Bitcoin Buying Guide
Updated: Dec 17, 2020
So you have decided to buy some Bitcoin. It can be a scary and daunting task. What's a Crypto currency? I can't physically see what I am buying! Fret not, by following these steps make it safe and secure. Lets break it down to steps you need to do BEFORE buying Bitcoin. A detailed video by Crypto Casey is below and worth a view. The below steps are essentially a summary of her work. A link to her youtube video is below for your reference
Before Buying Bitcoin
There are no fail safes to protect you from user error or hackers. So make sure to follow these steps carefully. Can't stress this point enough
Step 1 – Get a cold storage hardware wallet to store your bitcoin offline (Should be step 1)
Never, never, never, NEVER leave your bitcoin stored on an exchange. If you buy a stock you keep your stocks on the trading platform (like a questrade), right? Well not for Bitcoin! With Bitcoin you put your money into the trading account (such as a Bitbuy.ca (explained later)), purchase the Bitcoin (same day) and then before you log out, REMOVE your bitcoin from the exchange and store the coins on your cold storage device. These devices store the keys to your crypto currency offline, away from hackers! The two most popular wallets out there are made by Ledger and Trezor. My personal favourite is the Ledger Nano X. It will take a few days for your device to be delivered. Once it arrives, the setup instructions for the Ledger Nano X device are located below in Step 2.
You can order the Ledger Nano X (or Nano S) directly from their website with the link below.
Step 2 - Setting up your Ledger Nano X
The Ledger Nano X costs approximately $160.00, but it is worth the expense to keep your Bitcoin safe from hackers. To set it up
Step 3 ‐ Purchase a Pen and 2 Notebooks: Bitcoin is a digital access, but to help prevent against hackers your Bitcoin will be stored ‘Offline’ on something called a ‘Cold Storage Device’. All of your login information and passwords will be in the paper notebooks. No passwords on any technological device that has access to the internet. No no no! Store 1 notebook in your house somewhere safe and store another notebook at your parents or friends house.
Make sure your passwords are very long and complicated. You don’t need to remember your passwords as they will be stored in your notebooks. Never rely on just 1 password. I would make different passwords for different sites.
Step 3 – Upgrade the password to access your computer and make sure that you have no malware on your computer. Suggested companies such as Malware Bites to download and run a quick scan. and put a password on your phone.
Step 4 – Remove your cell phone number from any mention of the internet. If you have your phone # on the internet use a phone number or remove the phone number from the internet. Also make sure that you have a passcode or passphrase on your cell phone provider before your phone provider will authorize a new sim card.
Step 5 – Create a brand new email address that has no mention of any of your nicknames or usernames anywhere else. Suggest protonmail to create the account. NOTE: Make sure to record your username and password in both copies of your notebooks.
Step 6 – Download 2‐factor authentication. (Google Authenticator and Authy). Download these apps on your phone. Make sure to put your new proton mail email address to verify the Authy and Google Authenticator accounts. NOTE: Make sure to record your Authy PIN in your Noteback as well as your Authy backup password. Disable the allow multiple device section in Authy. For google Authenticator you will need a gmail account. Download the app and set up the app. Go to the internet browser and enter HTTPS://MYACCOUNT.GOOLGE.COM/SECURITY. Scroll down and start the 2 step verification section.
Go back to Proton Mail, choose settings and then the security tab and enable 2 factor authentification, then click next. Go to Authy and click add account and then click scan qrcode. Hold your phone up to your computer to scan the barcode. Next Proton mail will provide you with a 1 time recovery codes, make sure to write these down on your computer notebooks.
Step 8 – Record detailed notes for how to access and cash out your wallet (should something happen to you).
BUYING CRYPTO CURRNECIES ( IDEALLY BITCOIN)
Step 1 – Find a Trading Platform: Similar to a Questrade or Wealthsimple or Itrade are for stocks, you need to locate a trading platform for Crypto. Coinbase is very popular and reputable for US cash. Bitbuy is in Canada and is a good exchange with active customer service. Also Coinberry, Gemini or Shakepay. I personally use Bitbuy and like it. Easy to use and have never had an issue.
Step 2 – Click on the Bitbuy Page
Step 3 – Create an account using your proton mail email address (or a newly created Gmail address). Create a new long complex password and write this down in your notebook. Login to your protonmail to verify the email address. Once signed in, enter your phone number (the one you chose above that isn’t accessed on the internet).
Step 4 – Enter tour verifications (basic details). If you are verified great! If you aren’t you may need to submit additional documents.
Step 5‐ Add a 2 step verification for Bitbuy
Step 6 ‐ Add funds to your account.
Step 7 – Once your balance is in the account you can begin a trade. You can either buy and sell Bitcoin with cash, or you can deposit or withdraw Bitcoin (from the trading platform to/from your cold storage device.
Step 8 – If you are buying go to buy bitcoin tab, and then enter the amount of bitcoin you want to purchase. Once the transaction is complete. Click on the 3 dots and go to withdraw. Withdraw your bitcoin to your cold storage device password.