Buying your first Bits-of-Coinage -BitCoin, That is

You've gotta "commit" ... SOME... TIME...

In Cryptography We Trust
In Cryptography We Trust

There's a video link at the end of this article- stepping thru it all

Introduction to the basics. Wallet, Coindesk, Link-Account, BUY

Buying your first Bit-Coinage? I have reasons for doing most of what I do here in a demo. I've seen some videos that are simply horrible out on the web. But, I've been listening very VERY closely to Andreas Antonopoulos (the writer of the book "HOW TO MASTER BIT-COIN")- And there are reasons that, though you may buy your coin from Coindesk, you may not KEEP IT WITH THEM, nor continue to use the wallet they provide you... but that is truly another matter. So, even my choice of wallet does have a reason. I actually hope to cover several deeper details later. This is just an introduction to the basic act of committing to the "buy" of BitCoin.

But this is just to give you all an idea how to go about this and what to expect while doing it. First of all it's got to be easy for a new person to use, yet be fully functional. So, here we go.

I take you from the basic install of the Wallet, an overview of wallet basic function. Setting up a CoinDesk account, linking your bank account, and buying BitCoin.

Some of the "Early" techno-geeks are "ALL IN". NO CASH at all.

Some of the more "balanced" geeks, have mixed portfolio's, half-BTC and "half" some other (derived) asset in the American Market... (like 'normal' people may have). And some people have only a little of the digital currency, and primarily traditional stock. But before you go listening to all the Bit-Coin "naysayers". You need to fully realize that people who "trade the dollar" realize that the dollar itself is actually quite "unstable", considering how "mature" and "soundly based" it is.

PARDON ME while I go laugh hysterically. I'll be right back.

(-gotta find that deed to a bridge I purchased a while back.)

...Ok.

I'm back. Go download multi-bit wallet and install the thing. Look at my video if it will help you. I go over the whole basic setup and buy of Bit-Coin (quickly).



First go to MultiBit.org and download the windows installtion

This will allow you to install a "WALLET" for your digital currency.  You can read more about it from it's help files.  But my video shows you the basic install.  Accepting the defaults is fine.
This will allow you to install a "WALLET" for your digital currency. You can read more about it from it's help files. But my video shows you the basic install. Accepting the defaults is fine.

You actually don't NEED a wallet (immediately) to buy BitCoin

That's because you won't officially receive the BitCoin till a few days later.

I made this purchase today (February 12) I won't take "physical" possession of my digital currency till the 19th. ...Wait a minit...

...is it POSSIBLE to "physically" possess digital currency?

YES... Yes, it is. I will have it on the 19th. But I "own" it right now. It's on record on the Block-Chain, so it's official. By that? What I mean is it is a matter of public record. The Block Chain is part of the technology behind the BitCoin, public ledger system. The purchase was transmitted INSTANTLY across the entire BitCoin network. And with the Bit-Coin network each and every processing node of the network "knew" of my recent purchase within 10 minutes of me clicking the "BUY" button. So it is "backed up"... EVERYWHERE.

Nuclear BOMBS could take out most of the BitCoin network, and every node surviving that blast would "know" about my purchase. And BitCoin processing would continue like normal for ANYBODY left using the network.

A black hole would have to DEVOUR Earth to stop BTC-data from propagating.


Now don't be confused- You JUST setup a Multi-Bit wallet

After setting up Multi-Bit, setup an account with CoinDesk

You need an "exchange" to buy into the currency. You only need a WALLET, to begin to RECEIVE or "handle" the currency. You can use your wallet to order things online. OR, If you are lucky enough to have many vendors nearby who deal in BitCoin, you may be able to just go down the street and use BitCoin. It's possible you need only your cell phone and a willing vendor to use BitCoin down the street.

You can download a Wallet-App, for your cellphone.

The wallet we just setup (from Multi-Bit) is a personal wallet to hold your BitCoin on your personal computer. You can transfer BitCoin from your online web-wallet to your personal wallet. You can keep BitCoin on your computer-wallet, or your cell phone-wallet, or on the web.

But as you setup an account with CoinDesk, you will create a "online-wallet" for CoinDesk. That wallet will be ONLINE, you will access it through the web browser on your computer. And it will be there to receive your BitCoin when it "comes" to your Coin-Desk exchange account later. Or, you'd use a BitCoin (online) wallet if you were exchanging other different currencies with CoinDesk.

Coin Desk works in both directions. it will SELL you coin. it will BUY your coin.

Could you use EXCLUSIVELY the CoinDesk (online) wallet?

Yes. But many people carry BitCoin on their phones.

I recommend you start getting accustomed to maintaining your OWN wallets immediately. You do NOT want to let others have access to your wallets. The whole philosophy that BitCoin is based upon is one of distributed responsibility. Once you start centralizing that "dependence" upon one body, you create a situation where SOMEONE will want to "break in" and steal everyone's valuables.

