How to buy Bitcoin (BTC) and Ethereum (ETH) in 4 Steps | Financial Education

hey what's up bees i am fee and this is channel b xyz and today we're gonna be talking bitcoins and other cryptocurrencies so if you're here today you're probably watching the news and you saw the crazy rally the cryptocurrencies have taken bitcoin is currently trading close to forty thousand dollars that is crazy and if you're like me you may be thinking how can i buy bitcoins and in today's video i'm gonna show how simple it can be to buy cryptocurrencies in four easy steps one decide where to buy bitcoin two think about how to store your cryptocurrencies three make your purchase and four manage your investment and if it's your first time like it's mine it's okay to feel a little bit nervous and regardless of where you get it make sure you are protected you should always consider the risk of investing in digital assets one thing to keep in mind is always never buy more than you can lose but before we jump right in i would like to ask you one thing if you can smash that like button that would make me very happy and you're very rich no you won't but he might are you ready step number one decide where to buy your cryptocurrency and there are three main ways to get coins cryptocurrency exchanges such as these ones the most popular find more details on the descriptions i'm leaving the links what are their fees what are their pros and cons there are also the traditional brokers so brokers like robin hood or wibble they are now offering you to buy crypto currencies through them and several others are claiming they're going to be offering that soon there's also some other less common ways such as bitcoin atms peer-to-peer bitcoin exchanges bitcoin futures and also greyscale funds i won't go into much detail on those because they are the less common ways and i would not suggest you going down that route if this is your first time there are some things you should know before buying have information you may need handy opening an account can take only minutes but it helps a lot if you have all your information and you're ready to open those accounts things that you're probably gonna need are ids driver license or a passport credit or debit cards and if you're thinking about using your bank to fund your account your account information as well but i would highly recommend you not using your credit card and the reason for that despite of the fact some of these brokers offer the option to fund your account or transactions with credit cards they will often charge a ridiculous high fee for you to do that and it could range from anywhere from three to six percent and if you're actually borrowing money from your credit card you're going to be paying very high interest on the other side so it's just a dumb idea to use your credit card and because these are digital assets you should also know if you later sell for a profit you're probably gonna incur in taxes but unlikely some other common investments these are not securities so unlike stocks that comes with insurance from the fdic and the sipc these cryptocurrencies are not insured by any of these organizations some brokerage will offer some sort of limited protection but none of that will cover if you actually go through theft so if anyone gains access to your password and take your bitcoins they're gone and because of that one thing you should always protect yourself against is using a safe internet connection never trade bitcoins on public wi-fi or shared connections coffee shops hotels or flights if anyone can access to your transactions they can steal your coins and they're gone for good and that takes us to step number two how to store your cryptocurrencies a hot wallet or a cold wallet that's right and i'll explain a hot wallet means that your coins are going to be stored in the cloud and you're probably going to be accessing it through an app or through your computer browser any trading exchange will offer you one for free but many users prefer to store all their coins in a different hot wallet which are usually also free to download and use and because all these services are online there's always the risk that someone can gain access to it through hacking and could potentially steal everybody's money and once that money is gone it's gone for good and that takes us to the best way to store your coins which are called cold wallets they are similar to these thumb drives and they usually cost about a hundred bucks which kind of means once you have your coins you can download them from the web into these things and they will operate like a physical wallet and it's going to be safe with you almost impossible to get hacked like everything else there are pros and cons but most people that have a lot of money on coins they typically use code wallets to store their money so now that you have your information handy you've got your wallet let's move to step three just making your purchase right here right now i'm about to make my first bitcoin an ethereum purchase i'm gonna grab my phone and all the protection tips that i've shared before and with that we're gonna make my first bitcoin purchase [Music] oh [Music] yay confettis again i love robin hood if you're not using robinhood i will share a link below that if you click and fund your account on robinhood which is free to trade i'm gonna get one free stock and you're gonna get one free stock too now let me see is it here let us do ethereum to ether [Music] there's still christmas playing back on my mind oh no no confettis this time unfortunately it's fine okay so here it is nine bucks worth of cryptocurrencies i now own bitcoin and ether where are they they're right here down here and see they're right here on my hot wallet stored in robinhood and i feel a lot more confident now in terms of how to buy these things i hope you are too but there is still one step left are you ready step four which is very simple managing your investment so now that you have purchased bitcoins they are digital assets so you would manage them the same way you manage your stocks or any other assets freely so if it's trading higher one day and you want to make a profit you sell them very similar to how you bought you go into your app and instead of buying you sell you estimate how much you want to sell and some second some melee mini micro millisecond meter seconds later it's sold if it's trading lower and you want to cut off your losses you sell at a loss and you're done and you're firmware like me you buy and hold to stuff that's fine too you can buy and hold forever and definitely your coins are safe there they're not going to go anywhere and i want to wrap up this video with this question should you buy bitcoins you should know that bitcoins are incredibly speculative and volatile buy stock trading could give you the same type of thrill but is probably a lot safer but i will not tell you what to do and what not to do my intent here was just to show that it can be super easy and simple to buy these things as i have just proven here thanks for watching and see you next time this was fee from channel b dot xyz [Music] [Applause] let's try this one time remember when i was a teenager oh look what i got hey dude okay the one is gone

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