Buying Your Bitcoin
Managing your Bitcoin should not be a stressful task.
Not your keys, not your Bitcoin!
Bitcoin is currently the most secure network that exists. There is no vulnerability that will let an actor steal your funds. The only way an actor is able to gain access to your Bitcoin is through your private Key A private key, or, secret key, is a variable that is passed through an algorithm, to encrypt, and decrypt data. The private key is only shared with the person who generates it, which is how it remains private. Note: private keys are only as private as you make them.. On the flip side, a public key The public key is created the same way as pivate key, however, it can be shared without fear of the person receiving it gaining access to your funds. also exists for the sake of requesting or having your funds requested by another person. This is the fundamental philosophy behind the term "Not your keys, not your Bitcoin". If you were to give access to your private key, then all of your funds could be swept in a matter of moments, so always be sure to keep your private keys as safe as possible. Some even go as far as to keep their private keys in a safe deposit box. This is not something that you will need to worry about unless you decided to hold your Bitcoin in your own Bitcoin wallet A bitcoin wallet is a digital wallet that holds your Bitcoin tokens. If you trust your exchange like I do, the funds can be held there, however, it must be noted that there are risks involved with letting an exchange hold your Bitcoin in their custodyThe protective care or guardianship of assets.. Once again for the people in the back Not your keys, not your Bitcoin. It is imperative that this is understood to help manage risk. In a future post I will go over the process of outright owning your Bitcoin, and securing it so that the proof is in your hands. As for now, we need to get some Bitcoin before we can use the network at all.
Buying Bitcoin
With all that in mind you can now begin the process of buying some Bitcoin, and testing out the waters. I suggest checking out Gemini Exchange for all of your Bitcoin, and other DeFi purchases. I have an outline about Gemini available here. Unfortunately, because of regulationsa rule or directive made and maintained by an authority. there are not many places to buy Bitcoin legally. The United States government has still not classified Bitcoin as a security, yet, but a time may come when this is no longer the case. Even the once completely anonymous system LocalBitcoins.com now has a KnowYourCustomer (KYCThe know your customer guidelines in financial services require that professionals make an effort to verify the identity of its' users.) system in place to verify identity. As of now, I can name 4 ways to get Bitcoin, however, all will have some sort of KYC involved, except for the last one.
- Buy bitcoin on a regulated cryptocurrency exchange, like Gemini
- Get a job that pays you in bitcoin.
- Use a bitcoin ATM.
- Becoming a Bitcoin Miner (Major learning curve to overcome)
If you are looking for under the tableSecret, or covert Bitcoin, then I'm sorry, this is not the place to get help.
Bitcoin is starting to be seen for what it truly is; A transparent, digital means of transferring value. It's without saying that any technology can be abused, but Bitcoin is abuse resistant by design. it will endure any amount of abuse that is able to be thrown at it, and it will still weather the storm with grace.
Now that is a lot, just to say buying Bitcoin is something that is becoming mainstream. Days of the old where Bitcoin was viewed as a harmful act, or contributing to harmful businesses will soon be as antiquated as the technologies it looks to replace.
This is a nice list provided by LocalBitcoins.com that shows the different levels of KYC and AML(anti-money laundering) requirements
Buying Bitcoin in 4 easy steps
Now, I'm sure you’re shaking your monitor asking, "HOW DO I BUY BITCOIN JEFF!?” Well, I'm here to go over these 4 easy steps to get started with your Gemini account.
Click on the “Get Started” button in the top right corner, which takes you to a page offering a “Personal Account Registration.”
Sign up for a personal Gemini Account.
Follow the registration steps for submitting personal documentation known as KYC.
To link your bank account on Gemini, a dialog pops up informing you that Gemini uses Plaid to link to your bank.
Click Account > Settings > Funding sources, and link your account with the easy to follow steps.
On Gemini, At the top of the page click Transfer > Deposit into Gemini > Select your currency, and submit the requested amount.
Even though it takes a couple of days for the transaction to settle (i.e. when Gemini receives the funds from your bank you deposited), Gemini makes the funds immediately available, meaning Gemini “advances” you money so you can buy bitcoin immediately. This is why you cannot withdraw funds until the money you deposited from your bank into your Gemini account clears.