Keep your own stuff. You are perfectly capable of keeping it safe.

This is why you should start... RIGHT NOW... in learning about these things, and start thinking about it and learning how to backup your wallets with digital "gold".

Sign Up with Coin Desk - setup their web based wallet

Then respond to the verification email they send you

The eMail "verify" link will bring you back to COIN DESK

FINISH setting up the Exchange Account- & Linking your Bank

Coin Desk uses a two-stage verification process

Coin Desk will use your phone in conjunction with your eMail to verify it is YOU doing the transacting.

So go through eMail. Then as you login, they will ASK you to verify with a code texted to your phone. You will input that code. Or you will NOT be able to setup (or operate) your account. You will need to do this, in order to input your bank information. Coin Desk will seek your checking route number, and account number.

Then if you want an IMMEDIATE Verification CoinDesk will also ask for your web login ID and PASSWORD for your bank account.

I gave them mine. CoinDesk verified my account within 30 seconds. And then I bought BitCoin, about 5 minutes later.

It will take you 3 days or so, if you want to use a slower verification method. After that slower Bank Verification, THEN you can re-login to the exchange, and you may purchase BitCoin.

After all the "setup" and verification, you BUY your first BTC

A Video walkthrough of the basics to buy BitCoin

MAYBE... it's time to "ComitttT-T-T-T-T-t-ttt"

I have been watching BTC for a while now, and begun analysis

I have been performing an "unofficial" correlation between normal market sector indicators and the new ones.


Bit Coin is completely DIFFERENT in behavior from all previous currency. For instance, DEFLATION is built into this currency. And in this currency deflation is a GOOD THING. But if we experience deflation with the American Dollar, that is very very EXTREMELY bad.

The American Petro dollar is now experiencing a Petroleum based deflation. And it COULD lead to a potential complete collapse. It's a possibility.

The crypto-currencies are a completely new animal and operate by different rules. But ONE of their fudamental rules is THIS... it does NOT limit itself to the elite of the world. It is in every respect a NEW FRONTIER, both economically and financially. It represents quite a lot of potential growth if it DOES become a "major" player in a new technology driven economy.

The "thing" that is going to "drive" crypto currency" to a success would be it's utilitarian features that enable a country with NO financial system to operate easily with a small technology footprint. This means, third world countries, and countries going through an active financial collapse. Or some form of natural disaster. I believe that THOSE are the moments of "punctuation" that will see BitCoin become established. And very useful.

It conceivably could SAVE... many many lives. It depends exactly on the situation, but, I believe where BitCoin will really be able to SHINE, is where conditions are WORST.

People in the Western World, are the people who QUESTION and DOUBT BitCoin. And that is usually because they are fed, clothed, have shelter, and can ARGUE about "percentage of return" on investment. But, BitCoin is designed to be equally available and a non-centrally banked currency.

Digital Money has been tried before. But so far, BitCoin appears to be functioning quite well.

I purchased Feb12- barely 18 hours ago. This is TODAY Feb13

BTC Price on Feb14, at 1:52am $247.36

More by this Author


Comments 4 comments

Dressage Husband profile image

Dressage Husband 22 months ago from Pine Grove, Nova Scotia, Canada

Why would I want to buy Bit coin? You have not explained the reasons why it might be a good idea or not as the case may be.


