Some random dude's guide to buying bitcoin for the first time

I heard about Bitcoin some time in 2012 when it was around $5 each. I wanted to buy some but was too afraid as I didn't totally understand the concept of Bitcoin and the sites I found at the time seemed sketchy to me.

Fast forward to a few weeks ago as I start hearing about Bitcoin again and it was at $40 each! I had to buy some and I did! It was fast, easy and painless!

Some analysts predict Bitcoin will go up to $100,000 to $1,000,000 each 0_0 So it couldn't hurt to buy a few now while we can afford it!

I won't pretend to understand everything about Bitcoin- I just think its an awesome concept- I like what it stands for AND I don't want to miss the boat ^_^



1) BUYING THEM

I bought my first Bitcoin's from LOCALBITCOINS.COM

It's international. You remain anonymous and can use cash.

Go to the site and find someone in your area- check out their rating and feedback score- use your internet spider senses you've honed from your Ebay and Amazon.com buying experiences and choose a legit seller-arrange to meet them and pay in cash.

Here's how it works- Localbitcoins gives you both a code- when you meet you show each other the code so you both know you have the right person- then pay them the cash and they'll transfer the bitcoins to you right there with their phone or laptop.

The coins will go into your localbitcoins.com wallet- once they are there you can transfer them anywhere you want.

Now I buy my Bitcoin's from Bitfloor.com

Bitfloor is also a really fast and easy way to buy Bitcoin

Here's how it works- Create an account on bitfloor.com. Create a "deposit" for as much cash as you'd like to be able to buy Bitcoin with. Print out the deposit instructions and take them to a Bank of America with the exact amount of cash per the instructions. Hand the print out and cash over to the teller and they'll fill it out for you.

Log back into bitfloor.com and your money will be there- go into the "trade" section- and use your now  available funds to buy Bitcoin- its took less than 5 minutes for my transaction to go through. Now you can send the Bitcoins from bitfloor.com to your wallet.

2) Where to keep them?

The most secure place would be to keep them offline in the form of a "paper wallet" which is a printout of a QR code and a password-like keycode to access them. But don't lose or destroy that paper or the code or your bitcoin's are bye bye! You export a paper wallet from your online digital wallet.

The dealer I bought them from, who is very experienced btw- recommended blockchain.info as a wallet so that's what I did. He also recommended I use 2 step verification with Google Authenticator with blockchain as well. It takes 5 minutes to setup and makes you feel like your some secret agent ^_^

You can also export your blockchain wallet as a paper wallet in case the site vanishes or something. I did some googling as well and it seems blockchain is legit. I'm loving it so far!

3) What is a wallet? Paper wallet?!

You keep your coins in a "wallet" which can be digital or paper- think of it like being paid in dollars through direct deposit and then using your debit card to spend money- you never see your physical cash- you're just dealing with numbers. So your digital "wallet" is like that- your dealing with numbers and thats a way you can store your bitcoins. 

You can also use a "paper wallet" which would be like taking your physical cash out of the bank and keeping it under your bed. With Bitcoin a paper wallet is a QR code you can printout AND a keycode you can also print out.

This is what confused me- you can export your Bitcoin wallet to a "paper wallet" but the Bitcoins remain in your balance- once you exported your paper wallet you now can access them through your paper wallet so you can now DELETE your "digital" wallet.

If you want to put your Bitcoins back in a digital wallet you would simply create another wallet through one of many website or use a bitcoin client program and import them by scanning the QR code and inputting the key.

So you can have as many wallets as you like- where ever you'd like- and you can send your bitcoins to and fro any of them as you please. 

4) Buying stuff with bitcoins?

More and more sites are popping up everyday selling goods and services with bitcoins and major sites like Reddit are starting to adopt bitcoin as a form of payment. If you just want to hold on to them as an investment you can do that too.

Btw: I'm actually an independent animated filmmaker and you can buy my film with bitcoins see!
I'm using bitpay.com- apply for a merchant account if you want to sell your stuff and accept bitcoin as well! I hope it replaces Paypal myself!

If you found this article helpful in buying your first bitcoins please consider leaving a bitcoin donation with the button at the top right of this site or buying my movie ^_^ Thanks!

Again, I'm not claiming to be some expert- I'm just excited about Bitcoin and have had a good experience so far and I want to do what I can to help some other people buy their first Bitcoins as well!

 I hope his was helpful and I hope bitcoin helps make the world a better BANKSTER free place ^_^

Comments

  1. speaking of reddit ..... http://www.reddit.com/r/mdotstrange/

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  2. I got a bit enthusiastic and bought some 0.bitcoin to play with, ^__^ but also I've been reading a lot of somethingawful threads about bitcoin, buttcoin.org etc. for 'balance' of sorts.

    It's interesting and probably important in various ways, but also a trainwreck of hilarious dramaz and mindbogglingly unwise-looking financial dealings. <{^u^;}

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