it by the media and countless individuals in power. Even with the constant doom and gloom predictions of the currency’s future, “magically” the network has continued to operate.

  • at $2.37 “The Rise and Fall of Bitcoin” – Wired
  • at $15.15 “So, That’s the End of Bitcoin Then” – Forbes
  • at $93.57 “The SEC Shows Why Bitcoin Is Doomed” – Bloomberg
  • at $105.7 “Bitcoin Sees the Grim Reaper” – NY Mag
  • at $131.95 “Fool’s Gold” – Slate
  • at $182.00 “Bitcoin revealed: a Ponzi scheme for redistributing wealth from one libertarian to another” – The Washington Post
  • at $208.50 “Bitcoin Is a Victim of Disinflation” – The New York Times
  • at $208.50 “Bitcoin is headed to the ‘ash heap’” – USA Today
  • at $290.51 “Bitcoin’s upcoming capital crisis” – Financial Times
  • at $327.20 “Bitcoin’s defects will hasten its demise in 2015” – Reuters
  • at $332.63 “Can Bitcoin survive 2015?” – AOL
  • at $333.58  “Where did Bitcoin go wrong?” – CNN
  • at $433.57 “Bitcoin Is A Joke” – Business Insider

Source: Rhythm of Bitcoin

 

So… How do you buy Bitcoin?

  1. Credit card (you would probably pay 6-7% fees) but no one has time for that. Also, if you must do this through a credit card, we recommend websites using “Simplex” as they’re the safest
  2. Sending money to an exchange. Fees are around 0.5%.  com or osl.com are the largest in Hong Kong and Asia Pacific in terms of liquidity and size.  So Sign up for an account. Complete the application and they can whatsapp you for trading or you can trade online.
  3. Finding someone to trade with. And physically meet with them, or get a 3rd party to ensure that they will fulfill the trade.

 

There are several criteria for buying bitcoin for people who want convenience and safety

  1. The exchange needs to have proper banking licenses so that your own assets aren’t at risk
  2. The exchange needs to be trusted (not to run away with your money)
  3. The exchange is not faking their liquidity (by trading from left pocket to right pocket, just to make you trade with them. Because the pricing you get will be too far from market)
  4. The exchange needs to have high security, like never being hacked
  5. The custodian should have insurance, so even if something happens (disgruntled employee, terrorist attack) then your funds are safe and secure

 

Clarification in Misunderstandings on Buying Bitcoin

  1. You do not need a wallet if you buy from an exchange. You do not even need to download a wallet.  They will automatically create a bitcoin or crypto asset coin to harbour it.  Just like if you send funds to a bank to create a new account, the bank will give you a bank account.  Or if you create an account on gmail.com, you will get an email address.
  2. You don’t need to buy 1 full bitcoin.  You can buy 0.00000001 Bitcoin, which is called 1 Satoshi

Want to learn more?  A talk by Andreas Antonopoulos discusses this phenomenon of digital gentrification and insitutionalization of cryptocurrencies along with why we should be fighting to preserve the “weirdness” that Bitcoin brings to the world.

Here are some national digital currencies we should expect going forward:

  • DCEP (China)
  • EUROChain (EU)
  • Libra (Facebook)
  • e-Dinar (Tunisia)
  • Petro (Venezuela)
  • Aber (Saudi Arabia)
  • Turkcoin (Turkey)
  • e-Krona (Sweden)
  • PayMon (Iran)

 

Lazy Man’s Guide to Storing Bitcoin

  1. You don’t need a paper wallet to write down your phrase password for a “cold wallet”. If you keep your funds with a custodian that has 100% hot wallet insurance, then even if they get hacked, your funds are safe.  It is safer to keep your funds with a custodian than has 100% full insurance (some exchanges only offer limited insurance, so please check).  The only custodians in the world for 100% hot wallet insurance are OSL.com and Coinbase.com.  So even if you lose your password, you can just reset and get it sent to your email.  But if you use your own cold wallet, and lose your password, you will also lose all your money forever.  There is no recourse.