Bitcoin Beginners Guide / Crypto Beginners Guide: Buy Cryptocurrency with PayPal / Buy Bitcoin with PayPal / Best Way to Buy Bitcoin Safely Without a Credit Card or PayPal And More
Bitcoin Beginners Guide / Crypto Beginners Guide
[Last Updated: December 21, 2017]
Are you new to the crypto space?
If yes, then you will most likely find this crypto beginners guide (Bitcoin beginners guide) of immense value.
This guide is packed with information based on extensive, multi-year personal experience within the space. It aims to make your venture into this space as user friendly, cost-effective and risk free as possible.
We paid the ‘school fees’ so that you don’t have to. Learn from our experiences.
We offer this information free of charge. Here is a real opportunity to empower yourself:
1. Introduction to Cryptocurrency by Tommy World Power.
2. Crypto Storage – How to Store Your Bitcoin and Other Cryptos Conveniently and Securely.
3. Best Way to Buy Bitcoin (BTC) or Other Cryptos Safely Without a Credit Card or PayPal.
4. Best Way to Buy Bitcoin or Other Cryptos Safely With a Credit Card.
5. How to Cash Out (Convert the Cryptos to Fiat Currency or Government Legal Tender).
6. Other Useful Information, including how to research ICOs (Initial Coin Offerings) in the crypto space, how to avoid phishing scams in the crypto space, Bitcoin and The Blockchain Technology and more.
1. Introduction to Cryptocurrency
Source of Video: Tommy World Power
2. Crypto Storage – How to Store Your Bitcoin and Other Cryptos Conveniently and Securely
Do not store your private keys – the keys needed to access your coins and/or tokens – on a local machine (e.g. your computer). In addition, do not trust third parties (e.g. crypto exchanges) with your private keys – just like you would not trust a third party with the pin number of your debit card. The safest and most convenient storage option in our experience is to use a Bitcoin hardware wallet such as a Trezor wallet.
Another great option is to buy and use a Ledger Nano S. We have no experience in the use of the latter, but it is also said to be safe and convenient to use.
If you cannot afford to buy a crypto hardware wallet from the outset – like the case is with most of us at the beginning, then we recommend you learn how to safely use crypto wallets without a hardware wallet.
E.g. MyEtherWallet is a free, open-source, client-side interface for generating Ethereum wallets and more. Wallets created via this interface can be used to store Ethereum (ETH) and ERC20 tokens – a token standard used for Ethereum smart contracts.
Do not store your crypto tokens on the exchanges – it is equal to giving the pin to your debit card to a third party. It is best to take the time to learn how to store your cryptos in a safer, more reliable manner.
P.S. We have probably mentioned the part in red above a gazillion times (and will continue to do so), because it is of immense importance. The aim of cryptos is after all to empower yourself – not to become a victim and certainly not to remain a slave!
Source of Video: Nugget’s News Australia
Source of Video: Cryptochron
3. Best Way to Buy Bitcoin (BTC) or Other Cryptos Safely Without a Credit Card or PayPal
In our experience, both offer a fast and secure way to convert Bitcoin into cash that can be paid into your bank account or to buy Bitcoins that can be stored in your Bitcoin wallet. This while you have the option with LocalBitcoins.com to shop around for the best rate acceptable to you. LocalBitcoins.com is a great choice, especially if you wish to buy or sell Bitcoin from a location outside of the United States.
The golden rule with LocalBitcoins.com is to always make sure that the buyer pays via ETF and to check your bank account for cleared funds before releasing the BTC out of escrow. Don’t go on proof of payment alone or you will get burned.
If you want to buy Bitcoins via LocalBitcoins.com, never offer to pay in cash or to meet strangers you don’t know in person! It is best if you’re serious about your personal safety and that of your loved ones.
In terms of Luno.com, if you sign up for an account here, both you and us will receive x amount in Bitcoin extra beyond a certain limit. Luno.com is is a great choice, especially if you are outside of the United States in countries such as Indonesia, Malaysia, Nigeria, South Africa, the United Kingdom and many other European countries.
