Can’t find an exchange to buy Bitcoin at?
Intimidated by new “crypto” terminology?
Trying to get in on the craze, but don’t know where to begin?
Many are having the same issues, do don’t feel bad about it. Many have just been introduced to crypto currencies since their recent explosion, and many are confused. You are not alone.
We’re going to make it simple for you to get in on the action by following a few steps. Currently since demand has increased so drastically in the last few months, many exchanges have closed their doors to new registrants due to such a huge explosion in popularity.
We won’t go into “alt-coins” in this post, just how to get Bitcoin and Ethereum, which can then buy you any alt-coin you desire.
ALSO!!! Do NOT be intimidated by the new terms you may hear. This is just like opening up a bank account, or a paypal account. We’ve all done it multiple times, this is just with new terminology that you will understand as crypto gains popularity and becomes more mainstream in the world.
My best advice, get in now while its just starting. Don’t let a few terms you may not fully understand yet, hold you back from the best investment of your life.
So to cut right to it, I’ll show you how to sign up to buy Bitcoin and Ethereum during these hectic times.
Step 1 – Pick an Exchange (similar to opening an bank account)
Head on over to Gemini, a regulated and registered exchange in the United States.
Click register. Once you fill out this information, an activation email will be sent to your email address. Click on that link to confirm, and you will be routed to the next step.
Step 2 – Verify Identity
You should see this next screen.
It is actually very strait forward from here. It may seem like a lot of steps, but once they are done you never have to deal with these again.
You will need to upload a drivers license or passport so get your scanner ready. This is to prevent fraud and also since crypto currencies are regulated by the IRS in the United States, this is necessary since it is basically the same as opening a bank account. Think of this AS a bank account for your crypto currency.
Step 3 – Deposit Cash
Once the steps are completed, it might take 24 hours or so for the Gemini team to review your documents and verify your account. Once that is completed, you can immediately deposit cash.
A good reason for Gemini, is that when you deposit cash, the funds are immediately available for purchasing Bitcoin or Ethereum, whereas on other exchanges, the funds are held for 4-5 days before being made available for trading.
Once the cash is deposited, it will be available for trade immediately. (Although you will have to wait the 5 days to withdraw the funds, whether in Bitcoin, Ethereum, or in USD back into your bank account.)
Step 4 – Buy Bitcoin
Once deposited, go to the menu and hover over ‘Buy’
This will bring to you the trading screen. DO NOT BE INTIMIDATED!!!!!
This is simple stuff here although it might seem scary at first. If you’ve ever traded stocks or mutual funds at TDAmeritrade, Fidelity, Robinhood, or other stock exchange platforms, then you will have no problem here.
If you have not done any of the above, trust me its simple stuff, just takes a little understanding.
Lets look at the screen for a second. Inside the red square below is the order book. These are the current orders from other buyers and sellers. In the middle is the current price. This chart generally shows the supply/demand for the currency.
On the right is the order form.
We will walk through each field to make sure you purchase the correct currency, at the right price.
Currency Pair: This field selects the currencies you would like to exchange. We currently have it set for BTC/USD. Which means we will be buying Bitcoin with US Dollars. You can also select ETH/USD to buy Ethereum with USD. or even exchange BTC/ETH if you want to buy Ethereum with your Bitcoin, or vice versa.
Order Type: This one might be confusing to a new trader. There are a few options here. Market orders and Limit orders are most commonly used so for simplicity sake, we will stick with those for now.
Market order: A market order is a “Buy it Now” order which means as soon as you submit the Order button, it will buy at the current market price. I suggest this type of order if you are just beginning and need some Bitcoin asap.
Limit order definition from Investopedia.com : A limit order is a take-profit order placed with a bank or brokerage to buy or sell a set amount of a financial instrument at a specified price or better; because a limit order is not a market order, it may not be executed if the price set by the investor cannot be met during the period of time in which the order is left open. Limit orders also allow an investor to limit the length of time an order can be outstanding before being canceled.
*Investopedia. Read more: Limit Order https://www.investopedia.com/terms/l/limitorder.asp#ixzz547BsJVTx
Why use a limit order? If Bitcoin is currently at 18k, and you want to buy at 14k, set the limit order at 14k, and if Bitcoin drops to that level, your order will automatically purchase the coins at that price, so you can pay less attention to the price.
Quantity: This line is obvious. The quantity of Bitcoin you’d like to purchase. Don’t try and calculate how much you can buy with your USD. Simply type in the amount of USD you’d like to spend and it will automatically calculate the rest.
Fee: Obvious… you pay a fee for the exchange.
Total: The price you pay for the trade.
Once you feel you have a good trade, Click Buy.
Congrats!!! You are now a proud owner of Bitcoin!!!
Step 5 (optional) – Donate!
If this step by step instruction helped you, don’t forget to donate some BTC 🙂 I’d greatly appreciate it.
BTC – 1Gxpb1JxHrDWpMNm2hLNJyUMpPHiTEJkw2
ETH – 0x58FA592D3FaA19D404878A8CA182Ad9Ac1C10046