How To Buy Bitcoin

Recently, a handful of people have come to me with the same question:

"How do I buy Bitcoins?"

There's been a lot of hype around Bitcoin this month due to some incredibly bullish price action, the upcoming block reward "halving", and rising concerns about the health of the global economy.

People are looking for safe havens to store their assets during tumultuous market conditions. Just like when investors flock to gold during times of market uncertainty, cryptocurrencies are now gaining popularity as a safe store of value.

Here's my 5 step action plan about how to buy and store your Bitcoins. The process may seem daunting at first but it's just like opening a bank account.. only easier... and there's no bank.

Step 1: Get yourself a Bitcoin Wallet

Picking a wallet is the first (and most essential) step to buy and selling Bitcoins. Forget all you know about traditional banks, with Bitcoin YOU are your own bank.

It is imperative to pick a solid wallet because if your wallet gets hacked or you forget/lose your private key then your Bitcoins will be lost, and you'll have no one to blame but yourself.

Set a strong password and make sure you save your recovery info in a safe place.

I use Blockchain.info as my wallet because it's safe, reliable, and easy to use. I also used several others, some of which are still operational, and some not so much.

Blockchain.info is a good place to start because they are also a hub for all blockchain information so you can watch transactions as they happen and learn more about how it all works.

The downside to Blockchain.info is that you're still not technically 100% in control of your coins since you're trusting a third-party to be your wallet. For many people this defeats the whole purpose of owning Bitcoin.

If that person is you, I would recommend you download the Bitcoin Core wallet or MultiBit HD.

Both give you complete control over your coins and are easy to use. However, if you go with the Bitcoin Core then be prepared to have up to 65GB of hard disk space to download the blockchain.

The wallets are only as secure as your computer so make sure you have malware protection.
A full list of available Bitcoin wallets can be found at the Bitcoin.org website.

Step #2: Open An Account with a Bitcoin Exchange

There are plenty of exchanges to choose from and it really comes down to your preference. Make sure you do your due diligence before choosing an exchange because there have been issues in the past where customers lost millions due to fraudulent exchanges.

If you live in Canada I would recommend QuadrigaCX.com as your first exchange because they offer great customer support, ease of use, and top-notch balance protection. There is always plenty of bitcoin available to be bought or sold and the spread is pretty tight.

QuadrigaCX is based out of Vancouver, BC and they offer instant Interac Online deposits plus a multitude of other methods to get your account funded. However, you do need to verify your account to access all the deposit features. Click the picture to go to the Quadriga exchange.

Step #3: Fund Your Trading Account

You must complete two steps that will allow you fund your account if you go with QuadrigaCX.

Step 1: Verify your account using either ID & address verification or through an Equifax instant verification.

Step 2: Use one of the following deposit methods to fund your account.

Step #4: Buy Your First Bitcoins

Once your account has been verified and funded you will be able to buy your first Bitcoins. If you decide to use QuadrigaCX there are two different way to buy and sell coins.

The first is a straight market order. You input how many Canadian dollars you want to use and then push the "Buy" button. Your purchase will be executed at market price. 

The advantage of market order is your order will be executed immediately. However, you will not be able to choose your exact entry point into the market.

If you want have more control over the exact price you want to purchase your Bitcoin choose the "Trade" tab and you will have complete control over your purchase price. Although if you choose a price below market your order will not execute immediately. 

Once the price drop to your price point your order will execute.

Step #5: Transfer Your Bitcoin to Your Wallet

This is an important step because one of the defining features of Bitcoin is that it allows you to be in complete control of your coins. 

Your wallet is like your bank account only without the bank.

It is important to keep any Bitcoin you are not actively buying or selling in a secure wallet. DO NOT leave it in an exchange account because anything could happen to that exchange which is completely out of your control. You could lose all your Bitcoins.

If you are using QuadrigaCX then follow this simple process to transfer your coins to your personal wallet.

Step 1: Go to your Bitcoin wallet and find your wallet address.

If you used Blockchain.info your wallet address will be generated by clicking the "Receive" button on the dashboard. 

Copy the address the pops up onto your clipboard so you can paste it into the withdraw form on QuadrigaCX.

Step #2: Choose the "withdraw" Bitcoin option on your QuadrigaCX dashboard.

Enter the amount you wish to withdraw and paste your wallet address into the "Address" field on the withdraw form. Click "Submit". 

The transaction should be completed almost immediately and your coins should show up in your wallet.


Once your Bitcoins have been deposited into your wallet you can sit back with a smile knowing you are now a Bitcoin holder. 

However, the Bitcoin market never closes so make sure you understand the price could fluctuate significantly even while you sleep.

Three good sites that allow you to easily keep tabs on the price of your Bitcoins are:

Bitcoinwisdom.com
Cryptowat.ch
Preev.com

Finally, since you are now a Bitcoin owner you should learn as much as you can about this amazing technology. A good place to start is CoinDesk for all cryptocurrency news.

Thanks for reading and feel free to ask question or comment below!