With Bitcoin hitting record highs last month and spans of companies investigating how to utilise blockchain technology to develop faster and more secure businesses cryptocurrency is here to stay.
The burgeoning technology is even making its mark on the online gambling sector both as a safe and secure deposit method but also in terms of provably fair blockchain-based casino games.
If you are interested in taking your place in the rise of this historical new enterprise here are tips for getting Bitcoin savvy in 2021:
Acquiring Your First Bitcoin
At first glance, the world of blockchain and cryptocurrency can appear daunting. Don’t let this put you off getting into the market. Here are three ways for you to get your first Bitcoin:
- Mining – if you have the cash up front to invest in an ASIC (Application Specific Integrated Circuits) computer you can run your own home-based mining rig. While this has a sizable upfront cost and draws a lot of power it can be incredibly rewarding over the long term.
- Investing – there are several corporate mining companies which will allow you to invest a set amount with them and offer a percentile return on your investment. This return is paid out in an agreed cryptocurrency. Once the return is paid you can choose to reinvest or simply withdraw your dividend.
- Trading – this is the simplest way to get your hands on Bitcoin. All you need to do is create an account at a cryptocurrency exchange and purchase any amount of digital coinage that you want to. These exchanges also facilitate the sale of cryptocurrency which allows savvy buyers to purchase low and sell high in order to make a profit.
Whether you are dealing with cryptocurrencies or gambling online we always recommend starting small and only using the money you can afford to lose. Bitcoin, like any other investment vehicle, has its highs and lows. So, start small and be patient, this is for the long term.
Where Can I Buy Bitcoin?
The dream would be to be able to simply approach a cryptocurrency provider like Bitcoin directly and buy from the source however for the time being you will have to buy from an exchange.
Based on user reviews and third-party appraisals these 5 exchanges have the best online reputations and are considered friendly to new users:
- Coinbase – offers great range of cryptocurrencies and is considered a stable platform
- Cash App – touted as being great for first time Bitcoin buyers
- Coinmama – praised for their excellent customer service
- Binance – great option for investors looking for alternatives to Bitcoin
- Robinhood – this is perfect for beginners as they offer commission free trades
Before jumping onto any exchange, we recommend doing your own research. Be sure to read their terms and conditions for purchases and sales plus what level of information they require from you. Take your time and choose the exchange that best suits your needs.
The Best Wallet to Secure Your Bitcoin
In this world, a ‘wallet’ is an app or piece of hardware where Holders securely store their access keys for their cryptocurrencies. While many first time buyers keep their crypto-coins on an exchange more mature investors recommend moving them to a secure offline wallet.
This offline security method is called Cold Wallet storage, where anything connected to the internet is considered ‘hot’ and anything not connected is considered ‘cold’.
There are two types of Cold Wallets for you to consider:
- Hardware Wallets – these are specialised pieces of hardware much like a flash drive which are designed specifically to store Bitcoin access keys. Best of all they come with a personalised recovery key (it is vital not to lose this) which will allow you to regain access to your cryptocurrency even if the wallet is damaged.
- Paper Wallets – this is an interesting mix of old school and new school thinking. To create your secure paper wallet, you simply need to download a paper wallet app, disconnect your computer the internet and print off the slip with your private Bitcoin address on it. Since the creation of hardware wallets, however, paper wallets are rarely used anymore.
Regardless of which cold storage method or device you opt for the watchword in all of this is vigilance. Blockchain technology ensures that your cryptocurrency is protected by the highest standards of digital security, but your password is the one key that can unlock it all.
The requires that you keep the key private and secure, however, also accessible as should you lose it there is no chance of recovering it.
Is Bitcoin Totally Anonymous?
The real answer here is both yes and no. In a traditional banking environment, the government, credit card companies, loan offices and other financial institutions can draw reports on your financial transactions, this is not the case with Bitcoin.
While there is a public ledger for cryptocurrency transactions there are no personal details provided just the code that represents each wallet that took part in the transaction. This means that the details of the transactors are private.
However, should you then choose to move your Bitcoin from to your personal wallet using an exchange that exchange knows who you are, thanks to the account you created with them and has visibility of the withdrawal you just made.
If you’re looking to protect your privacy there is always the option to bounce transaction through two or more exchanges, as some exchanges require less information in their account set up than the more mainstream providers.