Sunday, January 19, 2014

Part 2 - Bitcoin 101: How do I get Bitcoin?

*This is the 2nd post of Bitcoin 101. Read the rest of the posts here

How do I get Bitcoin?

So now you understand Bitcoin, and you have a wallet, and your a probably excited to get some Bitcoin of your own. There are basically two ways to get Bitcoin, either buy some via a Bitcoin Exchange, mine some,  or get some for free. As Bitcoin mining is an topic unto itself, this post focuses on exchanges. I have another page on this blog that lists many sites that will give you a small amount of Bitcoin for free. I recommend you try them. That small amount of Bitcoin may be worth thousands of dollars in a few years!

Bitcoin Exchanges let you purchase Bitcoin with your local fiat currency. There are many exchanges, and some that are more local to specific areas. However, here I will list the most well known and widely used exchanges.

Coinbase is my favorite and the exchange I recommend for beginners. Coinbase allows you to buy Bitcoin directly from your bank account. However, if you are first opening an account, it may take a week for you get your coins. After you account is verified you can buy up to 10 BTC a day instantly. This is how I get the majority of my coins. I also like that coinbase is located and operates legally within the USA. Coinbase has approval if not blessings to operate from the bitcoin foundation and the US government.

Local Bitcoins allows you to find people in your community and buy Bitcoin directly from them.

The Following Bitcoin exchanges are some of the best and are used frequently by Bitcoin traders. Traders are people trying to make more BTC or fiat by riding the volatility in the market. (The Bitcoin market is extremely volatile. I do not recommend actively trading Bitcoin for beginners or people inexperienced with trading financial assets).

Plus500 -  This is a CFD service where you trade CFDs on the price of Bitcoin and other more "traditional" assets with  leverage (up to 1:200). This is not a site for beginners or those inexperienced with trading. If you are serious about trading or are looking to trade more than just Cryptos this is place for you. Risk Warning - on this site, as with any trading site, your capital may be at risk. Unfortunately they do not allow people in the USA to trade here, but they can still profit from their awesome affiliate program

Bitfinex - A bit new in comparison to some other Bitcoin exchanges. Not only does Bitfinex have it's own exchange, it also lets users buy and sell on Bitstamp (see below). Additionally, this is one of the few exchanges where you can trade Bitcoin and Litecoin with leverage (4:1). You can also "lend" your USD, BTC, or LTC at interest. During rallies I have lent USD for as much as 350% APR! This is where I do most of Bitcoin trading. Use this referral code when signing up and get 10% off trading fees cgSJVGkGHV

Bitstamp - Bitstamp is another popular Bitcoin exchange. What makes Bitstamp stand out is that you can deposit and withdraw funds in many ways including SEPA transfer, International Wire, Bitcoin, Astropay, and it is the only exchange that you can deposit and withdraw with Ripple. The verification process here is quick and painless. After submitting the necessary documents I was verified within 24 hours.

BTCe - One of the oldest and most well known exchanges for Bitcoin and other altcoins. Does not have as many alts as other sites but makes up for it in many ways. The exchange is one of the only sites that lets traders leverage BTC and Alts as well as trade Alts directly to USD. Additionally, traders can use the MetaTrader 4 platform on the site for technical analysis and 1:3 leverage. Also well known for their "Troll Box" which is live chat in real time. Never take trading advice from the troll box.

Campbx - In comparison to other Bitcoin trading sites, I like Campbx because they are located in the United States, and have all of the appropriate documentation to operate legally in the United States. Many exchanges have been shut down as a result of lack of proper documentation, or by their local government. Deposit money with wire transfer, money order, or personal check. Will be able to withdraw and deposit with ACH transfer soon. Can sometimes trade with leverage (1:3).They also are one the few exchanges that let you put stops and trailing stops on trades. The only downside is they do not have the volume that some of the other exchanges have. Use this link for 10% off trading fees for life! 

Avatrade - This also is more of a trading site than an exchange. Avatrade is a some what new Forex trading site that also trades Bitcoin. For Bitcoin trading, you can trade with 10:1 leverage. This site is also great for those looking to trade fiat currencies and commodities like Gold. As a bonus use this link and get up to $10,000 for opening an account and depositing money into it! Additionally, Avatrade has one of the best affiliate programs.

Mt.Gox - One of the oldest and most well known. Located in Japan. The exchange rate is usually higher than other exchanges because most people have difficulties withdrawing large amounts of fiat (especially USD) in a timely manner. Historically is not good with customer service, however, more recently they have been improving. Verification can be difficult and take a month or so. The reputation and volume of this exchange makes it great. Mt.Gox is no more.  See my post about it - Gox Insolvent? 


If you are looking to trade other Cryptocurrencies like Litecoin, Peercoin, WorldCoin or Namecoin (just to name a few) you may want to try  Cryptsy Cryptsy is one of the most heavily used Altcoin exchanges. It also has the largest variety of coins to trade. For each trade you or a  that a person who you refereed makes you get "Cryptsy points."  At then end of each day Cryptsy gives 5% of its total profit back to users via Cryptsy points. The more points you have the more you make back. Other Altcoin exchanges are  Vicurex - Bter (use these links on this page for discount on trading fees!). Vicurex is helpful because it gives you interest on desposits of BTC, LTC, WDC, PPC, NVC. However, Bter is one of the few exchanges that has NextCoin NXT

*Part 3 will be coming soon and focuses what you can do with your coins now that you finally have them!

1 comment:

  1. Please add to the overview. A new player with high potential. Thanks.