stvrich profile image

stvrich 22 months ago from East Rockaway - Long Island - Planet: Earth ~ Author

Okay... I will answer. It is impossible to give a meaningful "short" answer, but- The SHORT answer is "The American Dollar is completely crashing", and it has been for years now. Down below I will give you a link to a GOOD discussion between a proponent of Bit-Coin-Currency as he talks to Canadian Legislature, stating his case on WHY BitCoin is a good, safe, and fair system of Global Currency ---it's a very very good (but long) talk ... There is no "short" answer I can give you other than , "the American Dollar is nearly worthless now". I believe it's in all the financial news- continuously and absolutely IN YOUR FACE Daily. All American's just accept this type of financial rhetoric as "normal" background noise lately so are actually DEAF to what it means I think. --It's possible that many Americans have no idea what a 'stable" economy may resemble. Also, almost every one of the articles I've written lately is actually about this, or related to this problem, and about the history leading up to it this (financial) condition we find ourselves stuck in. It's such a huge and multi-fasceted problem now... and It's a HUGE history, it's a HUGE problem that's been brewing for decades... It is continuously in the news.... For Years now. And the face of this problem has "evolved" from ONE thing, to another, over decades. At first, all America thought these issues were "unrelated", but looking BACK on history? -it's absolutely related in a "string" of cause-and-effect .... and more recently you may remember, TARP (2008 and 2009) . "Quantitative Easing", Corporate BAIL-OUTS of banks and trading companies that are insolvent and the (linked) fundamental loss of power of the (Global) petro dollar. Greece ...Russia... China... Japan... Argentina, and general (global) banking collapses, and the Loss of any financial strength in the American Dollar. The American Dollar has been the WORLDS "defacto (global) currency", but it can lose that status at any moment... Nations may shun the Dollar entirely-soon. I have another article here ("converting the American Dollar into other assets") where I quote a Billionaire who says "America does not deserve it's 1.6 percent return on it's bond rating". This "Billionaire" (Ned Goodman) has withdrawn his investing in ANY form of American-Based stock or monies... It is entirely possible that, the world in general, may simply STOP using the American dollar as it's "preferred currency", and then ALSO restrict us from "freely printing our money" in our efforts to stave off an immediate financial crash. If an explanation beyond this is required, no amount of explanation is going to work.... ever... to explain why an "alternate currency" may be absolutely required to survive upcoming financial changes. Go ahead and wait and see. By definition, a person will NEVER SEE a financial crash coming until it is too late. (Then they all say "we saw the signs") People "See" the "Signs" of a financial crash, but they also do not ALLOW themselves to see (and REACT to) the signs. (they simply don't want to believe what's obvious) . I'm writing an article (right this second) on a LITTLE bit of the internecine squabbling in our bicameral political houses- and congresses uselessness in setting intelligent fiscal OR global policy due to it's being a bank-led / bank-managed "political" body. .... So, "WHY" would we use Bit Coin? ... Because... .......... it IS a good idea. Bit-Coin will decentralize control of money, and put more power and control directly into the hands of The People,... And it will (immediately) begin freeing up a new economic system for systemic growth and employment. ... And you can begin learning to convert your American Dollars right this moment with it, And unless you've not paid any attention to the news at all lately. then all of this will mean very little to you. I cannot BUILD a case from the ground-up for people who think the American dollar is JUST... fine. The American Dollar is NOT "fine". It's possible that the American financial crash could be highly highly destructive. Some people actually have NO IDEA what's brewing here, - When it's going to be the BIGGEST financial crash / explosion of all. - So, Why Bit Coin? ... my answer is. WHY would anybody be WONDERING if there is any problem with the American Dollar? -it's in the news- each- day- ... And why aren't people LOOKING for a solution to the problem? ... I will attach that link to a talk given by Andreas Antonopoulos in his meeting with Canadian Legislature, immediately below this. - LISTEN to his talk. And listen to the Candians, they sound like very good, average, (but intelligent and curious) people who truly WANT to know what the story is with an alternative currency. ... It's a change that is required, and it is required immediately. it will take TIME - so the sooner we begin, the better. It's the building of a whole new economy.


stvrich profile image

stvrich 22 months ago from East Rockaway - Long Island - Planet: Earth ~ Author

Andreas Antonopoulos is addressing COUNTRIES... on the topic of BitCoin, and decentralized currency. In this video, he is presenting it to Candian Legislature. The general topic has been in news for YEARS... and is of utmost serious threat to our way of life. (that's "why" BitCoin) ........................................................................................................ https://www.youtube.com/watch?v=xUNGFZDO8mM


stvrich profile image

stvrich 22 months ago from East Rockaway - Long Island - Planet: Earth ~ Author

I have "seen" all types of video's and articles "refuting" the usability, functionality or even the "Truth" of the Digital Currency phenomenon. I watched one particular You-Tuber, rant at his audience how "Retarded" Digital Currency was... then a few months later, he "ranted" about how our Leaders are lying to us, and using the Governmental Budget foolishly, and how they are ruining the economy, and making the American Dollar WORTHLESS... What I have come to a conclusion on is, ... I have NO PROBLEM, accepting a currency that has a "Consciously Determined" and arbitrary (but planned) Value... purely by a "Choice"... (some cultures use sea-shells or animal dung) ... I'm "fine" with something that is "21st century" and preplanned, like BitCoin. ... and what I think people should realize is that the American Dollar is JUST as Arbitrary as a digital currency is. It is all a "consensus" that "some kind of THING... has a "value". That is what an American Dollar is. ... and that is what a BitCoin is. SAME thing. --- the ONLY thing that differs in the currency? ... is WHO has most direct say, about what the value is.... and with BitCoin, it is merely predetermined, and set. It is preplanned. It DOES resemble "Gold" in it's behavior in many many ways. But it is not subject to "whims" of government, nor of the Fed. . it is gold-like. But not - "Gold". And it is designed to be a substitute. I for one don't care if some of the "geeks" who started the movement end up wealthy. . Bill Gates himself seems to be "buying into" the bitcoin phenomenon, more so than his (close) friend Warren Buffet. (the Oracle of Omaha)

    Sign in or sign up and post using a HubPages Network account.

    0 of 8192 characters used
    Post Comment

    No HTML is allowed in comments, but URLs will be hyperlinked. Comments are not for promoting your articles or other sites.


    Click to Rate This Article
    working