4. Best Way to Buy Bitcoin or Other Cryptos Safely With a Credit Card
Despite the higher fees attached to buying cryptocurrency or Bitcoins with PayPal, it is a relatively safe and convenient means to use if you wish to pay with a credit card.
In addition to the high costs associated with such transactions and/or PayPal transactions, transaction and/or deposit limits can fast become a reality when payment is made via PayPal.
One can of course choose to see these limits in either a positive or negative light.
It is positive in the sense that it can limit one’s spending or help one to keep within one’s budget. However, it can be seen as negative when it limits one’s ability to fully utilize money or credit at a specific point in time.
Due to its changing nature, we don’t intend to list the specific fees and Terms & Conditions associated with each option.
Here are options to buy cryptocurrency with PayPal (or a credit card) that we deem safe based on personal, long-term experience:
1. Create an account at VirWorx.
2. Deposit USD via PayPal into your VirWorx account. We recommend a $100 minimum (see below in the comments section).
3. Convert the USD to SLL (Linden Dollars) and then convert the SLL to BTC (Bitcoin). The BTC can now be withdrawn to your Bitcoin wallet.
Alternatively, if you wish to convert it into other cryptocurrency, you might want to continue following the steps below…
4. Now transfer the BTC to the cryptocurrency exchange of your choice, preferably to a decentralized exchange such as EtherDelta (ED).
Pro Tip: Always create and use new wallets when trading at EtherDelta (ED). Always use MetaMask to create new wallets and to interact with ED. Once you’re done trading, move the tokens to more secure wallets. Never use a wallet more than once for trading at ED. In addition, only trade a small number of tokens at a time – not more than you’re willing to lose.
As a last resort, the centralized crypto exchanges we recommend include: Kraken, CEX.IO and Bittrex. Gemini is an excellent choice for folks in the States who wish to transact in BTC in a hassle-free manner, especially when it comes to converting BTC to USD and transferring the proceeds into a US-based bank account. Understand that you deal with these exchanges at your own risk. Do not store your cryptos on any of them – use a Trezor wallet for storage.
Avoid Poloniex like the plague itself. This is why!
Extremely Important: Do not store your private keys – the keys needed to access your coins and/or tokens – on a local machine (e.g. your computer). Do not trust third parties (e.g. crypto exchanges) with your private keys. The safest and most convenient storage option in our experience is to use a Trezor wallet.
5. Now you can exchange the BTC for the cryptocurrency or token of your choice.
6. After the exchange, you have the option to keep your cryptocurrency at the exchange or to withdraw or transfer it into your local cryptocurrency wallet(s).
We recommend keeping only a tiny portion at an exchange at any given time. You want to trade and get your funds out as soon as possible. This is due to the risk of theft or fraud, but it is entirely up to you.
If you have never heard of Mt. Gox or Cryptsy, be sure to google it. It is better to be safe than sorry.
5. How to Cash Out (Convert the Cryptos to Fiat Currency – Government Legal Tender)
When you wish to cash out, you just do the above process in reverse (except where the registration of accounts is involved). However, it can be an expensive exercise.
We recommend using LocalBitcoins.com or Luno.com when you wish to convert your BTC into Fiat Currency. You will get competitive rates and it count among the fastest and cheapest ways to get money into your bank account.
The golden rule with LocalBitcoins.com is to always make sure that the buyer pays via ETF and to check your bank account for cleared funds before releasing the BTC out of escrow. Don’t go on proof of payment alone or you will get burned!
You also have the option to buy cryptocurrency or Bitcoins directly at online market places such as eBay with PayPal.
However, expect on average to heavily overpay in terms of the price you pay per unit (compared to prices elsewhere in the market, especially at the crypto exchanges).
6. Other Useful Information
Due Diligence, Education and Experience go a long way in the Crypto World!