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Buy Crypto Safely!

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  1. Definitions and Key Concepts
    1 Quiz
  2. Intro to Buying Bitcoin
    1 Quiz
  3. Buy Bitcoin WITHOUT a Bank Account
    2 Chapters
    |
    1 Quiz
  4. Buy Bitcoin WITH a Bank Account
    3 Chapters
    |
    1 Quiz

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Buy Crypto Safely! Intro to Buying Bitcoin
Lesson 2 of 4
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Intro to Buying Bitcoin

Did you know that as of January 2022 there are over 16,500 different cryptocurrencies! This includes crypto coins and crypto tokens, and over 450 crypto exchanges?! How do you decide which ones to buy and where to buy them?

To keep it simple, I highly recommend starting with the most popular, blue chip, cryptocurrencies like Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), and Litecoin (LTC). These are all in the top 10 cryptocurrencies as ranked by CoinMarketCap.

CoinMarketCap

Usually when I tell people new to crypto to buy bitcoin, they tell me “I can’t afford it. It’s too expensive!” While it is true the price of bitcoin is high compared to its historical price, in my opinion, it will go much higher eventually.

I first bought BTC at $250 in 2016 and sold it around $1,500. I had no idea that it would eventually be worth $10,000. I thought $1,500 was expensive that’s why I sold it. Now I wish I had kept it. If you can time it right, it’s always best to buy crypto assets on a dip rather than when they’re climbing high, especially if you’re a trader or investor. But if you want to use crypto like a currency then any time might be a good time to buy.

Bitcoin Decimals

Some Definitions

So, let’s get back to the concern many new people have that bitcoin is too expensive to buy. I remind people that cryptocurrencies are divisible up to 8 digits, so you can buy a very small amount at a time. You don’t have to buy a whole coin. Let me explain:

The unit of account of the Bitcoin blockchain is a bitcoin. In other words bitcoins are currency created by the blockchain and one bitcoin is one unit. Ticker symbols used to represent bitcoin are BTC and XBT. Its Unicode character is ₿. A satoshi is the smallest unit of bitcoin which equals 0.00000001 bitcoin or $0.0001 USD. You can use a crypto converter calculator to convert any crypto into your local currency.

So, based on today’s price (6/1/2020) of about $10,000 per BTC:

  • If I spend $10, I will buy 0.001 BTC
  • If I spend $100, I will buy 0.01 BTC
  • If I spend $1,000, I will buy 0.1 BTC
Cryptocoin converter

Okay, now that you’re ready to buy crypto, I always recommend starting with bitcoin. Many people think of owning bitcoin like owning gold. It’s a great store of value. You can spend it or hold it depending on your needs.

OK let’s get started on how to buy bitcoin. In the following lessons you will learn two methods:

  1. Buy crypto without a bank account
  2. Buy crypto with a bank account

NOTE: This course will get you started with the basics on how to buy crypto, but where you choose to buy your crypto greatly depends on your personal situation. Choose the one that best fits your needs. Want some help? Try asking other members. We are here to help each other.

Resources

Great website for finding where to buy bitcoin worldwide
https://www.buybitcoinworldwide.com/

Guide for learning the difference between a coin and a token
https://www.bitdegree.org/tutorials/token-vs-coin/

CoinMarketCap is the world’s most-referenced price-tracking website for crypto assets.
https://coinmarketcap.com/

Cryptocurrency Converter Calculator
https://coinmarketcap.com/converter/

Lesson Content