A Beginners guide to the first Bitcoin Purchase
A tried and true way of making that all-important first Bitcoin or other crypto asset purchase.
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It’s no secret. If you have a basic understanding of the internet, then you are ready to make your first crypto purchase. Here are my suggestions on where to start.
Step 1: WALLET SELECTION (The place you store your Bitcoin)
One of the top-rated, easy to use, and most user-friendly software wallet is Exodus — https://www.exodus.io/
Click download and follow the steps to setting up your brand new software wallet. After you install Exodus, you must take the next step in securing your wallet. Head to the backup part of Exodus and create a password that would keep the National Security Agency up at night. Yes, it is that important. Write your seed phrase on paper. Never put this in your phone or computer due to malware, spyware, or other nefarious actors. If someone can get to your seed phrase, they can steal your Bitcoin or other assets. Your seed phrase is also very important because should your device gets lost, stolen, or destroyed, it will be needed to recover your wallet. Exodus has a wonderful YouTube channel with all kinds of pertinent crypto information.
Here is their “how to” video on how to setup Exodus: https://www.youtube.com/watch?v=vt4qnmV_PTI
Step 2: ACTUAL BITCOIN OR CRYPTO ASSET PURCHASE
Next head to Coinbase — https://www.coinbase.com/
You are going to have to sign up for the exchange and go through their KYC (Know your customer) procedures. You will have to put in government-issued identification. This is standard practice at every centralized crypto asset exchange, so do not be alarmed. It’s for taxation (boo) and anti-money laundering initiatives (yay.) Yes, the gains on your Bitcoin or other crypto asset is subject to capital gains tax, so make sure you are compliant on that issue.
After you are signed up and verified, it is time to make that all-important first purchase. You can make that purchase using a debit card, or actually linking your bank account into Coinbase. It is secure, and no your card and bank information will not get stolen if you practice good internet security protocols.
This transaction is essentially no different than purchasing something off of Amazon or through PayPal. The security levels are the same. You are just buying something way cooler.
Select what asset you would like to purchase and confirm. Congratulations on your first purchase. There are thousands of how to use Coinbase videos out there, so if you would like to watch this process first, please do so.
Step 3: SECURE YOUR PURCHASE AND BITCOIN
Okay, back to Exodus. This is the most critical, and important stage of the buying process. You are going to send your Bitcoin to your Bitcoin wallet in Exodus.
Please slow down and really pay attention to what you are doing. It’s essentially as easy as copy and pasting or scanning a QR code. Again, if you have basic internet knowledge, you can definitely handle this.
There are two wallet addresses inside your Exodus Bitcoin wallet. A send, and a receive. To receive your Bitcoin from Coinbase, you want to use the receive address.
Copy and paste the receive address from your Exodus Bitcoin wallet into the Coinbase’s send address. (SEND — ->RECEIVE)
You can also use the QR code scanning feature.
Double and triple check this step because if you do it wrong, or something is not copied correctly, you will lose your Bitcoin for good. There are no do overs, re-dos, or help line to call and fix your mistake. The blockchain is final and irreversible. This is 100% on you.
Let’s review!
Three basic steps.
Start with Exodus, head to Coinbase, and then back to Exodus.
- Exodus
- Coinbase
- Exodus
If you need any help please reach out to me.
