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In the last few weeks, bitcoin crossed 40K dollars. That's twice bigger than its
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2017 peak when it turned into a bubble. If you were smart enough, you probably bought
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a lot of bitcoins when bitcoin crashed and was floating around 3K dollars. If you invested
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in bitcoin just two years ago, you could have easily grown your money by at least ten times.
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But the question is, how do you buy bitcoins? I get it, there are a lot of videos on the
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internet explaining how to buy bitcoins, but let's be honest,
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Most of these videos don't answer basic questions. How do I buy bitcoins safely? Where do I get
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my private keys? Why do I even need a private key? Where do I store my bitcoins? How do
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I know that it's safe? Why do they always get hacked? And a million other questions
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that most of these videos do not answer. So here is your step by step on how to start
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investing in bitcoin safely. I did my best to write this script as soon as possible,
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but it will take forever for this video to be published because our motion designers
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are going to take forever to make these cool animations. So show them some love by giving
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this video a thumbs up.
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Before you buy bitcoins, you have to find
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a place to store them. When you have a few hundred dollars, you can keep them in your
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wallet. If you have a lot of cash, you might need a safe, or you can simply keep them in
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a bank and use your debit card to access that cash.
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Cryptocurrencies work exactly the same way. But to create a wallet, you need to download
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the entire history of bitcoin transactions. Since it's a decentralized system that cannot
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be hacked, you need to have the entire history on your computer or hard disk, which you can
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get by going to bitcoin.org. Chose your operating system and install over 300 gigabytes of blockchain.
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Good luck! Once you install it on your computer, it will
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automatically create a file called wallet.dat, which is going to be your wallet. If you open
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it, you will find a randomly generated code, which is your address. If someone wants to
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send you bitcoins, they can do that through that address.
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Theoretically, you can create unlimited number of these wallets within that file. You can
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open that file on any computer anywhere, and your bitcoins will always be with you. No
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one can track you, you can travel carrying millions of bitcoins, and no one will know.
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And that's one of the greatest advantages of bitcoin. However, there is nothing perfect
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in this world. Everything comes with some strings attached.
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If you don't have a password on your wallet, then anyone can access it and easily steal
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your bitcoins, so you must always have a really strong password. But if you forget that password,
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there is no way you can restore your bitcoins. It's not a bank whom you can call to help
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you out. And that is both its advantage and disadvantage.
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When you use a bank, they manage your money, but in return, they have full control to your
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money and can even decline your transactions. But if something goes wrong, they are responsible!
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However, when it comes to bitcoin, no one knows how much money you have! You can send
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them to whomever you want, and no one can freeze your account. Your money is safe, but
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YOU will be managing your money now and not the bank, which means, if something goes wrong,
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even if you accidentally send bitcoins to the wrong person, you can't fix it. If you
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forget your password, there is no one you can call to help you out! If someone steals
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your password, you can't call the bank to block your account. You become the bank of
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your money, and you can't blame anyone but yourself if something goes wrong.
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And that's why we have
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2. Online wallets
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Online wallets are exactly like banks for cryptos. All you have to do is sign up, and
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you will automatically be given an address and a private key that consists of 12 words.
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You can use that address to send or receive bitcoins instantly. You can download the app
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on your phone and start sending and receiving money with a few clicks.
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You don't have to download the entire history of bitcoin transitions like in the first case
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because that online wallet does everything for you. It's even easier than opening a bank
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account. But there is a catch. Everything that's easy always comes with a
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catch. In the first case where you had to download
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the entire bitcoin blockchain, you were the only one who had access to your wallet, but
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in the second case, the online wallet belongs to that company, and you are only given access
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to it exactly like banks. When you keep your money in a bank, you don't
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own that bank. The bank simply opens an account for you and gives you access to that account.
