How To Easily Get Bitcoin

[2021 Update]

This page was first published in 2017. The step by step process to getting Bitcoin is still the same. 

 

First, think about Bitcoin as a foreign currency that you need when traveling out of your country. If you are American, think of it as if you were going to Europe and you needed to turn your dollars into Euros.

That is what you’re doing here – turning dollars into Bitcoin. 

Coinbase.com

Coinbase.com is an exchange where you can turn your dollars into bitcoins.

The first question you may have is: Is Coinbase.com safe?

Yes. Coinbase.com is the most popular place where you can turn your dollars into Bitcoins. Coinbase.com is one of only a few companies that are officially registered as a money services business with the U.S. government. The U.S. government requires all money services businesses, most notably banks, to go through a very difficult registration process.

That is why I trust Coinbase.com, and I have never had a problem with the site.

Additionally, in 2021, Coinbase.com is probably going to get listed as a public company on the NYSE or NASDAQ. 

 

1. Go to Coinbase.com here: Coinbase.com

After you click this link your screen will show:

 

2. Fill out the sign-up form.

After you fill out your information and press the “sign up” button, you will see:

 

3. Go to your email account and find the email from Coinbase.

 

Open your email and you will see:

 

4. Press “Verify Email Address” then go back to coinbase.com

When you go back to coinbase.com, you will see:

 

5. Select your state.

Tip: If possible, make sure your selected state matches up with your bank account or credit card records.

After selecting the state, you will see:

 

 

6. Next, you need to add your phone number.

Press the “add your phone number” section, and you will see:

Tip: Have your phone nearby.

 

Put your phone number in and press send. Within a few seconds, a seven digit code will appear in a text message on your phone. For example, you will see:

 

7. Next, you need to add a payment method.

Press the “add a payment method” section, and you will see:

As you can see, you will have 3 different options when adding an account. Pick whichever source you like, however, keep in mind a few things.

[UPDATE 2021]: You can fund your account (get dollars from these places) with,

Bank Account

Debit Card (No longer Credit Cards)

Paypal

Wire Transfer

 

Bank Account

Positive: You can exchange higher amounts of money for Bitcoins than if you use a debit card. Presently, my limit is $2,500.00 per week. In contrast, if you use a debit card, the limit may be as low as $500.00

Negative: The first time you turn your dollars into bitcoins the transaction can take up to 5-7 days to clear.

The delay is because, as stated above, Coinbase.com is an officially registered money transmitter. As a registered money transmitter, Coinbase.com must strictly comply with strict AML laws (Anti-money laundering laws), and KYC laws (Know Your Customer laws). That is why there is such a delay.

 

Tip: After a few days, two small deposits will show up in your bank account. You will be asked to type those two deposit amounts into fields in the coinbase.com site.  Then your bank account will be linked.

Note: Of the three options, I use my bank account.

Debit Card

Positive: You can fund your account immediately.

Negative: You can only transfer small amounts. Also, a problem with debit cards is that the information you put in must be exactly how it shows on your card records. For example, it will not work if you write “Rd. instead of Road,” if “Road” is what’s on your debit card documents.

 

8.  You now own Bitcoins

You now have the option of holding your Bitcoins as they hopefully appreciate. Or, you can use Bitcoins to make purchases or to send money to people in other countries.

 

9.  Storing your Bitcoins

[UPDATE 2021] 

In 2017, it was advisable to move your Bitcoin from Coinbase.com to an online wallet. Moreover, it is still best practice to store your Bitcoins in a cold storage wallet. If you want to do this, Ledger is the most popular cold storage method. 

With that said, I now leave my Bitcoin on Coinbase.com. It is much safer than it was 3 years ago, and now Coinbase even has insurance. Read more here: Security

But you make your own judgment.

Below, is what I said and did back in 2017 for your information. 

 

After you have bitcoins, you should get an “online wallet.”

Note: When you buy something off the internet using Bitcoin, the Bitcoins come out of your “wallet,” not the exchange you used for converting dollars to Bitcoins.

Tip: You should not keep your Bitcoins on an exchange like Coinbase.com because exchanges have collapsed in the past.

One of the worst days in Bitcoin and cryptocurrency history was the closing of an exchange called Mt. Gox in 2014. If you’re interested in learning more about Mt. Gox see: https://en.wikipedia.org/wiki/Mt._Gox

The bitcoin wallet I use is blockchain.info

I discovered blockchain.info on a popular Bitcoin and Cryptocurrency Podcast called; Unchained: Big Ideas From The World of Blockchain and Cryptocurrency. The creator and moderator of the Podcast is a writer for Forbes Magazine.

The Unchained Podcast is the best resource to learn about Bitcoin.

It is very simple to move Bitcoins from your Coinbase.com account to a blockchain.info wallet. Simply follow the instruction on the blockchain.info website. 

 

Get Bitcoin Here: Coinbase.com