Getting Started With Bitcoin
How to dip your toes in from a non-technical perspective…
I “got into” Bitcoin in Fall 2016. I am now a crypto-convert and have started voraciously researching and investing in various projects in the space. I truly believe bitcoin/cryptocurrencies/distributed ledger technology/blockchains are going to be a very important part of the future world economy and therefore end up running my mouth about it whenever given the opportunity. I was talking to a friend last night and promised to send some information on how to get started. I also had been looking for an excuse to write a first blog post.
Why should you be excited about Bitcoin?
Bitcoin is the email of value and its 1993
Step 1: Buy some Bitcoin
Its hard to give a damn about something if you aren’t invested in it. There are a number of ways to get involved but the easiest/safest in my opinion is Coinbase. Don’t jump in all at once, only use the MOST DISCRETIONARY of your income.
- Go to coinbase.com (use referral link below and we each get $10of free bitcoin after your first $100 purchase!) https://www.coinbase.com/join/5846105b825c8235c97a95f3
- Create account
- If you are antsy, buy some with a credit card (4% fee I think, if you have a credit card with 2% back its only a net 2% fee, not too bad)
- If you can contain your excitement, setup link to your bank and transfer funds (will probably take a week from start to finish to get funds, no fees for this method)
- Even if you go with #3, initiate #4
Step 2: Setup Recurring Purchase
Given you are just getting started with bitcoin I wouldn’t recommend you start trying to time the market. There WILL be large swings in price, you are NOT guaranteed to see the massive gains that have occurred over the past year(s).
- Setup recurring purchase (Tools => Recurring Purchase) of bitcoin
- To keep fees as low as possible use your USD wallet as source (need to wait for bank transfer)
- buy a small amount every day or week, I have a daily purchase setup
Keeping your coin at coinbase is generally fine, but many folks think keeping it at an exchange defeats the purpose of “decentralization”. There are many cold wallets you can get if this a concern you share. I use Jaxx.
Step 3: Read the White Paper
Its only 9 pages, consider it a rite of passage.
Don’t worry too much about the technical jargon
Don’t worry about who/whom Satoshi Nakamoto is or is not
Step 4: Do More Research, Build Context
There are myriad reasons to be excited about bitcoin (economic, political, philosophical, technological), do enough research you will likely find an aspect that speaks to you.
Podcasts
Full Disclosure: I am a HUGE podcast fan, hit me up for non-bitcoin recos
Listen to this episode first I found it helpful in understanding the mechanics
Other podcasts I enjoy and are helpful with keeping tabs on new developments in the space. None of them are solely bitcoin so be warned that you may start sliding into the world of AltCoins.
Lets Talk Bitcoin Network: LOTS of content, my favorites
Best for bitcoin news
Best for reviewing new projects
The lighter side (softer side of Anarcho-capitalism??)
Non-LTB Options
Books
The Book of Satoshi: Myth of Satoshi aside, this collection of his correspondences in the early days of bitcoin address a lot of the questions you may have after the white paper.
Mastering Bitcoin: I’m still not done with it, it does get quite technical but this is generally regarded as one of the more complete books on the subject.
Game Theory 101: Yes its a textbook, but it helps shed light on why bitcoin works. May not be as interesting for people who didnt double major in Economics and Philosophy…..
Step 5: Tell your friends!!
It is already at~20b marketcap but there is immense room for growth. The more people using it and other cryptocurrencies and the more applications found for the technology, the stronger and more successful it will be.
In Conclusion……..
Bitcoin is an open network that has carefully balanced incentive structures that align the interests of the participants such that doing what is best for themselves is best for the rest.
It has inspired a whole new industry with near limitless potential:
- Tokens/coins representing literally anything of value (currencies, commodities, intellecual property, art, predictions, computational power/storage)
- Cheaper/faster value transfer
- Banking the unbanked
- Funding through ICOs (breaking traditional VC/IPO mold)
- 24/7 trading (like stocks but more volatile and the markets NEVER CLOSE)
- on, and on, and on
Happy bitcoining!!!!
