Purchasing Cryptocurrency
Purchasing and Storing Cryptocurrencies
Before purchasing Bitcoin and other cryptocurrencies it is important to get an understanding of the way your cryptocurrencies will be stored and what you can do to ensure that you alone have access to them. Below I have outlined a brief introduction to private keys and storing cryptocurrencies followed by the easiest ways to purchase Bitcoin and other cryptocurrencies.
Private Keys and Storing Bitcoin
Introduction to Private Keys
While a public address acts as a mailbox that allows you to receive funds, a private key allows you to access those funds. This key serves as a unique digital signature tha . Loss of a private key will result in a loss o t verifies permission to transfer your funds. Loss of a private key will result in a loss of your funds since you will not be able to access them without it. Your private key will be used in the background of most exchanges and hardware wallets but will need to be used to login to a decentralized exchange or recover an account.
Introduction to exchanges and offline wallets
If you have your cryptocurrencies on an exchange either only the exchange has access to your private key or you both do, depending on the exchange. If you have a hardware wallet or have your cryptocurrency on a decentralized exchange then only you have access to your funds via your private key. In a hardware wallet, your private key is held offline in your device which makes it impossible for a hacker to discover your private key unless they physically had the hardware wallet. When using a decentralized exchange (an exchange not governed by any central authority), a private key will be generated as soon as you create an account and it is recommended you copy your private key on paper or somewhere offline where only you have access to it.
Advantages and Disadvantages of Each Storage Option
Centralized exchanges have access to your funds which is convenient to trade and gives the responsibility of handling your funds to them but also has a single point of failure like other centralized organizations. So far in 2019 there have been over 7 hacks of centralized exchanges.
Decentralized exchanges allow for trading various cryptocurrencies easily but also gives you the responsibility over your funds because if you lose your private key you cannot access your funds.
Hardware wallets are one of the most secure ways to store Bitcoin and other cryptocurrencies. Some even allow you to set up a recovery phrase if you lose your device. However, you are still responsible for your own funds and sending funds takes longer since it is offline.
Most centralized exchanges control your private key while decentralized exchanges and hardware wallets allow you to control your private key
Purchasing a Hardware wallet
If you are interested in purchasing a hardware wallet to keep your cryptocurrencies safe I have included some reliable options below. It is best to purchase a hardware wallet from the company directly to ensure that no tampering occurs from a third party. (Note: I would also appreciate it if you click my affiliate links underlined below if you decide to purchase one of these)
– KeepSafe: – Shapeshift.io/keepkey
– Trezor- Trezor.io
– Ledger Nano Series- Ledger.co
Purchasing Cryptocurrencies
*Note: Before purchasing any assets it is important that you do your own research and understand that any investments made are a risk that you accept upon purchase
Below are the three safest and easiest places to purchase Bitcoin and the top cryptocurrencies. To learn more about the exchanges feel free to visit their website and if you decide to sign up for any of them I would appreciate it if you use my referral links.
Robinhood
The easiest way for people to purchase Bitcoin without interacting with cryptocurrency exchanges is through the broker Robinhood. Robinhood was founded in 2013 and only recently added Cryptocurrency (Currently 17 including Bitcoin and Ethereum) to purchase alongside their countless stocks they offer for purchase with no trading fees! Once you have signed up, buying and selling cryptocurrency is as easy as sending funds from your bank to your account and clicking “buy” and “sell”. The downside of using Robinhood is that you do not have the option to send cryptocurrencies to other people but if your main intent is to invest, then Robinhood is cheaper and easier in comparison to current methods. If you would like to receive a free stock for signing up for Robinhood then you may use my referral link by clicking here . (Disclaimer: I also receive a free stock)
Robinhood
Coinbase
The next easiest way for people to purchase Bitcoin is through the exchange Coinbase. It is available to customers in over 100 countries including Australia, Canada, Singapore, the United States, and the United Kingdom (the full list can be found at https://www.coinbase.com/places ). Coinbase was founded in 2012 and is one of the most trusted cryptocurrency exchanges to date. Coinbase gives you the option to link your bank account and debit card. When purchasing bitcoin through Coinbase, using your bank account will give you access to your funds in 3-5 days and charges you a low trading fee while using your debit card to purchase cryptocurrencies will charge you a higher trading fee but will allow your funds to be used immediately. Even though Coinbase is centralized, you may purchase coins here and transfer them to a more secure wallet that you are in control of. Compared to Robinhood, it is more expensive to purchase Bitcoin but if one of your main objectives is to send cryptocurrencies to other people or other exchanges then the additional costs may be worth it. Coinbase also allows for the purchase of Ethereum, Litecoin, Bitcoin Cash, and several other cryptocurrencies which all can be learned on their website where they will pay you up to $130 in cryptocurrencies to do so. If you would like to sign up for a Coinbase account and receive $10 worth of Bitcoin when you spend your first $100 you may use my referral link here . (Disclaimer: I also receive $10)
Coinbase
Abra
Abra was founded in 2014 in California and are the most popular mobile application for purchasing cryptocurrency. They make buying cryptocurrency as easy as connecting your bank account and selecting to “exchange” one currency to another. Although they are a centralized company, they give you a private phrase to recover your funds if you lose the device their app is on. While Abra does not have any upfront trading fees they only allow you to purchase cryptocurrencies at the market value instead of selecting the price you which to purchase them at as in other exchanges. Despite this they currently offer one of the largest selections for purchasing different cryptocurrencies. If you would like to sign up for an account and receive $25 in bitcoin after your first deposit you can use my referral link here.