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Which means the bank theoretically can block you, freeze your account or even steal your
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money. But because banks are heavily regulated, at least compared to online crypto wallets,
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it's very unlikely that any major bank would do something like that. Unless you are going
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to do some shady business. And keeping your money in an online wallet
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is pretty similar to keeping them in a bank since that online wallet has full access to
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your wallet. Blockchain is definitely extremely difficult
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to hack, especially as the system grows bigger and bigger. However, online wallets are connected
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to an online server, which means hackers can hack that server, get access to user's wallets
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and then steal their bitcoin, which actually happened with multiple wallets such as Coincheck,
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, Jaxx and many others. Does that mean there is no way to store bitcoins
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safely? Luckily, there is!
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Have you ever seen bitcoin ledgers in the form of a USB drive? They look cool, aren't
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they? They are called hardware wallets, and they
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seem to be the future of cryptocurrencies. Instead of downloading the entire bitcoin
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blockchain or keeping your bitcoins in an online wallet that's vulnerable, you can get
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one of these ledgers that already has the bitcoins blockchain.
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Once you get one, you active it, the ledger will randomly generate a private key that
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consists of 12 random words. And then you have to set up a pin-code. The only way to
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send bitcoin is to connect that ledger to a device like a computer, enter your pin-code,
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and you are the only one who will have access to your private key, unlike online wallets.
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The most famous hardware wallet is the Ledger, which link I have left in the description.
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It's an affiliate link, which means we will get a few dollars if you use that link, so
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if you want to support us to make more similar videos, you can use that link to get your
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ledger.
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how to actually buy bitcoins
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Once you have determined where you want to
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store your bitcoins, it's time to find out how to buy bitcoins. Cryptocurrencies are
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traded like stocks. You need a broker that can help you to find out someone who is willing
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to exchange his bitcoins for a certain amount of US dollars for examples such as the Coinbase
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or Gemini. There are a lot of them, but these are the most trusted ones as far as I know.
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Again I have left an affiliate link for those who want to support us.
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You just have to sign up and use your bitcoin address when buying bitcoins.
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Pay attention to the fees because based on the method you want to use to pay for bitcoins,
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fees could be from a tiny percentage to a decent amount. You don't want to end up paying
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a fortune in fees. So pay attention to the fees.
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But the question is: should you use an online wallet or a hardware wallet?
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The answer is both! Hardware wallets are a better option if you
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want to buy a lot of bitcoins and hold them for a long time, while online wallets are
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much comfortable for day to day transactions. If you are just starting out and want to play
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around, start with an online wallet. If you want to get serious and want to invest heavily
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in cryptocurrencies, then it's much safer to spend a hundred bucks and get a ledger
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just to make sure that your bitcoins are safe. But remember that if you forget your private
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key, you will lose your bitcoins forever.
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A lot of enthusiasts are going to dislike this video because I have missed a lot of
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things and shed some light on the disadvantages of cryptos, but my job is to make sure that
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I present to you both the positive sides and negative sides and let you decide what you
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want to do. For gods sake, don't believe the scammers
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who are going to use our name to ask for money or scam you any other way. If I am the one
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who is replying to you, remember, my name will be highlighted with a tick beside it.
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Cryptocurrencies definitely have a future but remember that this technology is still
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at its early stage and has a lot of flows. That's the nature of any new technology, it
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will take us some time to fix all the issues, and make it both safe and easy to use. It's
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like the internet in the 2000s. Bitcoin price could reach 100K dollars or
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even 200K dollars, but it also can crash to rock bottom and worth pennies. I am not discouraging
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anyone but if you decide to invest in bitcoin, remember that it's a risky investment, which
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means, if it succeeds, you will get generously rewarded. If it doesn't, you can end up losing
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your entire investment. It's impossible to explain everything in a
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10-minute video but I hope this video answered your major questions about how to buy bitcoins,
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where to store your bitcoins, and how safe these wallets are.
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if you want to support our channel, you can do so by using our affiliate links in
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the description, and remember that you can track my investments by joining my Patreon
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and get four free stocks from Webull if you open an account and depot 100 bucks
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Thanks for watching and until next time.